Lexington County Chronicle
September 24, 2015
By Jerry Bellune
Auditors to check utility giant, see if rate hikes are fair
In a surprise move, state officials plan to audit S.C. Electric & Gas.
Dukes Scott of the state Office of Regulatory Staff said an independent auditor will be hired to check if what SCE&G is doing is in its customers’ interests.
Auditors will check if:
- SCE&G should be allowed to continue to pass rising costs of two new nuclear plants to customers.
- The company should have to bear increased borrowing and construction costs on its own and seek rate increases if needed after the plants are built.
SCE&G spokesman Eric Boomhower said “We respect the independent oversight the ORS provides as part of the regulatory process that governs our operations.”
S.C. Small Business Chamber of Commerce President Frank Knapp, a critic of SCE&G’s rates, welcomed the audit.
He had earlier asked Lexington County lawmakers to change state law to prevent customer abuse.
“If we look at rate increases since January 2008 and assume the PSC approves the 2.8% increase, SCE&G will have had a total of 35% rate increases.”
Knapp said auditors will look at the original projected cost of the plants and the projected customer savings using the annual rate increases to pay for construction cost loans.
The analysis will determine how much savings was lost by cost overruns and schedule delays.
“In my opinion, both should have been the cost to the SCE&G shareholder not customers,” he said.