SCANA Earnings Call Insights: Cost Implications of NRC and Georgia Retail Outlook
Cost Implications of NRC
Travis Miller – Morningstar: Wondering if you could walk through some of the cost implications that might be related to the NRC finding the meeting, anything related to that potentially?
Stephen A. Byrne – SVP, SCANA; COO and President, Generation and Transmission South Carolina Electric & Gas Company: Travis, this is Steve Byrne. At this point in time we are still hopeful that we will be able to make our case that this is a lower safety significant item than the NRC perhaps preliminarily thought it was, and if that’s the case we won’t see any changes to the cost of the project based on this. Really when you look at the significant termination process that the NRC goes through in categorizing these findings, even if it would be categorized as a wise finding what that would mean for us is increased inspection. Of course I don’t know at this point, how much increased inspection that really becomes a burden on our staff, the cost of which would be difficult to quantify. But there is no direct co-relation to say that if you get a finding, it’s going to cost you x, because we would not anticipate a find from this, so from a cost point of view, we don’t think it’s going to be material.
Travis Miller – Morningstar: Now related to capital investment, potentially CapEx, also you wouldn’t expect to see much impact on that side?
Stephen A. Byrne – SVP, SCANA; COO and President, Generation and Transmission South Carolina Electric & Gas Company: That’s correct we would not.
Georgia Retail Outlook
Mose – UBS: Hi, this is (Mose) for Julien. Just a quick question on retail any chance if you guys could give us an update on your outlook and expectations for retail in (Georgia) prospectively?
Jimmy Addison – SVP and CFO: It really hasn’t changed since what we’ve guided at the yearend call in February. So we expect that business on a normal weather basis to be about $0.18 to $0.20 a share in earnings for 2013. And the first quarter of 2013 was normal, it’s just that first quarter of ’12 as compared to was so abnormal almost 50% below in heating degree day. So we are right on track so far.
Mose – UBS: Just going back to nuclear for a second. If you just kind of help us understand how the safety violation kind of differs from Southern’s rebar issue?
Jimmy Addison – SVP and CFO: It’s the same issue the rebar issue that they had at Southern initially was same issue that we had and in fact it came up at our plant. So when we talk about the rebar issue for the basemat, this is the same issue and again it was correct and prior to us pouring the basemat and the same thing would be the case for Southern corrected prior to the end point at basemat. So there is no impact to the basemat from this violation.
A Closer Look: SCANA Earnings Cheat Sheet>>