North Carolina Utilities Commission approves merger

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The North Carolina Utilities Commission has approved the proposed merger of SCANA Corp. and Dominion Energy, leaving the potential $14.6 billion deal awaiting a ruling from the S.C. Public Service Commission.

The deal has previously received approval from the Georgia Public Service Commission, the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission and SCANA’s shareholders. It also was granted early termination of a 30-day waiting period under antitrust law by the Federal Trade Commission.

The PSC has been holding evidentiary hearings to determine a permanent rate for customers of S.C. Electric & Gas, SCANA’s primary subsidiary, since Nov. 1. The outcome of that process will also include a decision, expected by Dec. 21, on the proposed merger.

Dominion, based in Richmond, Va., has floated two merger plans. The first, which has received the six approvals, would lower SCE&G rates by 7% and provide an average upfront refund of around $1,000 per customer, Dominion has said. The second would take the upfront refund off the table but provide permanent rate relief of 14% to SCE&G’s 730,000 ratepayers.

SCE&G customers’ bills have ballooned by 18% as SCANA sought and received nine rate increases related to the decade-long construction of twin nuclear reactors at the V.C. Summer Nuclear Power Station in Fairfield County. The project, co-owned by state utility Santee Cooper, was abandoned in July 2017 in the face of rising costs and mounting delays and three months after contractor Westinghouse declared bankruptcy. Allegations of project mismanagement have sparked public outcry and legal action and have led to the PSC hearings.