SCE&G Announces Settlement Agreement with the South Carolina Office of Regulatory Staff and South Carolina Energy Users Committee Related to the Petition to Update Construction and Capital Cost Schedules for New Nuclear Units
July 1, 2015
CAYCE, SC – 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 and the South Carolina Energy Users Committee (one of the three interveners) related to the Company’s petition to update construction and capital cost schedules for the new nuclear units. The settlement agreement is subject to approval by the Public Service Commission of South Carolina (PSC). A public hearing on SCE&G’s petition request is scheduled to begin onJuly 21, 2015.
This settlement agreement signifies that no contested issues exist among the settling parties and supports approval of the revised construction and capital cost schedules. In addition to supporting approval of the revised construction and capital cost schedules, the settling parties agreed to revise the allowed Return on Equity (ROE) for the new nuclear project from 11.00% to 10.50%. The revised ROE will be applied prospectively for the purpose of calculating revised rates sought by the Company under the Base Load Review Act on and afterJanuary 1, 2016, until such time as the new nuclear units are completed. If the PSC approves the settlement agreement in its entirety, then none of the settling parties may appeal the PSC’s decision.
The delays to the construction schedule and related cost increases are principally due to design and fabrication issues associated with the production of submodules used in construction of the units. By accepting the terms of the settlement agreement, SCE&G does not waive any claims related to delay and other related contested costs with the Westinghouse Electric Company and Chicago Bridge & Iron.
PROFILE
SCE&G is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity to approximately 692,000 customers in South Carolina. The company also provides natural gas service to approximately 342,000 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-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.
