SCANA reports drop in earnings in second quarter

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The ongoing V.C. Summer nuclear reactor saga is continuing to affect SCANA Corp.’s bottom line.

Cayce-based SCANA, parent company of S.C. Electric and Gas, today announced a $113 million drop in earnings for the second quarter of 2018 compared to the same period last year.

In a news release, SCANA attributed the decrease to reductions in SCE&G ratepayer bills ordered by the S.C. Public Service Commission.

SCANA reported earnings of $8 million, or 6 cents per share, for the second quarter of 2018, compared to earnings of $121 million, or 85 cents per share, for the second quarter of 2017.

“The decrease in earnings is primarily attributable to rate-reduction credits for billed and unbilled electric revenues for the period of April 1, 2018 through June 30, 2018,” SCANA said. “These credits accounted for a decrease in the quarter of $109 million, or 61 cents per share.”

In April, SCANA reported a $2 million decrease in first-quarter earnings compared to 2017.

In late June, the PSC voted to enact a temporary 15% reduction for SCE&G customers related to the abandoned twin nuclear reactors at the V.C. Summer nuclear power station in Fairfield County. The PSC also mandated that the cuts, which are to begin with SCE&G’s first August billing cycle, be applied to bills in April, May, June and July.

The rate cuts would last only until December, when the PSC is slated to make a final decision on who is to foot the bill for the reactors, abandoned in July 2017 after a series of rising costs and mountings delays led to a bankruptcy filing by project contractor Westinghouse last April.

A federal court dismissed a lawsuit filed by SCE&G challenging the constitutionality of the rate reductions on July 26. SCE&G has appealed that ruling.

On Thursday, the same federal judge denied motions by the PSC and lawmakers to dismiss the suit. SCANA stock reacted positively, rising from $40 a share at Thursday’s stock market opening to $41.36 as of 4 p.m.

SCANA said Thursday that higher legal costs and financial advisory fees also negatively affected second-quarter earnings, as did tax changes prohibiting the deduction of interest expense.

SCE&G, SCANA’s principal subsidiary, reported second-quarter earnings of $31 million, or 22 cents per share, compared to earnings of $126 million, or 88 cents per share, for the second quarter of 2017.

SCE&G reported a $16 million first-quarter increase compared to 2017.

The utility said abnormal weather increased electric revenues by 11 cents per share in the second quarter of 2018, compared to 4 cents per share in the second quarter of 2017.

As of June 30, SCE&G served approximately 727,000 electric customers and 373,000 natural gas customers, up 1.3 and 2.9 percent, respectively, from 2017.

PSNC Energy, SCANA’s N.C.-based retail natural gas distribution subsidiary, reported a seasonal loss of $1 million, or 1 cent per share, in the second quarter of 2018, compared to earnings of $2 million, or 1 cent per share, for the same period in 2017, SCANA said.

SCANA Energy Marketing, which markets natural gas in deregulated energy markets including Georgia, where the company does business as SCANA Energy, reported earnings in the second quarter of 2018 of $4 million, or 3 cents per share. For the same period in 2017, the company earned $1 million, or 1 cent per share.