RATE INCREASES ON CUSTOMERS DRIVE HUGE EARNINGS BOOST
|| By FITSNEWS || SCANA – the Cayce, S.C.-based utility which provides electric and gas services to roughly a million customers in the Palmetto State – posted huge earnings for 2014, according to its annual corporate filings.
The company – whose primary subsidiary is South Carolina Electric and Gas (SCE&G) – reported earnings of $538 million for 2014. That’s well above (14.2 percent above) the $471 million the company earned in 2013. And while SCANA’s press release touting its explosive earnings growth didn’t mention executive compensation, the company paid out $12.5 million to its “key executive personnel” in 2013 – up from $7.3 million in 2009.
That’s a whopping 71 percent increase …
Ask yourself, South Carolinians … have your incomes gone up by 71 percent over the last six years? Wait … don’t answer that.
So … who’s paying for all this? You are. Rates for the average consumer – which are routinely rubber-stamped by the S.C. Public Service Commission – have climbed by more than $200 annually over the past seven years.
These increases are approved by PSC commission members under what’s known as the “Base Load Review Act,” legislation which was passed by the S.C. General Assembly in 2007. This law allows SCANA to effectively subsidize its facilities upgrades on the backs of ratepayers – basically overcharging them to fund new construction.
Not only that, the law permits a “pre-approved” 11 percent profit on any expenditures related to its nuclear expansion.
That’s right … the company’s profit margin is written into the law.
Sheesh …
Pissed off about this? You should be … just don’t expect any of your bought-and-paid for leaders at the S.C. State House to do anything to rectify the situation. And if you’re among SCE&G’s 688,000 electric customers and 338,000 natural gas customers, expect to continue paying through the nose.
40 comments
Sic, I am confused. Why are you bashing SCG? Should you not be bashing Government and saying they should deregulate? Who cares what they pay their executives. that is up to shareholders, not you as a blogger or someone who gets their power from SCG.
One might also note that profits are what drives all stockholders … and these guys are being rewarded for profitability.
Without profits, your local gas & electric company would evaporate, dry up and blow away. … And never be able to pay taxes again!
If we deregulate, SCAMA can charge us whatever they feel like, rubber stamp or no.
He’s bashing SCE&G because they are not a normal “free market” company. They are given a monopoly and are regulated by the state because they provide services that are essential to our daily lives. They are also regulated because they have a guaranteed income stream; as everyone needs power and nobody gets to choose who provides it (unless you physically move into another service area like if you moved from a SCE&G territory into a Duke territory). They are quasi-public….answering to both shareholders AND a government entity (the ORS/PSC). I’m not saying I’m a fan of SCE&G (absolutely am not), but that’s why we have a right to be mad: they are not a private company just selling merchandise or services that you can either choose to buy or not.
“… the company paid out $12.5 million to its “key executive personnel” in 2013 – up from $7.3 million in 2009. … That’s a whopping 71 percent increase …”
Mmmmm … My calculator must be broke. It’s tellin’ me that these pay increases are more like an average of 20% pay increase over three, four years.
Heck if you can play that numbers game with pay checks, how about this: Since the Great Depression, union scale wages have gone up more than 1000% ($1 per day v. $100 per day.)
And they are doing this all on the backs of their customers when they raise prices to pay for those wages. I dare them.
Actually the prime mover for pay increases in upper management is because of all of the new tax increases or wages, IRAs, 401Ks … Oh Bummer.
With all of that excess(ive) profit, at least they don’t have the excuse to not underground their overhead electric system. Most advanced civilizations, buried that ugly crap long ago. Long term it saves them money, short term they make more money because of the new electric system investment. Less tree trimming, right of way clearing, fewer outages from falling trees, etc. Win, win, of course they’re not interested in something that will benefit everyone, they’re too busy feathering their own nests. Wait for it…..but, but, but we contribute all kinds of money across our service territory!
“Rates for the average consumer – which are routinely rubber-stamped by the S.C. Public Service Commission – have climbed by more than $200 annually over the past seven years.” – Wait!!! I though Obama did that? You mean it was our own GOP-run government. Were is Grand Tango. He needs to be told “Hey Pork Chop – you out there?”
SCANA has given generously to Curtis Loftis. So don’t expect to hear your “taxpayer hero” make a peep about this one. He’ll stick to gas tax, it’s an easy way to get in the news and he’ll never have to offer a plan. He’s like Debbie Wasserman-Schultz except uglier.
Not a surprise there. Lofts is just another RINO spewing nonsense from his mouth and is unwilling to get the real work done to reform the state. We’d be better off if his office was appointed by the Gov.
Investment Commission people are paid lots of money to spew filth. Up to $600,000 per year t play on the internet. They should remember:
Proverbs 6:16-19 – God hates a lying tongue and a false witness who speaks lies.
Kev/Curtis – You are posting as Kev. You are not Kev. Kevin is your former staffer who woke up and found you watching him sleep in his bedroom. That’s vile! You lack a moral core.
…..not to mention the Office of Regulatory Staff (our “advocate” before the PSC) employs several relatives of members/former members of the General Assembly…..whose campaigns are funded by SCANA.
Hopefully Curtis can use some of his SCANA money to pay for some herpes treatment. I understand it is very inflamed and it’s making him even more vile and loathsome than usual.
I think he’s been using his SCANA money on some fatty dinners. Anyone else notice how much weight Curtis has gained?! He’s obese. Even his grubby fingers look like they’ve gained weight!
His fat fingers are an abomination! Thank goodness he’s too dumb to be a gastroenterologist!
Satan is the father of lies (John 8:44).
May God have mercy on their dark souls. These liars chasing Loftis are pitiful.
No one is chasing Loftis. He tells the voices in his head (and any one who will listen) that there is a grand scheme, a conspiracy of epic proportions against him. The truth is… there are no schemes or conspiracies. Curtis has quite simply been horrible at his job. He destroyed Aging and he has now seriously destroyed the treasurers office. He destroys everything and everyone he encounters. He is not right in the head. He needs help. He needs more tin foil!
Proverbs 6:16-19 – God hates a lying tongue and a false witness who speaks lies.
There is no better way to phrase it.
God hates gluttoney and sloth. And you Curtis are one lazy fatass!
Satan is the father of lies (John 8:44)
The liars chasing Loftis are disgusting.
What is disgusting is what you did to the real Kevin. That kid was barely an adult!
Satan is the father of lies (John 8:44)
These 3 or 4 Loftis haters lie so easily. I pity them
3 or 4. You’re the treasurer, shouldn’t you be able to count “Kev”? There are a lot more than 3-4 people (not haters, people with sense) that don’t like you. People don’t like you in the USA, Canada, Yugoslavia, Ukraine, England, Monaco, Russia and more. You are literally disliked everywhere you go. Damn you suck!
Do you actually understand the meaning of the words coming out of your mouth, or do you just enjoy the wind in the trees? For someone who is so fond of the capitalist ideal, you’d think you’d be able to distinguish between EARNINGS and PROFITS.
And every lawmaker in this state is in their pocket.
And Curtis Loftis, the State Treasurer
It looks like the Public Utility business model might start to resemble the Post Office and Landline Phone Companies. If solar charged battery packs for powering homes and businesses, such as those announced by Tesla, become a wide scale reality and people start unplugging from the electric grid, what will SCANA’s profits look like then. As people unplug from the grid, the remaining customer will pay higher rates.
Article: This new Tesla battery will power your home, and maybe the electric grid too
http://www.washingtonpost.com/blogs/the-switch/wp/2015/02/12/this-new-tesla-battery-will-power-your-home-and-maybe-the-electric-grid-too/
{Excerpts]
Tesla is working on a battery that can power your home and even help large-scale utilities store energy more efficiently, according to company chief executive Elon Musk.
On an investor call Wednesday, Musk said the designs for a home or business battery are already complete and will likely be unveiled to the public “in the next month or two.” Production could be as little as six months away, he added.
Although many of today’s homes draw energy directly from the electricity grid, the spread of cheap solar panels means it’s never been easier to generate some of your own energy.
Morgan Stanley made waves last year when it wrote that Tesla’s forthcoming products in this space could meet a huge market demand.
“There may be a ‘tipping point’ that causes customers to seek an off-grid approach,” Morgan Stanley wrote last March. “The more customers move to solar, the remaining utility customer bill will rise, creating even further “headroom” for Tesla’s off-grid approach.”
Hmm…….no wonder ISIS is so mad….!!! Just think if the Sunni SCANA boys did not run power to your Shia hood…!~!
Now think how mad you would be if the Sunni SCANA oil boys took 71 % of the oil profits that were used to power the Shia generators…!!
Foolish peasants. You don’t actually believe the PSC works for you?
The PSC isn’t half as much to blame as ORS. Their “audit” department is prevented from bringing anything they deem improper before the PSC. Dukes Scott (agency head) will quash anything that would give SCEG any “bad press”. His oversized hook nose is shoved so far up the ass of every influential General Assmebly member, that he can’t even smell his own bullshit anymore. Nepotism is indeed part of everyday life, with ne’er-do-well relatives of the General Assembly, occupying “influential” posts as nothing more than glorified interns. Yet, they receive high salaries paid for by regulatory fees that every customer pays for, so that SCEG can have the privilege of being regulated. It’s all a game, government welfare in the form of jobs for the general assemblys’ family members and their friends.
Disclaimer: Posting as a former employee who saw it all unfold in regular meetings between the customer “advocate”, ORS, and the special interest reps of SCEG.
Actually, SCE&G prices for electricity are among some of the lowest in the United States. I believe they are very close to Santee Cooper’s rates. Plus, SCE&G pays taxes to support schools. In fact, it is the largest tax payer in every county it operates in the State.
Unlike Santee Cooper, which pays no taxes, gives very little money to the State and has some of the most underfunded rotten schools in the Nation.
The PSC should look very close at SCE&G rates to better regulate what their profits really are vs. what they are supposed to be.
And, the State of South Carolina should sell Santee Cooper to SCANA, Duke Power, Southern Company and etc. It’s a $10 Billion dollar asset the State can no longer afford to own. We need that money to pay the State’s bills, lower taxes, fix infrastructure and provide investment money for our future.
Plus, the State’s schools need to collect the taxes to educate our children properly. Without, having to raid other school districts funding.
SCE&G does pay hefty property taxes to all units of government, you are correct. They then pass that cost along to rate payers in the form of electric and natural gas bills. Same with the cost of energy, I.e., coal. Whatever the cost of coal is, they pass along to the rate payer. So it makes no difference to SCE&G what coal costs, since the rate payer pays them back exactly what it cost to purchase to covert into electricity.
Agreed.
Interesting enough, Santee Cooper does the same thing. But, pays no taxes to schools at all. It also pays just a relatively small amount to the State from it’s profits.
I think its high time for SC to consider selling Santee Cooper. It’s a massive amount of cash and future tax money sitting on the table. We can’t afford to operate the 3rd largest government owned utility in America for basically free. Especially since the 2 largest are: TVA and Bonneville Power; both of which are owned by the Federal Government and not a State Government.
Think about it.
It’s ridiculous.
How much more is VC Summer costing because of Obamas irrational meddling and regulation bull $#!t…???
How much is Obamas killing of coal costing SCANA ..??..and the people???
FITS is textbook liberal. You F#×k up everything with leftwing policy…then attack your enemies for how they react to your ignorance and hate…
SCE&G customers are paying for a 5 Billion dollar addition to SCE&G VC Summer Nuclear Power Plant, too. Two brand new reactors (Units 2 & 3) are being constructed. And the high paying construction jobs are all mostly going to OUT OF STATE workers who do not even live in SC as permanent residents. That ain’t right!!!!
SCE&G entwined in collusion with CB&I Construction out of Chicago, Illinois to scam SCE&G customers. Completion of two new reactors being constructed at the SCE&G V.C. Summer Nuclear plant in Jenkinsville, SC has been pushed back another year by CB&I yet again, thus adding another 1 Billion Dollars ($1,000,000,000.00) to the cost of this massive construction project. The additional cost is being passed along to SCE&G customers in the form of rate hikes. Two exact same reactors (Westinghouse AP1000) are being construction at Plant Vogle outside August, Georgia by CB&I. That project cost has not seen massive cost over-runs like the SCE&G project. The delays that CB&I are asserting as the reason for cost increases are not found on the same reactors being constructed by CB&I at the Georgia Plant. The Georgia plant was approximately 6 months ahead in construction progress in comparison to the SCE&G plant. But now, with all the delays that SCE&G has been reporting on the VC Summer Plant, completion of the two new reactors at the SCE&G plant will not be until almost 2 to 3 years after the Georgia Plant (Plant Vogle) is completed and on line
SCE&G is a for profit company that gets to enjoy government protection. Their bad decisions are passed on to the consumer and their profits flow through to execs and shareholders. This year industrial customers are being curtailed from using natural gas so that the utility can sell their share of gas upstream for more money than they would receive from supplying South Caroina industries.
They need a little competition. As it stands now they have no incentive to control expenses or improve service, their profit margin is guaranteed by law.
I have no problem with profit in any company, but the whole monopoly means you shouldn’t be getting a rate hike unless you’re strapped for cash. They clearly are not strapped. As for deregulation the original intent was to allow smaller companies to buy electricity from the owner of the wire system at cost and plug their meter into your house and you get to buy from them.. Then you can choose your rate plan based on other companies. It’s a good idea and should happen, but the rate of what the cost is needs to be regulated tightly.
So with our current govt.. The smaller companies will never happen. And if they did they wouldn’t survive as Sceg would say the cost is higher than what they charge a regular consumer.