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Press release from PR Newswire

PSC Approves Increase to SCE&G's Retail Electric Rates

Wednesday, December 19, 2012

PSC Approves Increase to SCE&G's Retail Electric Rates15:43 EST Wednesday, December 19, 2012CAYCE, S.C., Dec. 19, 2012 /PRNewswire/ -- The Public Service Commission of South Carolina (PSC) today voted unanimously to approve an overall increase in retail electric revenues of approximately $97.1 million, for South Carolina Electric & Gas Company, principal subsidiary of SCANA Corporation (NYSE: SCG).   (Logo:  http://photos.prnewswire.com/prnh/20111004/CH80784LOGO )The increase approved today was presented to the PSC in November as part of an agreement that SCE&G reached with all the parties in the case except one.  To offset and mitigate the effects of the proposed rate increase, the PSC also approved SCE&G's request for a mid-period reduction to its fuel costs.  Additionally, the PSC approved a reduction to SCE&G's Demand-Side Management Rider to Retail Rates ("DSM Rider").  The total approved increase, along with the decrease to fuel costs and the decrease to the DSM Rider, results in a net impact to retail electric customers totaling 1.38 percent, or approximately $32 million.  Beginning in January 2013, overall rates will increase as follows:          -  Residential customers:1.80%-  Small commercial customers:0.08%-  Medium commercial customers:0.63%-  Large commercial/industrial customers:1.67%The monthly bill of a residential customer using 1,000 kilowatt hours of electricity would increase by approximately $2.59.Keller Kissam, SCE&G's president of retail operations, said the company's base rate filing was primarily driven by increased costs associated with improving reliability and ensuring regulatory compliance.PROFILESCE&G is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity to approximately 669,000 customers in South Carolina. The company also provides natural gas service to approximately 317,000 customers throughout the state. More information about SCE&G is available at www.sceg.com.SCANA Corporation, headquartered in Cayce, SC, is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. Information about SCANA and its businesses is available on the company's website at www.scana.com.South Carolina Electric & Gas CompanyRetail Electric Rate Order ofThe Public Service Commission of South Carolina Highlights Date of ApplicationJune 29, 2012Docket Number2012-218-E Date of Public HearingNovember 26, 2012 ? November 27, 2012Date of PSC DecisionDecember 19, 2012 Test PeriodTwelve Months Ended December 31, 2011Effective Date of New RatesJanuary 1, 2013 RequestedMemorandum ofUnderstanding ApprovedAnnual Revenue Increase (millions)$ 151.5$ 97.1$ 97.1Equity Component of Capitalization (millions)$ 3,726$ 3,726$ 3,726Equity Component of Capitalization Ratio 52.18%52.18%52.18%Allowed Return on Common Equity (ROE)10.95%10.25%10.25%Retail Electric Rate Base (millions)$ 4,869$ 4,843$ 4,843Return on Rate Base8.56%8.20%8.20%Anticipated Net Income Impact (millions)~ $ 50~ $ 26~ $ 26 Reconciliation of Requested and Approved Revenue IncreaseMillionsAnnualized Revenue Increase Requested by SCE&G$ 151.5PSC Adjustments:Reduction in requested ROE(29.1)Wateree scrubber expenses deferral(3.8)Reduction in tree trimming expenses(.8)Labor costs and associated benefits(.8)Fuel inventory levels(3.2)Storm reserve(6.1)Pension expenses(3.7)Storm insurance premiums(3.0)Misc. adjustments(3.9)Annualized Revenue Increase Approved by PSC$ 97.1SAFE HARBOR STATEMENTStatements included in this press release which are not statements of historical fact are intended to be, and are hereby identified as, "forward-looking statements" for purposes of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements concerning key earnings drivers, customer growth, environmental regulations and expenditures, leverage ratio, projections for pension fund contributions, financing activities, access to sources of capital, impacts of the adoption of new accounting rules and estimated construction and other expenditures. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "should," "expects," "forecasts," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "potential" or "continue" or the negative of these terms or other similar terminology. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, the following: (1) the information is of a preliminary nature and may be subject to further and/or continuing review and adjustment; (2)  regulatory actions, particularly changes in rate regulation, regulations governing electric grid reliability, environmental regulations, and actions affecting the construction of new nuclear units; (3) current and future litigation; (4) changes in the economy, especially in areas served by subsidiaries of SCANA; (5) the impact of competition from other energy suppliers, including competition from alternate fuels in industrial markets; (6) the impact of conservation efforts and/or technological advances on customer usage; (7) growth opportunities for SCANA's regulated and diversified subsidiaries; (8) the results of short- and  long-term financing efforts, including prospects for obtaining access to capital markets and other sources of liquidity; (9) changes in SCANA's or its subsidiaries' accounting rules and accounting policies; (10) the effects of weather, including drought, especially in areas where the generation and transmission facilities of SCANA and its subsidiaries (the Company) are located and in areas served by SCANA's subsidiaries; (11) payment and performance by counterparties and customers as contracted and when due; (12) the results of efforts to license, site, construct and finance facilities for electric generation and transmission; (13) maintaining creditworthy joint owners for SCE&G's new nuclear generation project; (14) the ability of suppliers, both domestic and international, to timely provide the labor, components, parts, tools, equipment and other supplies needed, at agreed upon prices, for our construction program, operations and maintenance; (15) the results of efforts to ensure the physical and cyber security of key assets and processes; (16) the availability of fuels such as coal, natural gas and enriched uranium used to produce electricity; the availability of purchased power and natural gas for distribution; the level and volatility of future market prices for such fuels and purchased power; and the ability to recover the costs for such fuels and purchased power; (17) the availability of skilled and experienced human resources to properly manage, operate, and grow the Company's businesses; (18) labor disputes; (19) performance of SCANA's pension plan assets; (20) changes in taxes; (21) inflation or deflation; (22) compliance with regulations; (23) natural disasters and man-made mishaps that directly affect our operations or the regulations governing them; and (24) the other risks and uncertainties described from time to time in the periodic reports filed by SCANA or SCE&G with the United States Securities and Exchange Commission.  The Company disclaims any obligation to update any forward-looking statementsMedia Contact:Investor Contact:Eric BoomhowerIris Griffin(803) 217-7701(803) 217-6642eboomhower@scana.com igriffin@scana.com SOURCE SCANA Corporation