SCANA merger could result in $1000 refund checks

SCANA merger could result in $1000 refund checks
January 03 16:36 2018 Print This Article

Virginia-based Dominion Energy has a agreed to a merger with utility conglomerate SCANA today. Under the terms of the agreement, Dominion would assume all of SCANA’s debt, SCANA shareholders would receive a 30.6% premium over the 30-day average stock value, and SCE&G rate-payers would receive an average refund of $1000 within 90 days of the deal being finalized. The agreement must be approved by SCANA shareholders and various federal regulatory agencies.

SCANA incurred about $5 Billion in debt from a failed nuclear reactor project in the Midlands which was terminated in the summer of 2017. SCANA stock values declined from $73.25 to $38.87 during the past year. The terms of the merger would boost the value of SCANA shares to approximately $55.35 per share. Under the South Carolina Base Load Review Act (BLRA) of 2007, SCANA was allowed to bill customers in advance for the construction of two nuclear reactors. Even though the project was terminated, SCANA planned to bill customers for the failed projects for another 60 years. Dominion Energy has pledged to reduce rates by 5% and only billing for the construction costs for 20 years.  State Legislators were told in 2007 that failure to pass the BLRA would result in rolling blackouts for electricity customers.  https://lowcountrysource.com/feature-this/house-senate-committees-take-aim-sceg/

Dominion Energy has pledged to protect the jobs of all SCANA employees through 2020 and to increase charitable contributions in SCANA communities by $1 Million a year for at least five years. The merger would give Dominion a presence in 18 states, serving 6.5 million electricity and natural gas customers. State-owned utility Santee-Cooper, which partnered with SCANA on the failed nuclear reactor project and incurred $4 Billion in new debt, is considering buy-out offers from several utility companies.