Columbia, SC, October 24, 2007... South Carolina Electric & Gas Company (SCE&G), principal subsidiary of SCANA Corporation (NYSE: SCG), announced today that it has entered into a settlement agreement with the South Carolina Office of Regulatory Staff (ORS) and all other parties of record regarding SCE&G’s pending application for an increase in its retail electric rates that was filed with the Public Service Commission of South Carolina (Commission) on June 15, 2007. The settlement agreement covers all the issues addressed in SCE&G’s application and, if approved, would result in an overall increase in retail electric revenues of approximately $76.9 million (4.40%) based on an adjusted test year ended March 31, 2007 or about 65% of the $118 million (6.75%) overall revenue increase requested by the company in its application. The settlement agreement establishes, among other things, an allowed return on common equity of 11% (the agreed rate increase produces a 10.7% return) and is subject to review and approval by the Commission following a public hearing that begins on October 31, 2007.
SCE&G’s electric rate filing in June was the company’s first requested increase to base rates since 2004. Subject to Commission approval, the rates will go into effect January 1, 2008. The monthly bill of a residential customer using 1,000 kilowatt hours of electricity would increase by $5.44 to $106.54. The percentage increase to the residential class is 5.54%.
“We are pleased to have reached this agreement with all parties, and the additional revenue will ensure that we provide the necessary environmental upgrades and that we can pay for the increased costs of transmission and distribution infrastructure required to continue the safe and reliable service that our customers expect,” said Kevin Marsh, president of SCE&G.
South Carolina Electric & Gas Company is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity to approximately 633,000 customers in 26 counties in the central, southern and southwestern portions of South Carolina. The company also provides natural gas service to approximately 301,000 customers in 34 counties in the state. Information about SCE&G is available on the company’s web site at www.sceg.com.
SCANA Corporation, a Fortune 500 company headquartered in Columbia, South Carolina, is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses in South Carolina, North Carolina and Georgia. Information about SCANA Corporation and its businesses is available on the Company's web site at www.scana.com.