A Dominion Energy official testified last week at a South Carolina Public Service Commission hearing that t is going to take over Lexington Count based SCANA Energy thing has to be in place.
Prabir Purohit told commissioners it has to work for Dominion. “Our responsibility to our shareholders, our fiduciary responsibility, we need to make sure the merger economics work here.”
“So if that doesn’t work we can’t achieve this plan,” said Purohit.
The commission took testimony from witnesses over a three week period on the sale.
Purohit said that the latest proposal is a levelized plan. “It takes a typical declining rate-based model where recoveries and rates are higher in the earlier years and lower in the later years and converts it to a more equalized recovery over time. Much like a home mortgage.”
At the heart of the deal is the debit from the failed nuclear expansion project at the VC Summer plant in Fairfield County.
SCANA and partner state-owned Santee Cooper decided that completion of the project was beyond their financial ability and stopped construction on the two new reactors in late July 2017.
Dominion is offering $14.6 billion to buy Cayce-based SCANA.
The commission will decide next month if the sale of SCE&G’s parent company can happen.