Public Service Commission of South Carolina Approves SCE&G Rate Adjustment Under Base Load Review Act

Mittwoch, 19.10.2016 22:35 von

PR Newswire

CAYCE, S.C., Oct. 19, 2016 /PRNewswire/ -- Today the Public Service Commission of South Carolina (PSC) approved an increase of $64,428,000, or approximately 2.66 percent, to the retail electric rates of South Carolina Electric & Gas Company (SCE&G), principal subsidiary of SCANA Corporation (NYSE: SCG).  The new rates will be effective for bills rendered on and after November 27, 2016.

SCANA Corporation logo.

As anticipated, the rate adjustment earlier in 2016 to pass lower fuel costs associated with generating and purchasing power to meet the needs of customers more than offsets this increase for electric customers. "By passing lower fuel costs from our efforts to ensure a balanced and diversified fuel mix, residential customers will receive lower bills for similar usage at the end of 2016 than they received at the end of 2015," said SCE&G's Chief Operating Officer, Steve Byrne.

SCE&G filed for the increase in June under provisions of South Carolina's Base Load Review Act (BLRA), a law enacted in 2007 to add structure and consistency to the process SCE&G and other regulated electric utilities must follow when building power plants. SCE&G and Santee Cooper, a state-owned electric and water utility in South Carolina, are working to build two 1,117-megawatt nuclear electric-generating units at the site of the V.C. Summer Nuclear Station near Jenkinsville, S.C.  The BLRA allows for annual adjustments to rates during construction of the units as a means of recovering only the financing costs associated with the project.

As a result of the PSC approval, SCE&G's approved electric rates would increase on and after November 27 as follows:

  • 2.69 percent for residential customers (the monthly bill of a customer using 1,000 kilowatt hours of electricity would increase $3.86, going from $143.67 to $147.53.  The monthly bill at the end of 2016 is lower than the bill of $149.58 at the end of 2015.)
  • 2.59 percent for small commercial customers
  • 2.83 percent for medium commercial customers
  • 2.57 percent for large commercial/industrial customers.

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 is available on the Company's website at www.scana.com.

Highlights

Docket Number


2016-224-E

Filing Period


Twelve Months Ended June 30, 2016

Requested Effective Date


November 27, 2016




Annual Revenue Increase


$64.4 Million, 2.66%

Incremental CWIP


$574.2 Million

Return on Common Equity


10.50%




 

Capital Structure and Cost of Capital:


Capital
Structure


Ratio


Embedded
Cost


Weighted Average
Cost of Capital

Gross of Tax

Long-Term Debt

$4,929


48.65%


5.85%


2.84%

2.84%

Common Equity

$5,203


51.35%


10.50%


5.39%

8.77%

Total

$10,132


100.00%




8.24%

11.62%

 

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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and 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) legislative and regulatory actions, particularly changes in electric and gas services, rate regulation, regulations governing electric grid reliability and pipeline integrity, 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 and demand side management efforts and/or technological advances on customer usage; (7) the loss of sales to distributed generation, such as solar photovoltaic systems; (8) growth opportunities for SCANA's regulated and other subsidiaries; (9) the results of short- and long-term financing efforts, including prospects for obtaining access to capital markets and other sources of liquidity; (10) the effects of weather, 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) changes in SCANA's or its subsidiaries' accounting rules and accounting policies; (12) payment and performance by counterparties and customers as contracted and when due; (13) the results of efforts to license, site, construct and finance facilities for electric generation and transmission, including nuclear generating facilities; (14) the results of efforts to operate the Company's electric and gas systems and assets in accordance with acceptable performance standards, including the impact of additional distributed generation and nuclear generation; (15) maintaining creditworthy joint owners for SCE&G's new nuclear generation project; (16) the ability of suppliers, both domestic and international, to timely provide the labor, secure processes, components, parts, tools, equipment and other supplies needed, at agreed upon quality and prices, for our construction program, operations and maintenance; (17) the results of efforts to ensure the physical and cyber security of key assets and processes; (18) 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; (19) the availability of skilled, licensed, and experienced human resources to properly manage, operate, and grow the Company's businesses; (20) labor disputes; (21) performance of SCANA's pension plan assets; (22) changes in tax laws and realization of tax benefits and credits, including production tax credits for new nuclear units;  (23) inflation or deflation; (24) compliance with regulations; (25) natural disasters and man-made mishaps that directly affect our operations or the regulations governing them; and (26) the other risks and uncertainties described from time to time in the reports filed by SCANA or SCE&G with the SEC.

SCANA and SCE&G disclaim any obligation to update any forward-looking statements.

 

Media Contact:


Analyst Contacts:




Eric Boomhower


Bryant Potter


Susan Wright


(800) 562-9308


(803) 217-6916


(803) 217-4436


 

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SOURCE SCANA Corporation