Media Contact:
Eric Boomhower
(803)217-7701
eboomhower@scana.com
Columbia, SC, October 12, 2005 -- SCANA Corporation (NYSE: SCG) announced that, at a meeting held today, the South Carolina Public Service Commission (PSC) approved an overall increase of $22.9 million, or 5.69 percent, in the retail gas base rates for South Carolina Electric & Gas Company (SCE&G), SCANA's principal subsidiary. The approved increase was presented to the PSC as part of a settlement agreement reached in August among SCE&G, the Office of Regulatory Staff, Frank Knapp, Jr. (a commercial customer of SCE&G), the South Carolina Energy Users Committee (a consortium of large industrial customers) and the U. S. Department of Defense.
This is the first time SCE&G has increased its base rates for natural gas since 1989. The new rates are based on an allowed return on common equity of 10.25 percent.
The overall 5.69 percent increase becomes effective for bills rendered on and after the first billing cycle of November 2005 and will be allocated among customer classes as follows:
- 11.3 percent for residential
- 4.8 percent for small and medium commercial
- 6.4 percent for industrial/large commercial
Currently, a residential customer using 100 therms of natural gas would pay $121.11 in a typical winter month. Under the new rates, a residential customer will pay $125.61 (under residential value rates) or $133.35 (under residential standard rates), an increase of $4.50 or $12.24, respectively. Part of the increase in standard rates during the winter months will be offset by a reduced minimum charge in the summer months. Value rates apply to customers using an average of 10 or more therms during the months of June, July and August.
"We believe the settlement agreement balances the interests of all the parties involved," said Neville Lorick, SCE&G's president and chief operating officer. "This is the first time SCE&G has increased its natural gas base rates since 1989. The new rates provide us the opportunity to earn an adequate return on our natural gas assets. The additional revenue will enhance our ability to make new capital investments that will be needed to support future growth and economic development in South Carolina."
PROFILE
SCE&G provides natural gas service to approximately 283,000 customers in 34 counties in South Carolina. The company is also engaged in the generation, transmission, distribution and sale of electricity to more than 592,000 customers in 24 counties in the central, southern and southwestern sections of the state.
SCANA Corporation, a Fortune 500 company headquartered in Columbia, 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 Company
Retail Natural Gas Rate Order
of the
Public Service Commission of South Carolina
Highlights
|
Date of Application |
April 26, 2005 |
|
Docket Number |
2005-113-G |
|
Date of Public Hearing |
September 19, 2005 |
|
Date of SCPSC Decision |
October 12, 2005 |
|
Test Period |
Twelve months ended December 31, 2004, as adjusted |
|
Effective Date of New Rates |
First billing cycle in November 2005 |
|
|
Requested |
Settlement
Agreement |
Approved |
|
Annual Revenue Increase (millions) |
$28.5 |
$22.9 |
$22.9 |
|
Annual Percent Increase |
7.09% |
5.69% |
5.69% |
|
|
|
|
|
|
Equity Component of Capitalization (millions) |
$2,164.2 |
$2,164.2 |
$2,164.2 |
|
Equity Component of Capitalization Ratio |
50.75% |
50.75% |
50.75% |
|
Return on Common Equity (ROE) |
11.75% |
10.25% |
10.25% |
|
|
|
|
|
|
Retail Natural Gas Rate Base (millions) |
$268.2 |
$268.0 |
$268.0 |
|
Return on Rate Base |
9.19% |
8.43% |
8.43% |
|
|
|
|
|
Reconciliation of Requested and Approved Revenue Increase
| Annualized Revenue Increase Requested by SCE&G |
Millions
$ 28.5 |
| PSC Adjustments: |
|
| Reduction in requested ROE |
(3.3) |
| Adjustments to O&M expenses |
(1.8) |
| Misc. adjustments |
(0.5) |
| Annualized Revenue Increase Approved by PSC |
$ 22.9 |
|
|
The final order of the Public Service Commission of South Carolina in this docket can be found on the Commission's web site at www.psc.sc.gov.
