754737--3/1/2007--SOUTH_CAROLINA_ELECTRIC_&_GAS

related topics

{condition, economic, financial}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{gas, price, oil}

{personnel, key, retain}

{competitive, industry, competition}

The risk factors that follow relate in each case to SCANA Corporation and its subsidiaries (the Company), and where indicated the risk factors also relate to South Carolina Electric Gas Company and its consolidated affiliates (SCE G). Commodity price changes may affect the operating costs and competitive positions of the Company's and SCE G's energy businesses, thereby adversely impacting results of operations, cash flows and financial condition. The Company and SCE G do not fully hedge against price changes in commodities. This could result in increased costs, thereby resulting in lower margins and adversely affecting results of operations, cash flows and financial condition. Changing and complex laws and regulations to which the Company and SCE G are subject could adversely affect revenues or increase costs or curtail activities, thereby adversely impacting results of operations, cash flows and financial condition. The Company and SCE G are vulnerable to interest rate increases which would increase our borrowing costs, and may not have access to capital at favorable rates, if at all, both of which may adversely affect results of operations, cash flows and financial condition. SCANA may not be able to maintain its leverage ratio at a level considered appropriate by debt rating agencies. This could result in downgrades of SCANA's debt ratings, thereby increasing its borrowing costs and adversely affecting its results of operations, cash flows and financial condition. A downgrade in the credit rating of SCANA or any of SCANA s subsidiaries, including SCE G, could negatively affect their ability to access capital and to operate their businesses, thereby adversely affecting results of operations, cash flows and financial condition. Operating results may be adversely affected by abnormal weather. Potential competitive changes may adversely affect our gas and electricity businesses due to the loss of customers, reductions in revenues, or write-down of stranded assets. The Company and SCE G are subject to risks associated with changes in business climate which could increase and adversely affect revenues, results of operations, cash flows and financial condition and could limit access to capital. Problems with operations could cause us to curtail or limit our ability to serve customers or cause us to incur substantial costs, thereby adversely impacting revenues, results of operations, cash flows and financial condition. Covenants in certain financial instruments may limit SCANA's ability to pay dividends, thereby adversely impacting the valuation of our common stock and our access to capital. A significant portion of SCE G's generating capacity is derived from nuclear power, the use of which exposes us to regulatory, environmental and business risks. These risks could increase our costs or otherwise constrain our business, thereby adversely impacting our results of operations, cash flows and financial condition. Failure to retain and attract key personnel could adversely affect the Company s and SCE G s operations and financial performance. The Company and SCE G are subject to the risk that strategic decisions made by us either do not result in a return of or on invested capital or might negatively impact our competitive position, which can adversely impact our results of operations, cash flows, financial position, and access to capital

Full 10-K form ▸

754737--3/1/2007--SOUTH_CAROLINA_ELECTRIC_&_GAS_CO