SCE&G Reaches Settlement Agreement in Retail Electric Rate Case
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 (ORS) and all other parties of record regarding SCE&G’s pending application for an increase in its retail electric rates that was filed with the Public Service Commission of South Carolina (Commission) on June 15, 2007. The settlement agreement covers all the issues addressed in SCE&G’s application and, if approved, would result in an overall increase in retail electric revenues of approximately $76.9 million (4.40%) based on an adjusted test year ended March 31, 2007 or about 65% of the $118 million (6.75%) overall revenue increase requested by the company in its application. The settlement agreement establishes, among other things, an allowed return on common equity of 11% (the agreed rate increase produces a 10.7% return) and is subject to review and approval by the Commission following a public hearing that begins on October 31, 2007.
SCE&G’s electric rate filing in June was the company’s first requested increase to base rates since 2004. Subject to Commission approval, the rates will go into effect January 1, 2008. The monthly bill of a residential customer using 1,000 kilowatt hours of electricity would increase by $5.44 to $106.54. The percentage increase to the residential class is 5.54%.
“We are pleased to have reached this agreement with all parties, and the additional revenue will ensure that we provide the necessary environmental upgrades and that we can pay for the increased costs of transmission and distribution infrastructure required to continue the safe and reliable service that our customers expect,” said Kevin Marsh, president of SCE&G.
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