Staff Report
Published May 17, 2010

S.C. Electric & Gas Co. has signed a second stipulation with the S.C. Office of Regulatory Staff to reduce by half its increase request on retail electricity rates.

The newest stipulation relates to key aspects of the office’s examination of the company’s rate application, including a recommendation that SCE&G apply more than $48 million in state tax credits to the benefit of its customers over the next two years.

SCE&G and the regulatory office entered into a previous stipulation May 3 in which the parties mutually supported a 10.7% return on common equity, the 12-month pilot of a weather normalization mechanism for electricity rates and a one-time credit of $25 million to SCE&G’s electricity customers. That credit would apply over the next year.

Combined, the two stipulations effectively would reduce SCE&G’s proposed overall rate increase to 4.88% over three years. If approved, the increase would be implemented as follows:

• 2.50% July 2010
• 1.20% July 2011
• 1.18% July 2012

The stipulations are subject to approval by the Public Service Commission of South Carolina, which will conduct a public hearing on SCE&G’s rate request beginning May 24.