Utility & Nonutility Plant

12 Months Ended

Dec. 31, 2011

Utility and Nonutility Plant [Abstract]

3.	Utility & Nonutility Plant

The original cost of Utility Plant, together with depreciation rates expressed as a percentage of original cost, follows:


	At December 31,
(In millions)	2011					2010
	Original Cost		Depreciation Rates as a Percent of Original Cost			Original Cost		Depreciation Rates as a Percent of Original Cost
Gas utility plant	$	2,516.8		3.5	%	$	2,410.2		3.6	%
Electric utility plant		2,316.8		3.3	%		2,258.6		3.4	%
Common utility plant		51.6		2.9	%		49.7		3.1	%
Construction work in progress		94.7		-			73.2		-
Total original cost	$	4,979.9				$	4,791.7

SIGECO and Alcoa Generating Corporation (AGC), a subsidiary of ALCOA, own the 300 MW Unit 4 at the Warrick Power Plant as tenants in common. SIGECO's share of the cost of this unit at December 31, 2011, is $182.6 million with accumulated depreciation totaling $70.3 million. AGC and SIGECO also share equally in the cost of operation and output of the unit. SIGECO's share of operating costs is included in Other operating expenses in the Consolidated Statements of Income.

Nonutility plant, net of accumulated depreciation and amortization follows:


	At December 31,
(In millions)	2011		2010
Coal mine development costs & equipment	$	222.0	$	196.9
Computer hardware & software		101.9		114.5
Land & buildings		112.0		112.8
Vehicles & equipment		92.5		46.9
All other		22.4		17.2
Nonutility plant - net	$	550.8	$	488.3

Nonutility plant is presented net of accumulated depreciation and amortization totaling $418.5 million and $385.5 million as of December 31, 2011 and 2010, respectively. For the years ended December 31, 2011, 2010, and 2009, the Company capitalized interest totaling $2.1 million, $2.1 million, and $6.0 million, respectively, on nonutility plant construction projects.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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