CAYCE, S.C., July 2, 2021 /PRNewswire/ -- Dominion Energy
South Carolina (DESC), a subsidiary of Dominion Energy, Inc. (NYSE:
D), together with the South Carolina Office of Regulatory Staff
(ORS), today submitted a comprehensive settlement in the pending
general electric rate case for approval by the Public Service
Commission of South Carolina
(Commission). The settlement agreement is supported by all
intervenors. DESC, the ORS and intervening parties have engaged
over the past six months to produce this agreement, at the
direction of the Commission, balancing stakeholders' interests and
supporting DESC's ability to continue providing safe, reliable,
affordable, and increasingly sustainable energy.
"This settlement shows that we're listening to our customers and
key stakeholders – an approach we've embraced since we began
operating in South Carolina," said
Rodney Blevins, president of
Dominion Energy South Carolina. "We're pleased to support the filed
settlement and move forward. We're focused on continuing to provide
exceptional value and reliability to our customers, meet 100% of
our merger commitments, and promote the future prosperity of
South Carolina."
Blevins continued, "We are sincerely grateful to all parties for
the spirit of cooperation, patience, and compromise that they
brought to these negotiations."
Key components of the settlement, which requires Commission
approval, provide significant customer benefits:
- Starting Sept. 1, typical
residential customer monthly bills would increase by a net 1.46% —
a level that ensures residential rates remain below the national
average — driven in part by an acceleration of return of excess
deferred income taxes.
- Initiation of a stakeholder process to propose an electricity
affordability program for low-income customers.
In addition, per the settlement agreement and contingent upon
Commission approval, DESC has agreed to:
- Commit up to $15 million in
shareholder funds to forgive past due balances of more than 60
days, as of May 31, 2021. All DESC
customers are eligible to participate. Customer credits would take
place within 90 days of a final Commission order.
- Allocate $15 million in
shareholder funds to energy efficiency upgrades and critical health
and safety repairs to customer homes, which will allow those homes
to participate in money-saving efficiency programs.
- Double the annual commitment to EnergyShare, the company's
year-round assistance program, to $1.5
million in each of the next two years. This includes
$500,000 for small business customers
to participate in the program, a new benefit.
The proposed settlement also supports:
- An authorized return on common equity of 9.5%.
- A regulatory capital structure of 51.62% equity and 48.38%
debt.
- A revenue increase of $61.6
million (representing a net revenue increase of $35.6 million after accounting for accelerated
return of excess deferred income taxes).
- A rate base of approximately $5.8
billion.
There is no change to Dominion Energy's existing financial
guidance. DESC has agreed to not file an electric general rate case
prior to July 1, 2023, absent
unforeseen extraordinary economic or financial conditions that may
include changes in corporate tax rates.
The filed settlement is available on the Commission's website
under the Docket number 2020-125-E. The parties have proposed using
the hearing currently scheduled for July 12,
2021, to provide the Commission opportunity to question the
parties with regard to the settlement. A final decision by the
Commission is expected later this summer.
About Dominion Energy
More than 7 million customers
in 16 states energize their homes and businesses with electricity
or natural gas from Dominion Energy (NYSE: D), headquartered
in Richmond, Va. The company is committed to sustainable, reliable,
affordable and safe energy and to achieving net zero carbon dioxide
and methane emissions from its power generation and gas
infrastructure operations by 2050. Please visit
DominionEnergy.com to learn more.
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SOURCE Dominion Energy