SCE&G, Orangeburg DPU Agree to a New Four-Year Electricity Supply Contract

Apr 04, 2001, 01:00 ET from SCANA Corporation

    COLUMBIA, S.C., April 4 /PRNewswire/ -- South Carolina Electric & Gas Co.,
 the principal subsidiary of SCANA Corp. (NYSE:   SCG), today signed a new four-
 year electricity supply agreement with the Orangeburg Department of Public
 Utilities worth approximately $130 million to SCE&G over the life of the
 contract.  The new agreement, which will be filed with the Federal Energy
 Regulatory Commission for final approval, calls for SCE&G to supply Orangeburg
 DPU an initial daily capacity of 153 megawatts of electricity.
     The previous contract between SCE&G and Orangeburg DPU, signed in 1997,
 was to run through 2003.  However, beginning in May 2001, the agreement would
 have rolled over from a full-requirement contract to a partial-requirement
 contract.  This change in the contract would have decreased the amount of
 electricity supplied by SCE&G to DPU to approximately 100 megawatts, leaving
 DPU about 50 megawatts short of projected capacity requirements.  The new
 agreement ensures DPU will adequately meet the future electrical needs of its
 customers.
     "Renegotiating the contract makes a lot of sense for both parties," said
 SCE&G President Neville Lorick, pointing out that SCE&G has provided wholesale
 power to Orangeburg DPU for almost 75 years.  "With the parameters of our
 previous contract changing at the end of this month, the DPU was going to need
 additional capacity anyway.  And, of course, we see the new contract as an
 opportunity to extend a long-standing partnership with our largest wholesale
 customer."
     Fred Boatwright, Orangeburg's Department of Public Utilities manager,
 agreed the timing was right to renegotiate.  "Through the years, we've been
 able to remain a low-cost, reliable supplier of electricity to our customers,"
 he said.  "One reason for that is our successful relationship with SCE&G.
 Therefore, when we looked at the future power supply needs of this area, a new
 agreement with SCE&G was a logical step."  Boatwright also said the new
 agreement with SCE&G should be more cost effective and less complicated than
 if DPU tried to bring another electricity supplier into the mix.
     The new contract calls for SCE&G to provide DPU with its total electric
 needs for the entire four years of the contract, which ends April 30, 2005.
 The contract also includes an "Evergreen" clause that allows the agreement to
 be automatically extended for one-year terms.
     SCE&G sold more than 23 million megawatt hours of electricity during 2000
 and provided service to more than 537,000 customers in a 15,000 square mile
 area of central and southern South Carolina.  SCANA Corp., headquartered in
 Columbia, SC, is an energy-based holding company principally engaged in
 electric, natural gas and telecommunications businesses.  Information about
 SCANA and its businesses is available on the Company's website at
 www.scana.com.
 
 

SOURCE SCANA Corporation
    COLUMBIA, S.C., April 4 /PRNewswire/ -- South Carolina Electric & Gas Co.,
 the principal subsidiary of SCANA Corp. (NYSE:   SCG), today signed a new four-
 year electricity supply agreement with the Orangeburg Department of Public
 Utilities worth approximately $130 million to SCE&G over the life of the
 contract.  The new agreement, which will be filed with the Federal Energy
 Regulatory Commission for final approval, calls for SCE&G to supply Orangeburg
 DPU an initial daily capacity of 153 megawatts of electricity.
     The previous contract between SCE&G and Orangeburg DPU, signed in 1997,
 was to run through 2003.  However, beginning in May 2001, the agreement would
 have rolled over from a full-requirement contract to a partial-requirement
 contract.  This change in the contract would have decreased the amount of
 electricity supplied by SCE&G to DPU to approximately 100 megawatts, leaving
 DPU about 50 megawatts short of projected capacity requirements.  The new
 agreement ensures DPU will adequately meet the future electrical needs of its
 customers.
     "Renegotiating the contract makes a lot of sense for both parties," said
 SCE&G President Neville Lorick, pointing out that SCE&G has provided wholesale
 power to Orangeburg DPU for almost 75 years.  "With the parameters of our
 previous contract changing at the end of this month, the DPU was going to need
 additional capacity anyway.  And, of course, we see the new contract as an
 opportunity to extend a long-standing partnership with our largest wholesale
 customer."
     Fred Boatwright, Orangeburg's Department of Public Utilities manager,
 agreed the timing was right to renegotiate.  "Through the years, we've been
 able to remain a low-cost, reliable supplier of electricity to our customers,"
 he said.  "One reason for that is our successful relationship with SCE&G.
 Therefore, when we looked at the future power supply needs of this area, a new
 agreement with SCE&G was a logical step."  Boatwright also said the new
 agreement with SCE&G should be more cost effective and less complicated than
 if DPU tried to bring another electricity supplier into the mix.
     The new contract calls for SCE&G to provide DPU with its total electric
 needs for the entire four years of the contract, which ends April 30, 2005.
 The contract also includes an "Evergreen" clause that allows the agreement to
 be automatically extended for one-year terms.
     SCE&G sold more than 23 million megawatt hours of electricity during 2000
 and provided service to more than 537,000 customers in a 15,000 square mile
 area of central and southern South Carolina.  SCANA Corp., headquartered in
 Columbia, SC, is an energy-based holding company principally engaged in
 electric, natural gas and telecommunications businesses.  Information about
 SCANA and its businesses is available on the Company's website at
 www.scana.com.
 
 SOURCE  SCANA Corporation