CAYCE, S.C., Nov. 19, 2012 /PRNewswire/ — South Carolina Electric & Gas Company (SCE&G), principal subsidiary of SCANA Corporation (SCG), today signed a memorandum of understanding related to the company’s request for an increase to its retail electric rates.
Along with the South Carolina Office of Regulatory Staff, four of six remaining interveners in SCE&G’s rate case (Wal-Mart Stores East LP, Sam’s East, Inc., the Department of the Navy, AARP, and Frank Knapp, Jr.) have signed the memorandum of understanding, which is subject to approval by the Public Service Commission of South Carolina. A public hearing on SCE&G’s rate request begins November 26, 2012.
This memorandum of understanding signifies that no contested issues remain among the signing parties and represents a consensus of support for setting SCE&G’s ROE (return on equity) opportunity at 10.25 percent.
This memorandum of understanding yields a gross annual revenue increase of approximately $97 million. However, netted with an out-of-period electric fuel and DSM reduction of 2.85 percent, the net impact to customers is 1.38 percent, or $32 million.