SCE&G details nuclear plan rate impact

30 May 2008 — South Carolina Electric & Gas Co. (SCE&G) filed a combined application for a Certificate of Environmental Compatibility, Public Convenience and Necessity and for a Base Load Review Order under the provisions of the Base Load Review Act (BLRA), with the South Carolina Public Service Commission (PSC) and the South Carolina Office of Regulatory Staff.

SCE&G, the principal unit of SCANA Corp., also said it plans to begin initial clearing, excavation and construction work on the site pending approval of the BLRA application.

“The Base Load Review Act allows for annual adjustments to rates during construction of the units as a means of recovering financing costs associated with the project,” said SCE&G President Kevin Marsh.

The application is intended to show SCE&G’s need for new generation and the prudence of building the two new nuclear units to meet that need. Along with providing cost and schedule projections, the application includes a schedule of forecasted adjustments SCE&G would make to customer rates based on nuclear construction expenditures.

A public hearing will be held during which the PSC will hear testimony related to the application. The commission must issue an order within nine months of the filing. If approved by the commission, rates would be adjusted each year based on construction expenditures made since the last increase.