Columbia, SC, November 6, 2006 … Public Service Company of North Carolina, Incorporated (“PSNC Energy”), a wholly-owned subsidiary of SCANA Corporation (NYSE: SCG), announced today that it has commenced a solicitation of consents from holders of record as of November 3, 2006 of its 6.99% Senior Debentures due 2026, its 7.45% Senior Debentures due 2026, and its 6.625% Medium Term Notes due February 15, 2011 (collectively the “Notes” and each a “series of Notes”).
The purpose of the consent solicitation is to seek approval of an amendment to the Indenture governing the Notes to replace PSNC Energy’s current obligations under the Indenture to file annual, quarterly and other reports with the Securities and Exchange Commission (SEC) with an obligation to provide the holders of its Notes and others, with audited annual financial statements and unaudited quarterly financial statements and certain other information.
PSNC Energy is currently a voluntary filer with the SEC, but meets the requirements of the Securities Exchange Act of 1934 allowing it to cease filing reports with the SEC. However, the financial reporting covenant in the Indenture for the Notes contractually obligates PSNC Energy to continue filing 1934 Act reports with the SEC. Through the proposed amendment, PSNC Energy seeks to avoid the costly and time-consuming obligation to file 1934 Act reports with the SEC and to comply with Section 404 of the Sarbanes-Oxley Act of 2002.
The consent solicitation will expire at 5:00 p.m., New York City time, on November 17, 2006 unless extended. If the proposed amendment becomes effective and the other conditions described in the Consent Solicitation Statement are satisfied, PSNC Energy will make a cash consent payment of $1.00 for each $1,000 principal amount of the Notes due 2011 and $1.50 for each $1,000 principal amount of the Notes due 2026 for which a consent is validly delivered and not validly revoked.
Detailed terms and conditions are contained in the Consent Solicitation Statement dated November 6, 2006. Wachovia Securities is acting as Solicitation Agent. Persons with questions should contact Wachovia Securities at (704) 715-8341 (collect) or (866) 309-6316 (toll-free). Holders of Notes can obtain copies of the Consent Solicitation Statement and related material from the Information Agent and Tabulation Agent, D.F. King & Co., Inc. at (212) 269-5550 (collect) or (800) 290-6431 (toll-free).
PSNC Energy, headquartered in Gastonia, N.C., is franchised to serve a 28-county service area in North Carolina. The utility distributes natural gas to approximately 424,000 customers in 96 cities and communities, including the Raleigh, Durham, and Chapel Hill areas in the north central part of the state; the Concord, Statesville, Gastonia, and Forest City areas in the Piedmont; and the Asheville, Hendersonville, Brevard, and Sylva areas in the western part of the state. More information about PSNC Energy is available through the company’s web site at www.psncenergy.com.
SCANA Corporation, a Fortune 500 company headquartered in Columbia, S.C., is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. The company serves approximately 620,000 electric customers in South Carolina and approximately 1.2 million natural gas customers in South Carolina, North Carolina and Georgia. Information about SCANA and its businesses is available on the company’s website at www.scana.com.
SAFE HARBOR STATEMENT
Statements 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 the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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) that the information is of a preliminary nature and may be subject to further and/or continuing review and adjustment, (2) regulatory actions or changes in the utility and non-utility regulatory environment, (3) current and future litigation, (4) changes in the economy, especially in areas served by SCANA’s subsidiaries, (5) the impact of competition from other energy suppliers, including competition from alternate fuels in industrial interruptible markets, (6) growth opportunities for SCANA's regulated and diversified subsidiaries, (7) the results of financing efforts, (8) changes in accounting principles, (9) weather conditions, especially in areas served by SCANA's subsidiaries, (10) performance of SCANA's pension plan assets, (11) inflation, (12) changes in environmental regulations, (13) volatility in commodity natural gas markets and (14) the other risks and uncertainties described from time to time in SCANA's periodic reports filed with the United States Securities and Exchange Commission. SCANA disclaims any obligation to update any forward-looking statements.