COLUMBIA, S.C., April 3 /PRNewswire-FirstCall/ -- PSNC Energy, a wholly
owned subsidiary of SCANA Corporation (NYSE: SCG), filed an application today
with the North Carolina Utilities Commission (NCUC) requesting a general
increase in its natural gas base rates -- the first such request in the past
eight years.
The company is asking the Commission to grant an increase of approximately
$28.4 million, or 4.9 percent, in annual revenue. While PSNC Energy is
requesting this increase in its base rates, the company is also seeking a
reduction of $7.5 million in the fixed-cost portion of its cost of gas. The
net effect is a requested increase of $20.9 million, or 3.6 percent, in the
company's rates and charges for natural gas utility service. If the request is
approved, the average year-round residential customer would see a monthly
increase of approximately $3.75.
The rate increase request is the direct result of the company's need to
recover costs related to expanding and operating its pipeline system. The last
time PSNC Energy increased its base rates was 1998. Since that time, the
company has added more than 2,200 miles of transmission and distribution
mains, installed 126,725 new service lines, and had more than 100,000
customers come on its system.
"We've been in business for almost 70 years, yet nearly one quarter of our
customers have been added since our last rate case eight years ago," said PSNC
Energy President and COO Rusty Harris. "We must be able to recover costs
associated with growing and maintaining our infrastructure. Doing so is
essential to our ability to continue providing safe, reliable and efficient
natural gas service to our customers."
PSNC Energy has spent approximately $321 million to upgrade and expand its
gas delivery system over the past eight years.
PSNC Energy's request breaks down on average by customer group as follows:
4.4 percent increase for residential customers; 1.9 percent for small
commercial customers; 0 percent for large commercial/industrial -- firm
customers; and 4.3 percent for large commercial/industrial -- interruptible
customers. If approved, the new rates would go into effect on or about Nov. 1,
2006.
The requested increase of approximately $28.4 million is based upon a 9.74
percent overall return on rate base, including a 12 percent return on common
equity.
Profile
PSNC Energy, headquartered in Gastonia, N.C., is franchised to serve a 28-
county service area in North Carolina. The utility distributes natural gas to
approximately 428,000 customers in 96 cities and communities, including the
Raleigh, Durham, and Chapel Hill areas in the north central part of the state;
the Concord, Statesville, Gastonia, and Forest City areas in the Piedmont; and
the Asheville, Hendersonville, Brevard, and Sylva areas in the western part of
the state. More information about PSNC Energy is available through the
company's web site at http://www.psncenergy.com.
SCANA Corporation, a Fortune 500 company headquartered in Columbia, South
Carolina, 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 610,000 electric
customers in South Carolina and more than one million natural gas customers in
South Carolina, North Carolina and Georgia. Information about SCANA and its
businesses is available on the company's website at http://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, "forward-
looking statements" for purposes of the safe harbor provided by Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. 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) that the information is of a preliminary nature and may be
subject to further and/or continuing review and adjustment, (2) regulatory
actions or changes in the utility and nonutility regulatory environment, (3)
current and future litigation, (4) changes in the economy, especially in areas
served by SCANA's subsidiaries, (5) the impact of competition from other
energy suppliers, including competition from alternate fuels in industrial
interruptible markets, (6) growth opportunities for SCANA's regulated and
diversified subsidiaries, (7) the results of financing efforts, (8) changes in
SCANA's accounting policies, (9) weather conditions, especially in areas
served by SCANA's subsidiaries, (10) performance of SCANA's pension plan
assets, (11) inflation, (12) changes in environmental regulations, (13)
volatility in commodity natural gas markets and (14) the other risks and
uncertainties described from time to time in SCANA's periodic reports filed
with the United States Securities and Exchange Commission. SCANA disclaims
any obligation to update any forward-looking statements.
Public Service Company of North Carolina, Inc.
(d/b/a PSNC Energy)
Application for Retail Natural Gas Rate Increase
To The
North Carolina Utilities Commission
Highlights
Timeline:
Letter of Intent Filed March 1, 2006
Application Filed April 3, 2006
(Docket Number G-5, Sub 481)
Public Hearing Fall 2006
Requested Effective Date November 1, 2006
Test Period Data:
Test Period 12 Months Ended Dec. 31, 2005, As Adjusted
Retail Natural Gas Rate Base $594 Million
Return on Rate Base 6.86%
Return on Common Equity 6.66%
Requested in Application:
Millions of $ %
Total Annual
Revenue Increase $28.4 4.9%
Reduction in Fixed Gas Cost (7.5)
Net Annual Revenue Increase $20.9 3.6%
Return on Rate Base 9.74%
Return on Common Equity 12.00%
Total Capitalization $589 Million
Capital Structure and
Cost of Capital:
Requested April 3, 2006 Authorized October 30, 1998
Utility Utility
Capital Cost Weighted Capital Cost Weighted
Structure Rate Cost Structure Rate Cost
Long-Term Debt 46.18% 7.10% 3.28% 44.07% 8.30% 3.66%
Common Equity 53.82% 12.00% 6.46% 51.91% 11.40% 5.92%
Short-Term Debt 0.00% 0.00% 0.00% 4.02% 5.91% 0.24%
Total 100.00% 9.74% 100.00% 9.82%
SOURCE SCANA Corporation
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Related links:
http://www.psncenergy.com
http://www.scana.com
CONTACT:
Media, Gastonia-Asheville, Jodie
Roberts-Smith, +1-704-834-6427, or jroberts-smith@scana.com, or
Raleigh-Durham, Angie Townsend, +1-919-836-2321, or
adtownsend@scana.com, or Investors, John Winn, +1-803-217-9240,
or jwinn@scana.com, or Bryan Hatchell, +1-803-217-7458, or
bhatchell@scana.com, all of SCANA Corporation
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