SCEG OATT Formula Transmission Rate Filing.pdf - SCANA ...

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Exhibrt No. SCE-5(C)
Corpo rates
long as construction proceeds in accordance with the schedules, estimates and
projections, including contingencies, set forth in the approved application. The
combined application was filed under the BLRA, which requires the PSC to conduct a
full pre· construction prudency review of the proposed units and of the EPC contract
under which the units will be built.
As part of the order, the PSCalso approved the initial rate increase of $7.8 million, or
0.4%, to recover the cost of capital on nuclear project expenditures through
June 30, 2008. The new rates became effective March 29, 2009.
On May 29, 2009, SCE&G filed for an additional 1.1% rate increase under the BLRA to
recover capital costs from July 1, 2008, through June 30, 2009. If approved, the new
rates would become effective October 2009. Under the BLRA process, SCE&G is
permitted to file each May to recover the cost of capital on its construction·work-inprogress
(CWIP) balance as of the filing date, followed by a five-month review process,
with new rates effective the following October.
Fuel Cost Recovery
On April 22, 2009, the PSC approved a settlement agreement between SCE&G, the
Office of Regulatory Staff and others that provided for a three-year phase-in of
SCE&G's uncollected fuel costs of about $110 million.
City of Orangeburg
On April 22, 2009, SCE&G agreed to continue to provide the City of Orangeburg, SC,
with approximately 190 MW of wholesale electric power through 2010. The city
extended its contract with SCE&Gafter the North Carolina PSCrejected a contract with
Duke Energy Corporation (Duke) priced at Duke's average system cost rather than
market.
Liquidity and Debt Structure
Liquidity for working capital
purposes is provided by a $350
million commercial paper program
that is fully backed by a $400 million
bank credit facility which expires in
Dec. 2011. South Carolina Fuel Security
Company, a direct subsidiary of FMB
PC Bond
SCANA, which acquires, owns and FMB
provides financing for SCE&G's
SCE&G Debt Maturity
Coupon (%)
6.7
4.2
7.125
Schedule
Amount
Maturity
($ Mil.)_~=D'".t••
150 2/1/11
4
1111/12
150 6115/13
Source: Company reports.
nuclear and fossil fuels and emission
allowances, maintains an additional
$250 million bank credit facility that matures in December 2011. At March 31, 2009,
short-term borrowings totaled $92 million compared to $34 million at year-end 2008,
and cash and equivalents amounted to $218 million. There are no financial covenants in
the credit agreement.
Debt maturities are sufficiently laddered and should be manageable. Maturities through
2013 are shown in the table above. Thereafter, the next debt maturities are in 2018
and 2032.
2 South Carolina Electric & Gas Company August 3, 2009