South Carolina OKs Scana rate hike for new nuclear reactors
Sept 19 (Reuters) - South Carolina utility regulators approved a 2.87 percent power rate increase for Scana Corp's South Carolina Electric and Gas utility to cover the cost of financing new nuclear reactors under construction in the state.
The increase, which is worth about $67.2 million, will take effect for bills after Oct. 30, SCE&G said in a release late Wednesday.
SCE&G applied for the increase in May under the state's 2007 Base Load Review Act, which allows utilities to file annual rate adjustments to recover financing costs during the construction of nuclear reactors.
Recovering financing costs during construction helps reduce overall ratepayer costs and avoids shocking customers with a giant bill increase when the reactors enter service.
SCE&G and Santee Cooper, a South Carolina-owned electric and water utility, are building two 1,117-megawatt reactors at the V.C. Summer nuclear power plant in the state.