SCANA asks South Carolina for $85 mln tax-free debt

By Jim Brumm

WILMINGTON, North Carolina, Aug 26 (Reuters) -Two SCANA Corp (SCG.N) subsidiaries are asking South Carolina state regulators for permission to borrow $85 million in tax-free debt.

The debt would be via industrial revenue bonds issued by the South Carolina Jobs-Economic Development Authority and would have maximum maturities of 40 years, according to filings by SCANA units made Friday with the Public Service Commission of South Carolina.

SCANA's South Carolina Generating Co is seeking permission to issue $40 million of debt on or before Dec. 23 to pay part of the cost of scrubbers being installed at the William Electric Generating Station near Charleston, South Carolina.

Scrubbers scheduled to begin operation at the 650-megawatt coal-fired plant next year are expected to cost more than $170 million, according to SCANA's website.

Another $9 million is being spent on a coal offloading and conveyance facility at the plant, which began commercial operation in 1973. The facility would allow more imports of low-sulfur coal.

SCANA's South Carolina Electric & Gas utility unit asked for permission to borrow $35 million to help pay for scrubbers at its largest power plant, the 700-megawatt Wateree Electric Generating Station in Eastover, South Carolina, southeast of the state capitol of Columbia.

The scrubbers are expected to cost $200 million by the time they go into operation next year. Wateree began commercial operation in 1970.

The state authority has yet to fix a date to consider the requests. (Editing by Michael Connor in Miami and Dan Grebler in New York)