United States
Securities and Exchange Commission
Washington, D.C. 20549
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In the matter of |
|
SCANA Corporation | Certificate of Notification
| Pursuant to Rule 24 Under the Public
File No. 70-9521 | Utility Holding Company Act of 1935
|
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SCANA Corporation ("SCANA") submits this report in connection with the
order of the Securities and Exchange Commission dated February 9, 2000 (Holding
Co. Act Release No. 27133) ("Order") to inform the Commission of its progress
with the divestiture of certain SCANA nonutility interests.
Under the Order, SCANA acquired Public Service Company of North Carolina
and registered as a public utility holding company under the Public Utility
Holding Company Act of 1935. The Order states, with respect to the nonutility
interests of SCANA, that:
The Commission has examined the various nonutility interests that
SCANA seeks to acquire and has concluded that, except for the Bus
System and SCANA's interests in Palmetto Lyme, LLC ("Palmetto"), the
statutory requirements for ownership are satisfied. The Commission
does not find that the Bus Service is consistent with the standards of
section 11(b)(1). However, the Commission notes that SCANA has
represented that it will dispose of its interests in the Bus Service
within two years. SCANA requests that the Commission reserve
jurisdiction over the retention by SCANA of its interests in Palmetto,
pending completion of the record.
The Bus System
Since the issuance of the Order, SCANA has been in negotiations with the
City of Columbia, South Carolina ("City") to sell the Bus System to the City.
Although several rounds of negotiations have occurred, the parties have not
reached an agreement. It is unclear whether an agreement will be reached to sell
the Bus System by February 9, 2002, the deadline for divestiture self-imposed by
SCANA and memorialized in the Order.
There are several reasons for the slow progress to date. Among other
things, litigation is pending in the South Carolina courts over the Bus System
fares and certain route and scheduling changes. Its resolution could affect the
negotiations for the sale to the extent that the court's ruling affects the
entity value of the Bus System./1/ SCANA has also been working to interest and
qualify other potential bidders for the Bus System such as regional transit
systems; a process that necessarily takes time.
Although SCANA remains committed to divesting the Bus System, its ability
to complete a divestiture consistent with the interest of its shareholders and
utility customers within two years of the date of the Order will depend in part
on its ability to locate a bidder with which SCANA can come to reasonable terms.
If this task cannot be accomplished by the deadline, SCANA intends to file a
post-effective amendment requesting that the Commission grant it additional time
to complete the sale.
Palmetto
SCANA owns a 49% membership interest in Palmetto, which is engaged in the
production and sale of Lyme. SCANA is currently negotiating with Chemical Lyme
Company, a Nevada corporation, to sell its Palmetto interest. If an agreement is
reached, the sale would be expected to close in the first quarter of 2001.
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/1/ South Carolina Electric & Gas Co. v. South Carolina Public Service
Commission, Court of Common Pleas, Civil Action No. 96-CP-40-4379.
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SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, SCANA has duly caused this Certificate to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: January 9, 2001 SCANA Corporation
By: /s/ H. Thomas Arthur
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Name: H. Thomas Arthur
Title: Senior Vice President and
General Counsel
