v3.10.0.1
FAIR VALUE MEASUREMENTS, INCLUDING DERIVATIVES
 12 Months Ended
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Disclosures [Text Block]
.             FAIR VALUE MEASUREMENTS, INCLUDING DERIVATIVES
 
The Company and Consolidated SCE&G value available for sale securities using quoted prices from a national stock exchange, such as the NASDAQ, on which the securities are actively traded or are open-ended mutual funds registered with the SEC and maintain a stable NAV and are invested in government money market agreements or fully collateralized repurchase agreements. For commodity derivative and energy management assets and liabilities, the Company uses unadjusted NYMEX prices to determine fair value, and considers such measures of fair value to be Level 1 for exchange traded instruments and Level 2 for over-the-counter instruments. The Company’s and Consolidated SCE&G's interest rate swap agreements are valued using discounted cash flow models with independently sourced data. Fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows:
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
The Company
 
Consolidated SCE&G
 
The Company
 
Consolidated SCE&G
Millions of dollars
 
Level 1
 
Level 2
 
Level 1
Level 2
 
Level 1
 
Level 2
 
Level 1
Level 2
Assets:
 

 
 
 
 

 
 
 
 
 
 
 
Available for sale securities
 
—

 
—

 
—

—

 
$
119

 
—

 
$
100

—

Held to maturity securities
 
—

 
$
6

 
—

—

 
—

 
$
6

 
—

—

Interest rate contracts
 
—

 
—

 
—

—

 
—

 
54

 
—

$
54

Commodity contracts
 
$
1

 
—

 
—

—

 
1

 
—

 
—

—

Energy management contracts
 
11

 
2

 
—

—

 
—

 
4

 
—

—

Liabilities:
 

 

 
 

 

 
 
 
 
 
Interest rate contracts
 
—

 
24

 
—

$
11

 
—

 
32

 
—

15

Commodity contracts
 
1

 
—

 
—

—

 
2

 
1

 
—

—

Energy management contracts
 
12

 
3

 
—

—

 
1

 
4

 
—

—


 
The Company and Consolidated SCE&G had no Level 3 fair value measurements during either period presented.
 
Financial instruments for which the carrying amount may not equal estimated fair value at December 31, 2018 and December 31, 2017 were as follows:
 
 
As of December 31, 2018
 
As of December 31, 2017
Millions of dollars
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
The Company
 
$
6,753.9

 
$
7,180.8

 
$
6,632.9

 
$
7,399.7

Consolidated SCE&G
 
5,145.6

 
5,469.7

 
5,163.3

 
5,790.3



 Fair values of long-term debt instruments are based on net present value calculations using independently sourced market data that incorporate a developed discount rate using similarly rated long-term debt, along with benchmark interest rates. As such, the aggregate fair values presented above are considered to be Level 2. Early settlement of long-term debt may not be possible or may not be considered prudent.

Carrying values of short-term borrowings approximate fair value, and are based on quoted prices from dealers in the commercial paper market. The resulting fair value is considered to be Level 2.

In connection with the impairment loss described in Note 11, the Company and Consolidated SCE&G determined that the fair value of certain of their nuclear fuel was lower than its carrying amount. At December 31, 2018, this nuclear fuel had an estimated fair value of $40.2 million. This estimate is based on quoted prices received from vendors of nuclear fuel, which are considered to be Level 3 fair value measurements. The Company and Consolidated SCE&G assess the fair value of nuclear fuel in connection with the analysis of impairment described in Note 11 on a quarterly basis.
SCE&G  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Disclosures [Text Block]
.             FAIR VALUE MEASUREMENTS, INCLUDING DERIVATIVES
 
The Company and Consolidated SCE&G value available for sale securities using quoted prices from a national stock exchange, such as the NASDAQ, on which the securities are actively traded or are open-ended mutual funds registered with the SEC and maintain a stable NAV and are invested in government money market agreements or fully collateralized repurchase agreements. For commodity derivative and energy management assets and liabilities, the Company uses unadjusted NYMEX prices to determine fair value, and considers such measures of fair value to be Level 1 for exchange traded instruments and Level 2 for over-the-counter instruments. The Company’s and Consolidated SCE&G's interest rate swap agreements are valued using discounted cash flow models with independently sourced data. Fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows:
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
The Company
 
Consolidated SCE&G
 
The Company
 
Consolidated SCE&G
Millions of dollars
 
Level 1
 
Level 2
 
Level 1
Level 2
 
Level 1
 
Level 2
 
Level 1
Level 2
Assets:
 

 
 
 
 

 
 
 
 
 
 
 
Available for sale securities
 
—

 
—

 
—

—

 
$
119

 
—

 
$
100

—

Held to maturity securities
 
—

 
$
6

 
—

—

 
—

 
$
6

 
—

—

Interest rate contracts
 
—

 
—

 
—

—

 
—

 
54

 
—

$
54

Commodity contracts
 
$
1

 
—

 
—

—

 
1

 
—

 
—

—

Energy management contracts
 
11

 
2

 
—

—

 
—

 
4

 
—

—

Liabilities:
 

 

 
 

 

 
 
 
 
 
Interest rate contracts
 
—

 
24

 
—

$
11

 
—

 
32

 
—

15

Commodity contracts
 
1

 
—

 
—

—

 
2

 
1

 
—

—

Energy management contracts
 
12

 
3

 
—

—

 
1

 
4

 
—

—


 
The Company and Consolidated SCE&G had no Level 3 fair value measurements during either period presented.
 
Financial instruments for which the carrying amount may not equal estimated fair value at December 31, 2018 and December 31, 2017 were as follows:
 
 
As of December 31, 2018
 
As of December 31, 2017
Millions of dollars
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
The Company
 
$
6,753.9

 
$
7,180.8

 
$
6,632.9

 
$
7,399.7

Consolidated SCE&G
 
5,145.6

 
5,469.7

 
5,163.3

 
5,790.3



 Fair values of long-term debt instruments are based on net present value calculations using independently sourced market data that incorporate a developed discount rate using similarly rated long-term debt, along with benchmark interest rates. As such, the aggregate fair values presented above are considered to be Level 2. Early settlement of long-term debt may not be possible or may not be considered prudent.

Carrying values of short-term borrowings approximate fair value, and are based on quoted prices from dealers in the commercial paper market. The resulting fair value is considered to be Level 2.

In connection with the impairment loss described in Note 11, the Company and Consolidated SCE&G determined that the fair value of certain of their nuclear fuel was lower than its carrying amount. At December 31, 2018, this nuclear fuel had an estimated fair value of $40.2 million. This estimate is based on quoted prices received from vendors of nuclear fuel, which are considered to be Level 3 fair value measurements. The Company and Consolidated SCE&G assess the fair value of nuclear fuel in connection with the analysis of impairment described in Note 11 on a quarterly basis.