SCANA Energy, a unit of SCANA Corporation (SCG) was again chosen as Georgia’s regulated natural gas provider from a competitive bid. Since the regulated provider’s foundation in 2002, SCANA has served as the regulated provider in Georgia’s deregulated natural gas market and is thus a stabilizing factor.
As SCANA has retained its position as the preferred regulated provider of gas since 2002, it goes to show the high quality of service it has been providing to the underprivileged and senior citizens in Georgia.
The Georgia General Assembly made the appointment of a regulated provider compulsory in 2002 to guarantee hassle free access to natural gas service to the elderly and low income group in Georgia.
Per the Natural Gas Consumers’ Relief Act, natural gas is supplied at special rates by the regulated provider to those who fulfill the low-income criteria formed by the Georgia Department of Human Resources. Low-income senior citizens are eligible for an additional discount.
The regulated provider serves as the only alternative to natural gas customers who face rejection by other marketers due to credit problems or payment default. Currently, both the programs provide services to approximately 80,000 Georgians.
SCANA Corporation’s operations include generation, transmission, distribution, and sale of electricity to retail and wholesale customers in South Carolina. The company also purchases, sells, and transports natural gas to retail customers in South Carolina and southeastern Georgia; provides energy-related risk management services; and acquires, owns, and provides financing for nuclear fuel, fossil fuel, and emission allowances.
SCANA holds a Zacks #2 Rank, which is equivalent to a Buy rating for a period of one to three months. For the long term, we maintain a Neutral recommendation on the stock. The company faces competition from Northeast Utilities (NU).
