Senate legislation to cut SCE&G rates puts deal with Dominion at risk, say Dominion leaders
The South Carolina Senate passed a bill Wednesday to cut the 18 percent SCANA Corp. is charging customers to pay for its failed nuclear reactor project down to 13 percent.
Dominion Energy, which is vying to buy SCANA and manage it out of its current difficulty, said mandating a rate cut could jeopardize its deal to buy SCANA. Dominion leaders also called the rate reduction passed by the Senate Wednesday; “temporary” and said customers prefer a more stable approach.
Here is Dominion’s statement on Senate Bill 954 to cut SCE&G’s rates:
“The response of SCE&G customers has been very clear. They overwhelmingly prefer the certainty of our proposal, the $1,000 payment to an average residential customer and a permanent rate cut of about 7 percent over the a temporary reduction that could be overturned by the courts or put taxpayers at risk. If the Senate bill becomes law, we stand by the previous statement of our chairman that this would be a material event that could eliminate all of these benefits,” said Dominion Chairman and CEO Tom Farrell, in a statement issued, March 28.
Farrell also said: “Dominion Energy has been open and transparent in its desire to merge with SCANA that will help resolve South Carolina’s energy and economic crisis stemming from the failed VC Summer project. The proposal offered by Dominion Energy provides immediate and long-term benefits to customers through cash payments, rate reductions and debt elimination. If the legislature intervenes and enacts policy into law, such as amended S. 954, this materially changes the grounds for Dominion Energy’s proposal.”