The ratings on Public Service Co. of North Carolina Inc. (PSNC) reflect the credit profile of its parent, SCANA Corp. PSNC serves about 482,000 customers, with residential and commercial customers contributing the bulk of revenues and sales. During 2010, the customer base increased by 1.9%, reflecting a modest recovery in the local economy. PSNC contributed about 12% of SCANA's consolidated operating income and 10% of cash flow during the year. We view the regulatory environment in North Carolina as generally constructive of credit quality. The allowed return on equity is 10.6% and is combined with a customer usage tracker, a rate decoupling mechanism that severs the link between revenues and natural gas supply sold, allowing the company to adjust base...
Companies mentioned in this report are: Public Service Co. of North Carolina Inc.,South Carolina Electric & Gas Co.,SCANA Corp.
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