PROPRIETARY OPERATIONS

Primary Government

          There are several proprietary segments of South Carolina's primary government. Significant segments among these include the State Housing Finance and Development Authority, which provides low-cost housing to the State's citizens by issuing bonds/notes and by administering Federal contracts and grants, and the Education Assistance Authority, which issues bonds for the purpose of making loans to eligible students.

          Financial highlights of these segments (expressed in thousands) for the fiscal year ended June 30, 1998, are as follows:

Discretely Presented Component Units

          The State's two largest proprietary operations are discretely presented component units.

          The Public Service Authority (Santee-Cooper) is South Carolina's State-owned public power resource. The Public Service Authority (Santee-Cooper) produces and sells electric power and wholesale water to individuals, businesses, electric cooperatives and municipal power departments. The Public Service Authority (Santee-Cooper) made payments to the State's General Fund of $7.462 million during its fiscal year ended December 31, 1997. The distribution to the General Fund is based primarily on operating cash flows and mandatory reserve requirements.

          The State Ports Authority develops and maintains State harbors and seaports and handles the commerce through these ports.

          Highlights of segment financial information (expressed in thousands) for discretely presented component units for the fiscal year ended June 30, 1998, follow: