An economist testified Monday at a South Carolina Public Service Commission (SCPSC) hearing Monday that a rate cut for South Carolina Electric&Gas (SCE&G) electric customers would hurt its parent company SCANA company.
Dr. Glenn Hubbard told commissioners that should a temporary rate cut become permanent it would cause SCE&G financial problems and increase capital costs. “The financial consequences to SCE&G and its customers that may result if the commission eliminates the revised rates revenues as requested.”
Hubbard said that a permanent rate cut would have far-reaching effects. “Which would have a larger negative impact on the company’s financial position, credit rating and cost of capital.”
The SCPSC hearing is to determine who pays for the debt of the abandoned nuclear expansion at the VC Summer plant in Fairfield County. The over-budget behind schedule project was stopped by SCANA and partner state-owned Santee Cooper in late July of 2017 when the two companies realized completion was impossible.
The hearing will also decide if Virginia based Dominion Energy can buy Lexington County-based SCANA.
The proceedings are into their third week.