We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SCANA's Subsidiary Provides Solutions for Abandoned Plant
Read MoreHide Full Article
SCANA Corporation’s principal subsidiary — South Carolina Electric & Gas Company (“SCE&G”) — has announced plans to resolve issues relating to the abandoned V.C. Summer Station nuclear construction project.
These plans are anticipated to reduce costs for customers and drive energy production. Total cost savings for SCE&G customers are estimated at about $4.8 billion. The solutions provided by the plan are listed below.
The first step includes the rollback of residential electric rates back to March 2015 level. This will reduce rates by about $90 million per year, or 3.5%. The monthly bill of a customer using 1,000 kilowatt hours of electricity will be lowered by more than $5.
In the next five decades, SCANA’s shareholders will absorb the net nuclear construction costs through lower earnings. This will lead to savings of about $2.9 billion. The plan also proposes the addition of a 540-megawatt, natural-gas-fired power plant to SCE&G’s system. This is expected to substitute more than 40% of the projected power that was to be provided to SCE&G from the V.C. Summer nuclear construction project. However, acquisition cost will be provided by SCANA’s shareholders. This will result in savings of $680 million, which includes purchase price of $180 million.
A large-scale solar energy of about 100 megawatts will added to SCE&G’s system. This is expected to boost non-rooftop solar capacity by about 50%.
Per the current estimates, if this proposal is implemented, an additional generation source will not be required for several years. This will be an important step to meet the growing needs of South Carolina.
In a separate announcement, SCE&G has stated that it has inked an agreement in principle to acquire a 540-megawatt, combined-cycle, natural-gas-fired power plant from Columbia Energy LLC for $180 million. The company intends to complete the purchase in the upcoming weeks and regulatory approval are expected by 2018.
Price Movement
Over a year, the company’s shares have declined 35.4% as against the industry’s rally of 17.5%.
The largest petrochemical operator in Latin America, Braskem, delivered a positive earnings surprise of 68.54% in the preceding quarter.
ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. It delivered an average positive earnings surprise of 152.34% in the last four quarters.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered a positive earnings surprise of 500.00% in the preceding quarter.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
SCANA's Subsidiary Provides Solutions for Abandoned Plant
SCANA Corporation’s principal subsidiary — South Carolina Electric & Gas Company (“SCE&G”) — has announced plans to resolve issues relating to the abandoned V.C. Summer Station nuclear construction project.
These plans are anticipated to reduce costs for customers and drive energy production. Total cost savings for SCE&G customers are estimated at about $4.8 billion. The solutions provided by the plan are listed below.
The first step includes the rollback of residential electric rates back to March 2015 level. This will reduce rates by about $90 million per year, or 3.5%. The monthly bill of a customer using 1,000 kilowatt hours of electricity will be lowered by more than $5.
In the next five decades, SCANA’s shareholders will absorb the net nuclear construction costs through lower earnings. This will lead to savings of about $2.9 billion. The plan also proposes the addition of a 540-megawatt, natural-gas-fired power plant to SCE&G’s system. This is expected to substitute more than 40% of the projected power that was to be provided to SCE&G from the V.C. Summer nuclear construction project. However, acquisition cost will be provided by SCANA’s shareholders. This will result in savings of $680 million, which includes purchase price of $180 million.
A large-scale solar energy of about 100 megawatts will added to SCE&G’s system. This is expected to boost non-rooftop solar capacity by about 50%.
Per the current estimates, if this proposal is implemented, an additional generation source will not be required for several years. This will be an important step to meet the growing needs of South Carolina.
In a separate announcement, SCE&G has stated that it has inked an agreement in principle to acquire a 540-megawatt, combined-cycle, natural-gas-fired power plant from Columbia Energy LLC for $180 million. The company intends to complete the purchase in the upcoming weeks and regulatory approval are expected by 2018.
Price Movement
Over a year, the company’s shares have declined 35.4% as against the industry’s rally of 17.5%.
Zacks Rank & Key Picks
SCANA currently carries a Zacks Rank #5 (Strong Sell). A few better-ranked players in the energy sector are Braskem SA (BAK - Free Report) , ConocoPhillips (COP - Free Report) and Northern Oil and Gas Inc (NOG - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The largest petrochemical operator in Latin America, Braskem, delivered a positive earnings surprise of 68.54% in the preceding quarter.
ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. It delivered an average positive earnings surprise of 152.34% in the last four quarters.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered a positive earnings surprise of 500.00% in the preceding quarter.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>