SCANA seeks funding for expansion

By David Markiewicz

The Atlanta Journal-Constitution

Georgia natural gas marketer SCANA Corp. hopes to piggyback on a pipeline expansion program recently approved for Atlanta Gas Light.

In what amounts to a rider to that program, SCANA is asking the Georgia Public Service Commission to support using about $145 million from ratepayers to extend gas lines to areas that currently are underserved or unserved by natural gas providers. The total figure includes construction and financial carrying costs.

Such expansion would lead to an increase in natural gas customers, some of whom now use electricity, propane or other fuels.

As proposed, the program would not increase the new monthly surcharge that the PSC passed when it approved the AGL plan. Under that, customers will pay 39 cents more each month from now to October 2010, 78 cents more each month from then to October 2011, and $1.18 more each month from then to 2022. If passed, however, the surcharge would be extended for three additional years, ending in 2025.

SCANA positioned the plan as an economic development-oriented program.

In a statement, the company said, "Current economic conditions present an ideal time for cost effective construction and system expansion that would encourage future growth for all sectors and provide additional stimulus within our state."

Earlier this month, the PSC by a 4-1 vote, approved the three-year, $175 million first phase of a 10-year, $400 million gas pipeline capacity expansion and storage facilities improvement project proposed by AGL. The SCANA plan, if passed by commissioners, would be folded into the AGL plan.

AGL said the additional project would benefit the company as well as gas marketers besides SCANA.

The PSC will hold a hearing on the case, with a decision scheduled for January 19.