Business Briefs

Banks to pay more into FDIC reserves

WASHINGTON — The Federal Deposit Insurance Corp. on Tuesday approved a proposed increase in premiums that will more than double the average paid by U.S. banks and thrifts next year to replenish the deposit insurance fund.

"The U.S. banking industry has the willingness and capacity to provide the necessary backing to the insurance fund," said FDIC Chairwoman Sheila Bair, who proposed the increase.

The proposal will raise the average insurance premiums paid by banks and thrifts to 13.5 cents for every $100 of their deposits from the current 6.3 cents. For institutions deemed to be in strong financial condition, 91 percent of roughly 8,500 insured banks and thrifts, the average rate would be 11.6 cents.

Rising costs pinch earnings at Alcoa

PITTSBURGH — Aluminum maker Alcoa Inc. said Tuesday its third-quarter earnings plunged 52 percent to $268 million, or 33 cents a share, because of sharply lower prices, weaker demand and higher costs. Revenue edged down 2 percent to $7.23 billion compared to the third quarter of 2007.

Alcoa has a large smelter near Goose Creek.

Consumers in August eased borrowing

WASHINGTON — Consumer borrowing fell in August for the first time since January 1998 as households cut back sharply on their use of credit.

The Federal Reserve said Tuesday that consumer borrowing fell at an annual rate of 3.7 percent in August before the financial crisis became acute in September. The weakness reflected a big decline of 5.4 percent at an annual rate in the category that includes auto loans and a 0.8 percent rate of decline in the category that includes credit cards.

Agency looks at lower rate hike by SCE&G

COLUMBIA — The state agency that reviews utility cases says South Carolina Electric & Gas Co.'s request for a midyear rate increase should be cut in half.

SCE&G has requested a 6 percent increase in November and another 6 percent increase in January to cover higher fuel costs. The $13.06 increase to monthly bills for the typical customers using 1,000 kilowatt hours would make the monthly bill $120.73 by January.

The Office of Regulatory Staff said an increase of about $6.50 a month should be enough. SCE&G said it will evaluate the proposal. A hearing on the increase is set for Oct. 20..

Wood-fired power generator planned

A Charlotte company said Tuesday that it will build a $170 million wood-fueled electrical generator that will sell its power to state-owned utility Santee Cooper.

Rollcast Energy Inc. is proposing to open its Loblolly Green Power LLC biomass project by late 2011 in Newberry County. The plant will run on logging residues and urban wood debris.

Santee Cooper said it would buy the 50 megawatts of power the plant will produce as part of its renewable energy program. That's enough to power about 25,000 homes.