COLUMBIA, S.C., Oct. 23, 2001 – SCANA Corporation announced today that the South Carolina Public Service Commission approved South Carolina Electric & Gas Company’s request for a 16 percent decrease in the purchased gas component of the utility’s natural gas rates.
The decrease follows an earlier 15 percent reduction in rates that went into effect last March.
For SCE&G customers, the rate reduction means natural gas prices will drop from 79 cents per therm to 59 cents per therm effective with November bills. An average SCE&G residential customer uses approximately 100 therms of gas per month during the heating season and 600 therms annually. Thus, the decrease will reduce an average residential customer’s bill by $17.88 a month or approximately $107 a year.
As part of SCE&G’s request, the Commission also approved an increase of about 2 cents per therm on the company’s environmental cleanup factor, which allows SCE&G to recover costs associated with the environmental cleanup of sites that were home to manufactured gas plants in the early 1900s. The Commission approved the recovery of these environmental cleanup costs in an earlier ruling.
“Wholesale prices for natural gas have returned to more normal levels and that’s good news for our customers,” SCE&G President Neville Lorick said. “Last year, gas prices jumped to unprecedented levels and customers were hit right in the pocketbook.”
Lorick said the wholesale cost for natural gas has decreased primarily for two reasons: 1) supplies from increased production activities that began 12-14 months ago are now reaching the market, and 2) the milder weather this past summer resulted in less demand for gas-fired electricity, allowing natural gas suppliers to build up fuel reserves in anticipation of the winter.
SCE&G recovers the cost of the natural gas it buys through the purchased gas adjustment (PGA). The Commission sets the PGA to reflect SCE&G’s actual gas costs, which are passed directly to SCE&G customers. The PSC reviews the purchased gas component on an annual basis and adjusts its amount accordingly.
SCE&G provides natural gas to approximately 267,000 customers in 30 counties in central and southern South Carolina. The company also provides electricity to more than 530,000 customers in 20 counties in the state.
SOURCE: SCANA Corporation
