SCANA Corporation Q2 2009 Earnings Call Transcript

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2009-08-01 06:02:21.0

Tags: PSC Inc., Call Transcript, Earnings, Natural Gas, Sales Strategy, Telecom & Utilities, Sales Force Management, Sales, Seeking Alpha, SCANA Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your next question comes from Dan Jenkins - State of Wisconsin Investments.

Dan Jenkins - State of Wisconsin Investments

I was wondering, on the updated schedule you just talked about for the nuclear project, will that be filed, like in an 8-K or something? Will we have some access to seeing what that new schedule is?

Jimmy Addison

I believe that Dan, that’s already out on the PSC’s website. If you go to the South Carolina PSC, you can find it there.

Dan Jenkins - State of Wisconsin Investments

I missed the amount you said that the dollar amount of the increase that you are expecting related to the clip filing?

Jimmy Addison

With the revised rate filing?

Dan Jenkins - State of Wisconsin Investments

The clip filing for the nuclear?

Jimmy Addison

It’s about 1.1%, around $23 million.

Dan Jenkins - State of Wisconsin Investments

Then I was curious, on page six of your release, for the electric operations, the wholesale was up 13% in the quarter. What was driving that?

Jimmy Addison

Let me make sure, I’m with you on your question, which, page six?

Dan Jenkins - State of Wisconsin Investments

Page six up there at the top, under the KWH sales. For wholesale, it was up 13.2% for the second quarter, to 541 from 478.

Jimmy Addison

The issue there was is really a comparison issue. Last year in this quarter, our nuclear plant was down for an extended refueling outage. So there was very little capacity to sell. Even though the economy is off this year, we have more capacity available to sell. Contrary to that is we’ve made significantly less on it. The margins are much lower this year, but we had more to sell in volumes, and you’re looking at volumes there.

Dan Jenkins - State of Wisconsin Investments

Then similarly, if you go down then and look at the natural gas operations, you had a 5.7% increase in the industrial sales, which given the economic environment, seems kind of contrary like you would expect, so what?

Jimmy Addison

Yes, I agree with you. I asked that same question myself, when I first saw it. That’s primarily through SCANA Energy Marketing. Our subsidiary that sells to other industrials and to other power generators, and that’s gas sold for electric generation for to other electric generators. That’s because of the low cost of gas compared with coal and others are using more gas, as we are.

 

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