During a South Carolina Public Service (PSC) hearing Thursday on the possible sale of SCANA, an official with potentional buyer Dominion Energy said that SCANA customers would not pay for the merger.
Dominion Senior Vice President of Acquisitions & Mergers James Chapman told commissioners the cost of the merger would be spread out among shareholders.
“Merger-related costs would be distributed on the account on basically shares holders and they would not be recovered from any one party,” he said.
Chapman said there is a formula for the merger’s estimated cost. “It would be incorporated into the evaluation of the overall economics of the merger but would not be passed onto any customers.”
The PSC hearing will determine if the regulators approve Dominion’s takeover bid. The commission will also set future SCE&G rates and decide how much — if anything — the utility’s customers should pay off nearly $5 billion in construction debt from the abandoned VC Summer nuclear expansion project.
Dominion has said it will walk away from the proposed mergers if state regulators require they eat the project’s debt entirely without passing on some of the cost to customers.
SCE&G and partner, state-owned Santee Cooper decided in July 2017 to abandon the project due to costs.