The state’s largest utility is seeking its fourth rate increase in a year — this time a 14 percent rise in natural gas rates for residential customers.

SCE&G on Tuesday asked state regulators for permission to raise its base rate for natural gas by $28 million a year. If approved by the S.C. Public Service Commission, the average residential customer would pay $59.50 a month starting in November, or about $7.50 more.

SCE&G president Neville O. Lorick sounded almost apologetic when explaining the company’s first request for higher gas base rates since 1989.

“There’s never a good time for a rate increase,” he said. “We’ve managed our costs well for a long time, but we cannot wait any longer and have to ask for a hike.”

A lawyer who represents some of the state’s largest companies said Lorick “knows he has to fully make his case” to win full approval. Scott Elliott said the South Carolina Energy Users Committee — whose members include BMW, Honda, Bowater and Milliken & Co. — likely will challenge the increase.

“It’s unfortunate that these rates keep going up and up and up,” said Elliott, who represents big companies facing an 8.13 percent rate increase.

“It’s a double whammy. Not only will this hit residential consumers in a big way, but many of our industries have struggled in the past decade to stay afloat. Higher prices can lead to cutbacks and layoffs,” he said.

SCE&G’s request centers around the “base” rate that reflects what the company pays for infrastructure, maintenance and taxes — and what it receives in profits. The base rate accounts for about a quarter of a typical utility bill, said C. Dukes Scott, head of the S.C. Office of Regulatory Staff. The new state agency will study the request and make its recommendation to the PSC.

SCE&G raised its base electricity rate in January. For months, it has been telling stock analysts and others that it would seek a base rate increase for natural gas this year.

Tuesday’s rate request is unrelated to two recent rate increases related to fuel costs. The company cannot earn higher profits on fuel-cost adjustments, which occur each year to reflect changes in prices for natural gas and coal.

The timing of the rate increase is important because:

• The Public Service Commission will rule by November, when the home heating season begins and natural gas usage begins to increase.

• It will be the benchmark for future rate increases under a law signed by Gov. Mark Sanford in February.

The Natural Gas Stabilization Act makes it easier for utilities to raise (or lower) base rates slightly each year with less red tape.

“The new law almost compels them to go for this rate increase to get them up to speed,” said Frank Knapp, head of the S.C. Small Business Chamber of Commerce and a previous critic of SCE&G rate increases. “After this, they can take advantage of what will be nearly automatic increases.”

The S.C. Office of Regulatory Staff — the new, independent agency set up to ease pro-utility bias at the PSC — will have at least a dozen experts scrutinize the request, Scott said.

The new law will help everyone, Scott said.

“You shouldn’t have a company wait 16 years and then come in and seek what I think seems like a high increase,” he said. “From here on out, we’ll be monitoring them year-round.”

Stock in SCANA Corp., parent of SCE&G, closed at $38.01 Tuesday, down 45 cents.

Reach Roberts at (803) 771-8595 or mcroberts@thestate.com.