SCANA to be sold to Dominion Energy, SCE&G customers to get refunds, rate reduction
A Virginia-based power company is buying SCANA. The sale was announced Wednesday morning.
Dominion Energy of Richmond, said it will purchase SCANA. The deal involves an all-stock merger. There are also plans to immediately refund South Carolina Electric and Gas customers who footed the bill for the failed nuclear reactors at the V.C. Summer power plant in Fairfield County.
The $1.3 billion plan could mean up to $1,000 average refunded to SCE&G customers. The amount is based on how much electricity a household used in the 12 months prior to the merger closing, the company said. Dominion will also lower rates by 5 percent for SCE&G customers.
The company also plans to write off $1.7 billion in losses tied to the VC Summer project. The company said the loss will never be collected from customers.
Gov. Henry McMaster released a statement in response to Dominion Energy’s proposed plan to purchase SCANA:
“We are making progress. Under the proposed agreement between SCANA and Dominion Energy, SCE&G ratepayers will get most of the money back they paid for the nuclear reactors and will no longer face paying billions for this nuclear collapse. But this doesn’t resolve the issue. Over seven hundred thousand electric cooperative customers face the prospect of having their power bills sky rocket for decades to pay off Santee Cooper’s $4 billion in debt from this. The only way to resolve this travesty is to sell Santee Cooper. There is more work to be done, but today, we are headed in the right direction.”
“We believe this merger will provide significant benefits to SCE&G’s customers, SCANA’s shareholders and the communities SCANA serves,” Dominion Energy President and CEO Thomas F. Harrell said in a statement. “It would lock in significant and immediate savings for SCE&G customers – including what we believe is the largest utility customer cash refund in history – and guarantee a rapidly declining impact from the V.C. Summer project. There also are potential benefits to natural gas customers in South Carolina, North Carolina and Georgia and to their communities. And, this agreement protects employees and treats fairly SCANA shareholders, many of whom are working families and retirees in SCANA’s communities. The combined resources of our two companies make all this possible.”
“Dominion Energy is a strong, well-regarded company in the utility industry and its commitment to customers and communities aligns well with our values,” said Jimmy Addison, chief executive officer of SCANA. “Joining with Dominion Energy strengthens our company and provides resources that will enable us to once again focus on our core operations and best serve our customers.”