PSC Approves Increase to SCE&G's Retail Electric Rates

            PSC Approves Increase to SCE&G's Retail Electric Rates

PR Newswire

CAYCE, S.C., Dec. 19, 2012

CAYCE, S.C., Dec.19, 2012 /PRNewswire/ --The Public Service Commission of
South Carolina (PSC) today voted unanimously to approve an overall increase in
retail electric revenues of approximately $97.1 million, for South Carolina
Electric & Gas Company, principal subsidiary of SCANA Corporation (NYSE:

(Logo: )

The increase approved today was presented to the PSC in November as part of an
agreement that SCE&G reached with all the parties in the case except one. To
offset and mitigate the effects of the proposed rate increase, the PSC also
approved SCE&G's request for a mid-period reduction to its fuel costs.
Additionally, the PSC approved a reduction to SCE&G's Demand-Side Management
Rider to Retail Rates ("DSM Rider"). The total approved increase, along with
the decrease to fuel costs and the decrease to the DSM Rider, results in a net
impact to retail electric customers totaling 1.38 percent, or approximately
$32 million. Beginning in January 2013, overall rates will increase as

- Residential customers:                 1.80%
- Small commercial customers:            0.08%
- Medium commercial customers:           0.63%
- Large commercial/industrial customers: 1.67%

The monthly bill of a residential customer using 1,000 kilowatt hours of
electricity would increase by approximately $2.59.

Keller Kissam, SCE&G's president of retail operations, said the company's base
rate filing was primarily driven by increased costs associated with improving
reliability and ensuring regulatory compliance.

SCE&G is a regulated public utility engaged in the generation, transmission,
distribution and sale of electricity to approximately 669,000 customers in
South Carolina. The company also provides natural gas service to approximately
317,000 customers throughout the state. More information about SCE&G is
available at

SCANA Corporation, headquartered in Cayce, SC, is an energy-based holding
company principally engaged, through subsidiaries, in electric and natural gas
utility operations and other energy-related businesses. Information about
SCANA and its businesses is available on the company's website at

South Carolina Electric & Gas Company

Retail Electric Rate Order of
The Public Service Commission of South Carolina


Date of Application                  June 29, 2012
Docket Number                        2012-218-E
Date of Public Hearing               November 26, 2012 – November 27, 2012
Date of PSC Decision                 December 19, 2012
Test Period                          Twelve Months Ended December 31, 2011
Effective Date of New Rates          January 1, 2013
                                                       Memorandum of 

                                              Requested Understanding Approved
Annual Revenue Increase (millions)            $ 151.5   $ 97.1        $ 97.1
Equity Component of Capitalization (millions) $ 3,726   $ 3,726       $ 3,726
Equity Component of Capitalization Ratio      52.18%    52.18%        52.18%
Allowed Return on Common Equity (ROE)         10.95%    10.25%        10.25%
Retail Electric Rate Base (millions)          $ 4,869   $ 4,843       $ 4,843
Return on Rate Base                           8.56%     8.20%         8.20%
Anticipated Net Income Impact (millions)      ~ $ 50    ~ $ 26        ~ $ 26

Reconciliation of Requested and Approved Revenue Increase

Annualized Revenue Increase Requested by SCE&G $ 151.5
PSC Adjustments:
Reduction in requested ROE                     (29.1)
Wateree scrubber expenses deferral             (3.8)
Reduction in tree trimming expenses            (.8)
Labor costs and associated benefits            (.8)
Fuel inventory levels                          (3.2)
Storm reserve                                  (6.1)
Pension expenses                               (3.7)
Storm insurance premiums                       (3.0)
Misc. adjustments                              (3.9)
Annualized Revenue Increase Approved by PSC    $ 97.1


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 Section27A of the Securities Act
of 1933, as amended, and Section21E of the Securities Exchange Act of 1934,
as amended. Forward-looking statements include, but are not limited to,
statements concerning key earnings drivers, customer growth, environmental
regulations and expenditures, leverage ratio, projections for pension fund
contributions, financing activities, access to sources of capital, impacts of
the adoption of new accounting rules and estimated construction and other
expenditures. In some cases, forward-looking statements can be identified by
terminology such as "may," "will," "could," "should," "expects," "forecasts,"
"plans," "anticipates," "believes," "estimates," "projects," "predicts,"
"potential" or "continue" or the negative of these terms or other similar
terminology. 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)
the information is of a preliminary nature and may be subject to further
and/or continuing review and adjustment; (2) regulatory actions, particularly
changes in rate regulation, regulations governing electric grid reliability,
environmental regulations, and actions affecting the construction of new
nuclear units; (3) current and future litigation; (4) changes in the economy,
especially in areas served by subsidiaries of SCANA; (5) the impact of
competition from other energy suppliers, including competition from alternate
fuels in industrial markets; (6) the impact of conservation efforts and/or
technological advances on customer usage; (7) growth opportunities for SCANA's
regulated and diversified subsidiaries; (8) the results of short- and
long-term financing efforts, including prospects for obtaining access to
capital markets and other sources of liquidity; (9) changes in SCANA's or its
subsidiaries' accounting rules and accounting policies; (10) the effects of
weather, including drought, especially in areas where the generation and
transmission facilities of SCANA and its subsidiaries (the Company) are
located and in areas served by SCANA's subsidiaries; (11) payment and
performance by counterparties and customers as contracted and when due; (12)
the results of efforts to license, site, construct and finance facilities for
electric generation and transmission; (13) maintaining creditworthy joint
owners for SCE&G's new nuclear generation project; (14) the ability of
suppliers, both domestic and international, to timely provide the labor,
components, parts, tools, equipment and other supplies needed, at agreed upon
prices, for our construction program, operations and maintenance; (15) the
results of efforts to ensure the physical and cyber security of key assets and
processes; (16) the availability of fuels such as coal, natural gas and
enriched uranium used to produce electricity; the availability of purchased
power and natural gas for distribution; the level and volatility of future
market prices for such fuels and purchased power; and the ability to recover
the costs for such fuels and purchased power; (17) the availability of skilled
and experienced human resources to properly manage, operate, and grow the
Company's businesses; (18) labor disputes; (19) performance of SCANA's pension
plan assets; (20) changes in taxes; (21) inflation or deflation; (22)
compliance with regulations; (23) natural disasters and man-made mishaps that
directly affect our operations or the regulations governing them; and (24) the
other risks and uncertainties described from time to time in the periodic
reports filed by SCANA or SCE&G with the United States Securities and Exchange
Commission. The Company disclaims any obligation to update any
forward-looking statements

Media Contact:        Investor Contact:
Eric Boomhower        Iris Griffin
(803) 217-7701        (803) 217-6642

SOURCE SCANA Corporation

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