SCE&G Files for Rate Adjustment Under Base Load Review Act
June 1, 2012
CAYCE, SC – May 30, 2012 – South Carolina Electric &Gas Company, principal subsidiary of SCANA Corporation (NYSE: SCG),filed with the Public Service Commission of South Carolina and theSouth Carolina Office of Regulatory Staff for an overall 2.5 percentincrease to its approved electric rates under provisions of a state lawknown as the Base Load Review Act, or BLRA.
The BLRA effectively reducesthe cost of building nuclear power plants in South Carolina by allowingthe state’s regulated utilities to adjust rates annually duringconstruction of such plants to recover related financing costs.
SCE&G and state-owned utility Santee Cooper are building two nuclearelectric-generating units at the site of the V.C. Summer NuclearStation near Jenkinsville, S.C. The first unit is expected to begincommercial operation in 2017, the second in 2018.
Paying financing costs while construction is ongoing, as opposed towaiting until the project has been completed, lowers the cost ofbuilding the new units by about $1 billion, which in turn reduces theamount customers will pay through rates for such things as the cost ofcapital, depreciation, property taxes and insurance associated with theproject. SCE&G estimates this will save its customers at least $4billion in electric rates over the life of the new units.
If the PSC approves today’s filing, SCE&G’s approved electric rates would increase in October as follows:
- 2.69 percent for residential customers (the monthly bill of acustomer using 1,000 kilowatt hours of electricity would increase $3.57,going from $131.78 to $135.35)
- 2.55 percent for small commercial customers
- 2.46 percent for medium commercial customers
- 2.28 percent for large commercial/industrial customers.
About SCE&G
SCE&G is a regulated public utility engaged in the generation,transmission, distribution and sale of electricity to approximately668,000 customers in South Carolina. The company also provides naturalgas service to approximately 319,000 customers throughout the state.More information about SCE&G is available at www.sceg.com.
About SCANA
SCANA Corporation, headquartered in Cayce, SC, is an energy-basedholding company principally engaged, through subsidiaries, in electricand natural gas utility operations and other energy-related businesses.Information about SCANA and its businesses is available on the company’swebsite at www.scana.com.
