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SCE&G, South Carolina Office of Regulatory Staff and Other Parties Sign Stipulation Related to Electric Rate Filing

^{Published on 2010-05-24 08:10:11 - Market Wire}
 

CAYCE, S.C.--([ BUSINESS WIRE ])--SCANA subsidiary (NYSE:SCG) South Carolina Electric & Gas Company today signed a third stipulation related to the companya™s request for an increase to its retail electric rates. Along with the South Carolina Office of Regulatory Staff, 6 of 9 interveners in SCE&Ga™s rate case (South Carolina Energy Users Committee, Wal-Mart Stores East LP, Sama™s East, Inc., The Womena™s Shelter, the Federal Executive Agencies and Frank Knapp, Jr.) have signed the latest stipulation, which is subject to approval by the Public Service Commission of South Carolina. A public hearing on SCE&Ga™s rate request begins today.

This third stipulation incorporates the provisions of two previous stipulations between SCE&G and the ORS. It signifies that no contested issues remain among the signing parties and represents a consensus of support for:

• an overall 4.88 percent increase to SCE&Ga™s retail electric rates to be implemented as follows:
  • 2.5 percent in July 2010
  • 1.2 percent in July 2011
  • 1.18 percent in July 2012
• a one-time credit of $25 million to SCE&Ga™s electric customers to be applied over 12 months
• application over 24 months of more than $48 million in state tax credits to the benefit of customers
• setting SCE&Ga™s ROE (return on equity) opportunity at 10.7 percent
• the 12-month pilot of a weather normalization mechanism for SCE&Ga™s electric rates
• limiting SCE&Ga™s ability to implement additional increases to its retail base rates prior to June 2012

PROFILE

SCANA Corporation, a Fortune 500 company 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. The Company serves approximately 659,000 electric customers in South Carolina and more than 1.2 million natural gas customers in South Carolina, North Carolina and Georgia. Information about SCANA and its businesses is available on the Companya™s web site at [ www.scana.com ].

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, aforward-looking statementsa for purposes of Section27A of the Securities Act of 1933, as amended, and Section21E of the Securities 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, estimated construction and other expenditures. In some cases, forward-looking statements can be identified by terminology such as amay,a awill,a acould,a ashould,a aexpects,a aplans,a aanticipates,a abelieves,a aestimates,a aprojects,a apredicts,a apotentiala or acontinuea 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) regulatory actions, particularly changes in rate regulation, regulations governing electric grid reliability and environmental regulations; (3) current and future litigation; (4) changes in the economy, especially in areas served by subsidiaries of SCANA Corporation (SCANA); (5) the impact of competition from other energy suppliers, including competition from alternate fuels in industrial interruptible markets; (6) growth opportunities for SCANAa™s regulated and diversified subsidiaries; (7) the results of short- and long-term financing efforts, including future prospects for obtaining access to capital markets and other sources of liquidity; (8) changes in SCANAa™s or its subsidiariesa™ accounting rules and accounting policies; (9) the effects of weather, including drought, especially in areas where the Companya™s generation and transmission facilities are located and in areas served by SCANA's subsidiaries; (10) payment by counterparties as and when due; (11) the results of efforts to license, site, construct and finance facilities for baseload electric generation; (12) 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; (13) the availability of skilled and experienced human resources to properly manage, operate, and grow the Companya™s businesses; (14) labor disputes; (15) performance of SCANAa™s pension plan assets; (16) higher taxes; (17) inflation; (18) compliance with regulations; and (19) the other risks and uncertainties described from time to time in the periodic reports filed by SCANA or South Carolina Electric & Gas Company (SCE&G) with the United States Securities and Exchange Commission (SEC). The Company disclaims any obligation to update any forward-looking statements.