INCOME TAXES

12 Months Ended

Dec. 31, 2013

income tax [Line Items]

Income Tax Disclosure [Text Block]

INCOME TAXES

Components of income tax expense for 2013, 2012 and 2011 are as follows:

Millions of dollars	2013			2012			2011
Current taxes:
Federal	$	161		$	103		$	52
State	17			10			10
Total current taxes	178			113			62
Deferred taxes, net:
Federal	39			72			122
State	10			14			12
Total deferred taxes	49			86			134
Investment tax credits:
Amortization of amounts deferred-state	(1		)	(14		)	(25		)
Amortization of amounts deferred-federal	(3		)	(3		)	(3		)
Total investment tax credits	(4		)	(17		)	(28		)
Total income tax expense	$	223		$	182		$	168

The difference between actual income tax expense and the amount calculated from the application of the statutory 35% federal income tax rate to pre-tax income is reconciled as follows:

Millions of dollars	2013			2012			2011
Net income	$	471		$	420		$	387
Income tax expense	223			182			168
Total pre-tax income	$	694		$	602		$	555
Income taxes on above at statutory federal income tax rate	$	243		$	211		$	194
Increases (decreases) attributed to:
State income taxes (less federal income tax effect)	22			19			15
State investment tax credits (less federal income tax effect)	(5		)	(13		)	(16		)
Allowance for equity funds used during construction	(9		)	(8		)	(5		)
Deductible dividends—Stock Purchase Savings Plan	(10		)	(9		)	(9		)
Amortization of federal investment tax credits	(3		)	(3		)	(3		)
Section 45 tax credits	(5		)	(5		)	(2		)
Domestic production activities deduction	(11		)	(9		)	(6		)
Other differences, net	1			(1		)	—
Total income tax expense	$	223		$	182		$	168

The tax effects of significant temporary differences comprising the Company’s net deferred tax liability at December 31, 2013 and 2012 are as follows:

Millions of dollars	2013		2012
Deferred tax assets:
Nondeductible accruals	$	84	$	143
Asset retirement obligation, including nuclear decommissioning	220		214
Financial instruments	32		43
Unamortized investment tax credits	19		22
Regulatory liability, net gain on interest rate derivative contracts settlement	27		—
Unbilled revenue	—		14
Monetization of bankruptcy claim	11		12
Other	13		15
Total deferred tax assets	406		463
Deferred tax liabilities:
Property, plant and equipment	$	1,765	$	1,718
Deferred employee benefit plan costs	63		148
Regulatory asset-asset retirement obligation	121		113
Deferred fuel costs	25		48
Regulatory asset, unrecovered plant	55		7
Other	84		71
Total deferred tax liabilities	2,113		2,105
Net deferred tax liability	$	1,707	$	1,642

During the third quarter of 2013, the State of North Carolina passed legislation that lowered the state corporate income tax rate from 6.9% to 6.0% in 2014 and 5.0% in 2015.  In connection with this change in tax rates, related state deferred tax amounts were remeasured, with the change in their balances being credited to a regulatory liability. The change in income tax rates did not and is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. Additionally, during the third quarter of 2013, the IRS issued final regulations regarding the capitalization of certain costs for income tax purposes and re-proposed certain other related regulations (collectively referred to as tangible personal property regulations). Related IRS revenue procedures were then issued on January 24, 2014. These regulations did not and are not expected to, have a material impact on the Company's financial position, results of operations or cash flows.

The Company files a consolidated federal income tax return, and the Company and its subsidiaries file various applicable state and local income tax returns. The IRS has completed examinations of the Company’s federal returns through 2004, and the Company’s federal returns through 2007 are closed for additional assessment. With few exceptions, the Company is no longer subject to state and local income tax examinations by tax authorities for years before 2009.

Changes to Unrecognized Tax Benefits

Millions of dollars	2013		2012			2011
Unrecognized tax benefits, January 1	—		$	38		$	36
Gross increases—uncertain tax positions in prior period	—		—			5
Gross decreases—uncertain tax positions in prior period	—		(38		)	(8		)
Gross increases—current period uncertain tax positions	$	3	—			5
Settlements	—		—			—
Lapse of statute of limitations	—		—			—
Unrecognized tax benefits, December 31	$	3	$	—		$	38

In connection with the change in method of tax accounting for certain repair costs in prior years, the Company had previously recorded an unrecognized tax benefit. During the first quarter of 2012, the publication of new administrative guidance from the IRS allowed the Company to recognize this benefit. Since this change was primarily a temporary difference, the recognition of this benefit did not have a significant effect on the Company's effective tax rate.

During 2013, the Company amended certain of its tax returns to claim certain tax-defined research and development deductions and credits. In connection with these filings, the Company recorded an unrecognized tax benefit of $3 million. If recognized, this tax benefit would affect the Company’s effective tax rate. It is reasonably possible that this tax benefit will increase by an additional $5 million within the next 12 months. No other material changes in the status of the Company’s tax positions have occurred through December 31, 2013.

The Company recognizes interest accrued related to unrecognized tax benefits within interest expense and recognizes tax penalties within other expenses. In connection with the resolution of the uncertainty and recognition of the tax benefit in 2012, during 2012 the Company reversed $2 million of interest expense which had been accrued during 2011. The Company has not recorded interest expense or penalties associated with the 2013 uncertain tax position.

SCE&G

income tax [Line Items]

Income Tax Disclosure [Text Block]

INCOME TAXES

Components of income tax expense for 2013, 2012, and 2011 are as follows:

Millions of dollars	2013			2012			2011
Current taxes:
Federal	$	146		$	91		$	52
State	13			8			12
Total current taxes	159			99			64
Deferred taxes, net:
Federal	25			62			98
State	9			12			6
Total deferred taxes	34			74			104
Investment tax credits:
Amortization of amounts deferred—state	(1		)	(13		)	(25		)
Amortization of amounts deferred—federal	(3		)	(3		)	(3		)
Total investment tax credits	(4		)	(16		)	(28		)
Total income tax expense	$	189		$	157		$	140

The difference between actual income tax expense and the amount calculated from the application of the statutory 35% federal income tax rate to pre-tax income is reconciled as follows:

Millions of dollars	2013			2012			2011
Net income	$	380		$	341		$	306
Income tax expense	189			157			140
Noncontrolling interest	11			11			10
Total pre-tax income	$	580		$	509		$	456
Income taxes on above at statutory federal income tax rate	$	203		$	178		$	159
Increases (decreases) attributed to:
State income taxes (less federal income tax effect)	18			17			12
State investment tax credits (less federal income tax effect)	(5		)	(13		)	(16		)
Allowance for equity funds used during construction	(9		)	(7		)	(5		)
Amortization of federal investment tax credits	(3		)	(3		)	(3		)
Section 45 tax credits	(5		)	(5		)	(2		)
Domestic production activities deduction	(11		)	(9		)	(6		)
Other differences, net	1			(1		)	1
Total income tax expense	$	189		$	157		$	140

The tax effects of significant temporary differences comprising Consolidated SCE&G’s net deferred tax liability at December 31, 2013 and 2012 are as follows:

Millions of dollars	2013		2012
Deferred tax assets:
Nondeductible accruals	$	17	$	73
Asset retirement obligation, including nuclear decommissioning	209		204
Unamortized investment tax credits	19		21
Unbilled revenue	—		14
Regulatory liability, net gain on interest rate derivative contracts settlement	27		—
Other	11		13
Total deferred tax assets	283		325
Deferred tax liabilities:
Property, plant and equipment	$	1,494	$	1,461
Regulatory asset-asset retirement obligation	114		107
Deferred employee benefit plan costs	54		127
Deferred fuel costs	26		49
Regulatory asset, unrecovered plant	55		7
Other	62		53
Total deferred tax liabilities	1,805		1,804
Net deferred tax liability	$	1,522	$	1,479

Consolidated SCE&G is included in the consolidated federal income tax return of SCANA and files various applicable state and local income tax returns. The IRS has completed examinations of SCANA’s federal returns through 2004, and SCANA’s federal returns through 2007 are closed for additional assessment. With few exceptions, Consolidated SCE&G is no longer subject to state and local income tax examinations by tax authorities for years before 2009.

Changes to Unrecognized Tax Benefits

Millions of dollars	2013		2012			2011
Unrecognized tax benefits, January 1	—		$	38		$	36
Gross increases-uncertain tax positions in prior period	—		—			5
Gross decreases-uncertain tax positions in prior period	—		(38		)	(8		)
Gross increases-current period uncertain tax positions	$	3	—			5
Settlements	—		—			—
Lapse of statute of limitations	—		—			—
Unrecognized tax benefits, December 31	$	3	$	—		$	38

In connection with the change in method of tax accounting for certain repair costs in prior years, the Company had previously recorded an unrecognized tax benefit. During the first quarter of 2012, the publication of new administrative guidance from the IRS allowed Consolidated SCE&G to recognize this benefit. Since this change was primarily a temporary difference, the recognition of this benefit did not have a significant effect on the Consolidated SCE&G's effective tax rate.

During 2013, Consolidated SCE&G amended certain of its tax returns to claim certain tax-defined research and development deductions and credits. In connection with these filings, Consolidated SCE&G recorded an unrecognized tax benefit of $3 million. If recognized, this tax benefit would affect Consolidated SCE&G’s effective tax rate. It is reasonably possible that this tax benefit will increase by an additional $5 million within the next 12 months. No other material changes in the status of the Consolidated SCE&G’s tax positions have occurred through December 31, 2013.

Consolidated SCE&G recognizes interest accrued related to unrecognized tax benefits within interest expense and recognizes tax penalties within other expenses. In connection with the resolution of the uncertainty and recognition of the tax benefit in 2012, during 2012 Consolidated SCE&G reversed $2 million of interest expense which had been accrued during 2011. Consolidated SCE&G has not recorded interest expense or penalties associated with the 2013 uncertain tax position.