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0 rg BT 61.00 678.42 Td (Thousands of dollars) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.80 687.32 Td (June 30,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.50 677.32 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.45 687.32 Td (December 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 677.32 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 664.37 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 652.37 Td (Gas Utility Plant) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.60 652.37 Td ($2,111,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.60 652.37 Td ($1,966,829) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 640.37 Td (Accumulated Depreciation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.80 640.37 Td (\(471,272) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 640.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.80 640.37 Td (\(454,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 640.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 628.37 Td (Goodwill, net of writedown of $229,590) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 628.37 Td (209,824) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 628.37 Td (209,824) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 616.37 Td ( Gas Utility Plant, Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.00 616.37 Td (1,849,890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 616.37 Td (1,722,277) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 596.37 Td (Investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 596.37 Td (26,232) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.50 596.37 Td (27,854) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 576.37 Td (Current Assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 564.37 Td ( Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.00 564.37 Td (723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.50 564.37 Td (13,133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 552.37 Td ( Receivables, net of allowance for uncollectible accounts of $684 and $532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 552.37 Td (83,777) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 552.37 Td (132,261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 540.37 Td ( Receivables-affiliated companies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 540.37 Td (52,351) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.50 540.37 Td (4,251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 528.37 Td ( Receivables-income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 528.37 Td (11,711) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.50 528.37 Td (1,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 516.37 Td ( Inventories \(at average cost\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 504.37 Td ( Stored gas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 504.37 Td (26,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.50 504.37 Td (28,542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 492.37 Td ( Materials and supplies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 492.37 Td (9,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.50 492.37 Td (10,732) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 480.37 Td ( Prepayments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 480.37 Td (2,668) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.50 480.37 Td (4,075) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 468.37 Td ( Total Current Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 468.37 Td (187,755) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 468.37 Td (194,661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 456.37 Td (Deferred Debits and Other Assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 444.37 Td ( Regulatory assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 444.37 Td (104,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 444.37 Td (100,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 432.37 Td ( Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.00 432.37 Td (918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.00 432.37 Td (598) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 420.37 Td ( Total Deferred Debits and Other Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 420.37 Td (105,703) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 420.37 Td (100,729) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 408.37 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.60 408.37 Td ($2,169,580) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.60 408.37 Td ($2,045,521) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 394.42 Td (Capitalization and Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 380.37 Td (Common Stock - no par value, 1,000 shares outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 380.37 Td ($634,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 380.37 Td ($634,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 368.37 Td (Retained Earnings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 368.37 Td (169,170) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 368.37 Td (143,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 356.37 Td (Accumulated Other Comprehensive Loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 356.37 Td (\(1,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 356.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 356.37 Td (\(1,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 356.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 344.37 Td ( Total Common Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 344.37 Td (802,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 344.37 Td (776,326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 332.37 Td (Long-Term Debt, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 332.37 Td (599,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 332.37 Td (449,024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 320.37 Td ( Total Capitalization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.00 320.37 Td (1,401,488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 320.37 Td (1,225,350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 308.37 Td (Current Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 296.37 Td ( Short-term borrowings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.30 296.37 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 296.37 Td (71,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 284.37 Td ( Accounts payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 284.37 Td (37,637) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 284.37 Td (45,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 272.37 Td ( Accounts payable-affiliated companies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 272.37 Td (8,854) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 272.37 Td (10,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 260.37 Td ( Customer deposits and customer prepayments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 260.37 Td (23,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 260.37 Td (27,537) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 248.37 Td ( Taxes accrued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 248.37 Td (6,368) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 248.37 Td (3,488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 236.37 Td ( Interest accrued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 236.37 Td (6,361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 236.37 Td (6,396) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 224.37 Td ( Dividends declared) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 224.37 Td (9,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 224.37 Td (6,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 212.37 Td ( Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 212.37 Td (5,882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 212.37 Td (7,054) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 200.37 Td ( Total Current Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 200.37 Td (97,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 200.37 Td (178,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 188.37 Td (Deferred Credits and Other Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 176.37 Td ( Deferred income taxes, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 176.37 Td (318,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 176.37 Td (291,735) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 164.37 Td ( Pension and other postretirement benefits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 164.37 Td (77,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.50 164.37 Td (77,384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 152.37 Td ( Regulatory liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 152.37 Td (233,810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 152.37 Td (233,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 140.37 Td ( Asset retirement obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 140.37 Td (36,331) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.50 140.37 Td (35,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 128.37 Td ( Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 128.37 Td (3,530) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.50 128.37 Td (3,661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 116.37 Td ( Total Deferred Credits and Other Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 116.37 Td (670,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.50 116.37 Td (641,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 104.37 Td (Commitments and Contingencies \(Note 9\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 104.37 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.65 104.37 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 92.37 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.60 92.37 Td ($2,169,580) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.60 92.37 Td ($2,045,521) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 68.37 Td (See Notes to Condensed Consolidated Financial Statements.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 5 0 obj <> endobj 6 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 46.60 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 146.50 713.25 Td (Public Service Company of North Car) Tj ET Q q 0 0 0 rg BT 309.36 713.25 Td (olina, Incorporated and Subsidiaries) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.70 701.25 Td (Condensed Consolidated Statements of Income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 280.15 689.25 Td (\(Unaudited\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 644.75 m 358.5 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 644.75 m 407.5 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 644.75 m 456.5 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 644.75 m 505.5 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 644.75 m 554.5 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 618.75 m 358.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 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358.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 422.75 m 358.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 435.75 m 407.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 422.75 m 407.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 435.75 m 456.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 422.75 m 456.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 435.75 m 505.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 422.75 m 505.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 435.75 m 554.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 422.75 m 554.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 379.75 m 358.5 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 379.75 m 407.5 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 379.75 m 456.5 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 379.75 m 505.5 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 379.75 m 554.5 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 353.75 m 358.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 353.75 m 407.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 353.75 m 456.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 353.75 m 505.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 353.75 m 554.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 353.75 m 358.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 341.75 m 358.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 339.75 m 358.5 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 353.75 m 407.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 341.75 m 407.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 339.75 m 407.5 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 353.75 m 456.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 341.75 m 456.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 339.75 m 456.5 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 353.75 m 505.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 341.75 m 505.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 339.75 m 505.5 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 341.75 m 554.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 339.75 m 554.5 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 339.75 m 358.5 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 341.75 m 358.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 339.75 m 407.5 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 341.75 m 407.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 339.75 m 456.5 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 341.75 m 456.5 341.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 339.75 m 505.5 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 341.75 m 505.5 341.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 670.01 Td (Three Months Ended) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.00 661.01 Td (June 30,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.45 670.01 Td (Six Months Ended) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.00 661.01 Td (June 30,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 649.01 Td (Thousands of dollars) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.50 649.01 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 649.01 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.50 649.01 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.50 649.01 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 636.01 Td (Operating Revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.75 636.01 Td ($64,300) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.75 636.01 Td ($62,916) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 636.01 Td ($245,471) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.25 636.01 Td ($238,235) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 623.01 Td (Cost of Gas) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.25 623.01 Td (19,335) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 623.01 Td (20,316) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.25 623.01 Td (88,266) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.25 623.01 Td (97,509) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 610.01 Td (Margin) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.25 610.01 Td (44,965) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 610.01 Td (42,600) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 610.01 Td (157,205) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.75 610.01 Td (140,726) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 587.01 Td (Operating Expenses:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 574.01 Td ( Operation and maintenance) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.25 574.01 Td (26,166) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 574.01 Td (26,565) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.25 574.01 Td (51,989) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.25 574.01 Td (52,591) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 561.01 Td ( Depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.25 561.01 Td (13,197) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 561.01 Td (12,709) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.25 561.01 Td (26,233) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.25 561.01 Td (25,188) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 548.01 Td ( Other taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.75 548.01 Td (3,779) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 548.01 Td (3,744) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.75 548.01 Td (7,425) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.75 548.01 Td (7,549) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 535.01 Td ( Total Operating Expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.25 535.01 Td (43,142) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 535.01 Td (43,018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.25 535.01 Td (85,647) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.25 535.01 Td (85,328) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 522.01 Td (Operating Income \(Loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.75 522.01 Td (1,823) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.50 522.01 Td (\(418) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 522.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.25 522.01 Td (71,558) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.25 522.01 Td (55,398) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 499.01 Td (Other Income \(Expense\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 486.01 Td ( Other revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.75 486.01 Td (7,153) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 486.01 Td (6,520) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.25 486.01 Td (15,272) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.25 486.01 Td (14,269) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 473.01 Td ( Other expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.75 473.01 Td (\(3,288) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 473.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.75 473.01 Td (\(3,076) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 473.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.75 473.01 Td (\(6,940) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 473.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.75 473.01 Td (\(6,325) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 473.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.00 460.01 Td (Interest char) Tj ET Q q 0 0 0 rg BT 114.56 460.01 Td (ges, net of allowance for borrowed funds used) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 79.00 451.06 Td ( during construction of $477, $418, $634 and $750) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.75 453.21 Td (\(6,584) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 453.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.75 453.21 Td (\(5,776) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 453.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.25 453.21 Td (\(13,361) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 453.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.25 453.21 Td (\(11,470) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 453.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 440.01 Td ( Allowance for equity funds used during construction) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.75 440.01 Td (1,531) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 440.01 Td (1,361) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.75 440.01 Td (2,031) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.75 440.01 Td (2,443) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 427.01 Td ( Total Other Expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.75 427.01 Td (\(1,188) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 427.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.50 427.01 Td (\(971) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 427.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.75 427.01 Td (\(2,998) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 427.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.75 427.01 Td (\(1,083) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 427.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 404.01 Td (Income \(Loss\) Before Income Taxes and Earnings from Equity Method) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.00 395.06 Td (Investments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.50 397.21 Td (635) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.75 397.21 Td (\(1,389) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 397.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.25 397.21 Td (68,560) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.25 397.21 Td (54,315) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 384.01 Td (Income Tax Benefit \(Expense\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.00 384.01 Td (44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 384.01 Td (624) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.25 384.01 Td (\(25,177) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 384.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.25 384.01 Td (\(20,335) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 384.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 371.01 Td (Income \(Loss\) Before Earnings from Equity Method Investments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.50 371.01 Td (679) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.50 371.01 Td (\(765) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 371.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.25 371.01 Td (43,383) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.25 371.01 Td (33,980) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 358.01 Td (Earnings from Equity Method Investments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.50 358.01 Td (929) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 358.01 Td (924) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.75 358.01 Td (1,603) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.75 358.01 Td (1,895) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 345.01 Td (Net Income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.25 345.01 Td ($1,608) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.00 345.01 Td ($159) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 345.01 Td ($44,986) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.75 345.01 Td ($35,875) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 322.01 Td (See Notes to Condensed Consolidated Financial Statements.) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 146.50 284.65 Td (Public Service Company of North Car) Tj ET Q q 0 0 0 rg BT 309.36 284.65 Td (olina, Incorporated and Subsidiaries) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.20 272.65 Td (Condensed Consolidated Statements of Compr) Tj ET Q q 0 0 0 rg BT 370.47 272.65 Td (ehensive Income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.80 260.65 Td (\(Unaudited) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 217.14999999999998 m 357.5 217.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.5 217.14999999999998 m 406.5 217.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 217.14999999999998 m 455.5 217.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 217.14999999999998 m 504.5 217.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 217.14999999999998 m 553.5 217.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 217.14999999999998 m 504.5 217.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 146.14999999999998 m 357.5 146.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.5 146.14999999999998 m 406.5 146.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 146.14999999999998 m 455.5 146.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 146.14999999999998 m 504.5 146.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 146.14999999999998 m 553.5 146.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 113.14999999999998 m 357.5 113.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.5 113.14999999999998 m 406.5 113.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 113.14999999999998 m 455.5 113.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 113.14999999999998 m 504.5 113.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 113.14999999999998 m 553.5 113.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 96.14999999999998 m 357.5 96.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.5 96.14999999999998 m 406.5 96.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 96.14999999999998 m 455.5 96.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 96.14999999999998 m 504.5 96.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 96.14999999999998 m 553.5 96.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 84.14999999999998 m 357.5 84.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 82.14999999999998 m 357.5 82.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.5 84.14999999999998 m 406.5 84.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.5 82.14999999999998 m 406.5 82.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 84.14999999999998 m 455.5 84.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 82.14999999999998 m 455.5 82.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 84.14999999999998 m 504.5 84.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 82.14999999999998 m 504.5 82.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 84.14999999999998 m 553.5 84.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 82.14999999999998 m 553.5 82.14999999999998 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.00 241.41 Td (Three Months Ended) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.00 232.46 Td (June 30,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.45 241.41 Td (Six Months Ended) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 232.46 Td (June 30,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 221.41 Td (Thousands of dollars) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.50 221.41 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.50 221.41 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.50 221.41 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.50 221.41 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 208.41 Td (Net Income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.85 208.41 Td ($1,608) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.65 208.41 Td ($159) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.35 208.41 Td ($44,986) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.35 208.41 Td ($35,875) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 195.41 Td (Other Comprehensive Income \(Loss\), net of tax:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 182.46 Td (Unrealized Losses on Cash Flow Hedging Activities of Equity Method Investees:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 69.00 171.41 Td (Losses arising during period, net of tax of $\(67\),$\(20\), $\(125\) and $\(79\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.15 171.41 Td (\(115) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.65 171.41 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.65 171.41 Td (\(33) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.65 171.41 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.15 171.41 Td (\(213) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.65 171.41 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.15 171.41 Td (\(133) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.65 171.41 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 69.00 158.41 Td (Losses reclassified to earnings from equity method investments, net of tax of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 78.00 149.41 Td ($69, $10, $134 and $22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.50 150.61 Td (118) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.00 150.61 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 150.61 Td (228) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.00 150.61 Td (37) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 137.41 Td (Net unrealized gains \(losses\) on cash flow hedging activities of equity method) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 69.00 128.46 Td (investees:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.15 130.61 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.65 130.61 Td (\(16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.65 130.61 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.65 130.61 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.65 130.61 Td (\(96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.65 130.61 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 117.41 Td (Deferred costs of employee benefit plans, net of tax of $13, $13, 26 and $26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.65 117.41 Td (22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.65 117.41 Td (22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.65 117.41 Td (44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.65 117.41 Td (44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 100.41 Td (Other Comprehensive Income \(Loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.65 100.41 Td (25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.15 100.41 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.65 100.41 Td (59) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.65 100.41 Td (\(52) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.65 100.41 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 87.41 Td (Total Comprehensive Income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.85 87.41 Td ($1,633) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.65 87.41 Td ($165) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.35 87.41 Td ($45,045) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.35 87.41 Td ($35,823) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 64.41 Td (See Notes to Condensed Consolidated Financial Statements.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 150.75 742.25 Td (Public Service Company of North Car) Tj ET Q q 0 0 0 rg BT 313.61 742.25 Td (olina, Incorporated and Subsidiaries) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.20 730.25 Td (Condensed Consolidated Statements of Cash Flows) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.40 718.25 Td (\(Unaudited\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 671.75 m 430.75 671.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 671.75 m 493.75 671.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 671.75 m 557.75 671.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 437.75 m 430.75 437.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 437.75 m 493.75 437.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 424.75 m 430.75 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 424.75 m 493.75 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 437.75 m 557.75 437.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 424.75 m 557.75 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 349.75 m 430.75 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 336.75 m 430.75 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 349.75 m 493.75 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 336.75 m 493.75 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 349.75 m 557.75 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 336.75 m 557.75 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 261.75 m 430.75 261.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 261.75 m 493.75 261.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 261.75 m 557.75 261.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 248.75 m 430.75 248.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 248.75 m 493.75 248.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 248.75 m 557.75 248.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 212.75 m 430.75 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 212.75 m 493.75 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 200.75 m 430.75 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 61.75 198.75 m 430.75 198.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 212.75 m 493.75 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 200.75 m 493.75 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 198.75 m 493.75 198.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 212.75 m 557.75 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 200.75 m 557.75 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.75 198.75 m 557.75 198.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 698.32 Td (Six Months Ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.30 688.32 Td (June 30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 675.32 Td (Thousands of dollars) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.75 675.32 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.25 675.32 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 662.32 Td (Cash Flows From Operating Activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 649.32 Td ( Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.40 649.32 Td ($44,986) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.40 649.32 Td ($35,875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 636.32 Td ( Adjustments to reconcile net income to net cash provided from operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 623.32 Td ( Distributions from equity method investment, net of earnings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.90 623.32 Td (204) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.55 623.37 Td (\(41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 623.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 610.32 Td ( Deferred income taxes, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.75 610.32 Td (28,651) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.75 610.32 Td (9,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 597.32 Td ( Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.75 597.32 Td (28,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.75 597.32 Td (25,459) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 584.32 Td ( Allowance for equity funds used during construction) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.05 584.37 Td (\(2,031) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 584.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.05 584.37 Td (\(2,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 584.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 571.32 Td ( Changes in certain assets and liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 558.32 Td ( Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.40 558.32 Td (50,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.40 558.32 Td (28,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 545.32 Td ( Income taxes receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.05 545.37 Td (\(10,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 545.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.40 545.32 Td (8,445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 532.32 Td ( Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.05 532.37 Td (\(19,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 532.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.40 532.32 Td (1,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 519.32 Td ( Regulatory assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.05 519.37 Td (\(4,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 519.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.05 519.37 Td (\(4,684) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 519.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 506.32 Td ( Regulatory liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.05 506.37 Td (\(3,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 506.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.90 506.32 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 493.32 Td ( Accounts payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.05 493.37 Td (\(16,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 493.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.55 493.37 Td (\(255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 493.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 480.32 Td ( Customer deposits and customer prepayments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.05 480.32 Td (\(4,526\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.75 480.32 Td (1,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 467.32 Td ( Taxes accrued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.40 467.32 Td (2,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.40 467.32 Td (4,924) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 454.32 Td ( Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.05 454.37 Td (\(2,948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 454.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.05 454.37 Td (\(6,009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 454.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 441.32 Td ( Other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.25 441.32 Td (745) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.05 441.37 Td (\(1,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 441.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 428.32 Td (Net Cash Provided From Operating Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.75 428.32 Td (92,771) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.75 428.32 Td (102,094) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 405.32 Td (Cash Flows From Investing Activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 392.32 Td ( Property additions and construction expenditures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.05 392.37 Td (\(118,315) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 392.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.05 392.37 Td (\(103,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 392.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 379.32 Td ( Proceeds from investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.75 379.32 Td (1,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.25 379.32 Td (954) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 366.32 Td ( Short-term investment - affiliate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.05 366.37 Td (\(63,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 366.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.05 366.37 Td (\(9,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 366.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 353.32 Td ( Proceeds from short-term investment - affiliate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.75 353.32 Td (12,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.75 353.32 Td (9,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 340.32 Td (Net Cash Used For Investing Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.05 340.37 Td (\(167,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 340.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.05 340.37 Td (\(102,877) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 340.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 317.32 Td (Cash Flows From Financing Activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 304.32 Td ( Proceeds from issuance of long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.40 304.32 Td (149,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.40 304.32 Td (99,628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 291.32 Td ( Repayment of long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.55 291.37 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.55 291.37 Td (\(575) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 291.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 278.32 Td ( Dividends) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.05 278.37 Td (\(15,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 278.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.05 278.37 Td (\(15,875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 278.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 265.32 Td ( Short-term borrowings, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.05 265.37 Td (\(71,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 265.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.05 265.37 Td (\(73,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.90 265.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 252.32 Td (Net Cash Provided From Financing Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.75 252.32 Td (62,093) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.40 252.32 Td (9,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 229.32 Td (Net Increase \(Decrease\) in Cash and Cash Equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.05 229.32 Td (\(12,410\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.40 229.32 Td (8,576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 216.32 Td (Cash and Cash Equivalents, January 1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.75 216.32 Td (13,133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.75 216.32 Td (5,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 203.32 Td (Cash and Cash Equivalents, June 30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.25 203.32 Td (723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.40 203.32 Td ($14,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 180.32 Td (Supplemental Cash Flow Information:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 167.32 Td ( Cash for - Interest \(net of capitalized interest of $634 and $750\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.40 167.32 Td ($12,196) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.40 167.32 Td ($9,916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 154.32 Td ( - Income taxes paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.75 154.32 Td (8,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.75 154.32 Td (15,944) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 141.32 Td ( - Income taxes received) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.75 141.32 Td (1,695) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.75 141.32 Td (13,927) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 128.32 Td (Noncash Investing and Financing Activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 115.32 Td ( Accrued construction expenditures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.40 115.32 Td ($15,772) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.40 115.32 Td ($14,976) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.25 92.32 Td (See Notes to Condensed Consolidated Financial Statements.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 46.60 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 146.50 713.25 Td (Public Service Company of North Car) Tj ET Q q 0 0 0 rg BT 309.36 713.25 Td (olina, Incorporated and Subsidiaries) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.35 701.25 Td (Notes to Condensed Consolidated Financial Statements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 280.15 689.25 Td (\(Unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 665.25 Td (The following unaudited notes should be read in conjunction with the Notes to Consolidated Financial Statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 653.25 Td (of Public Service Company of North Carolina, Incorporated and Subsidiaries \(PSNC Ener) Tj ET Q q 0 0 0 rg BT 418.30 653.25 Td (gy\) for the year ended December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 641.25 Td (31, 2016. ) Tj ET Q q 0 0 0 rg BT 100.32 641.25 Td (These are interim financial statements and, due to the seasonality of PSNC Ener) Tj ET Q q 0 0 0 rg BT 420.32 641.25 Td (gy) Tj ET Q q 0 0 0 rg BT 433.10 641.25 Td (s business and matters that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 629.25 Td (may occur during the rest of the year) Tj ET Q q 0 0 0 rg BT 205.04 629.25 Td (, the amounts reported in the Condensed Consolidated Statements of Income are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 617.25 Td (necessarily indicative of amounts expected for the full year) Tj ET Q q 0 0 0 rg BT 294.02 617.25 Td (. In the opinion of management of the company) Tj ET Q q 0 0 0 rg BT 486.10 617.25 Td (, the information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 605.25 Td (furnished herein reflects all adjustments, all of a normal recurring nature, which are necessary for the fair statement of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 593.25 Td (results for the interim periods reported. In addition, the preparation of financial statements in conformity with generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 581.25 Td (accepted accounting principles requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 440.19 581.25 Td (fect the reported amounts of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 569.25 Td (assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 557.25 Td (reported amount of revenues and expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 345.69 557.25 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 439.10 557.25 Td (fer from those estimates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 533.25 Td (The Company has evaluated subsequent events through ) Tj ET Q q 0 0 0 rg BT 318.12 533.25 Td (August 9, 2017 which is the date these financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 521.25 Td (statements were issued.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 497.25 Td (1. ) Tj ET Q q 0 0 0 rg BT 94.00 497.25 Td (SUMMAR) Tj ET Q q 0 0 0 rg BT 139.75 497.25 Td (Y) Tj ET Q q 0 0 0 rg BT 146.60 497.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 162.62 497.25 Td ( SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 231.62 497.25 Td ( ) Tj ET Q q 0 0 0 rg BT 233.57 497.25 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 485.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 473.25 Td (Income Statement Presentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 449.25 Td ( ) Tj ET Q q 0 0 0 rg BT 98.82 449.25 Td (The Company presents the revenues and expenses of its regulated business within Operating Income. ) Tj ET Q q 0 0 0 rg BT 508.16 449.25 Td (All other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 437.25 Td (activities, which primarily include appliance sales and service, are presented within Other Income \(Expense\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 425.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 413.25 Td (Asset Management and Supply Service ) Tj ET Q q 0 0 0 rg BT 217.14 413.25 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 389.25 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 389.25 Td (gy utilizes an asset management and supply service agreement with a counterparty for certain natural ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 377.25 Td (gas storage facilities.Such counterparty held, through an agency relationship, 40% of PSNC Ener) Tj ET Q q 0 0 0 rg BT 451.33 377.25 Td (gy) Tj ET Q q 0 0 0 rg BT 464.11 377.25 Td (s natural gas ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 365.25 Td (inventory at June 30, 2017 and December 31, 2016, with a carrying value of $9.5 million and $9.8 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 353.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 105.66 353.25 Td (.Under the terms of this agreement, PSNC Ener) Tj ET Q q 0 0 0 rg BT 300.71 353.25 Td (gy receives storage asset management fees, of which 75% are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 341.25 Td (credited to rate payers. ) Tj ET Q q 0 0 0 rg BT 153.88 341.25 Td (This agreement expires on March 31, 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 317.25 Td (New ) Tj ET Q q 0 0 0 rg BT 78.83 317.25 Td (Accounting Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 293.25 Td (In May 2014, the Financial ) Tj ET Q q 0 0 0 rg BT 204.54 293.25 Td (Accounting Standards Board \(F) Tj ET Q q 0 0 0 rg BT 330.72 293.25 Td (ASB\) issued accounting guidance for revenue arising ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 281.25 Td (from contracts with customers that supersedes most earlier revenue recognition guidance, including industry-specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 269.25 Td (guidance. ) Tj ET Q q 0 0 0 rg BT 98.91 269.25 Td (This new revenue recognition model calls for a five-step analysis in determining when and how revenue is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 257.25 Td (recognized, and will require revenue recognition to depict the transfer of promised goods or services to customers, based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 245.25 Td (the transfer of control, in an amount that reflects the consideration a company expects to receive in exchange for those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 233.25 Td (goods or services. In addition, the new guidance requires disclosure of the nature, amount, timing and uncertainty of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 221.25 Td (revenue and cash flows arising from contracts with customers. PSNC Ener) Tj ET Q q 0 0 0 rg BT 358.86 221.25 Td (gy has not determined the impact this guidance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 209.25 Td (will have on its financial statements. However) Tj ET Q q 0 0 0 rg BT 245.32 209.25 Td (, the analysis of contracts with customers to which the guidance might be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 197.25 Td (applicable has begun. ) Tj ET Q q 0 0 0 rg BT 148.81 197.25 Td (Activities of the Financial ) Tj ET Q q 0 0 0 rg BT 254.89 197.25 Td (Accounting Standards Board) Tj ET Q q 0 0 0 rg BT 373.21 197.25 Td (s ) Tj ET Q q 0 0 0 rg BT 379.42 197.25 Td (T) Tj ET Q q 0 0 0 rg BT 385.17 197.25 Td (ransition Resource Group for Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 185.25 Td (Recognition are being monitored, particularly as they relate to the treatment of contributions in aid of construction, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 173.25 Td (alternative revenue programs and the collectability of revenue of utilities subject to rate regulation. ) Tj ET Q q 0 0 0 rg BT 457.85 173.25 Td (An evaluation of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 161.25 Td (enhanced disclosure requirements is also underway) Tj ET Q q 0 0 0 rg BT 262.56 161.25 Td (, including identifying performance obligations, determining the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 149.25 Td (appropriate disaggregation of revenue and assessing the availability of information necessary to comply with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 137.25 Td (requirements. PSNC Ener) Tj ET Q q 0 0 0 rg BT 163.91 137.25 Td (gy expects to adopt this guidance using the modified retrospective method and will recognize a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 125.25 Td (cumulative ef) Tj ET Q q 0 0 0 rg BT 112.52 125.25 Td (fect adjustment, if any) Tj ET Q q 0 0 0 rg BT 201.28 125.25 Td (, to retained earnings on January 1, 2018 upon adoption. Comparative periods will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 113.25 Td (be restated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 89.25 Td (In July 2015, the F) Tj ET Q q 0 0 0 rg BT 168.54 89.25 Td (ASB issued accounting guidance intended to simplify the measurement of inventory cost by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 77.25 Td (requiring most inventory to be measured at the lower of cost and net realizable value. PSNC Ener) Tj ET Q q 0 0 0 rg BT 447.98 77.25 Td (gy adopted this guidance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 65.25 Td (in the first quarter of 2017 and it had no impact on its financial statements.) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 46.60 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 701.10 Td (In January 2016, the F) Tj ET Q q 0 0 0 rg BT 182.96 701.10 Td (ASB issued accounting guidance that will change how entities measure certain equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 689.10 Td (investments and financial liabilities, among other things. PSNC Ener) Tj ET Q q 0 0 0 rg BT 333.33 689.10 Td (gy expects to adopt this guidance when required in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 677.10 Td (first quarter of 2018 and does not anticipate that adoption of this guidance will have a significant impact on its financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 665.10 Td (statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 641.10 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 187.96 641.10 Td (ASB issued accounting guidance related to the recognition, measurement and presentation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 629.10 Td (of leases. ) Tj ET Q q 0 0 0 rg BT 97.53 629.10 Td (The guidance applies a right-of-use model and, for lessees, requires all leases with a duration over 12 months to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 617.10 Td (be recorded on the balance sheet, with the rights of use treated as assets and the payment obligations treated as liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 605.10 Td (Further) Tj ET Q q 0 0 0 rg BT 87.04 605.10 Td (, and without consideration of any regulatory accounting requirements which may apply) Tj ET Q q 0 0 0 rg BT 439.06 605.10 Td (, depending primarily on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 593.10 Td (nature of the assets and the relative consumption of them, lease costs will be recognized either through the separate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 581.10 Td (amortization of the right-of-use asset and the recognition of the interest cost related to the payment obligation, or through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 569.10 Td (the recording of a combined straight-line rental expense. For lessors, the guidance calls for the recognition of income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 557.10 Td (either through the derecognition of assets and subsequent recording of interest income on lease amounts receivable, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 545.10 Td (through the recognition of rental income on a straight-line basis, also depending on the nature of the assets and relative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 533.10 Td (consumption. ) Tj ET Q q 0 0 0 rg BT 114.48 533.10 Td (The guidance will be ef) Tj ET Q q 0 0 0 rg BT 208.71 533.10 Td (fective for years beginning in 2019. PSNC Ener) Tj ET Q q 0 0 0 rg BT 400.15 533.10 Td (gy has not determined what impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 521.10 Td (this guidance will have on its financial statements. However) Tj ET Q q 0 0 0 rg BT 298.37 521.10 Td (, the identification and analysis of leasing and related contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 509.10 Td (to which the guidance might be applicable has begun. In addition, PSNC Ener) Tj ET Q q 0 0 0 rg BT 372.47 509.10 Td (gy has begun implementation of a third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 497.10 Td (software tool that will assist with initial adoption and ongoing compliance. Specifically) Tj ET Q q 0 0 0 rg BT 409.23 497.10 Td (, preliminary system configuration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 485.10 Td (has been completed and data from certain leases are being entered.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 473.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 461.10 Td (In June 2016, the F) Tj ET Q q 0 0 0 rg BT 170.20 461.10 Td (ASB issued accounting guidance requiring the use of a current expected credit loss impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 449.10 Td (model for certain financial instruments. ) Tj ET Q q 0 0 0 rg BT 220.82 449.10 Td (The new model is applicable to trade receivables and most debt instruments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 437.10 Td (among other financial instruments, and is intended to result in impairment losses being recognized earlier than under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 425.10 Td (current guidance. PSNC Ener) Tj ET Q q 0 0 0 rg BT 178.62 425.10 Td (gy must adopt this guidance beginning in 2020, including interim periods, though the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 413.10 Td (guidance may be adopted in 2019. PSNC Ener) Tj ET Q q 0 0 0 rg BT 246.39 413.10 Td (gy has not determined when this guidance will be adopted or what impact it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 401.10 Td (will have on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 377.10 Td (In ) Tj ET Q q 0 0 0 rg BT 104.28 377.10 Td (August 2016, the F) Tj ET Q q 0 0 0 rg BT 180.21 377.10 Td (ASB issued accounting guidance to reduce diversity in cash flow classification related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 365.10 Td (certain transactions. PSNC Ener) Tj ET Q q 0 0 0 rg BT 189.18 365.10 Td (gy expects to adopt this guidance when required the first quarter of 2018 and does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 353.10 Td (anticipate that its adoption will impact its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 329.10 Td (In October 2016, the F) Tj ET Q q 0 0 0 rg BT 184.07 329.10 Td (ASB issued accounting guidance related to the tax ef) Tj ET Q q 0 0 0 rg BT 395.49 329.10 Td (fects of intra-entity transfer of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 317.10 Td (other than inventory) Tj ET Q q 0 0 0 rg BT 138.44 317.10 Td (. ) Tj ET Q q 0 0 0 rg BT 145.39 317.10 Td (An entity will be required to recognize the income tax consequences of such a transfer in the period it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 305.10 Td (occurs. PSNC Ener) Tj ET Q q 0 0 0 rg BT 137.81 305.10 Td (gy adopted this guidance in the first quarter of 2017 and it had no impact on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 281.10 Td (In November 2016, the F) Tj ET Q q 0 0 0 rg BT 194.07 281.10 Td (ASB issued accounting guidance related to the presentation of restricted cash on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 269.10 Td (statement of cash flows. ) Tj ET Q q 0 0 0 rg BT 159.46 269.10 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 232.86 269.10 Td (fective for years beginning 2018, and PSNC Ener) Tj ET Q q 0 0 0 rg BT 430.96 269.10 Td (gy does not anticipate that its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 257.10 Td (adoption will impact its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 233.10 Td (In January 2017, the F) Tj ET Q q 0 0 0 rg BT 182.96 233.10 Td (ASB issued accounting guidance to simplify the accounting for goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 530.22 233.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 221.10 Td (guidance removes Step 2 of the goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 294.16 221.10 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 367.56 221.10 Td (fective for years beginning in 2020, though ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 209.10 Td (early adoption after January 1, 2017 is allowed. PSNC Ener) Tj ET Q q 0 0 0 rg BT 299.43 209.10 Td (gy has not determined when this guidance will be adopted but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 197.10 Td (does not anticipate that its adoption will have a material impact on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 173.10 Td (In March 2017, the F) Tj ET Q q 0 0 0 rg BT 177.96 173.10 Td (ASB issued accounting guidance to change the required presentation of net periodic pension ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 161.10 Td (and postretirement benefit cost. Under the new guidance, the net periodic pension and postretirement benefit cost are to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 149.10 Td (separated into their service cost components and other components. ) Tj ET Q q 0 0 0 rg BT 330.51 149.10 Td (The service cost components are to be presented in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 137.10 Td (same line item \(or items\) as other compensation costs arising from services rendered by employees during the period. ) Tj ET Q q 0 0 0 rg BT 530.18 137.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 125.10 Td (other components are to be reported in the income statement separately from the service cost component and outside ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 113.10 Td (operating income. Only the service cost component is eligible for capitalization in assets. ) Tj ET Q q 0 0 0 rg BT 421.88 113.10 Td (This guidance is required to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 101.10 Td (applied on a retrospective basis for the presentation of the service cost component and the other components, and on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 89.10 Td (prospective basis for the capitalization of only the service cost component. PSNC Ener) Tj ET Q q 0 0 0 rg BT 407.73 89.10 Td (gy will adopt the guidance when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 77.10 Td (required in the first quarter of 2018, and due to regulatory overlay) Tj ET Q q 0 0 0 rg BT 321.15 77.10 Td (, does not anticipate that its adoption will have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 65.10 Td (impact on its financial statements.) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 46.60 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 713.25 Td (2. ) Tj ET Q q 0 0 0 rg BT 94.00 713.25 Td (RA) Tj ET Q q 0 0 0 rg BT 107.70 713.25 Td (TE ) Tj ET Q q 0 0 0 rg BT 122.99 713.25 Td (AND OTHER REGULA) Tj ET Q q 0 0 0 rg BT 227.81 713.25 Td (T) Tj ET Q q 0 0 0 rg BT 234.30 713.25 Td (OR) Tj ET Q q 0 0 0 rg BT 248.95 713.25 Td (Y) Tj ET Q q 0 0 0 rg BT 255.80 713.25 Td ( MA) Tj ET Q q 0 0 0 rg BT 274.22 713.25 Td (TTERS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 689.25 Td (Rate Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 665.25 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 665.25 Td (gy) Tj ET Q q 0 0 0 rg BT 152.99 665.25 Td (s Rider D rate mechanism allows it to recover from customers all prudently incurred gas costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 653.25 Td (certain related uncollectible expenses as well as losses on negotiated gas and transportation sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 629.25 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 629.25 Td (gy establishes rates using a benchmark cost of gas approved by the North Carolina Utilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 617.25 Td (Commission \(NCUC\), which may be periodically adjusted to reflect changes in the market price of natural gas. PSNC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 605.25 Td (Ener) Tj ET Q q 0 0 0 rg BT 76.70 605.25 Td (gy ) Tj ET Q q 0 0 0 rg BT 89.20 605.25 Td (revises ) Tj ET Q q 0 0 0 rg BT 119.46 605.25 Td (its ) Tj ET Q q 0 0 0 rg BT 131.41 605.25 Td (tarif) Tj ET Q q 0 0 0 rg BT 147.89 605.25 Td (fs ) Tj ET Q q 0 0 0 rg BT 157.61 605.25 Td (as ) Tj ET Q q 0 0 0 rg BT 168.44 605.25 Td (necessary ) Tj ET Q q 0 0 0 rg BT 209.81 605.25 Td (to ) Tj ET Q q 0 0 0 rg BT 220.08 605.25 Td (track ) Tj ET Q q 0 0 0 rg BT 242.57 605.25 Td (these ) Tj ET Q q 0 0 0 rg BT 265.62 605.25 Td (changes ) Tj ET Q q 0 0 0 rg BT 300.32 605.25 Td (and ) Tj ET Q q 0 0 0 rg BT 317.26 605.25 Td (accounts ) Tj ET Q q 0 0 0 rg BT 354.75 605.25 Td (for ) Tj ET Q q 0 0 0 rg BT 368.91 605.25 Td (any ) Tj ET Q q 0 0 0 rg BT 385.85 605.25 Td (over) Tj ET Q q 0 0 0 rg BT 403.42 605.25 Td (- ) Tj ET Q q 0 0 0 rg BT 409.25 605.25 Td (or ) Tj ET Q /GS0 gs q 69.70 0 0 10.09 420.08 603.09 cm /I1 Do Q q 0 0 0 rg BT 489.77 605.25 Td (of ) Tj ET Q q 0 0 0 rg BT 500.60 605.25 Td (the ) Tj ET Q q 0 0 0 rg BT 515.32 605.25 Td (delivered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 593.25 Td (cost of gas in its deferred accounts for subsequent rate consideration. ) Tj ET Q q 0 0 0 rg BT 336.06 593.25 Td (The NCUC reviews PSNC Ener) Tj ET Q q 0 0 0 rg BT 464.20 593.25 Td (gy) Tj ET Q q 0 0 0 rg BT 476.98 593.25 Td (s gas purchasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 581.25 Td (practices annually) Tj ET Q q 0 0 0 rg BT 129.82 581.25 Td (. In addition, PSNC Ener) Tj ET Q q 0 0 0 rg BT 229.63 581.25 Td (gy utilizes a CUT) Tj ET Q q 0 0 0 rg BT 299.71 581.25 Td (, a decoupling mechanism, which allows it to adjust its base ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 569.25 Td (rates semi-annually for residential and commercial customers based on average per customer consumption. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 545.25 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 545.25 Td (gy was authorized to implement a tracker that provides for biannual rate adjustments to recover the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 533.25 Td (revenue requirement associated with integrity management plant investment and associated costs incurred from prevailing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 521.25 Td (federal standards for pipeline integrity and safety that are not otherwise included in current base rates. On February 15, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 509.25 Td (2017, PSNC Ener) Tj ET Q q 0 0 0 rg BT 129.21 509.25 Td (gy filed its first biannual application for an adjustment to its rates under the Integrity Management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 497.25 Td (T) Tj ET Q q 0 0 0 rg BT 63.76 497.25 Td (racker) Tj ET Q q 0 0 0 rg BT 88.33 497.25 Td (, requesting recovery of an annual revenue requirement of $1.9 million. ) Tj ET Q q 0 0 0 rg BT 378.88 497.25 Td (The NCUC approved this request and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 485.25 Td (revised rates became ef) Tj ET Q q 0 0 0 rg BT 151.37 485.25 Td (fective for service rendered on and after March 1, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 461.25 Td (Regulatory ) Tj ET Q q 0 0 0 rg BT 104.38 461.25 Td (Assets and Regulatory Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 437.25 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 437.25 Td (gy has significant cost-based, rate-regulated operations and recognizes in its financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 425.25 Td (certain revenues and expenses in dif) Tj ET Q q 0 0 0 rg BT 202.48 425.25 Td (ferent periods than do other enterprises. ) Tj ET Q q 0 0 0 rg BT 365.76 425.25 Td (As a result, PSNC Ener) Tj ET Q q 0 0 0 rg BT 459.74 425.25 Td (gy has recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 413.25 Td (regulatory assets and regulatory liabilities which are summarized in the following tables. Substantially all of its regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 401.25 Td (assets are either explicitly excluded from rate base or are ef) Tj ET Q q 0 0 0 rg BT 295.48 401.25 Td (fectively excluded from rate base due to their being of) Tj ET Q q 0 0 0 rg BT 512.16 401.25 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 389.25 Td (related liabilities.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 350.75 m 427.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 350.75 m 495.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 350.75 m 563.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 252.75 m 427.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 252.75 m 495.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 252.75 m 563.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 239.75 m 427.5 239.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 237.75 m 427.5 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 239.75 m 495.5 239.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 237.75 m 495.5 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 239.75 m 563.5 239.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 237.75 m 563.5 237.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.30 369.32 Td (June 30,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 369.32 Td (December 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 355.32 Td (Thousands of dollars) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 355.32 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 355.32 Td (2016) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 348.25 75.27 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 341.32 Td (Regulatory Assets:) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 334.25 144.10 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 327.32 Td (Accumulated deferred income taxes) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 434.00 334.25 5.00 -9.09 re f /GS0 gs q 0 0 0 rg BT 434.00 327.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 469.15 334.25 22.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 469.15 327.32 Td (8,221) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 327.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.15 327.32 Td (8,275) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 320.25 112.75 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 313.32 Td (Asset retirement obligations) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 464.15 320.25 27.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 464.15 313.32 Td (22,978) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.15 313.32 Td (22,046) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 306.25 149.38 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 299.32 Td (Deferred employee benefit plan costs) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 464.15 306.25 27.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 464.15 299.32 Td (32,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.15 299.32 Td (33,376) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 292.25 145.24 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 285.32 Td (Pipeline integrity management costs) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 464.15 292.25 27.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 464.15 285.32 Td (34,943) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.15 285.32 Td (29,459) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 278.25 132.19 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 271.32 Td (Environmental remediation costs) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 469.15 278.25 22.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 469.15 271.32 Td (5,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.15 271.32 Td (6,524) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 264.25 22.77 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 257.32 Td (Other) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 476.65 264.25 15.00 -9.09 re f /GS0 gs q 0 0 0 rg BT 476.65 257.32 Td (396) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 257.32 Td (451) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 250.25 95.40 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 243.32 Td (Total Regulatory Assets) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 434.00 250.25 5.00 -9.09 re f /GS0 gs q 0 0 0 rg BT 434.00 243.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 459.15 250.25 32.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 459.15 243.32 Td (104,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 243.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 243.32 Td (100,131) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 186.75 m 427.5 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 186.75 m 495.5 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 186.75 m 563.5 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 173.75 m 427.5 173.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 171.75 m 427.5 171.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 173.75 m 495.5 173.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 171.75 m 495.5 171.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 173.75 m 563.5 173.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 171.75 m 563.5 171.75 l s BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 226.25 90.26 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 219.32 Td (Regulatory Liabilities:) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 212.25 79.99 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 205.32 Td (Asset removal costs) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 434.00 212.25 5.00 -9.09 re f /GS0 gs q 0 0 0 rg BT 434.00 205.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 459.15 212.25 32.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 459.15 205.32 Td (226,437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 205.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 205.32 Td (224,178) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 198.25 22.77 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 191.32 Td (Other) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 469.50 198.25 22.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 469.50 191.32 Td (7,373) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.50 191.32 Td (9,117) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 184.25 110.39 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 177.32 Td (Total Regulatory Liabilities) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 434.00 184.25 5.00 -9.09 re f /GS0 gs q 0 0 0 rg BT 434.00 177.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 459.15 184.25 32.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 459.15 177.32 Td (233,810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 177.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 177.32 Td (233,295) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 149.25 Td (Accumulated deferred income tax liabilities that arise from utility operations that have not been included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 137.25 Td (customer rates are recorded as a regulatory asset. ) Tj ET Q q 0 0 0 rg BT 258.46 137.25 Td (A) Tj ET Q q 0 0 0 rg BT 265.13 137.25 Td ( substantial portion of these regulatory assets relate to depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 125.25 Td (are expected to be recovered over the remaining lives of the related property which may range up to approximately 90 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 113.25 Td (years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 89.25 Td ( ) Tj ET Q q 0 0 0 rg BT 94.00 89.25 Td (Asset retirement obligations \(ARO\) represents the regulatory asset associated with conditional ) Tj ET Q q 0 0 0 rg BT 473.62 89.25 Td (AROs related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 77.25 Td (transmission and distribution properties. ) Tj ET Q q 0 0 0 rg BT 223.91 77.25 Td (These regulatory assets are expected to be recovered over the related property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 65.25 Td (lives which may range up to approximately 90 years.) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 46.60 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 713.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 701.10 Td (Employee benefit plan costs have historically been recovered as they have been recorded under generally accepted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 689.10 Td (accounting principles. Deferred employee benefit plan costs represent pension and other postretirement benefit costs which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 677.10 Td (were accrued as liabilities and treated as regulatory assets pursuant to an NCUC order) Tj ET Q q 0 0 0 rg BT 400.94 677.10 Td (. ) Tj ET Q q 0 0 0 rg BT 408.26 677.10 Td (These deferred benefit costs are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 665.10 Td (expected to be recovered through utility rates, primarily over average service periods of participating employees, or up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 653.10 Td (approximately 1) Tj ET Q q 0 0 0 rg BT 122.89 653.10 Td (1 years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 629.10 Td (Pipeline integrity management costs represent costs incurred to comply with regulatory requirements related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 617.10 Td (transmission and distribution natural gas pipelines. PSNC Ener) Tj ET Q q 0 0 0 rg BT 312.52 617.10 Td (gy began recovering costs totaling $21.8 million over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 605.10 Td (five-year period in November 2016, and remaining costs of $16.0 million have been deferred pending future approval of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 593.10 Td (rate recovery) Tj ET Q q 0 0 0 rg BT 109.81 593.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 569.10 Td (Environmental remediation costs represent costs associated with the assessment and clean-up of sites currently or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 557.10 Td (formerly owned by PSNC Ener) Tj ET Q q 0 0 0 rg BT 183.36 557.10 Td (gy) Tj ET Q q 0 0 0 rg BT 192.71 557.10 Td (. Remediation costs totaling $6.9 million are being recorded over a five-year period that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 545.10 Td (began November 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 521.10 Td (Asset removal costs represent estimated net collections through depreciation rates of amounts to be incurred for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 509.10 Td (the removal of assets in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 485.10 Td (The NCUC has reviewed and approved through specific orders most of the items shown as regulatory assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 473.10 Td (Other regulatory assets include, but are not limited to, certain costs which have not been specifically approved for recovery ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 461.10 Td (by the NCUC. In recording such costs as regulatory assets, management believes the costs will be allowable under existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 449.10 Td (rate-making concepts that are embodied in rate orders received by PSNC Ener) Tj ET Q q 0 0 0 rg BT 370.76 449.10 Td (gy) Tj ET Q q 0 0 0 rg BT 380.11 449.10 Td (. ) Tj ET Q q 0 0 0 rg BT 384.93 449.10 Td (The costs are currently not being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 437.10 Td (recovered, but are expected to be recovered through rates in future periods. In the future, as a result of deregulation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 425.10 Td (other changes in the regulatory environment or changes in accounting requirements, PSNC Ener) Tj ET Q q 0 0 0 rg BT 442.99 425.10 Td (gy could be required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 413.10 Td (write of) Tj ET Q q 0 0 0 rg BT 89.20 413.10 Td (f its regulatory assets and liabilities. Such an event could have a material ef) Tj ET Q q 0 0 0 rg BT 390.03 413.10 Td (fect on the Company) Tj ET Q q 0 0 0 rg BT 476.39 413.10 Td (s results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 401.10 Td (operations, liquidity or financial position in the period the write-of) Tj ET Q q 0 0 0 rg BT 323.87 401.10 Td (f would be recorded.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 377.10 Td (3. EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 353.10 Td ( ) Tj ET Q q 0 0 0 rg BT 94.00 353.10 Td (Changes in common equity during the six months ended June 30, 2017 and 2016 were as follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.33 353.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.33 353.10 Td ( ) Tj ET Q q 0 0 0 rg BT 526.00 353.10 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 322.6 m 403.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 322.6 m 407.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 322.6 m 453.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 322.6 m 457.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 322.6 m 503.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 282.6 m 248.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 282.6 m 453.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 282.6 m 503.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 282.6 m 298.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 270.6 m 298.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 282.6 m 348.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 270.6 m 348.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 282.6 m 403.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 270.6 m 403.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 282.6 m 453.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 270.6 m 453.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 282.6 m 503.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 270.6 m 503.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 282.6 m 553.5 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 270.6 m 553.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 270.6 m 298.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 270.6 m 348.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 270.6 m 403.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 270.6 m 453.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 270.6 m 503.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 270.6 m 553.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 246.60000000000002 m 348.5 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 246.60000000000002 m 403.5 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 246.60000000000002 m 453.5 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 246.60000000000002 m 503.5 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 246.60000000000002 m 553.5 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 222.60000000000002 m 248.5 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 211.60000000000002 m 248.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 209.60000000000002 m 248.5 209.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 222.60000000000002 m 298.5 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 211.60000000000002 m 298.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 209.60000000000002 m 298.5 209.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 222.60000000000002 m 348.5 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 211.60000000000002 m 348.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 209.60000000000002 m 348.5 209.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 222.60000000000002 m 403.5 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 211.60000000000002 m 403.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 209.60000000000002 m 403.5 209.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 222.60000000000002 m 453.5 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 211.60000000000002 m 453.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 209.60000000000002 m 453.5 209.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 222.60000000000002 m 503.5 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 211.60000000000002 m 503.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 209.60000000000002 m 503.5 209.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 222.60000000000002 m 553.5 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 211.60000000000002 m 553.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 209.60000000000002 m 553.5 209.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 198.60000000000002 m 298.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 198.60000000000002 m 348.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 198.60000000000002 m 403.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 198.60000000000002 m 453.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 198.60000000000002 m 503.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 198.60000000000002 m 553.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 186.60000000000002 m 298.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 186.60000000000002 m 348.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 186.60000000000002 m 403.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 186.60000000000002 m 453.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 186.60000000000002 m 503.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 186.60000000000002 m 553.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 162.60000000000002 m 348.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 162.60000000000002 m 403.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 162.60000000000002 m 453.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 162.60000000000002 m 503.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 162.60000000000002 m 553.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 138.60000000000002 m 348.5 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 138.60000000000002 m 248.5 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 127.60000000000002 m 248.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 125.60000000000002 m 248.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 138.60000000000002 m 298.5 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 127.60000000000002 m 298.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252.5 125.60000000000002 m 298.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 127.60000000000002 m 348.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 125.60000000000002 m 348.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 138.60000000000002 m 403.5 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 127.60000000000002 m 403.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 125.60000000000002 m 403.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 138.60000000000002 m 453.5 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 127.60000000000002 m 453.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 125.60000000000002 m 453.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 138.60000000000002 m 503.5 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 127.60000000000002 m 503.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 125.60000000000002 m 503.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 138.60000000000002 m 553.5 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 127.60000000000002 m 553.5 127.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 125.60000000000002 m 553.5 125.60000000000002 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.75 333.86 Td (Accumulated Other Comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.35 324.91 Td (Income \(Loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 286.85 Td (Thousands) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.20 296.06 Td (Common) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.70 287.06 Td (Stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 296.06 Td (Retained) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 287.06 Td (Earnings) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.00 313.86 Td (Gains) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.60 304.86 Td (\(Losses\) on) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.10 295.86 Td (Cash Flow) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.00 286.86 Td (Hedges) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 313.86 Td (Deferred) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.75 304.86 Td (Employee) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.75 295.86 Td (Benefit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.85 286.86 Td (Plans Cost) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.80 296.06 Td (T) Tj ET Q q 0 0 0 rg BT 475.67 296.06 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.00 287.06 Td (AOCI) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.80 305.06 Td (T) Tj ET Q q 0 0 0 rg BT 525.67 305.06 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.20 296.06 Td (Common) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.00 287.06 Td (Equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 273.86 Td (Balance as of January 1, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.00 273.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 265.75 273.86 Td (634,681) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.00 273.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.75 273.86 Td (143,134) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.00 273.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.50 273.86 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 273.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.75 273.86 Td (\(1,492) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.00 273.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.00 273.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.75 273.86 Td (\(1,489) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 273.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.00 273.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.75 273.86 Td (776,326) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.00 261.86 Td ( Net Income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.00 261.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.25 261.86 Td (44,986) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.00 261.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.25 261.86 Td (44,986) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 249.86 Td ( Other Comprehensive Income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 249.86 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.00 249.86 Td (44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 249.86 Td (59) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.00 249.86 Td (59) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 237.86 Td ( Total Comprehensive Income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.25 237.86 Td (44,986) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 237.86 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.00 237.86 Td (44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 237.86 Td (59) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.25 237.86 Td (45,045) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 225.86 Td (Dividends Declared) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.00 225.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.25 225.86 Td (\(18,950) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 225.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.00 225.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.25 225.86 Td (\(18,950) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 225.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 213.86 Td (Balance as of June 30, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.00 213.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 265.75 213.86 Td (634,681) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.00 213.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.75 213.86 Td (169,170) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.00 213.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 213.86 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 213.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.75 213.86 Td (\(1,448) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.00 213.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.75 213.86 Td (\(1,430) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 213.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.00 213.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.75 213.86 Td (802,421) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 189.86 Td (Balance as of January 1, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.00 189.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 265.75 189.86 Td (634,681) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.00 189.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.75 189.86 Td (119,165) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.00 189.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 388.00 189.86 Td (\(12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 189.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 189.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.75 189.86 Td (\(1,321) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.00 189.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.00 189.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.75 189.86 Td (\(1,333) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 189.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.00 189.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.75 189.86 Td (752,513) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.00 177.86 Td ( Net Income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.00 177.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.25 177.86 Td (35,875) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.00 177.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.25 177.86 Td (35,875) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.00 165.86 Td ( Other Comprehensive Income \(Loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 388.00 165.86 Td (\(96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 165.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.00 165.86 Td (44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.00 165.86 Td (\(52) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 165.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.00 165.86 Td (\(52) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 165.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.00 153.86 Td ( Total Comprehensive Income \(Loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.25 153.86 Td (35,875) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 388.00 153.86 Td (\(96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 153.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.00 153.86 Td (44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.00 153.86 Td (\(52) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 153.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.25 153.86 Td (35,823) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 141.86 Td (Dividends Declared) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.00 141.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.25 141.86 Td (\(17,150) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 141.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.00 141.86 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.25 141.86 Td (\(17,150) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 141.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 129.86 Td (Balance as of June 30, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.00 129.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 265.75 129.86 Td (634,681) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.00 129.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.75 129.86 Td (137,890) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.00 129.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.50 129.86 Td (\(108) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 129.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 129.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.75 129.86 Td (\(1,277) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.00 129.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.00 129.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.75 129.86 Td (\(1,385) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 129.86 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.00 129.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.75 129.86 Td (771,186) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 103.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 103.10 Td (gy had one thousand shares of common stock authorized, issued and outstanding during all periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 91.10 Td (presented.) Tj ET Q endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 46.60 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 713.10 Td (Reclassifications from ) Tj ET Q q 0 0 0 rg BT 185.65 713.10 Td (Accumulated Other Comprehensive Income \(AOCI\) into earnings of gains or losses on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 701.10 Td (interest rate contracts are reflected within earnings from equity method investments on the income statement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 689.10 Td (Reclassifications for the amortization of deferred employee benefit costs are recorded within operation and maintenance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 677.10 Td (and other expenses on the income statement, and capitalized in gas utility plant on the balance sheet.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 653.10 Td (4.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 653.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.00 653.10 Td (LONG-TERM DEBT) Tj ET Q q 0 0 0 rg BT 186.33 653.10 Td ( ) Tj ET Q q 0 0 0 rg BT 188.28 653.10 Td (AND LIQUIDITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 629.10 Td (In June 2017, PSNC Ener) Tj ET Q q 0 0 0 rg BT 196.87 629.10 Td (gy issued $150 million of 4.18% senior notes due June 30, 2047. Proceeds from this sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 617.10 Td (were used to repay short-term debt, to finance capital expenditures, and for general corporate purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 593.10 Td (In June 2016, PSNC Ener) Tj ET Q q 0 0 0 rg BT 196.87 593.10 Td (gy issued $100 million of 4.13% senior notes due June 22, 2046. Proceeds from this sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 581.10 Td (were used to repay short-term debt, to finance capital expenditures, and for general corporate purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 557.10 Td ( ) Tj ET Q q 0 0 0 rg BT 94.00 557.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 557.10 Td (gy is party to a five-year credit agreement of $200 million that expires in December 2020. ) Tj ET Q q 0 0 0 rg BT 504.91 557.10 Td (The credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 545.10 Td (agreement is used for general corporate purposes, including liquidity support for PSNC Ener) Tj ET Q q 0 0 0 rg BT 428.57 545.10 Td (gy) Tj ET Q q 0 0 0 rg BT 441.34 545.10 Td (s commercial paper ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 533.10 Td (program and working capital needs. ) Tj ET Q q 0 0 0 rg BT 206.38 533.10 Td (The committed long-term facility is a revolving line of credit under credit agreements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 521.10 Td (with a syndicate of banks. ) Tj ET Q q 0 0 0 rg BT 166.59 521.10 Td (At June 30, 2017 and December 31, 2016, PSNC Ener) Tj ET Q q 0 0 0 rg BT 384.15 521.10 Td (gy had $200 million and $128.2 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 509.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 105.66 509.10 Td (, of the line of credit available.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 485.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 485.10 Td (gy participates in a utility money pool with certain SCANA) Tj ET Q q 0 0 0 rg BT 378.23 485.10 Td ( subsidiaries. Money pool borrowings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 473.10 Td (investments bear interest at short-term market rates. PSNC had money pool investments of $50.4 million at June 30, 2017 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 461.10 Td (and no money pool investments or borrowings at December 31, 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 437.10 Td (5. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 437.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.00 437.10 Td (INCOME ) Tj ET Q q 0 0 0 rg BT 138.54 437.10 Td (T) Tj ET Q q 0 0 0 rg BT 144.47 437.10 Td (AXES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 413.10 Td ( ) Tj ET Q q 0 0 0 rg BT 94.00 413.10 Td (No material changes in the status of PSNC Ener) Tj ET Q q 0 0 0 rg BT 286.00 413.10 Td (gy) Tj ET Q q 0 0 0 rg BT 298.78 413.10 Td (s tax positions have occurred through June 30, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 389.10 Td ( ) Tj ET Q q 0 0 0 rg BT 94.00 389.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 103.26 389.10 Td (fective January 1, 2017, the State of North Carolina reduced its corporate income tax rate from 4% to 3%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 377.10 Td (During the second quarter of 2017, the State of North Carolina passed legislation that will lower the state corporate income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 365.10 Td (tax rate from 3% to 2.5% ef) Tj ET Q q 0 0 0 rg BT 169.17 365.10 Td (fective January 1, 2019. In connection with these changes in tax rates, related state deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 353.10 Td (taxes were remeasured, with the change in their balances being credited to a regulatory liability) Tj ET Q q 0 0 0 rg BT 438.59 353.10 Td (. ) Tj ET Q q 0 0 0 rg BT 445.91 353.10 Td (These changes in income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 341.10 Td (tax rates did not and are not expected to have a material impact on PSNC Ener) Tj ET Q q 0 0 0 rg BT 371.88 341.10 Td (gy) Tj ET Q q 0 0 0 rg BT 384.66 341.10 Td (s financial position, results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 329.10 Td (or cash flows. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 305.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 305.10 Td (gy recognizes interest accrued related to unrecognized tax benefits within interest expense and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 293.10 Td (recognizes tax penalties within other expenses. PSNC Ener) Tj ET Q q 0 0 0 rg BT 296.93 293.10 Td (gy has not recorded interest expense related to unrecognized tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 281.10 Td (benefits or tax penalties in 2017 or 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 257.10 Td (6. ) Tj ET Q q 0 0 0 rg BT 94.00 257.10 Td (DERIV) Tj ET Q q 0 0 0 rg BT 124.94 257.10 Td (A) Tj ET Q q 0 0 0 rg BT 131.42 257.10 Td (TIVE FINANCIAL) Tj ET Q q 0 0 0 rg BT 214.49 257.10 Td ( INSTRUMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 233.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 233.10 Td (gy recognizes all derivative instruments as either assets or liabilities in the statement of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 221.10 Td (position and measures those instruments at fair value. PSNC Ener) Tj ET Q q 0 0 0 rg BT 323.61 221.10 Td (gy recognizes changes in the fair value of derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 209.10 Td (instruments either in earnings, as a component of other comprehensive income \(loss\), or within regulatory assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 197.10 Td (regulatory liabilities, depending upon the intended use of the derivative and the resulting designation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 173.10 Td (Policies and procedures and risk limits are established to control the level of market, credit, liquidity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 161.10 Td (operational and administrative risks assumed by PSNC Ener) Tj ET Q q 0 0 0 rg BT 299.17 161.10 Td (gy) Tj ET Q q 0 0 0 rg BT 308.52 161.10 Td (. ) Tj ET Q q 0 0 0 rg BT 315.84 161.10 Td (The Board of Directors of SCANA, PSNC Ener) Tj ET Q q 0 0 0 rg BT 507.30 161.10 Td (gy) Tj ET Q q 0 0 0 rg BT 520.08 161.10 Td (s parent, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 149.10 Td (has delegated to a Risk Management Committee the authority to set risk limits, establish policies and procedures for risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 137.10 Td (management and measurement, and oversee and review the risk management process and infrastructure. ) Tj ET Q q 0 0 0 rg BT 479.88 137.10 Td (The Risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 125.10 Td (Management Committee, which is comprised of certain of) Tj ET Q q 0 0 0 rg BT 291.09 125.10 Td (ficers, including PSNC Ener) Tj ET Q q 0 0 0 rg BT 404.78 125.10 Td (gy's Risk Management Of) Tj ET Q q 0 0 0 rg BT 508.88 125.10 Td (ficer and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 113.10 Td (SCANA) Tj ET Q q 0 0 0 rg BT 90.79 113.10 Td () Tj ET Q q 0 0 0 rg BT 93.57 113.10 Td (s senior of) Tj ET Q q 0 0 0 rg BT 135.05 113.10 Td (ficers, apprises the ) Tj ET Q q 0 0 0 rg BT 211.69 113.10 Td (Audit Committee of the Board of Directors with regard to the management of risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 101.10 Td (and brings to their attention significant areas of concern. ) Tj ET Q q 0 0 0 rg BT 286.08 101.10 Td (W) Tj ET Q q 0 0 0 rg BT 295.11 101.10 Td (ritten policies define the physical and financial transactions that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 89.10 Td (are approved, as well as the authorization requirements and limits for transactions.) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 46.60 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 713.10 Td ( ) Tj ET Q q 0 0 0 rg BT 94.00 713.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 713.10 Td (gy hedges natural gas purchasing activities using over) Tj ET Q q 0 0 0 rg BT 355.79 713.10 Td (-the-counter options and swaps and New ) Tj ET Q q 0 0 0 rg BT 520.93 713.10 Td (Y) Tj ET Q q 0 0 0 rg BT 527.15 713.10 Td (ork ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 701.10 Td (Mercantile Exchange \(NYMEX\) futures and options. PSNC Ener) Tj ET Q q 0 0 0 rg BT 321.93 701.10 Td (gy) Tj ET Q q 0 0 0 rg BT 334.70 701.10 Td (s tarif) Tj ET Q q 0 0 0 rg BT 357.57 701.10 Td (fs also include a provision for the recovery of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 689.10 Td (actual gas costs incurred, including any costs for hedging. PSNC Ener) Tj ET Q q 0 0 0 rg BT 340.82 689.10 Td (gy records premiums, transaction fees, mar) Tj ET Q q 0 0 0 rg BT 513.08 689.10 Td (gin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 677.10 Td (requirements and any realized gains or losses from its hedging program in deferred accounts as a regulatory asset or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 665.10 Td (liability for the over) Tj ET Q q 0 0 0 rg BT 138.05 665.10 Td (- or under) Tj ET Q q 0 0 0 rg BT 177.28 665.10 Td (-recovery of gas costs. ) Tj ET Q q 0 0 0 rg BT 272.07 665.10 Td (These derivative financial instruments are not designated as hedges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 653.10 Td (for accounting purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 629.10 Td (Quantitative Disclosures Related to Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 605.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 605.10 Td (gy was party to natural gas derivative contracts for 7,140,000 Million British ) Tj ET Q q 0 0 0 rg BT 449.97 605.10 Td (Thermal Units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 593.10 Td (\(MMBTU\) at June 30, 2017 and 4,510,000 MMBTU at December 31, 2016, respectively) Tj ET Q q 0 0 0 rg BT 413.67 593.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 569.10 Td (The fair value of commodity derivatives, none of which were designated as hedging instruments, totaled $1.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 557.10 Td (million at June 30, 2017 and $2.6 million at December 31, 2016. Such amounts are reflected on the balance sheet within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 545.10 Td (Prepayments and other and of) Tj ET Q q 0 0 0 rg BT 177.23 545.10 Td (fset to Customer deposits and customer prepayments. PSNC Ener) Tj ET Q q 0 0 0 rg BT 442.01 545.10 Td (gy did not have any other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 533.10 Td (derivatives or other financial instruments in the statement of financial position during any period presented. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 509.10 Td (For a discussion of interest rate swaps used by PSNC Ener) Tj ET Q q 0 0 0 rg BT 328.23 509.10 Td (gy's equity method investees, see Note 10.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 485.10 Td (Credit Risk Considerations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 461.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 461.10 Td (gy limits credit risk in its commodity and interest rate derivatives activities by assessing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 449.10 Td (creditworthiness of potential counterparties before entering into transactions with them and continuing to evaluate their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 437.10 Td (creditworthiness on an ongoing basis. In this regard, PSNC Ener) Tj ET Q q 0 0 0 rg BT 318.34 437.10 Td (gy uses credit ratings provided by credit rating agencies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 425.10 Td (and current market-based qualitative and quantitative data, as well as financial statements, to assess the financial health of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 413.10 Td (counterparties on an ongoing basis. PSNC Ener) Tj ET Q q 0 0 0 rg BT 250.57 413.10 Td (gy uses standardized master agreements which generally include collateral ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 401.10 Td (requirements. ) Tj ET Q q 0 0 0 rg BT 117.52 401.10 Td (These master agreements permit the netting of cash flows associated with a single counterparty) Tj ET Q q 0 0 0 rg BT 497.58 401.10 Td (. Cash, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 389.10 Td (letters of credit and parental/af) Tj ET Q q 0 0 0 rg BT 180.53 389.10 Td (filiate guarantees may be obtained as security from counterparties in order to mitigate credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 377.10 Td (risk. ) Tj ET Q q 0 0 0 rg BT 80.32 377.10 Td (The collateral agreements require a counterparty to post cash or letters of credit in the event an exposure exceeds the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 365.10 Td (established threshold. ) Tj ET Q q 0 0 0 rg BT 149.47 365.10 Td (The threshold represents an unsecured credit limit which may be supported by a parental/af) Tj ET Q q 0 0 0 rg BT 514.44 365.10 Td (filiate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 353.10 Td (guaranty) Tj ET Q q 0 0 0 rg BT 92.34 353.10 Td (, as determined in accordance with PSNC Ener) Tj ET Q q 0 0 0 rg BT 279.88 353.10 Td (gy's credit policies and due diligence. In addition, collateral ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 341.10 Td (agreements allow for the termination and liquidation of all positions in the event of a failure or inability to post collateral.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 317.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 317.10 Td (gy had no derivative instruments in a liability position for any period presented. In addition, PSNC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 305.10 Td (Ener) Tj ET Q q 0 0 0 rg BT 76.70 305.10 Td (gy did not have derivative instruments with underlying contingent features which, if triggered, would have permitted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 293.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 104.21 293.10 Td (gy to request collateral from its counterparties for any period presented.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 269.10 Td (7. ) Tj ET Q q 0 0 0 rg BT 94.00 269.10 Td (F) Tj ET Q q 0 0 0 rg BT 99.37 269.10 Td (AIR ) Tj ET Q q 0 0 0 rg BT 120.02 269.10 Td (V) Tj ET Q q 0 0 0 rg BT 125.95 269.10 Td (ALUE MEASUREMENTS, INCLUDING DERIV) Tj ET Q q 0 0 0 rg BT 338.58 269.10 Td (A) Tj ET Q q 0 0 0 rg BT 345.06 269.10 Td (TIVES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 245.10 Td (A) Tj ET Q q 0 0 0 rg BT 100.67 245.10 Td ( fair value measurement using unadjusted quoted prices in active markets for identical assets or liabilities is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 233.10 Td (considered to be Level 1. ) Tj ET Q q 0 0 0 rg BT 163.24 233.10 Td (A) Tj ET Q q 0 0 0 rg BT 169.91 233.10 Td ( fair value measurement using observable inputs other than those for Level 1, including quoted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 221.10 Td (prices for similar \(not identical\) assets or liabilities or inputs that are derived from observable market data by correlation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 209.10 Td (other means is considered to be Level 2. ) Tj ET Q q 0 0 0 rg BT 223.51 209.10 Td (A) Tj ET Q q 0 0 0 rg BT 230.18 209.10 Td ( Level 3 fair value measurement is one using unobservable inputs, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 197.10 Td (situations where there is little, if any) Tj ET Q q 0 0 0 rg BT 203.15 197.10 Td (, market activity for the asset or liability) Tj ET Q q 0 0 0 rg BT 363.00 197.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 173.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 173.10 Td (gy uses unadjusted NYMEX prices to determine fair value for commodity derivative assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 161.10 Td (liabilities, and considers such measures of fair value to be Level 1 for exchange traded instruments and Level 2 for over) Tj ET Q q 0 0 0 rg BT 536.80 161.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 149.10 Td (the-counter instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 125.10 Td (Fair value asset measurements were $1.0 million at June 30, 2017 and $2.6 million at December 31, 2016. ) Tj ET Q q 0 0 0 rg BT 523.72 125.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 113.10 Td (measurements were considered Level 1 and were included within Prepayments and other in the consolidated balance sheet. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 101.10 Td (There were no fair value liability measurements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 77.10 Td ( ) Tj ET Q q 0 0 0 rg BT 94.00 77.10 Td (There were no Level 3 fair value measurements for either period presented, and there were no transfers of fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 65.10 Td (value amounts into or out of Levels 1, 2, or 3 during any period presented.) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 46.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 701.10 Td (Financial instruments for which the carrying amount may not equal estimated fair value at June 30, 2017 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 689.10 Td (December31, 2016 were as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286.5 657.6 m 350.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 657.6 m 354.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 657.6 m 418.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 657.6 m 486.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 657.6 m 490.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 657.6 m 554.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 635.6 m 282.5 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286.5 657.6 m 350.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286.5 635.6 m 350.5 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 657.6 m 354.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 657.6 m 418.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 635.6 m 418.5 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 657.6 m 486.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 635.6 m 486.5 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 657.6 m 490.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 657.6 m 554.5 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 635.6 m 554.5 635.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.85 662.17 Td (As of June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.45 662.17 Td (As of December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 640.27 Td (Thousands of dollars) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.20 648.17 Td (Carrying) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.60 638.22 Td (Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.00 648.17 Td (Estimated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.40 638.22 Td (Fair ) Tj ET Q q 0 0 0 rg BT 383.83 638.22 Td (V) Tj ET Q q 0 0 0 rg BT 389.94 638.22 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.20 648.17 Td (Carrying) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.60 638.22 Td (Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 648.17 Td (Estimated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.40 638.22 Td (Fair ) Tj ET Q q 0 0 0 rg BT 519.83 638.22 Td (V) Tj ET Q q 0 0 0 rg BT 525.94 638.22 Td (alue) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 61.00 633.10 62.48 -9.09 re f /GS0 gs q 0 0 0 rg BT 61.00 626.17 Td (Long-term debt) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 299.25 633.10 37.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 299.25 626.17 Td ($599,067) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 367.25 633.10 37.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 367.25 626.17 Td ($660,265) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 435.25 633.10 37.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 435.25 626.17 Td ($449,024) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 503.25 633.10 37.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 503.25 626.17 Td ($511,182) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 598.10 Td (Fair values of long-term debt instruments are based on net present value calculations using independently sourced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 586.10 Td (market data that incorporate a developed discount rate using similarly rated long-term debt, along with benchmark interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 574.10 Td (rates. ) Tj ET Q q 0 0 0 rg BT 83.83 574.10 Td (As such, the aggregate fair values presented above are considered to be Level 2. Early settlement of long-term debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 562.10 Td (may not be possible or may not be considered prudent.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 550.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 538.10 Td (Carrying values of short-term borrowings approximate their fair values, which are based on quoted prices from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 526.10 Td (dealers in the commercial paper market. ) Tj ET Q q 0 0 0 rg BT 223.30 526.10 Td (These fair values are considered to be Level 2.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 502.10 Td (8. ) Tj ET Q q 0 0 0 rg BT 94.00 502.10 Td (EMPLOYEE BENEFIT) Tj ET Q q 0 0 0 rg BT 197.45 502.10 Td ( PLANS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 478.10 Td (Pension and Other Postretirement Benefit Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 454.10 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 454.10 Td (gy participates in SCANA) Tj ET Q q 0 0 0 rg BT 244.37 454.10 Td () Tj ET Q q 0 0 0 rg BT 247.14 454.10 Td (s noncontributory defined benefit pension plan, which covers substantially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 442.10 Td (all regular) Tj ET Q q 0 0 0 rg BT 98.41 442.10 Td (, full-time employees hired before January 1, 2014, and also participates in SCANA) Tj ET Q q 0 0 0 rg BT 433.05 442.10 Td () Tj ET Q q 0 0 0 rg BT 435.83 442.10 Td (s unfunded postretirement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 430.10 Td (health care and life insurance programs, which provide benefits to retired employees. Components of net periodic benefit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 418.10 Td (cost recorded by PSNC Ener) Tj ET Q q 0 0 0 rg BT 172.79 418.10 Td (gy were as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 381.6 m 325.5 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 381.6 m 382.5 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 381.6 m 439.5 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 381.6 m 496.5 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 381.6 m 554.5 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 303.6 m 382.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 303.6 m 439.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 303.6 m 496.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 303.6 m 554.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 303.6 m 325.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 291.6 m 325.5 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 58.5 289.6 m 325.5 289.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 291.6 m 382.5 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 289.6 m 382.5 289.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 291.6 m 439.5 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 289.6 m 439.5 289.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 291.6 m 496.5 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 289.6 m 496.5 289.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 291.6 m 554.5 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 289.6 m 554.5 289.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.00 398.85 Td (Pension Benefits) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.70 398.85 Td (Other Postretirement Benefits) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.00 385.85 Td (Thousandsofdollars) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 385.85 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.50 385.85 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.50 385.85 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 519.00 385.85 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 372.17 Td (Three months ended June 30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 359.17 Td (Service cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 359.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 359.17 Td (654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 359.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 359.17 Td (661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.00 359.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 359.17 Td (154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 359.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 359.17 Td (163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 346.17 Td (Interest cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 346.17 Td (1,009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 346.17 Td (1,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 346.17 Td (390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 346.17 Td (394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 333.17 Td (Expected return on assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 333.22 Td (\(1,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.65 333.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 333.22 Td (\(1,484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 333.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.30 333.22 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.30 333.22 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 320.17 Td (Prior service cost amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 320.17 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 320.17 Td (104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 320.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 320.17 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 307.17 Td (Amortization of actuarial losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 307.17 Td (421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 307.17 Td (389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 307.17 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 307.17 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 294.17 Td (Net periodic benefit cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 294.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 294.17 Td (650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 294.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 294.17 Td (714) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.00 294.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 294.17 Td (593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 294.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 294.17 Td (581) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 254.60000000000002 m 324.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 254.60000000000002 m 381.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 254.60000000000002 m 438.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 254.60000000000002 m 495.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 254.60000000000002 m 553.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 176.60000000000002 m 381.5 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 176.60000000000002 m 438.5 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 176.60000000000002 m 495.5 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 176.60000000000002 m 553.5 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 176.60000000000002 m 324.5 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 164.60000000000002 m 324.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 57.5 162.60000000000002 m 324.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 164.60000000000002 m 381.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 162.60000000000002 m 381.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 164.60000000000002 m 438.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 162.60000000000002 m 438.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 164.60000000000002 m 495.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 162.60000000000002 m 495.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 164.60000000000002 m 553.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 162.60000000000002 m 553.5 162.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.00 271.85 Td (Pension Benefits) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.70 271.85 Td (Other Postretirement Benefits) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 258.85 Td (Thousandsofdollars) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.50 258.85 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.50 258.85 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.50 258.85 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 518.00 258.85 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 245.17 Td (Six months ended June 30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 232.17 Td (Service cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.00 232.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.15 232.17 Td (1,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.00 232.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 232.17 Td (1,321) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 232.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 232.17 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 232.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 232.17 Td (326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 219.17 Td (Interest cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.15 219.17 Td (2,018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 219.17 Td (2,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 219.17 Td (779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 219.17 Td (788) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 206.17 Td (Expected return on assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.80 206.22 Td (\(2,957) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.65 206.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.80 206.22 Td (\(2,968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 206.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.30 206.22 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.30 206.22 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 193.17 Td (Prior service cost amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 193.17 Td (88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 193.17 Td (209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 193.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 193.17 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 180.17 Td (Amortization of actuarial losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.65 180.17 Td (843) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 180.17 Td (777) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 180.17 Td (96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 180.17 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 167.17 Td (Net periodic benefit cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.00 167.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.15 167.17 Td (1,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.00 167.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 167.17 Td (1,427) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 167.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 167.17 Td (1,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 167.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 167.17 Td (1,162) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 140.10 Td (9. ) Tj ET Q q 0 0 0 rg BT 94.00 140.10 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 175.95 140.10 Td (AND CONTINGENCIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 116.10 Td (The Company is subject to various claims and litigation incidental to its business operations which management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 104.10 Td (anticipates will be resolved without material adverse impact on the Company) Tj ET Q q 0 0 0 rg BT 369.58 104.10 Td (s results of operations, cash flows or financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 92.10 Td (condition.) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 46.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 46.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 713.25 Td (10. ) Tj ET Q q 0 0 0 rg BT 94.00 713.25 Td (AFFILIA) Tj ET Q q 0 0 0 rg BT 134.37 713.25 Td (TED ) Tj ET Q q 0 0 0 rg BT 157.25 713.25 Td (TRANSACTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 689.25 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 689.25 Td (gy owns, through its wholly owned subsidiaries, 17% of Pine Needle LNG Company) Tj ET Q q 0 0 0 rg BT 480.08 689.25 Td (, L.L.C. \(Pine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 677.25 Td (Needle\), an LNG storage facility in North Carolina, and 33.2% of Cardinal Pipeline Company) Tj ET Q q 0 0 0 rg BT 433.92 677.25 Td (, L.L.C. \(Cardinal\), an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 665.25 Td (intrastate natural gas pipeline. PSNC Ener) Tj ET Q q 0 0 0 rg BT 229.17 665.25 Td (gy accounts for each of these investments using the equity method.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 641.25 Td (The Company records as cost of gas the storage and transportation costs char) Tj ET Q q 0 0 0 rg BT 402.06 641.25 Td (ged by its equity method investees. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 629.25 Td (These costs totaled $2.7 million and $5.4 million for the three and six months ended June 30, 2017, respectively) Tj ET Q q 0 0 0 rg BT 505.60 629.25 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 617.25 Td (three and six months ended June 30, 2016, these costs totaled $3.0 million and $6.1 million, respectively) Tj ET Q q 0 0 0 rg BT 475.89 617.25 Td (. ) Tj ET Q q 0 0 0 rg BT 483.21 617.25 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 605.25 Td (owed these investees $0.8 million at June 30, 2017 and $1.0 million at December 31, 2016. ) Tj ET Q q 0 0 0 rg BT 425.25 605.25 Td (The Company received cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 593.25 Td (distributions representing earnings on invested capital from these investees of $0.9 million and $1.8 for the three and six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 581.25 Td (months ended June 30, 2017, respectively) Tj ET Q q 0 0 0 rg BT 224.82 581.25 Td (, and $1.0 million and $1.9 million for the three and six months ended June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 569.25 Td (2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 545.25 Td ( ) Tj ET Q q 0 0 0 rg BT 94.00 545.25 Td (Pine Needle and Cardinal use interest rate swaps designated as cash flow hedges to manage interest rate risk on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 533.25 Td (variable rate debt instruments by converting them synthetically to a fixed rate. ) Tj ET Q q 0 0 0 rg BT 375.50 533.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 435.21 533.25 Td (s share of the ef) Tj ET Q q 0 0 0 rg BT 498.33 533.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 521.25 Td (portion of changes in the fair value of these interest rate swaps are recorded in ) Tj ET Q q 0 0 0 rg BT 372.60 521.25 Td (AOCI in the Company) Tj ET Q q 0 0 0 rg BT 466.20 521.25 Td (s consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 509.25 Td (balance sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 485.25 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 140.21 485.25 Td (gy had sales to an af) Tj ET Q q 0 0 0 rg BT 221.39 485.25 Td (filiate for natural gas and transportation services for the six months ended June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 473.25 Td (2017 of $1.7 million and had no sales to an af) Tj ET Q q 0 0 0 rg BT 240.84 473.25 Td (filiate for the three months ended June 30, 2017. Purchases of natural gas ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 461.25 Td (from an af) Tj ET Q q 0 0 0 rg BT 99.46 461.25 Td (filiate were not significant for each of the three and six months ended June 30, 2017 and June 30, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 437.25 Td (SCANA) Tj ET Q q 0 0 0 rg BT 127.34 437.25 Td ( Services, Inc., on behalf of itself and its parent company) Tj ET Q q 0 0 0 rg BT 354.68 437.25 Td (, provides the following services to PSNC Ener) Tj ET Q q 0 0 0 rg BT 543.92 437.25 Td (gy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 425.25 Td (at direct or allocated cost: gas services, information systems services, telecommunications services, customer services, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 413.25 Td (marketing and sales, human resources, corporate compliance, purchasing, financial services, risk management, public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 401.25 Td (af) Tj ET Q q 0 0 0 rg BT 65.59 401.25 Td (fairs, legal services, investor relations, gas supply and capacity management, strategic planning, general administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 389.25 Td (services, and retirement benefits. Costs for these services totaled $16.6 million and $29.4 million for the three and six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 377.25 Td (months ended June 30, 2017, respectively) Tj ET Q q 0 0 0 rg BT 224.82 377.25 Td (, and $20.0 million and $34.7 million for the three and six months ended June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 365.25 Td (2016, respectively) Tj ET Q q 0 0 0 rg BT 130.66 365.25 Td (. In addition, SCANA) Tj ET Q q 0 0 0 rg BT 220.11 365.25 Td ( Services, Inc., processes and pays invoices for PSNC Ener) Tj ET Q q 0 0 0 rg BT 456.54 365.25 Td (gy and is reimbursed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 353.25 Td (PSNC Ener) Tj ET Q q 0 0 0 rg BT 104.21 353.25 Td (gy) Tj ET Q q 0 0 0 rg BT 116.99 353.25 Td (s payables to SCANA) Tj ET Q q 0 0 0 rg BT 204.49 353.25 Td ( Services, Inc., were $8.0 million at June 30, 2017 and $9.2 million at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 341.25 Td (2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 317.25 Td ( ) Tj ET Q q 0 0 0 rg BT 94.00 317.25 Td (Money pool transactions with an af) Tj ET Q q 0 0 0 rg BT 235.18 317.25 Td (filiate are described in Note 4.) Tj ET Q endstream endobj 25 0 obj <> /View <>>>>> endobj 26 0 obj <> /View <>>>>> endobj 27 0 obj <> endobj 28 0 obj <> stream xy\E7~n{{w'd'52 HaGPPA!"" b-&h,+TLy?:uk?uΩoH""?W~.Xv3&rm 2\jMgwm'CڴzlycǏ\ rBjx\DsV@{twocmC{Iwl11z:1m!t-\q3D.:yz'Wɨp[_F=>E"ǢӦ/|K&_~=!wn-az3¦h$7,ؑ2Oo_eSFLlk}Fg[F>|;