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SOUTH CAROLINA ELECTRIC & GAS ANNOUNCES REDUCTION IN RETAIL ELECTRIC RATE INCREASE REQUEST

 COLUMBIA, S.C., March 25 /PRNewswire/ -- South Carolina Electric & Gas Company (SCE&G), principal subsidiary of SCANA Corporation (NYSE: SCG), announced today that it will reduce the amount of its pending retail electric rate increase request by approximately $16.8 million, or about 18 percent. Public hearings on SCE&G's Application, which was filed December 7, 1992, are scheduled to begin Monday, March 29, 1993 before The Public Service Commission of South Carolina (PSC).
 In making the announcement, Bruce D. Kenyon, president and chief operating officer of SCE&G, said the company had, in previously filed direct testimony, alerted the PSC that it would review its request as the date of the hearings approached.
 "In our Application, we requested a rate of return on common equity of 13.05 percent. Due to changing financial conditions since the Application was filed, we are revising our testimony to support a return on common equity of 12.05 percent. In addition, updating the capital structure included in the original Application to December 31, 1992 increased the ratio of debt to equity, which further reduced the company's overall cost of capital," Kenyon said. These adjustments to SCE&G's capital structure and cost of capital reduce the requested overall return on rate base from 10.57 percent to 10.06 percent. "Simply put, the drop in interest rates has reduced our capital costs and allows us to pass this savings on to our customers."
 SCE&G's original Application requested a two-phase increase in retail electric rates. The Phase I increase requested additional annual revenues of $72.9 million to be effective in June 1993; the Phase II increase requested $20.2 million in additional annual revenues to be effective in June 1994. The following table highlights changes in the revenue requirements for both Phase I and II resulting from the company's revised financial testimony:
 Revenue Requirement (Millions of Dollars)
 Original As Percent
 Request Revised Decrease Decrease
 Phase I 72.9 57.2 (15.7) (21.5)
 Phase II 20.2 19.1 (1.1) (5.5)
 Total 93.1 76.3 (16.8) (18.0)
 SCE&G is the principal subsidiary of SCANA Corporation, an energy- based holding company headquartered in Columbia, SC. Through its subsidiaries, SCANA engages in regulated electric and natural gas utility businesses and other non-regulated businesses. SCE&G's electric service area covers more than 15,000 square miles in the central, southern and southwestern portions of South Carolina.
 -0- 3/25/93
 /CONTACT: H. John Winn, III, Manager Investor Relations & Shareholder Services, SCANA Corporation, 803-748-3240/
 (SCG)


CO: South Carolina Electric & Gas Company; SCANA Corporation ST: South Carolina IN: UTI SU:

CM -- CH008 -- 9759 03/25/93 16:14 EST
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Publication:PR Newswire
Date:Mar 25, 1993
Words:448
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