COLUMBIA, S.C., April 17, 2018 /PRNewswire/ -- South
Carolina could see more than $18.7
billion in increased economic output from the proposed
merger of Dominion Energy, Inc. (NYSE:D), with SCE&G and its
corporate parent, SCANA Corporation (NYSE: SCG), according to a new
study done by one of the state's leading economists.
The benefits come from Dominion Energy's plan to provide direct
cash payments and lower electric rates to SCE&G electric
customers as well as the additional benefits created as the cash
payments and customer savings work their way into the South Carolina economy.
The study was performed by Dr. Joseph C. "Joey" Von Nessen, a research economist in the Division
of Research at the Darla Moore School of Business at the
University of South Carolina.
"The benefits of the Dominion Energy proposal go well beyond the
immediate value of the $1.3 billion
in cash payments to SCE&G electric customers," said
Thomas F. Farrell, II, Dominion
Energy chairman, president and chief executive officer. "The
payments and the extra money in customers' pockets from the lower
rates will flow into the local economy in the form of billions of
dollars in increased retail sales, new jobs, added wages and
business investment."
In addition to the cash payments – equal to about $1,000 for the average SCE&G electric
customer – Dominion Energy proposes to reduce electric rates by
about 7 percent after the merger closing. It also would absorb
$1.7 billion in costs for the
abandoned V.C. Summer new nuclear project and purchase a natural
gas-fired power station at no cost to customers.
Farrell noted that some businesses would receive cash payments
into the millions of dollars, providing funds for new capital
investments. Non-profit organizations, government agencies and
other electric customers also would benefit from the cash payments
and lower rates.
Labor income alone is expected to increase by approximately
$4.6 billion for South Carolinians.
This would be the result of customer savings being spent in the
local economy, boosting overall demand, and creating "additional
employment opportunities associated with new contract labor, an
increase in the number of hours for existing workers, and both
temporary and permanent hires," the study found.
Dominion Energy previously identified more than $12 billion in customer benefits resulting from
the cash payments, lower rates and reduced time customers would pay
toward the abandoned nuclear project. The study takes into account
that customers would then put much of the new money into the
economy.
"This $18.7 billion total economic
output estimate represents an economic multiplier or ripple effect
of approximately 1.49," Dr. Von
Nessen said. "In other words, for every $100 that is provided to Dominion/SCANA customers
in savings, it is estimated that a total of $149 in new economic activity will be generated
across South Carolina."
Five South Carolina counties
could see economic benefits totaling more than $1 billion each. Charleston would see the greatest benefit,
$4.9 billion. It is followed by
Richland, $4.2 billion; Aiken, nearly $2
billion; Dorchester,
$1.2 billion; and Beaufort, $1
billion. In all, the benefits would be seen in 24 counties
in the state where SCE&G provides electric service. Benefits
are based on the amount of electric sales in each county.
Economic Impact by
County
|
County
|
Added Economic
Output
|
|
County
|
Added Economic
Output
|
Abbeville
|
$16,022,372
|
|
Fairfield
|
$105,450,280
|
Aiken
|
$1,966,540,844
|
|
Greenwood
|
$1,307,387
|
Allendale
|
$147,402,524
|
|
Hampton
|
$166,372,956
|
Bamberg
|
$63,546,375
|
|
Jasper
|
$152,810,359
|
Barnwell
|
$177,095,282
|
|
Kershaw
|
$5,626,104
|
Beaufort
|
$1,015,849,531
|
|
Lexington
|
$2,553,974,972
|
Berkeley
|
$699,123,634
|
|
McCormick
|
$29,512,198
|
Calhoun
|
$305,319,564
|
|
Newberry
|
$58,677,217
|
Charleston
|
$4,909,216,395
|
|
Orangeburg
|
$240,550,253
|
Colleton
|
$258,009,612
|
|
Richland
|
$4,226,925,205
|
Dorchester
|
$1,226,205,050
|
|
Saluda
|
$147,332,205
|
Edgefield
|
$214,637,699
|
|
Union
|
$21,265,245
|
|
|
|
|
|
|
Dominion Energy and SCANA are in the process of obtaining
regulatory approvals for the merger. Approval has been received
from the Georgia Public Service Commission and the Federal Trade
Commission granted early termination of the 30-day waiting period
under the federal Hart-Scott-Rodino Antitrust Improvements Act. The
merger is also contingent upon approval of SCANA's shareholders;
review and approval from the public service commissions of
South Carolina and North Carolina; and authorization of the
Nuclear Regulatory Commission and Federal Energy Regulatory
Commission.
About Dominion Energy
Dominion Energy is one of the
nation's largest producers and transporters of energy, with a
portfolio of approximately 26,000 megawatts of electric generation,
14,800 miles of natural gas transmission, gathering and storage
pipeline, and 6,600 miles of electric transmission lines. Dominion
Energy operates one of the nation's largest natural gas storage
systems with approximately 1 trillion cubic feet of storage
capacity and serves nearly 6 million utility and retail energy
customers. For more information about Dominion Energy, visit the
company's website at www.dominionenergy.com.
About SCANA
SCANA Corporation, headquartered in
Cayce, S.C., is an energy-based
holding company principally engaged, through subsidiaries, in
electric and natural gas utility operations and other
energy-related businesses. Information about SCANA and its
businesses is available on the company's website at
www.scana.com.
Forward-looking statements
This release contains
statements that constitute forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. The statements relate to, among other things, expectations,
estimates and projections. We have used the words "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may," "plan,"
"outlook," "predict," "project," "should," "strategy," "target,"
"will," "would," "potential" and similar terms and phrases to
identify forward-looking statements in this release. Factors that
could cause actual results to differ include, but are not limited
to: the expected timing and likelihood of completion of the
proposed acquisition of SCANA, including the ability to obtain the
requisite approval of SCANA's shareholders; the risk that Dominion
Energy or SCANA may be unable to obtain necessary regulatory
approvals for the transaction or required regulatory approvals may
delay the transaction or cause the parties to abandon the
transaction; the risk that conditions to the closing of the
transaction may not be satisfied; or the risk that an unsolicited
offer for the assets or capital stock of SCANA may interfere with
the transaction. Other risk factors for Dominion Energy's and
SCANA's businesses are detailed from time to time in Dominion
Energy's and SCANA's quarterly reports on Form 10-Q or most recent
annual report on Form 10-K filed with the Securities and Exchange
Commission (SEC).
Important additional information
In connection
with the proposed transaction between Dominion Energy, Inc. and
SCANA Corporation, Dominion Energy has filed with the SEC a
registration statement on Form S-4 that includes a combined
preliminary proxy statement of SCANA and preliminary prospectus of
Dominion Energy, as well as other relevant documents concerning the
proposed transaction. The registration statement has not yet become
effective and the proxy statement/prospectus included therein are
in preliminary form. The proposed transaction involving Dominion
Energy and SCANA will be submitted to SCANA's shareholders for
their consideration. This communication shall not constitute an
offer to sell or the solicitation of an offer to buy any securities
nor shall there be any sale of securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction. Shareholders of SCANA are urged to read the
registration statement and the preliminary proxy
statement/prospectus regarding the transaction and any other
relevant documents filed with the SEC, as well as any amendments or
supplements to those documents, because they will contain important
information.
Shareholders are able to obtain a free copy of the
preliminary proxy statement/prospectus, as well as other filings
containing information about Dominion Energy and SCANA, without
charge, at the SEC's website (http://www.sec.gov).
Copies of the preliminary proxy statement/prospectus and the
filings with the SEC that will be incorporated by reference in the
preliminary proxy statement/prospectus can also be obtained,
without charge, by directing a request to Dominion Energy, Inc.,
120 Tredegar Street, Richmond,
Virginia 23219, Attention: Corporate Secretary,
Corporate.Secretary@dominionenergy.com or to SCANA
Corporation, 220 Operation Way, Mail Code 0133, Cayce, South Carolina 29033, Attention: Office
of the Corporate Secretary,
BoardInformation@scana.com.
Participants in the solicitation
Dominion
Energy, SCANA and certain of their respective directors, executive
officers and employees may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction.
Information regarding Dominion Energy's directors and executive
officers is available in its definitive proxy statement, which was
filed with the SEC on March 20, 2017,
Dominion Energy's Annual Report on Form 10-K, which was filed with
the SEC on February 27, 2018, and
certain of its Current Reports on Form 8-K. Information regarding
SCANA's directors and executive officers is available in its
definitive proxy statement, which was filed with the SEC on
March 24, 2017, SCANA's Annual Report
on Form 10-K, which was filed with the SEC on February 23, 2018, and certain of its Current
Reports on Form 8-K. Other information regarding the participants
in the proxy solicitation and a description of their direct and
indirect interests, by security holdings or otherwise, will be
contained in the proxy statement/prospectus and other relevant
materials filed with the SEC. Free copies of these documents may be
obtained as described in the preceding paragraph
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SOURCE Dominion Energy