S&P cuts Scana, subsidiaries

S&P said it lowered its ratings, including the issuer credit ratings, on Scana Corp. and subsidiaries South Carolina Electric & Gas Co. and Public Service Co. of North Carolina Inc. by one notch to BBB- from BBB.

The ratings remain on CreditWatch, where they were placed with negative implications on Sept. 29, 2017.

The agency lowered the short-term ratings on the three entities and South Carolina Fuel Co. to A-3 from A-2 and maintained them on CreditWatch negative.

On Aug. 6, a federal judge denied South Carolina Electric’s request for a preliminary injunction to halt an experimental rate reduction tied to cost recovery of the construction costs of the cancelled V.C. Summer nuclear generation units 2 and 3 project.

Following a South Carolina General Assembly law requiring the 15% experimental rate reduction, the South Carolina Public Service Commission lowered South Carolina Electric’s monthly rates roughly $31 million related to the cancelled construction project.

The rate reduction is temporary until the commission rules on South Carolina Electric’s permanent rate recovery of the abandoned project.

S&P said it expects weaker financial measures following the rate reduction.

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