SCE&G to Adhere to ORS Recommendation to End eWNA Billing Program; AARP South Carolina Intervention into 2012 Rate Hike Leads to Action

SCE&G will accept the recommendation from the Office of Regulatory Staff (ORS) and terminate its electric Weather Normalization Adjustment (eWNA) program on December 31, 2013; however, some January bills will include the eWNA because of cycle billing. The move comes after AARP intervened in SCE&G's 2012 rate hike questioning the effectiveness of the eWNA.

In addition, SCE&G will not seek to increase rates to recover from customers approximately $25 million in customer savings as a result of the eWNA.

"AARP South Carolina members across the state spoke out at public hearings against the eWNA during SCE&G’s 2012 rate hike case, and they were right," said Teresa Arnold, AARP South Carolina state director. "We listened and understood the concerns of our members over this issue and intervened on their behalf." As a part of the rate hike granted by the SC Public Service Commission, the ORS was charged with studying and finding a solution to the eWNA issue.”

AARP South Carolina sought help from expert Ralph C. Smith, a CPA and utility regulatory consultant to lead the charge on behalf of consumers. He noted that customer complaints about the SCE&G eWNA tariff had identified a number of concerns, including the following: Customers did not like the fact that the rate is constantly adjusting; Customers perceived the eWNA rate as being anti-conservation; and Customers perceived that monthly eWNA charges increase their electric bills in amounts that can be substantial in a given month.  In his testimony, Smith recommended that eWNA be discontinued.

"We want to work with SCE&G and help their customers understand that there are better, budget-friendly payment options including the company's Budget Billing program," Arnold said.  SCE&G has offered to make education and outreach about its Budget Billing program a top priority. ORS Executive Director Dukes Scott commented, “With the cooperation of AARP South Carolina, Frank Knapp of the S.C. Small Business Chamber, and SCE&G, we were able to reach consensus on the termination of this program, which we believe best serves the public interest.”

“We were very excited to learn that the company agreed with AARP and ORS that the weather normalization program was causing problems. When people with limited incomes who are now getting ready for colder weather and the holidays, they are doing everything they can to use less power, and that surcharge can be quite a shock," Stephen R. Suggs, Deputy Director South Carolina Appleseed Legal Justice Center and Attorney for AARP.