COLUMBIA, SOUTH CAROLINA

SOUTH CAROLINA ELECTRIC & GAS COMPANYCOLUMBIA, SOUTH CAROLINA

DEPRECIATION STUDY

CALCULATED ANNUAL DEPRECIATION ACCRUALS

RELATED TO ELECTRIC AND COMMON PLANT

AS OF DECEMBER 31, 2003

Harrisburg, Pennsylvania Calgary, Alberta Valley Forge, Pennsylvania

SOUTH CAROLINA ELECTRIC & GAS COMPANY

Columbia, South Carolina

DEPRECIATION STUDY

CALCULATED ANNUAL DEPRECIATION ACCRUALS

RELATED TO ELECTRIC AND COMMON PLANT


GANNETT FLEMING, INC. - VALUATION AND RATE DIVISION

Harrisburg, Pennsylvania

GANNETT FLEMING, INC.P.O. Box 67100Harrisburg, PA 17106-7100Location:207 Senate AvenueCamp Hill, PA 17011

Office: (717) 763-7211Fax: (717) 763-4590www.gannettfleming.com

July 1, 2004

South Carolina Electric & Gas Company1426 Main StreetColumbia, SC 29201Attention Mr. Barry T. Burnette Director Corporate and Depreciation Taxes Plans and Payroll

Ladies & Gentlemen:

Pursuant to your request, we have conducted a depreciation study related to theelectric and common plant of South Carolina Electric & Gas Company as of December 31, 2003. The attached report presents a description of the methods used in theestimation of depreciation, the summary of annual and accrued depreciation, thestatistical support for the service life and net salvage estimates, and the detailedtabulations of annual and accrued depreciation.

Respectfully submitted,

GANNETT FLEMING, INC.

/s/

JOHN J. SPANOSVice PresidentValuation and Rate Division

JJS:krm

A Tradition of Excellence

- iii -

CONTENTS

PART I. INTRODUCTIONScope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2Plan of Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2Basis of Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-3

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-3Survivor Curve and Net Salvage Estimates . . . . . . . . . . . . . . . . . . . . . . . . . I-3Calculation of Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-4

PART II. METHODS USED IN THEESTIMATION OF DEPRECIATION

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-2Service Life and Net Salvage Estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-3

Average Service Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-3 Survivor Curves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-3

Iowa Type Curves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-5Retirement Rate Method of Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-10

Schedules of Annual Transactions in Plant Records . . . . . . . . . . . . II-11Schedule of Plant Exposed to Retirement . . . . . . . . . . . . . . . . . . . . . II-14Original Life Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-16Smoothing the Original Survivor Curve . . . . . . . . . . . . . . . . . . . . . . . II-18

Field Trips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-19Service Life Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-24Salvage Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-27Net Salvage Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-27

Calculation of Annual and Accrued Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . II-30Single Unit of Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31Group Depreciation Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31

Remaining Life Annual Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31Average Service Life Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31

Calculation of Annual and Accrued Amortization . . . . . . . . . . . . . . . . . . . . . . . . . II-32

PART III. RESULTS OF STUDYQualification of Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-2Description of Depreciation Tabulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-2Summary of Estimated Survivor Curves, Net Salvage, Original Cost,

Book Depreciation Reserve and Calculated Annual DepreciationRates as of December 31, 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-3

Estimated Survivor Curves, Net Salvage and Calculated AnnualDepreciation Accrual Rates for the Jasper Facility as ofCompleted Construction During 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-9

PART I. INTRODUCTION

I-2


DEPRECIATION STUDY

CALCULATED ANNUAL DEPRECIATION ACCRUALSRELATED TO ELECTRIC AND COMMON PLANT


PART I. INTRODUCTION

SCOPE

This report presents the results of the depreciation study prepared for South

Carolina Electric & Gas Company (“Company”) as applied to electric and common plant

in service as of December 31, 2003. It relates to the concepts, methods and basic

judgments which underlie recommended annual depreciation accrual rates related to

current electric plant in service.

The service life and net salvage estimates resulting from the study were based on

informed judgment which incorporated analyses of historical plant retirement data as

recorded through 2003; a review of Company practice and outlook as they relate to plant

operation and retirement; and consideration of current practice in the electric industry,

including knowledge of service life and salvage estimates used for other electric properties.

PLAN OF REPORT

Part I includes brief statements of the scope and basis of the study. Part II presents

descriptions of the methods used in the service life and salvage studies and the methods

and procedures used in the calculation of depreciation. Part III presents the results of the

study, including depreciation rates, accruals and calculated remaining lives.

I-3

BASIS OF STUDY

Depreciation

For most accounts, the annual depreciation was calculated by the straight line

method using the average service life procedure and the remaining life basis. For certain

General Plant accounts, the annual depreciation was based on amortization accounting.

The calculated remaining lives and annual depreciation accrual rates were based on

attained ages of plant in service and the estimated service life and salvage characteristics

of each depreciable group.

Survivor Curve and Net Salvage Estimates

The procedure for estimating survivor curves, which define service lives and

remaining lives, consisted of compiling historical service life data for the plant accounts or

other depreciable groups, analyzing the historical data base through the use of accepted

techniques, and forecasting the survivor characteristics for each depreciable account or

group. These forecasts were based on interpretations of the historical data analyses and

the probable future. The combination of the historical data and the estimated future trend

yields a complete pattern of life characteristics, i.e., a survivor curve, from which the

average service life and remaining service life are derived.

The historical data analyzed for life estimation purposes were compiled through

2003 from the Company’s plant accounting records. Such data included plant additions,

retirements, transfers and other activity recorded by the Company for each of its plant

accounts and subaccounts.

The estimates of net salvage by account incorporated a review of experienced costs

of removal and salvage related to plant retirements by function, and consideration of trends

I-4

exhibited by the historical data. Each component of net salvage, i.e., cost of removal and

salvage, was stated in dollars and as a percent of retirement.

An understanding of the function of the plant and information with respect to the

reasons for past retirements and the expected causes of future retirements was obtained

through field trips and discussions with operating and management personnel. The

supplemental information obtained in this manner was considered in the interpretation and

extrapolation of the statistical analyses.

Calculation of Depreciation

The depreciation accrual rates were calculated using the straight line method, the

remaining life basis and the average service life depreciation procedure. The life span

technique was used for certain facilities. In this technique, an average date of final

retirement was estimated for each such facility, and the estimated survivor curves applied

to each vintage were truncated at ages coinciding with the dates of final retirement.

The continuation of amortization accounting for certain accounts is recommended

because of the disproportionate plant accounting effort required when compared to the

minimal original cost of the large number of items in these accounts. An explanation of the

calculation of annual and accrued amortization is presented on page II-32 of the report.

PART II. METHODS USED INTHE ESTIMATION OF DEPRECIATION

II-2

PART II. METHODS USED INTHE ESTIMATION OF DEPRECIATION

DEPRECIATION

Depreciation, as defined in the Uniform System of Accounts, is the loss in service

value not restored by current maintenance, incurred in connection with the consumption

or prospective retirement of electric plant in the course of service from causes which are

known to be in current operation and against which the utility is not protected by insurance.

Among the causes to be given consideration are wear and tear, decay, action of the

elements, inadequacy, obsolescence, changes in the art, changes in demand,

requirements of public authorities, and, in the case of natural electric companies, the

exhaustion of natural resources.

Depreciation, as used in accounting, is a method of distributing fixed capital costs,

less net salvage, over a period of time by allocating annual amounts to expense. Each

annual amount of such depreciation expense is part of that year's total cost of providing

utility service. Normally, the period of time over which the fixed capital cost is allocated to

the cost of service is equal to the period of time over which an item renders service, that

is, the item's service life. The most prevalent method of allocation is to distribute an equal

amount of cost to each year of service life. This method is known as the straight line

method of depreciation.

The calculation of annual depreciation based on the straight line method requires

the estimation of average life and salvage. These subjects are discussed in the sections

which follow.

II-3

SERVICE LIFE AND NET SALVAGE ESTIMATION

Average Service Life

The use of an average service life for a property group implies that the various units

in the group have different lives. Thus, the average life may be obtained by determining

the separate lives of each of the units, or by constructing a survivor curve by plotting the

number of units which survive at successive ages. A discussion of the general concept of

survivor curves is presented. Also, the Iowa type survivor curves are reviewed.

Survivor Curves

The survivor curve graphically depicts the amount of property existing at each age

throughout the life of an original group. From the survivor curve, the average life of the

group, the remaining life expectancy, the probable life, and the frequency curve can be

calculated. In Figure 1, a typical smooth survivor curve and the derived curves are

illustrated. The average life is obtained by calculating the area under the survivor curve,

from age zero to the maximum age, and dividing this area by the ordinate at age zero. The

remaining life expectancy at any age can be calculated by obtaining the area under the

curve, from the observation age to the maximum age, and dividing this area by the percent

surviving at the observation age. For example, in Figure 1, the remaining life at age 30 is

equal to the crosshatched area under the survivor curve divided by 29.5 percent surviving

at age 30. The probable life at any age is developed by adding the age and remaining life.

If the probable life of the property is calculated for each year of age, the probable life curve

shown in the chart can be developed. The frequency curve presents the number of units

retired in each age interval and is derived by obtaining the differences between the amount

of property surviving at the beginning and at the end of each interval.

II-4

1Winfrey, Robley. Statistical Analyses of Industrial Property Retirements. IowaState College, Engineering Experiment Station, Bulletin 125. 1935.

II-5

Iowa Type Curves. The range of survivor characteristics usually experienced by

utility and industrial properties is encompassed by a system of generalized survivor curves

known as the Iowa type curves. There are four families in the Iowa system, labeled in

accordance with the location of the modes of the retirements in relationship to the average

life and the relative height of the modes. The left moded curves, presented in Figure 2, are

those in which the greatest frequency of retirement occurs to the left of, or prior to, average

service life. The symmetrical moded curves, presented in Figure 3, are those in which the

greatest frequency of retirement occurs at average service life. The right moded curves,

presented in Figure 4, are those in which the greatest frequency occurs to the right of, or

after, average service life. The origin moded curves, presented in Figure 5, are those in

which the greatest frequency of retirement occurs at the origin, or immediately after age

zero. The letter designation of each family of curves (L, S, R or O) represents the location

of the mode of the associated frequency curve with respect to the average service life. The

numbers represent the relative heights of the modes of the frequency curves within each

family.

The Iowa curves were developed at the Iowa State College Engineering Experiment

Station through an extensive process of observation and classification of the ages at which

industrial property had been retired. A report of the study which resulted in the

classification of property survivor characteristics into 18 type curves, which constitute three

of the four families, was published in 1935 in the form of the Experiment Station's Bulletin

125.1 These type curves have also been presented in subsequent Experiment Station

II-6

II-7

II-8

II-9

2Marston, Anson, Robley Winfrey and Jean C. Hempstead. Engineering Valuationand Depreciation, 2nd Edition. New York, McGraw-Hill Book Company. 1953.

3Couch, Frank V. B., Jr. "Classification of Type O Retirement Characteristics ofIndustrial Property." Unpublished M.S. thesis (Engineering Valuation). Library, Iowa StateCollege, Ames, Iowa. 1957.

4Winfrey, Robley, Supra Note 1.

5Marston, Anson, Robley Winfrey, and Jean C. Hempstead, Supra Note 2.

6Wolf, Frank K. and W. Chester Fitch. Depreciation Systems. Iowa State UniversityPress. 1994

II-10

bulletins and in the text, "Engineering Valuation and Depreciation."2 In 1957, Frank V. B.

Couch, Jr., an Iowa State College graduate student, submitted a thesis3 presenting his

development of the fourth family consisting of the four O type survivor curves.

Retirement Rate Method of Analysis

The retirement rate method is an actuarial method of deriving survivor curves using

the average rates at which property of each age group is retired. The method relates to

property groups for which aged accounting experience is available or for which aged

accounting experience is developed by statistically aging unaged amounts and is the

method used to develop the original stub survivor curves in this study. The method (also

known as the annual rate method) is illustrated through the use of an example in the

following text, and is also explained in several publications, including "Statistical Analyses

of Industrial Property Retirements,"4 "Engineering Valuation and Depreciation,"5 and

"Depreciation Systems."6

The average rate of retirement used in the calculation of the percent surviving for

the survivor curve (life table) requires two sets of data: first, the property retired during a

period of observation, identified by the property's age at retirement; and second, the

property exposed to retirement at the beginnings of the age intervals during the same

II-11

period. The period of observation is referred to as the experience band, and the band of

years which represent the installation dates of the property exposed to retirement during

the experience band is referred to as the placement band. An example of the calculations

used in the development of a life table follows. The example includes schedules of annual

aged property transactions, a schedule of plant exposed to retirement, a life table and

illustrations of smoothing the stub survivor curve.

Schedules of Annual Transactions in Plant Records. The property group used to

illustrate the retirement rate method is observed for the experience band 1994-2003 during

which there were placements during the years 1989-2003. In order to illustrate the

summation of the aged data by age interval, the data were compiled in the manner

presented in Tables 1 and 2 on pages II-12 and II-13. In Table 1, the year of installation

(year placed) and the year of retirement are shown. The age interval during which a

retirement occurred is determined from this information. In the example which follows,

$10,000 of the dollars invested in 1989 were retired in 1994. The $10,000 retirement

occurred during the age interval between 41⁄2 and 51⁄2 years on the basis that approximately

one-half of the amount of property was installed prior to and subsequent to July 1 of each

year. That is, on the average, property installed during a year is placed in service at the

midpoint of the year for the purpose of the analysis. All retirements also are stated as

occurring at the midpoint of a one-year age interval of time, except the first age interval

which encompasses only one-half year.

The total retirements occurring in each age interval in a band are determined by

summing the amounts for each transaction year-installation year combination for that age

TABLE 1. RETIREMENTS FOR EACH YEAR 1994-2003SUMMARIZED BY AGE INTERVAL

Experience Band 1994-2003 Placement Band 1989-2003

Retirements, Thousands of Dollars Year During Year Total During Age

Placed (1)

1994(2)

1995(3)

1996(4)

1997(5)

1998(6)

1999(7)

2000(8)

2001(9)

2002(10)

2003(11)

Age Interval(12)

Interval(13)

1989 10 11 12 13 14 16 23 24 25 26 26 131⁄2-141⁄21990 11 12 13 15 16 18 20 21 22 19 44 121⁄2-131⁄21991 11 12 13 14 16 17 19 21 22 18 64 111⁄2-121⁄21992 8 9 10 11 11 13 14 15 16 17 83 101⁄2-111⁄21993 9 10 11 12 13 14 16 17 19 20 93 91⁄2-101⁄21994 4 9 10 11 12 13 14 15 16 20 105 81⁄2-91⁄21995 5 11 12 13 14 15 16 18 20 113 71⁄2-81⁄21996 6 12 13 15 16 17 19 19 124 61⁄2-71⁄21997 6 13 15 16 17 19 19 131 51⁄2-61⁄21998 7 14 16 17 19 20 143 41⁄2-51⁄21999 8 18 20 22 23 146 31⁄2-41⁄22000 9 20 22 25 150 21⁄2-31⁄22001 11 23 25 151 11⁄2-21⁄22002 11 24 153 1⁄2-11⁄22003 13 80 0-1⁄2

Total 53 68 86 106 128 157 196 231 273 308 1,606

II-12

TABLE 2. OTHER TRANSACTIONS FOR EACH YEAR 1994-2003SUMMARIZED BY AGE INTERVAL


Acquisitions, Transfers, and Sales, Thousands of Dollars Year During Year Total During Age

Placed(1)

1994(2)

1995(3)

1996(4)

1997(5)

1998(6)

1999(7)

2000(8)

2001(9)

2002(10)

2003(11)

Age Interval(12)

Interval(13)

1989 - - - - - - 60a - - - - 131⁄2-141⁄21990 - - - - - - - - - - - 121⁄2-131⁄21991 - - - - - - - - - - - 111⁄2-121⁄21992 - - - - - - - (5)b - - 60 101⁄2-111⁄21993 - - - - - - - 6 a - - - 91⁄2-101⁄21994 - - - - - - - - - (5) 81⁄2-91⁄21995 - - - - - - - - - 6 71⁄2-81⁄21996 - - - - - - - - - 61⁄2-71⁄21997 - - - - (12)b - - - 51⁄2-61⁄21998 - - - - 22a - - 41⁄2-51⁄21999 - - (19)b - - 10 31⁄2-41⁄22000 - - - - - 21⁄2-31⁄22001 - - (102)c (121) 11⁄2-21⁄22002 - - - 1⁄2-11⁄22003 - 0-1⁄2

Total - - - - - - 60 (30) 22 (102) ( 50)

a Transfer Affecting Exposures at Beginning of Year.b Transfer Affecting Exposures at End of Year.c Sale with Continued Use. Parentheses denote Credit amount.

II-13

II-14

interval. For example, the total of $143,000 retired for age interval 41⁄2-51⁄2 is the sum of

the retirements entered on Table 1 immediately above the stairstep line drawn on the table

beginning with the 1994 retirements of 1989 installations and ending with the 2003

retirements of the 1998 installations. Thus, the total amount of 143 for age interval 41⁄2-51⁄2

equals the sum of:

10 + 12 + 13 + 11 + 13 + 13 + 15 + 17 + 19 + 20.

In Table 2, other transactions which affect the group are recorded in a similar

manner. The entries illustrated include transfers and sales. The entries which are credits

to the plant account are shown in parentheses. The items recorded on this schedule are

not totaled with the retirements, but are used in developing the exposures at the beginning

of each age interval.

Schedule of Plant Exposed to Retirement. The development of the amount of plant

exposed to retirement at the beginning of each age interval is illustrated in Table 3 on page

II-15.

The surviving plant at the beginning of each year from 1994 through 2003 is

recorded by year in the portion of the table headed "Annual Survivors at the Beginning of

the Year." The last amount entered in each column is the amount of new plant added to

the group during the year. The amounts entered in Table 3 for each successive year

following the beginning balance or addition are obtained by adding or subtracting the net

entries shown on Tables 1 and 2. For the purpose of determining the plant exposed to

retirement, transfers-in are considered as being exposed to retirement in this group at the

beginning of the year in which they occurred, and the sales and transfers-out are

considered to be removed from the plant exposed to retirement at the beginning of the

following year. Thus the amount of plant shown at the beginning of each year are the

TABLE 3. PLANT EXPOSED TO RETIREMENT JANUARY 1OF EACH YEAR 1994-2003 SUMMARIZED BY AGE INTERVAL


Year Exposures, Thousands of Dollars

Annual Survivors at the Beginning of the Year

Total at Beginning

of Age AgePlaced

(1) 1994 (2)

1995 (3)

1996 (4)

1997 (5)

1998 (6)

1999 (7)

2000 (8)

2001 (9)

2002 (10)

2003 (11)

Interval (12)

Interval (13)

1989 255 245 234 222 209 195 239 216 192 167 167 131⁄2-141⁄21990 279 268 256 243 228 212 194 174 153 131 323 121⁄2-131⁄21991 307 296 284 271 257 241 224 205 184 162 531 111⁄2-121⁄21992 338 330 321 311 300 289 276 262 242 226 823 101⁄2-111⁄21993 376 367 357 346 334 321 307 297 280 261 1,097 91⁄2-101⁄21994 420a 416 407 397 386 374 361 347 332 316 1,503 81⁄2-91⁄21995 460a 455 444 432 419 405 390 374 356 1,952 71⁄2-81⁄21996 510a 504 492 479 464 448 431 412 2,463 61⁄2-71⁄21997 580a 574 561 546 530 501 482 3,057 51⁄2-61⁄21998 660a 653 639 623 628 609 3,789 41⁄2-51⁄21999 750a 742 724 685 663 4,332 31⁄2-41⁄22000 850a 841 821 799 4,955 21⁄2-31⁄22001 960a 949 926 5,719 11⁄2-21⁄22002 1,080a 1,069 6,579 1⁄2-11⁄22003 1,220a 7,490 0-1⁄2

Total 1,975 2,382 2,824 3,318 3,872 4,494 5,247 6,017 6,852 7,799 44,780

a Additions during the year.

II-15

II-16

amounts of plant from each placement year considered to be exposed to retirement at the

beginning of each successive transaction year. For example, the exposures for the

installation year 1998 are calculated in the following manner:

Exposures at age 0 = amount of addition = $750,000 Exposures at age 1⁄2 = $750,000 - $ 8,000 = $742,000 Exposures at age 11⁄2 = $742,000 - $18,000 = $724,000 Exposures at age 21⁄2 = $724,000 - $20,000 - $19,000 = $685,000 Exposures at age 31⁄2 = $685,000 - $22,000 = $663,000

For the entire experience band 1994-2003, the total exposures at the beginning of

an age interval are obtained by summing diagonally in a manner similar to the summing

of the retirements during an age interval (Table 1). For example, the figure of 3,789, shown

as the total exposures at the beginning of age interval 41⁄2-51⁄2, is obtained by summing:

255 + 268 + 284 + 311 + 334 + 374 + 405 + 448 + 501 + 609.

Original Life Table. The original life table, illustrated in Table 4 on page II-17, is

developed from the totals shown on the schedules of retirements and exposures, Tables

1 and 3, respectively. The exposures at the beginning of the age interval are obtained from

the corresponding age interval of the exposure schedule, and the retirements during the

age interval are obtained from the corresponding age interval of the retirement schedule.

The retirement ratio is the result of dividing the retirements during the age interval by the

exposures at the beginning of the age interval. The percent surviving at the beginning of

each age interval is derived from survivor ratios, each of which equals one minus the retire-

II-17

TABLE 4. ORIGINAL LIFE TABLECALCULATED BY THE RETIREMENT RATE METHOD


(Exposure and Retirement Amounts are in Thousands of Dollars)

Age atBeginning of

Interval (1)

Exposures atBeginning of Age Interval

(2)

RetirementsDuring Age Interval

(3)

Retirement Ratio

(4)

Survivor Ratio

(5)

PercentSurviving atBeginning of Age Interval

(6)

0.0 7,490 80 0.0107 0.9893 100.00 0.5 6,579 153 0.0233 0.9767 98.93 1.5 5,719 151 0.0264 0.9736 96.62 2.5 4,955 150 0.0303 0.9697 94.07 3.5 4,332 146 0.0337 0.9663 91.22 4.5 3,789 143 0.0377 0.9623 88.15 5.5 3,057 131 0.0429 0.9571 84.83 6.5 2,463 124 0.0503 0.9497 81.19 7.5 1,952 113 0.0579 0.9421 77.11 8.5 1,503 105 0.0699 0.9301 72.65 9.5 1,097 93 0.0848 0.9152 67.5710.5 823 83 0.1009 0.8991 61.8411.5 531 64 0.1205 0.8795 55.6012.5 323 44 0.1362 0.8638 48.9013.5 167 26 0.1557 0.8443 42.24

35.66

Total 44,780 1,606

Column 2 from Table 3, Column 12, Plant Exposed to Retirement.Column 3 from Table 1, Column 12, Retirements for Each Year.Column 4 = Column 3 divided by Column 2.Column 5 = 1.0000 minus Column 4.Column 6 = Column 5 multiplied by Column 6 as of the Preceding Age Interval.

II-18

ment ratio. The percent surviving is developed by starting with 100% at age zero and

successively multiplying the percent surviving at the beginning of each interval by the

survivor ratio, i.e., one minus the retirement ratio for that age interval. The calculations

necessary to determine the percent surviving at age 51⁄2 are as follows:

Percent surviving at age 41⁄2 = 88.15Exposures at age 41⁄2 = 3,789,000 Retirements from age 41⁄2 to 51⁄2 = 143,000 Retirement Ratio = 143,000 ÷ 3,789,000 = 0.0377Survivor Ratio = 1.000 - 0.0377 = 0.9623 Percent surviving at age 51⁄2 = (88.15) x (0.9623) = 84.83

The totals of the exposures and retirements (columns 2 and 3) are shown for the

purpose of checking with the respective totals in Tables 1 and 3. The ratio of the total

retirements to the total exposures, other than for each age interval, is meaningless.

The original survivor curve is plotted from the original life table (column 6, Table 4).

When the curve terminates at a percent surviving greater than zero, it is called a stub

survivor curve. Survivor curves developed from retirement rate studies generally are stub

curves.

Smoothing the Original Survivor Curve. The smoothing of the original survivor curve

eliminates any irregularities and serves as the basis for the preliminary extrapolation to

zero percent surviving of the original stub curve. Even if the original survivor curve is

complete from 100% to zero percent, it is desirable to eliminate any irregularities, as there

is still an extrapolation for the vintages which have not yet lived to the age at which the

curve reaches zero percent. In this study, the smoothing of the original curve with estab-

lished type curves was used to eliminate irregularities in the original curve.

The Iowa type curves are used in this study to smooth those original stub curves

which are expressed as percents surviving at ages in years. Each original survivor curve

II-19

was compared to the Iowa curves using visual and mathematical matching in order to

determine the better fitting smooth curves. In Figures 6, 7, and 8, the original curve

developed in Table 4 is compared with the L, S, and R Iowa type curves which most nearly

fit the original survivor curve. In Figure 6, the L1 curve with an average life between 12 and

13 years appears to be the best fit. In Figure 7, the S0 type curve with a 12-year average

life appears to be the best fit and appears to be better than the L1 fitting. In Figure 8, the

R1 type curve with a 12-year average life appears to be the best fit and appears to be

better than either the L1 or the S0. In Figure 9, the three fittings, 12-L1, 12-S0 and 12-R1

are drawn for comparison purposes. It is probable that the 12-R1 Iowa curve would be

selected as the most representative of the plotted survivor characteristics of the group,

assuming no contrary relevant factors external to the analysis of historical data.

Field Trips

In order to be familiar with the operation of the Company and to observe

representative portions of the plant, a field trip was conducted. A general understanding

of the function of the plant and information with respect to the reasons for past retirements

and the expected future causes of retirements was obtained during this trip. This

knowledge and information were incorporated in the interpretation and extrapolation of the

statistical analyses.

The plant facilities visited on March 30 and 31, 2004, are as follows:

March 30, 2004Cope Generating StationWilliams Generating StationHagood CT Turbine Station

II-20

II-21

II-22

II-23

II-24

March 31, 2004Coit Gas Turbine StationWateree Generating StationMcMeekin Generating StationCentral LabSaluda Hydro Plant

Service Life Considerations

The service life estimates were based on judgment which considered a number of

factors. The primary factors were the statistical analyses of data; current Company policies

and outlook as determined during conversations with management; and the survivor curve

estimates from previous studies of this company and other electric utility companies.

For 25 of the plant accounts and subaccounts for which survivor curves were

estimated, the statistical analyses using the retirement rate method resulted in good to

excellent indications of the survivor patterns experienced. These accounts represent 64

percent of depreciable plant. Generally, the information external to the statistics led to no

significant departure from the indicated survivor curves for the accounts listed below.

STEAM PRODUCTION PLANT311.00 Structures and Improvements312.00 Boiler Plant Equipment314.00 Turbogenerator Units315.00 Accessory Electric Equipment316.00 Miscellaneous Plant Equipment

HYDRAULIC PRODUCTION PLANT331.00 Structures and Improvements332.00 Reservoirs, Dams and Waterways333.00 Waterwheels, Turbines and Generators335.00 Miscellaneous Power Plant Equipment

OTHER PRODUCTION PLANT342.00 Fuel Holders, Producers & Accessories345.00 Accessory Electric Equipment

TRANSMISSION PLANT352.00 Structures and Improvements353.00 Station Equipment355.00 Poles and Fixtures

II-25

DISTRIBUTION PLANT361.00 Structures and Improvements362.00 Station Equipment364.00 Poles, Towers and Fixtures365.00 Overhead Conductors and Devices366.00 Underground Conduit367.00 Underground Conductors and Devices368.00 Line Transformers369.00 Services - Overhead370.00 Meters373.00 Street Lighting and Signal Systems

GENERAL PLANT390.00 Structures and Improvements

Account 368.00, Line Transformers, is used to illustrate the manner in which the

study was conducted for the groups in the preceding list. Aged plant accounting data for

line transformers have been compiled for the years 1991 through 2003. These data have

been coded in the course of the Company’s normal record keeping according to account

or property group, type of transaction, year in which the transaction took place, and year

in which the electric plant was placed in service. The retirements, other plant transactions,

and plant additions were analyzed by the retirement rate method.

The survivor curve estimate is based on the statistical indications for the period

1991 through 2003. The Iowa 40-S0.5 is a reasonable fit of the original survivor curve.

The 40-year service life is within the typical service life range of 25 to 50 years for line

transformers. The 40-year life reflects the Company’s plans to continue current practices

of replacement for newer technology or high load needs.

For Production Plant, which consists of large generating units, the life span

technique was employed in conjunction with the use of interim survivor curves which reflect

interim retirements that occur prior to the ultimate retirement of the major unit. An interim

survivor curve was estimated for each plant account, inasmuch as the rate of interim

II-26

retirements differ from account to account. The interim survivor curves estimated for

steam, nuclear, hydraulic, and other production plant were based on the retirement rate

method of life analysis which incorporated experienced aged retirements through the

period 2003.

The life span estimates for power generating stations were the result of considering

experienced life spans of similar generating units, the age of surviving units, general

operating characteristics of the units, major refurbishing and discussions with management

personnel concerning the probable long-term outlook for the units.

The life span estimate for the steam units is 40 to 70 years, which is within the

typical range of life spans for such units. The 60-year lifespan for the nuclear facilities

include the relicense agreement through 2002. The 96 to 131-year lifespan for the

hydraulic production facilities is at the upper end of the typical range. The life span of each

facility is determined by condition and Company plans. Life spans of 20 and 55 years

were estimated for the combustion turbines. These life span estimates are typical for

combustion turbines which are used primarily as peaking units.

A summary of the year in service, life span and probable retirement year for each

power production unit follows:

Depreciable Group

MajorYear inService

ProbableRetirement Year Life Span

Steam Production PlantCanadys 1962 2022 60McMeekin and Central Lab 1958 2025 67Cope 1996 2036 40Urquhart 3 1954 2024 70Wateree 1970 2023 53

Nuclear Production PlantV.C. Summer 1982 2042 60

Depreciable Group

MajorYear inService

ProbableRetirement Year Life Span

II-27

Hydraulic Production PlantFairfield 1878 78 100Neal Shoals 1805 36 131Parr 1914 20 106Saluda 1932 32 100Stevens Creek 1929 25 96

Other Production PlantBurton 1970 2015 45Coit 1969 2012 43Faber Place 1961 2015 54Hagood 1991 2025 34Hardeeville 1968 2020 52Parr 1970 2022 52Urquhart 1 and 2 1972 2027 55Urquhart 3 1969 2012 43Urquhart 4 1999 2019 20Urquhart 5 and 6 2002 2027 25Williams - Bushy Park 1997 2022 25

The survivor curve estimates for the remaining accounts were based on judgment

incorporating the statistical analyses and previous studies for this and other electric utilities.

Salvage Analysis

The estimates of net salvage by account were based in part on historical data

compiled through 2003. Cost of removal and salvage were expressed as percents of the

original cost of plant retired, both on annual and three-year moving average bases. The

most recent five-year average also was calculated for consideration. The net salvage

estimates by account are expressed as a percent of the original cost of plant retired.

Net Salvage Considerations

The estimates of future net salvage are expressed as percentages of surviving plant

in service, i.e., all future retirements. In cases in which removal costs are expected to

exceed salvage receipts, a negative net salvage percentage is estimated. The net salvage

II-28

estimates were based on judgment which incorporated analyses of historical cost of

removal and salvage data, expectations with respect to future removal requirements and

markets for retired equipment and materials.

Statistical analyses of historical data for the period 1987 through 2003 for electric

plant were analyzed. The analyses contributed significantly toward the net salvage

estimates for 29 plant accounts, representing 88 percent of the depreciable plant, as

follows:Steam Production Plant

311.00 Structures and Improvements312.00 Boiler Plant Equipment314.00 Turbogenerator Units315.00 Accessory Electric Equipment316.00 Miscellaneous Power Plant Equipment

Nuclear Production Plant321.00 Structures and Improvements322.00 Reactor Plant Equipment323.00 Turbogenerator Units324.00 Accessory Electric Equipment325.00 Miscellaneous Power Plant Equipment

Other Production Plant342.00 Fuel Holders, Producers & Accessories343.00 Prime Movers344.00 Generators345.00 Accessory Electric Equipment346.00 Miscellaneous Power Plant Equipment

Transmission Plant352.00 Structures and Improvements353.00 Station Equipment

Distribution Plant361.00 Structures and Improvements362.00 Station Equipment364.00 Poles, Towers and Fixtures365.00 Overhead Conductors and Devices366.00 Underground Conduit367.00 Underground Conductors and Devices368.00 Line Transformers369.00 Services370.00 Meters373.00 Street Lighting and Signal Systems

II-29

General Plant390.00 Structures and Improvements

Common Plant690.00 Structures and Improvements

Account 364.00, Poles, Tower and Fixtures, is used to illustrate the manner in which

the study was conducted for the groups in the preceding list. Net salvage data for the

period 1987 through 2003 were analyzed for this account. The data include cost of

removal, gross salvage and net salvage amounts and each of these amounts is expressed

as a percent of the original cost of regular retirements. Three-year moving averages for

the 1987-1989 through 2001-2003 periods were computed to smooth the annual amounts.

Cost of removal has fluctuated throughout the seventeen-year period. The primary

cause of the fluctuations in cost of removal relates to the amount of poles removed by

contractors as compared to Company personnel. The large projects have contractors

assigned to remove. Cost of removal for the most recent five years averaged 55 percent.

Gross salvage has also varied widely throughout the period. The most recent five-

year average of 41 percent gross salvage reflects recent trends toward higher salvage

value which leads to reuse of poles and towers.

The net salvage percent based on the overall period 1987 through 2003 is 18

percent negative net salvage and based on the most recent five-year period is 14 percent.

The range of estimates made by other electric companies for Poles, Towers and Fixtures

is negative 20 to negative 50 percent. The net salvage estimate for poles is negative 20

percent, is within the range of other estimates and reflects movement toward more

negative net salvage than the last seventeen years indicate. This movement toward the

lower limit of other electric companies considers the fact that gross salvage is likely to be

reduced in the future.

II-30

Annual Accrual Rate, Percent = (100% � Net Salvage, Percent)Average Service Life

.

Ratio = (1 - Average Remaining Life ExpectancyAverage Service Life

) (1 - Net Salvage, Percent).

The net salvage percents for the remaining accounts representing 12 percent of

plant were based on judgment incorporating estimates of previous studies of this and other

electric utilities.

CALCULATION OF ANNUAL AND ACCRUED DEPRECIATION

After the survivor curve and salvage are estimated, the annual depreciation accrual

rate can be calculated. In the average service life procedure, the annual accrual rate is

computed by the following equation:

The calculated accrued depreciation for each depreciable property group represents that

portion of the depreciable cost of the group which will not be allocated to expense through

future depreciation accruals, if current forecasts of life characteristics are used as a basis

for straight line depreciation accounting.

The accrued depreciation calculation consists of applying an appropriate ratio to the

surviving original cost of each vintage of each account, based upon the attained age and

the estimated survivor curve. The accrued depreciation ratios are calculated as follows:

The application of these procedures is described for a single unit of property and

a group of property units. Salvage is omitted from the description for ease of application.

II-31

$1,000(4 + 6)

= $100 per year.

$1,000 (1 - 610

) = $400.

Single Unit of Property

The calculation of straight line depreciation for a single unit of property is

straightforward. For example, if a $1,000 unit of property attains an age of four years and

has a life expectancy of six years, the annual accrual over the total life is:

The accrued depreciation is:

Group Depreciation Procedures

When more than a single item of property is under consideration, a group procedure

for depreciation is appropriate because normally all of the items within a group do not have

identical service lives, but have lives that are dispersed over a range of time. There are

two primary group procedures, namely, average service life and equal life group.

Remaining Life Annual Accruals. For the purpose of calculating remaining life

accruals as of December 31, 2003, the depreciation reserve for each plant account is

allocated among vintages in proportion to the calculated accrued depreciation for the

account. Explanations of remaining life accruals and calculated accrued depreciation

follow.

Average Service Life Procedure. In the average service life procedure, the

remaining life annual accrual for each vintage is determined by dividing future book

accruals (original cost less book reserve) by the average remaining life of the vintage. The

average remaining life is a directly weighted average derived from the estimated future

survivor curve in accordance with the average service life procedure.

II-32

Ratio = 1 - Average Remaining LifeAverage Service Life

.

The calculated accrued depreciation for each depreciable property group represents

that portion of the depreciable cost of the group which would not be allocated to expense

through future depreciation accruals, if current forecasts of life characteristics are used as

the basis for such accruals. The accrued depreciation calculation consists of applying an

appropriate ratio to the surviving original cost of each vintage of each account, based upon

the attained age and service life. The straight lien accrued depreciation ratios are

calculated as follows for the average service life procedure:

CALCULATION OF ANNUAL AND ACCRUED AMORTIZATION

Amortization is the gradual extinguishment of an amount in an account by

distributing such amount over a fixed period over the life of the asset or liability to which

it applies, or over the period during which it is anticipated the benefit will be realized.

Normally, the distribution of the amount is in equal amounts to each year of the

amortization period.

The calculation of annual and accrued amortization requires the selection of an

amortization period. The amortization periods used in this report were based on judgment

which incorporated a consideration of the period during which the assets will render most

of their service, the amortization period and service lives used by other utilities and the

service life estimates previously used for the asset under depreciation accounting.

Amortization accounting is proposed for certain General and Common Plant

accounts that represent numerous units of property, but a very small portion of depreciable

electric plant in service. The accounts and their amortization periods are as follows:

II-33

Account

AmortizationPeriod,

Years

391.10 Office Furniture and Equipment - Furniture 20 391.20 Office Furniture and Equipment - EDP 5 391.30 Office Furniture and Equipment - Data Handling 20 393 Stores Equipment 25 394.10 Tools, Shop, Garage Equipment - Hand Tools 20 394.20 Tools, Shop, Garage Equipment - Line 20 394.30 Tools, Shop, Garage Equipment - Shop 20 394.40 Tools, Shop, Garage Equipment - Garage 20 395.10 Laboratory Equipment - Meter Test 20 395.20 Laboratory Equipment - Other Test 20 395.30 Laboratory Equipment - Field Test 20 397 Communication Equipment 8 398 Miscellaneous Equipment 20 691.10 Office Furniture and Equipment - Furniture 20 691.20 Office Furniture and Equipment - EDP 5 691.30 Data Handling Equipment 20 693 Stores Equipment 25 694.10 Tools, Shop, Garage Equipment - Power Tools 20 694.30 Tools, Shop, Garage Equipment - Shop Tools 20 694.40 Tools, Shop, Garage Equipment - Garage 20 695.20 Laboratory Equipment - Other Test 20 695.30 Laboratory Equipment - Field Test 20 697 Communication Equipment 8 698 Miscellaneous Equipment 20

The calculated accrued amortization is equal to the original cost multiplied by the

ratio of the vintage's age to its amortization period. The annual amortization amount is

determined by dividing the original cost by the period of amortization for the account.

PART III. RESULTS OF STUDY

PART III. RESULTS OF STUDY

QUALIFICATION OF RESULTS

The calculated annual depreciation accrual rates are the principal results of the

study. Continued surveillance and periodic revisions are normally required to maintain

continued use of appropriate annual depreciation accrual rates. An assumption that

accrual rates can remain unchanged over a long period of time implies a disregard for the

inherent variability in service lives and salvage and for the change of the composition of

property in service. The annual accrual rates were calculated in accordance with the

straight line remaining life method of depreciation using the average service life procedure

based on estimates which reflect considerations of current historical evidence and

expected future conditions.

The annual depreciation accrual rates are applicable specifically to the electric and

common plant in service as of December 31, 2003. For most plant accounts, the

application of such rates to future balances that reflect additions subsequent to December

31, 2003, is reasonable for a period of three to five years.

DESCRIPTION OF DEPRECIATION TABULATIONS

A summary of the results of the study, as applied to the original cost of electric and

common plant as of December 31, 2003, is presented on pages III-3 through III-9 of this

report. The schedule sets forth the original cost, the book depreciation reserve, future

accruals, the calculated annual depreciation rate and amount, and the composite

remaining life related to electric plant.

III-2

SOUTH CAROLINA ELECTRIC & GAS COMPANYSUMMARY OF ESTIMATED SURVIVOR CURVES, NET SALVAGE, ORIGINAL COST, BOOK RESERVE AND CALCULATED

ANNUAL DEPRECIATION RATES AS OF DECEMBER 31, 2003

NET CALCULATED COMPOSITESURVIVOR SALVAGE ORIGINAL BOOK FUTURE ANNUAL ACCRUAL REMAINING

ACCOUNT CURVE PERCENT COST RESERVE ACCRUALS AMOUNT RATE LIFE(1) (2) (3) (4) (5) (6) (7) (8)=(7)/(4) (9)=(6)/(7)

STEAM PRODUCTION PLANT

CANADYS 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 25,970,688.48 13,094,844 20,667,051 1,161,809 4.47 17.8312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 123,430,866.14 43,284,432 111,004,148 6,858,812 5.56 16.2314.00 TURBOGENERATOR UNITS 50-R2 * (25) 51,922,804.60 26,817,655 38,085,849 2,242,307 4.32 17.0315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 10,877,247.98 6,895,066 5,613,768 321,730 2.96 17.4316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 3,407,237.97 1,139,282 2,438,318 149,294 4.38 16.3

TOTAL CANADYS 215,608,845.17 91,231,279 177,809,134 10,733,952 4.98 16.6

CENTRAL LAB 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 3,028,137.87 1,179,067 2,757,512 133,904 4.42 20.6315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 58,757.43 29,337 38,234 1,873 3.19 20.4316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 1,435,018.27 190,512 1,316,258 69,487 4.84 18.9

TOTAL CENTRAL LAB 4,521,913.57 1,398,916 4,112,004 205,264 4.54 20.0

COPE 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 61,135,855.54 14,926,136 64,550,476 2,114,782 3.46 30.5312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 257,806,956.57 57,357,818 264,900,878 10,365,892 4.02 25.6314.00 TURBOGENERATOR UNITS 50-R2 * (25) 83,762,737.49 20,456,433 84,246,988 2,877,655 3.44 29.3315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 22,268,111.05 5,516,802 20,091,526 650,196 2.92 30.9316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 6,589,331.85 1,455,801 5,462,997 207,701 3.15 26.3

TOTAL COPE 431,562,992.50 99,712,990 439,252,865 16,216,226 3.76 27.1

MCMEEKIN 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 13,120,559.69 5,660,076 11,396,648 556,840 4.24 20.5312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 94,381,697.39 25,817,164 92,159,958 5,097,084 5.40 18.1314.00 TURBOGENERATOR UNITS 50-R2 * (25) 15,615,916.49 11,179,500 8,340,396 469,565 3.01 17.8315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 4,618,389.67 2,160,061 3,151,089 159,481 3.45 19.8316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 3,202,949.91 1,039,650 2,323,448 126,429 3.95 18.4

TOTAL MCMEEKIN 130,939,513.15 45,856,451 117,371,539 6,409,399 4.89 18.3

URQUHART 3 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 15,169,974.36 11,696,415 8,024,551 415,491 2.74 19.3312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 18,691,501.73 4,297,464 19,066,914 1,200,924 6.42 15.9314.00 TURBOGENERATOR UNITS 50-R2 * (25) 39,054,718.26 16,668,930 32,149,465 1,717,474 4.40 18.7315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 7,809,715.60 4,453,299 4,527,874 235,686 3.02 19.2316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 2,149,158.63 744,377 1,512,239 84,609 3.94 17.9

TOTAL URQUHART 3 82,875,068.58 37,860,485 65,281,043 3,654,184 4.41 17.9

WATEREE 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 27,271,930.81 10,927,878 24,525,632 1,315,979 4.83 18.6312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 276,455,693.52 37,379,776 308,189,838 17,710,073 6.41 17.4314.00 TURBOGENERATOR UNITS 50-R2 * (25) 57,212,610.50 20,783,739 50,732,023 2,846,362 4.98 17.8315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 12,297,181.97 7,465,293 6,676,467 375,390 3.05 17.8316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 2,806,015.15 919,025 2,027,294 121,036 4.31 16.7

TOTAL WATEREE 376,043,431.95 77,475,711 392,151,254 22,368,840 5.95 17.5

TOTAL STEAM PRODUCTION PLANT 1,241,551,764.92 353,535,832 1,195,977,839 59,587,865 4.80 20.1

III-3





NUCLEAR PRODUCTION PLANT

321.00 STRUCTURES AND IMPROVEMENTS 75-S1 * 0 242,212,762.50 126,535,823 115,676,938 3,384,065 1.40 34.2322.00 REACTOR PLANT EQUIPMENT 50-S2 * (3) 424,017,431.85 183,275,626 253,462,328 8,412,361 1.98 30.1323.00 TURBOGENERATOR UNITS 50-S1.5 * (5) 85,015,708.83 31,518,335 57,748,159 1,891,400 2.22 30.5324.00 ACCESSORY ELECTRIC EQUIPMENT 40-S2.5 * 0 95,458,483.07 50,452,097 45,006,386 2,097,562 2.20 21.5325.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-L1.5 * (5) 76,438,736.80 25,460,408 54,800,267 2,448,155 3.20 22.4

TOTAL NUCLEAR PRODUCTION PLANT 923,143,123.05 417,242,289 526,694,078 18,233,543 1.98 28.9

HYDRAULIC PRODUCTION PLANTFAIRFIELD

331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 35,298,467.02 12,657,178 24,406,216 363,487 1.03 67.1332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 75,638,932.24 27,543,964 51,876,916 759,895 1.00 68.3333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 64,247,657.26 15,510,780 51,949,260 906,080 1.41 57.3334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 5,997,302.48 2,021,689 4,275,476 135,778 2.26 31.5335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 4,666,253.93 1,226,545 3,673,021 81,783 1.75 44.9336.00 ROADS, RAIL ROADS & BRIDGES 60-R4 * (5) 1,328,336.30 483,206 911,547 26,065 1.96 35.0

TOTAL FAIRFIELD 187,176,949.23 59,443,362 137,092,436 2,273,088 1.21 60.3

NEAL SHOALS 331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 571,071.57 329,554 270,072 8,512 1.49 31.7332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 1,284,395.84 1,125,136 223,479 6,970 0.54 32.1333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 1,819,372.68 1,287,977 622,363 20,345 1.12 30.6334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 205,897.01 127,321 88,871 3,306 1.61 26.9335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 157,957.60 72,316 93,541 3,252 2.06 28.8336.00 ROADS, RAIL ROADS & BRIDGES 60-R4 * (5) 2,645.06 1,444 1,333 43 1.63 31.0

TOTAL NEAL SHOALS 4,041,339.76 2,943,748 1,299,659 42,428 1.05 30.6

PARR 331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 1,294,971.42 511,652 848,068 52,207 4.03 16.2332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 1,927,939.06 1,693,039 331,298 20,430 1.06 16.2333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 930,286.80 484,465 492,338 31,948 3.43 15.4334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 1,236,909.30 345,338 953,416 68,043 5.50 14.0335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 90,610.52 28,031 67,109 4,534 5.00 14.8336.00 ROADS, RAIL ROADS & BRIDGES 60-R4 * (5) 104,411.88 30,601 79,031 6,807 6.52 11.6

TOTAL PARR 5,585,128.98 3,093,126 2,771,260 183,969 3.29 15.1

SALUDA 331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 4,119,068.95 1,681,242 2,643,782 96,049 2.33 27.5332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 20,582,132.50 11,929,345 9,681,896 353,223 1.72 27.4333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 9,420,584.05 3,018,859 6,872,756 263,521 2.80 26.1334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 1,361,785.02 321,803 1,108,072 53,311 3.91 20.8335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 610,456.63 90,796 550,179 21,829 3.58 25.2336.00 ROADS, RAIL ROADS & BRIDGES 60-R4 * (5) 916,687.37 28,275 934,246 35,483 3.87 26.3

TOTAL SALUDA 37,010,714.52 17,070,320 21,790,931 823,416 2.22 26.5

STEVENS CREEK 331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 1,804,527.57 862,500 1,032,256 48,814 2.71 21.1332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 4,694,339.12 1,726,893 3,202,161 150,358 3.20 21.3333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 1,335,588.20 824,820 577,548 28,882 2.16 20.0334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 1,863,238.61 482,361 1,474,040 76,619 4.11 19.2335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 777,316.94 184,773 631,409 31,818 4.09 19.8

TOTAL STEVENS CREEK 10,475,010.44 4,081,347 6,917,414 336,491 3.21 20.6

TOTAL HYDRAULIC PRODUCTION PLANT 244,289,142.93 86,631,903 169,871,700 3,659,392 1.50 46.4

III-4





OTHER PRODUCTION PLANT

BURTON 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 284,883.57 45,338 239,546 20,830 7.31 11.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 120,765.88 95,792 49,127 5,980 4.95 8.2343.00 PRIME MOVERS 30-R2.5 * (10) 984,330.87 550,914 531,852 50,881 5.17 10.5344.00 GENERATORS 65-R3 * (5) 3,109,417.12 3,124,762 140,126 12,958 0.42 10.8345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 73,980.24 28,383 52,995 4,731 6.39 11.2346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 3,524.39 2,925 600 58 1.65 10.3

TOTAL BURTON 4,576,902.07 3,848,114 1,014,246 95,438 2.09 10.6

COIT 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 97,408.00 46,591 50,816 5,977 6.14 8.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 477,349.31 382,007 190,812 25,589 5.36 7.5343.00 PRIME MOVERS 30-R2.5 * (10) 916,078.26 362,278 645,409 78,482 8.57 8.2344.00 GENERATORS 65-R3 * (5) 3,635,499.95 3,532,348 284,927 34,222 0.94 8.3345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 149,155.04 60,698 103,373 12,905 8.65 8.0346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 73,409.71 38,503 34,906 4,222 5.75 8.3

TOTAL COIT 5,348,900.27 4,422,425 1,310,243 161,397 3.02 8.1

FABER PLACE 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 85,925.04 7,645 78,280 6,807 7.92 11.5343.00 PRIME MOVERS 30-R2.5 * (10) 78,432.37 15,848 70,427 6,583 8.39 10.7344.00 GENERATORS 65-R3 * (5) 980,699.22 978,871 50,862 4,733 0.48 10.7345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 44,490.43 1,384 47,555 4,184 9.40 11.4346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 4,871.40 4,510 361 44 0.90 8.2

TOTAL FABER PLACE 1,194,418.46 1,008,258 247,485 22,351 1.87 11.1

HAGOOD 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 3,311,814.55 1,585,982 1,725,833 80,271 2.42 21.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 2,358,887.34 1,107,206 1,723,459 113,036 4.79 15.2343.00 PRIME MOVERS 30-R2.5 * (10) 23,842,854.40 11,736,607 14,490,533 867,602 3.64 16.7344.00 GENERATORS 65-R3 * (5) 6,029,195.70 2,999,998 3,330,658 158,224 2.62 21.1345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 3,898,214.66 1,914,355 2,373,681 122,847 3.15 19.3346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 51,102.99 14,357 36,747 1,881 3.68 19.5

TOTAL HAGOOD 39,492,069.64 19,358,505 23,680,911 1,343,861 3.40 17.6

HARDEEVILLE 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 24,190.37 4,269 19,922 1,207 4.99 16.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 121,795.73 72,582 73,572 6,063 4.98 12.1343.00 PRIME MOVERS 30-R2.5 * (10) 798,792.01 60,112 818,559 52,432 6.56 15.6344.00 GENERATORS 65-R3 * (5) 1,156,829.16 1,159,640 55,031 3,580 0.31 15.4345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 129,105.36 101,125 40,890 2,909 2.25 14.1346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 3,521.67 3,312 210 15 0.43 14.0

TOTAL HARDEEVILLE 2,234,234.30 1,401,040 1,008,184 66,206 2.96 15.2

PARR 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 672,792.54 80,120 592,673 32,037 4.76 18.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 609,848.39 447,571 284,247 29,611 4.86 9.6343.00 PRIME MOVERS 30-R2.5 * (10) 2,073,507.76 107,367 2,173,492 130,677 6.30 16.6344.00 GENERATORS 65-R3 * (5) 3,277,695.64 2,850,694 590,888 33,020 1.01 17.9345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 187,320.77 66,556 139,496 8,309 4.44 16.8346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 104,813.24 49,404 55,409 3,483 3.32 15.9

TOTAL PARR 6,925,978.34 3,601,712 3,836,205 237,137 3.42 16.2

III-5





URQUHART 1 AND 2

341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 103,372.10 2,113 101,258 4,308 4.17 23.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 137,180.93 29,384 135,234 8,246 6.01 16.4343.00 PRIME MOVERS 30-R2.5 * (10) 135,481.17 19,837 129,192 6,613 4.88 19.5344.00 GENERATORS 65-R3 * (5) 3,112,409.91 2,276,002 992,028 47,125 1.51 21.1345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 81,795.30 31,031 58,944 3,074 3.76 19.2346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 15,874.18 3,527 12,346 625 3.94 19.8

TOTAL URQUHART 1 AND 2 3,586,113.59 2,361,894 1,429,002 69,991 1.95 20.4

URQUHART 3 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 10,069.76 10,070 1,185 11.77 8.5344.00 GENERATORS 65-R3 * (5) 1,386,796.55 1,372,423 83,713 10,091 0.73 8.3345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 9,893.31 10,883 1,286 13.00 8.5

TOTAL URQUHART 3 1,406,759.62 1,372,423 104,666 12,562 0.89 8.3

URQUHART 4 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 316,053.48 152,562 163,492 10,548 3.34 15.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 914,543.07 684,061 413,391 28,745 3.14 14.4343.00 PRIME MOVERS 30-R2.5 * (10) 195,030.81 9,735 204,798 13,788 7.07 14.9344.00 GENERATORS 65-R3 * (5) 20,840,374.27 2,951,883 18,930,510 1,228,440 5.89 15.4345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 216,446.55 37,648 200,443 13,204 6.10 15.2346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 2,596.43 208 2,388 159 6.12 15.0

TOTAL URQUHART 4 22,485,044.61 3,836,097 19,915,022 1,294,884 5.76 15.4

URQUHART 5 AND 6 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 4,428,068.77 337,463 4,090,606 174,068 3.93 23.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 3,766,056.38 372,467 4,146,801 199,270 5.29 20.8343.00 PRIME MOVERS 30-R2.5 * (10) 241,199,590.91 14,365,150 250,954,400 11,676,531 4.84 21.5345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 15,361,463.12 1,139,550 15,758,059 694,188 4.52 22.7

TOTAL URQUHART 5 AND 6 264,755,179.18 16,214,630 274,949,866 12,744,057 4.81 21.6

WILLIAMS - BUSHY PARK 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 312,611.13 46,228 266,383 14,399 4.61 18.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 97,688.20 79,150 38,077 2,709 2.77 14.1343.00 PRIME MOVERS 30-R2.5 * (10) 5,121,168.01 2,739,515 2,893,769 175,718 3.43 16.5344.00 GENERATORS 65-R3 * (5) 65,544.83 71,071 (2,249) 0 - -345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 77,567.52 58,213 27,110 1,573 2.03 17.2346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 3,790.58 4,110 (320) 0 - -

TOTAL WILLIAMS - BUSHY PARK 5,678,370.27 2,998,287 3,222,770 194,399

TOTAL OTHER PRODUCTION PLANT 357,683,970.35 60,423,385 330,718,600 16,242,283 4.54 20.4

TRANSMISSION PLANT 352.00 STRUCTURES AND IMPROVEMENTS

V.C. SUMMER - NUCLEAR 60-R2.5 * (5) 605,051.07 343,697 291,607 8,826 1.46 33.0 OTHER LOCATIONS 60-R2.5 (5) 2,364,566.62 515,024 1,967,769 39,582 1.67 49.7

TOTAL STRUCTURES AND IMPROVEMENTS 2,969,617.69 858,721 2,259,376 48,408 1.63 46.7

III-6





353.00 STATION EQUIPMENT

V.C. SUMMER - NUCLEAR 65-R2 * (20) 6,558,968.80 3,725,922 4,144,841 123,395 1.88 33.6 PARR - HYDRO 65-R2 * (20) 375,936.02 80,037 371,087 11,914 3.17 31.1 FAIRFIELD PUMPED STORAGE 65-R2 * (20) 1,009,312.40 1,015,034 196,140 3,618 0.36 54.2 SALUDA - HYDRO 65-R2 * (20) 5,582,475.12 2,525,372 4,173,600 103,917 1.86 40.2 STEVENS CREEK - HYDRO 65-R2 * (20) 3,308,777.25 121,865 3,848,668 143,372 4.33 26.8 NEAL SHOALS - HYDRO 65-R2 * (20) 26,922.21 0 32,307 1,286 4.78 25.1 OTHER LOCATIONS 65-R2 (20) 165,426,058.68 62,354,733 136,156,531 2,573,630 1.56 52.9

TOTAL STATION EQUIPMENT 182,288,450.48 69,822,963 148,923,174 2,961,132 1.62 50.3

353.10 STATION EQUIPMENT - STEP UP TRANSFORMERS V.C SUMMER - NUCLEAR 60-R3 * (20) 6,360,413.02 3,599,218 4,033,278 120,432 1.89 33.5 PARR - HYDRO 60-R3 * (20) 223,125.80 123,530 144,220 5,082 2.28 28.4 FAIRFIELD PUMPED STORAGE 60-R3 * (20) 3,468,542.43 1,784,982 2,377,269 56,694 1.63 41.9 SALUDA - HYDRO 60-R3 * (20) 595,189.21 337,485 376,741 14,475 2.43 26.0 WATEREE - STEAM 60-R3 * (20) 1,210,511.24 873,330 579,284 21,399 1.77 27.1 MCMEEKIN - STEAM 60-R3 * (20) 564,678.97 516,546 161,069 8,650 1.53 18.6 URQUHART - STEAM 60-R3 * (20) 1,016,542.70 991,168 228,684 15,028 1.48 15.2 CANADYS - STEAM 60-R3 * (20) 930,901.46 693,655 423,427 28,199 3.03 15.0 WILLIAMS - STEAM 60-R3 * (20) 946,881.74 632,843 503,415 16,848 1.78 29.9 COPE - STEAM 60-R3 * (20) 6,020,025.00 1,034,203 6,189,827 128,874 2.14 48.0 WILLIAMS GT 60-R3 * (20) 150,417.37 103,768 76,733 3,978 2.64 19.3 FABER PLACE GT 60-R3 * (20) 236,237.34 120,652 162,833 7,142 3.02 22.8 BURTON GT 60-R3 * (20) 87,054.40 75,619 28,847 3,601 4.14 8.0 HARDEEVILLE GT 60-R3 * (20) 47,492.16 36,417 20,574 750 1.58 27.4 COIT GT 60-R3 * (20) 118,154.04 86,672 55,113 4,686 3.97 11.8 URQUHART GT 60-R3 * (20) 71,582.51 68,911 16,988 1,725 2.41 9.8

TOTAL STATION EQUIPMENT - STEP UP TRANSFORMERS 22,047,749.39 11,078,999 15,378,302 437,563 1.98 35.1

354.00 TOWERS AND FIXTURES 65-R4 (20) 5,453,094.50 4,164,607 2,379,108 64,302 1.18 37.0355.00 POLES AND FIXTURES 52-R2.5 (75) 143,486,692.04 44,787,354 206,314,359 5,262,324 3.67 39.2356.00 OVERHEAD CONDUCTORS AND DEVICES 55-R3 (30) 124,496,666.17 42,496,833 119,348,832 2,880,080 2.31 41.4357.00 UNDERGROUND CONDUIT 50-R4 0 2,160,642.90 813,725 1,346,917 38,129 1.76 35.3358.00 UNDERGROUND CONDUCTORS & DEVICES 45-R3 0 7,257,192.85 2,498,674 4,758,518 150,066 2.07 31.7359.00 ROADS AND TRAILS 55-S3 0 8,761.58 7,580 1,182 50 0.57 23.6

TOTAL TRANSMISSION PLANT 490,168,867.60 176,529,456 500,709,768 11,842,054 2.42 42.3

DISTRIBUTION PLANT 361.00 STRUCTURES AND IMPROVEMENTS 60-R2.5 (5) 3,304,495.60 330,957 3,138,763 60,525 1.83 51.9362.00 STATION EQUIPMENT 65-R2 (15) 198,593,284.19 25,353,140 203,029,138 3,938,514 1.98 51.5364.00 POLES, TOWERS & FIXTURES 44-R1.5 (20) 228,130,262.03 89,944,352 183,811,962 5,114,206 2.24 35.9365.00 OVERHEAD CONDUCTORS AND DEVICES 50-R2.5 (25) 265,302,888.01 114,727,197 216,901,417 5,539,595 2.09 39.2366.00 UNDERGROUND CONDUIT 42-R3 (15) 77,697,064.07 22,878,352 66,473,273 2,001,963 2.58 33.2367.00 UNDERGROUND CONDUCTORS & DEVICES 34-R3 (20) 198,532,644.48 61,926,901 176,312,277 7,362,406 3.71 23.9368.00 LINE TRANSFORMER 40-S0.5 (5) 271,118,475.69 114,031,685 170,642,713 5,498,555 2.03 31.0369.00 SERVICES - OVERHEAD 55-R2.5 (70) 76,620,364.38 36,509,572 93,745,048 2,275,131 2.97 41.2369.10 SERVICES - UNDERGROUND 60-R3 (40) 91,492,850.96 30,970,151 97,119,836 1,937,183 2.12 50.1370.00 METERS 45-R1.5 0 92,556,947.26 36,081,695 56,475,250 1,507,630 1.63 37.5373.00 STREET LIGHTING & SIGNAL SYSTEMS 29-S1.5 (20) 140,901,418.69 38,513,453 130,568,249 6,467,263 4.59 20.2

TOTAL DISTRIBUTION PLANT 1,644,250,695.36 571,267,455 1,398,217,926 41,702,971 2.54 33.5

III-7





GENERAL PLANT

390.10 STRUCTURES AND IMPROVEMENTS 35-S0.5 (5) 28,211,058.39 9,209,996 20,411,616 727,841 2.58 28.0390.20 STRUCTURES AND IMPROVEMENTS - WAREHOUSE 20-S2 (5) 2,467,688.52 1,879,853 711,220 64,679 2.62 11.0391.10 OFFICE FURNITURE AND EQUIPMENT 20-SQ 0 2,050,911.58 1,517,888 533,025 46,804 2.28 11.4391.20 OFFICE FURNITURE AND EQUIPMENT - EDP 5-SQ 0 5,490,638.65 1,253,809 4,236,829 847,366 ** 15.43 5.0391.21 OFFICE FURNITURE AND EQUIPMENT - EDP (2004 & SUB.) 5-SQ 0 ***391.30 OFFICE FURNITURE AND EQUIPMENT - DATA HANDLING 20-SQ 0 491,923.10 339,786 152,138 14,051 2.86 10.8393.00 STORES EQUIPMENT 25-SQ 0 289,684.19 192,352 97,333 7,573 2.61 12.9394.10 TOOL, SHOP AND GARAGE EQUIPMENT - HAND TOOLS 20-SQ 0 225,144.16 87,347 137,796 10,038 4.46 13.7394.20 TOOL, SHOP AND GARAGE EQUIPMENT - LINE 20-SQ 0 2,714,242.29 2,032,290 681,953 56,287 2.07 12.1394.30 TOOL, SHOP AND GARAGE EQUIPMENT - SHOP 20-SQ 0 273,051.39 171,319 101,734 10,271 3.76 9.9394.40 TOOL, SHOP AND GARAGE EQUIPMENT - GARAGE 20-SQ 0 299,123.73 188,263 110,861 11,198 3.74 9.9395.10 LABORATORY EQUIPMENT - METER TEST 20-SQ 0 1,618,239.31 927,500 690,738 64,327 3.98 10.7395.20 LABORATORY EQUIPMENT - OTHER TEST 20-SQ 0 2,150,040.77 1,945,402 204,638 30,270 1.41 6.8395.30 LABORATORY EQUIPMENT - FIELD TEST 20-SQ 0 2,147,850.04 933,995 1,213,857 92,777 4.32 13.1397.00 COMMUNICATION EQUIPMENT 8-SQ 0 21,997,500.37 14,412,126 7,585,375 3,633,399 16.52 2.1398.00 MISCELLANEOUS EQUIPMENT 20-SQ 0 2,803,678.48 1,061,295 1,742,385 121,994 4.35 14.3

TOTAL GENERAL PLANT 73,230,774.97 36,153,221 38,611,498 5,738,875 7.84 6.7

COMMON PLANT690.10 STRUCTURES AND IMPROVEMENTS - OFFICE 35-S0.5 (5) 33,857,517.51 5,773,445 29,776,950 1,135,571 3.35 26.2690.20 STRUCTURES AND IMPROVEMENTS - WAREHOUSE 20-S2 (5) 1,542,547.52 500,516 1,119,160 105,795 6.86 10.6691.10 OFFICE FURNITURE AND EQUIPMENT 20-SQ 0 8,437,699.68 2,381,102 6,056,597 1,074,040 12.73 5.6691.20 EDP EQUIPMENT 5-SQ 0 9,937,453.07 (11,620,094) 21,557,547 4,311,509 *** 43.39 5.0691.21 EDP EQUIPMENT (2004 & SUB.) 5-SQ 0 ****691.30 DATA HANDLING EQUIPMENT 20-SQ 0 2,448,349.27 581,192 1,867,157 269,140 10.99 6.9693.00 STORES EQUIPMENT 25-SQ 0 460,604.30 170,715 289,889 63,495 13.79 4.6694.10 TOOL, SHOP AND GARAGE EQUIPMENT - POWER TOOLS 20-SQ 0 11,175.19 1,958 9,217 725 6.49 12.7694.30 TOOL, SHOP AND GARAGE EQUIPMENT - SHOP TOOLS 20-SQ 0 227,894.87 31,469 196,426 13,820 6.06 14.2694.40 TOOL, SHOP AND GARAGE EQUIPMENT - GARAGE 20-SQ 0 865,186.12 168,665 696,520 86,203 9.96 8.1695.20 LABORATORY EQUIPMENT - OTHER TEST 20-SQ 0 193,487.74 47,363 146,124 20,461 10.57 7.1695.30 LABORATORY EQUIPMENT - FIELD TEST 20-SQ 0 83,366.50 14,886 68,480 5,724 6.87 12.0697.00 COMMUNICATION EQUIPMENT 8-SQ 0 12,898,644.92 2,629,580 10,269,066 3,938,443 30.53 2.6698.00 MISCELLANEOUS EQUIPMENT 20-SQ 0 4,156,191.42 1,129,149 3,027,043 334,721 8.05 9.0

TOTAL COMMON PLANT 75,120,118.11 1,809,946 75,080,176 11,359,647 15.12 6.6

NONDEPRECIABLE PLANT301.00 ORGANIZATION 14,988.33 14,988302.00 FRANCHISES AND CONSENTS 4,643,673.29 1,474,910303.00 MISCELLANEOUS INTANGIBLE PLANT 14,399,551.37 5,749,231310.00 LAND OWNED IN FEE 9,601,101.15320.10 LAND OWNED IN FEE 600,145.01330.10 LAND OWNED IN FEE 28,640,000.32340.10 LAND OWNED IN FEE 215,144.49360.20 LAND RIGHTS AND EASEMENTS 21,895,483.00 26,274

TOTAL NONDEPRECIABLE PLANT 80,010,086.96 7,265,403

TOTAL ELECTRIC PLANT 5,129,448,544.25 1,710,858,891 4,235,881,586 168,366,630 3.28 25.2

* Curve shown is interim survivor curve. Each facility in the account is assigned an individual probable retirement year.**Annual accrual rate established for new assets being cnstructed*** Annual accrual amount is an amortization of the remaining future accruals over 5 years.**** Annual accrual rate for new additions is 20%

III-8


ESTIMATED SURVIVOR CURVES, NET SALVAGE AND CALCULATED ANNUAL DEPRECIATION ACCRUAL RATES FOR THE JASPER FACILITY

AS OF COMPLETED CONSTRUCTION DURING 2004

CALCULATEDNET ANNUAL

SURVIVOR SALVAGE ACCRUALACCOUNT CURVE PERCENT RATE

(1) (2) (3) (4)

OTHER PRODUCTION PLANT

JASPER

341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 2.17

342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 5.16

343.00 PRIME MOVERS 30-R2.5 * (10) 4.82

344.00 GENERATORS 65-R3 * (5) 2.51

345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 3.45

346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 3.81

* Indicates probable retirement date of 2050.

Based on the above estimates and probable retirement date the composite rate for the Jasper facility will approximate 4.00%

III-9

Documents

COLUMBIA, SOUTH CAROLINA