Dominion Energy South Carolina Submits General Electric Rate Case Settlement for Approval
Cayce, South Carolina – On July 12, 2024, Dominion Energy South Carolina, Inc. (DESC), a subsidiary of Dominion Energy, Inc., submitted a comprehensive settlement agreement to the Public Service Commission (PSC) of South Carolina. This is in line with DESC’s long-standing general electric rate case. The agreement, which has been reached by all parties signing on or not opposing, comprises a request for a rate increase to base rates; the first in nearly four years.
Since 2019, DESC has added around 40,000 new electric customers to its network while simultaneously investing $1.6 billion to its electric system. This move is aimed at providing reliable, affordable, and clean energy to power its customers each day. The settlement will be presented to the PSC at a hearing scheduled to commence on July 15. After conducting a detailed review, DESC awaits the PSC to make the ultimate decision and adjust rates as required.
An Overview of the Proposed Settlement
The proposed settlement, which awaits approval from the PSC, provides significant benefits to customers. One key element of the agreement is that the bill of a regular residential customer using 1,000 kilowatt-hours of electricity monthly would amount to roughly $148 beginning Sept. 1 This measure is predicted to maintain residential rates below the national average. When compared with rates at the original request time in March and offset by fuel cost reduction and other factors, the settlement’s rate request would represent a net 1.0% increase for a residential customer’s electric rate.
Further, the agreement proposes a one-time bill credit of $7.5 million funded by shareholders. This credit will apply this year for residential and small general service customers. The Neighborhood Energy Efficiency Program budget would witness a $3 million increase in shareholder funds starting in 2025 and lasting for five years.
Support for Key Settlement Propositions
Notable features of the proposed settlement include an authorized return on common equity of 9.94% and a regulatory capital structure of 52.51% equity and 47.49% debt. Moreover, a revenue increase of $219 million is targeted, which is approximately 28% less than the original request of $303 million in March. Importantly, there is no change proposed to Dominion Energy’s existing financial guidance.
Throughout this period, several intervening parties have been engaging with DESC to arrive at the settlement agreement. These comprise the South Carolina Office of Regulatory Staff, the South Carolina Department of Consumer Affairs, South Carolina Energy Users Committee, and several others.
About Dominion Energy
Dominion Energy, headquartered in Richmond, Virginia, powers the homes and businesses of more than 4.5 million customers in 13 states across the USA. The firm deals with both electricity and natural gas provision. Committed to providing reliable, affordable, and increasingly clean energy each day, the company’s larger vision is to achieve Net Zero emissions by 2050. Additional details about the company’s services and commitments can be found on the Dominion Energy website.
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