SCE&G filed for the decrease under terms of the Natural Gas Rate Stabilization Act, a South Carolina law designed to reduce volatility of customer rates by allowing for recovery of the costs that regulated utilities incur in expanding, improving and maintaining natural gas service infrastructure to meet the needs of customers.
If approved, the rate decrease is expected to be implemented with the first billing cycle of November 2010. The company said that the annual rate filing is being driven primarily by an increase in business from interruptible industrial customers and lower capital spending costs.
Marty Phalen, vice president of natural gas operations at SCE&G, said: “Our filing, combined with lower wholesale prices for natural gas, means residential customers will be paying an average of about $100 a year less for natural gas beginning in November than they were one year ago.”
SCE&G is a regulated public utility that provides natural gas service to approximately 313,000 customers throughout South Carolina. The company is also engaged in generation, transmission, distribution and sale of electricity to approximately 659,000 customers throughout the state.
