South Carolina PSC Puts Pension Costs in Rider

In an electric rate proceeding, the South Carolina Public Service Commission accepted a memorandum of understanding (MOU) under which South Carolina Electric & Gas was awarded a net increase in electric rates of $97 million and a ROE of 10.25 percent. The lower ROE value negotiated in the MOU also had a substantial impact on the utility’s authorized revenue requirement, reducing its rate request by a significant amount. Other reductions stemmed from decreases in the utility’s proposed expenses for tree trimming, storm reserves, and pension obligations, although the costs of the latter were allowed to be recovered through a separate rider. For the full story and more analysis, subscribe to Utility Regulatory News