| South Carolina Utility Giant SCANA reports that their profits rose a whopping 76% this past quarter. So much for utilities being regulated to minimize profits... For those of you who didn't get to read my LTE posted on SC Hotline a couple months ago, let me expose the scam going on between SCANA and the Clyburn Clan. Late last year, before it even got cold, SCANA asked for a 50% rate hike on Natural Gas, based on a forecasted cold winter. Traditionally, the utilility takes the hit, then has rates adjusted to makw up for the cost - fair enough. The costs are spread over the more moderate Spring months, and everything works out in the end. That didn't happen. Instead , the PSC , being the political hacks they are, ok'd the rate hike before it even got cold. I don't need to tell you that it's been a pretty warm winter, until this week. Since Natural gas hasn't been used as much as they thought, cost remained low, and revenue increased - not a bad deal, eh? Here's where the scam is... Who is the PSC Chair? Mignon Clyburn, Jim's daughter. It also may be worth noting that Jim owns stock in SCANA too, and has received contributions from SCANA since day 1 in office. So SCANA pays Jim, they then go to his daughter to ask for a rate hike, and Jim ends up making dividends and profits from the higher stock price. Genius!! The losers in this of course are the consumers, many of who are retired, collecting Social Security checks that still don't benefit from the marketplace. I guess Jim just has that stock because he likes to gamble with his money!! Kudos to Jim , his buddies at SCANA, and my best wishes to his daughter, who will soon take over the family business when daddy retires. |
Saturday, February 11, 2006
SCANA's Profits Jump 76% This Quarter.....Maybe the PSC can Give Some of that Rate Hike Back......
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2 comments:
The rate increase SCANA asked for wasn't actually based on a projected cold winter. It was based on a surge in "purchse price" for natural gas after Hurricanes Katrina and Rita destroyed the pipeline networks.
That was the bulk of the price increase they requested. They asked to be able to bill their customers for the approximately 50% increase in the purchase price they were paying. This increase didn't result in any increased profits (According to their bookkeeping)
There was another rate increase, which was approved by the PSC, which was much smaller. It resulted in an increase in the prices above the purchase price.
It is a very complicated formula the PSC follows, I believe, to keep the customers off balance.
I don't have natural gas heating, but I had an electric bill for January that was over $300!!! And January was mild, and I set the thermostat to 65!!!...much to the chagrine of my kids.
No doubt, SCANA and the politics involved in the company are due for a real complete investigation, but the fact is, they're not the only one financially raping the rest of us.
True, they are not alone in the overcharge. However, the weather forecast was part of the theory publicly for the rate increase, which is the other side of the supply/demand problem.
You're not the only one who's getting a bad electric bill this month - my neighbor's was close to double.
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