Frequently Asked Questions

Need more information? Find answers to your most important questions here.

Benefits

Question: How would the cash payment to SCE&G electric customers be calculated?

Each electric customer of SCE&G would get a cash payment based on the amount of electricity purchased for a 12-month period prior to the merger closing. The cash payment would be about $1,000 for an average residential electric customer. Cash payments would be paid by check or similar mechanism. They would be sent automatically within 90 days of the merger closing, and customers would not have to apply for them.

Question: Would all classes of SCE&G electric customers be eligible for the cash payment? Would it be calculated the same way?

Yes. (The allocation of upfront cash payments by class would be based on the 2016 ORS Revised Rates Allocation, not 2017).

Question: Would I have to apply for the cash payment?

No, it would be sent to you automatically within 90 days after closing the merger, pending regulatory approval.

Question: What if I was a SCANA Electric & Gas electric customer for part of that time but no longer am a customer? Would I still get a cash payment?

Details of the plan will be provided later.

Question: Why wouldn't PSNC Energy and SCANA Energy gas customers receive a cash payment?

The cash payment is to help cover costs paid for the withdrawn construction of two nuclear units. Only electric customers have paid toward that project, not natural gas customers.

Question: Didn’t SCANA already propose a 3½ percent rate reduction and wouldn’t the benefit of the lower federal corporate income tax be passed along anyway? How is this tied to the proposed merger?

The overall customer benefits being proposed would not have been possible if backed by SCANA alone. They are made possible only by the financial strength of the combined companies.

Dominion Energy is proactively offering that full benefit of the lower federal corporate income tax on a more expedited basis via this merger approval process.

SCANA Customers 

Question: How would this merger impact customers in the short and long term?

This proposed merger includes very significant customer benefits. All electric customers would share in $1.3 billion in cash payments to offset costs related to the withdrawn construction of two new nuclear units that will not be completed because they grew too costly. For an average residential electric customer, the amount would be $1,000.

All customers also would see a rate reduction of at least 5 percent, driven from refunds of previous customer collections, as well as pass-through of corporate tax reform benefits, equal to more than $7 a month for a typical residential customer.

Dominion Energy would assume nearly $1.7 billion of existing withdrawn nuclear construction assets and would never collect them from customers. The proposed merger would eliminate this cost from customer bills in 20 years, far sooner than the 50-60 that had been planned. And, Dominion Energy would never collect from customers the cost of purchasing a gas-fired power plant that would help replace power that was expected from the nuclear units. 

Question: Why should customers have to pay for any of the VC Summer 2 and 3 units? They are too expensive and will never generate electricity.

We believe this proposal recognizes that all electric stakeholders have been impacted by the Summer units and should be addressed.

The merger agreement includes for customer cash payments of $1.3 billion ($1,000 for an average residential electric customer), which we believe is the largest cash payment to utility customers ever. There also is a rate reduction of at least 5 percent, more than $1.7 billion in other nuclear-related costs that will never be charged to customers, and the $180 million purchase of natural-gas fired power station at no cost to customers.

Shareholders also have been affected by the VC Summer project. Even including the benefit of today’s merger agreement, they will have lost more than $3 billion in total investment value over the last 18 months. SCANA’s shareholders include tens of thousands of South Carolina residents, many of them being retirees and working families. The merger proposal would allow them to recover some of their loss but they still would bear a substantial part of the burden.

And, the agreement also would end the uncertainty about the future impact of the new nuclear units.. It removes uncertainty that can weigh down economic development, make it harder for SCE&G to meet the growing and changing needs of customer, and leave in question the future of a strong community partner and good employer. The decision to build the VC Summer nuclear units was made in accordance with state law.

Employees & Local Operations

Question: What would this mean to local employment?

We would treat SCANA employees fairly and with respect. This includes ensuring that they have pay protection either through employment or other benefits at least until the beginning of 2020.

Question: Would the corporate campus in Cayce be maintained?

The headquarters of SCE&G would remain in South Carolina. In time, we plan to evolve the organization to fit with the structure in place for the rest of Dominion Energy, if regulators approve.

Question: Would you rename the local operations like you have done with other Dominion Energy companies?

We would plan to bring them under the Dominion Energy name at some point after the merger closing.

Customer Rates & Service

Question: What would this mean to rates for SCE&G gas customers?

They should expect to see the same commitment to safety and high levels of customer service. The proposed merger will have no impact on their rates.

Question: Would this mean any change in service?

Dominion Energy and SCANA would work to make the transition as seamless as possible for customers. The same people would continue handling service, billing and other functions.

Question: Why not cut rates more?

This agreement balances the interests of all stakeholders: customers, communities, employees and shareholders. All are important.

Other Projects

Question: Has Dominion Energy South Carolina’s Charleston Pipeline Project been completed?

Dominion Energy Carolina Gas Transmission is constructing this new infrastructure to bring additional natural gas to South Carolina. The Charleston Project is expected to be in-service in the first quarter of 2018. The project is 100 percent contracted to in-state customers, including SCE&G, Flakeboard and Wyman Gordon.

Question: Are you expanding the Atlantic Coast Pipeline into South Carolina?

Dominion Energy’s focus is on completing the project as proposed. The nature and timing of any future project would depend on market needs that have not yet been specified. No decision has been made about a potential expansion beyond what has been filed with the Federal Energy Regulatory Commission. Any expansion would have to go through a full regulatory review process.

That said, the ACP could be expanded in the future, while continuing to meet the needs already identified in Virginia and North Carolina. We have been clear and consistent to state this from the beginning.

Question: How would the merger impact the natural gas business, which is not being talked about as much?

We would continue to focus on safe and reliable service, just as SCANA is doing now. We expect to promote sharing of best practices, just as we are doing with the merger of what was Questar a couple of years ago.