Dominion Energy South Carolina, South Carolina Office of Regulatory Staff, Intervenors File Comprehensive Settlement of General Electric Rate Case for Approval by Public Service Commission of South Carolina
Rhea-AI Summary
Dominion Energy South Carolina (DESC) has submitted a comprehensive settlement agreement for its pending general electric rate case to the Public Service Commission of South Carolina (PSC). If approved, the settlement would result in a net 1% increase in residential electric rates compared to rates at the time of the original request in March. The agreement includes a $7.5 million one-time bill credit and a $3 million increase in energy efficiency funds over five years. DESC has added about 40,000 new customers since 2019 and invested $1.6 billion in its electric system. The settlement supports an authorized return on equity of 9.94%, a regulatory capital structure of 52.51% equity and 47.49% debt, and a revenue increase of $219 million. DESC and intervening parties, including several regulatory and consumer groups, will present the settlement to the PSC at a hearing on July 15. The final decision is expected after a thorough review.
Positive
- Net 1% increase in residential electric rates compared to original request.
- One-time $7.5 million bill credit for residential and small service customers.
- $3 million increase in energy efficiency funds over five years.
- Addition of approximately 40,000 new electric customers since 2019.
- Investment of $1.6 billion in electric system for reliability and clean energy.
- Authorized return on equity of 9.94% and regulatory capital structure of 52.51% equity and 47.49% debt.
- Revenue increase of $219 million, 28% less than the original $303 million request.
Negative
- None.
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- Compared to rates at time of original request in March and offset by fuel cost reduction and other factors, settlement's rate request would represent net
1% increase for residential customer's electric rate - Significant proposed customer benefits include bill credit, additional energy efficiency funds
- No change to Dominion Energy's existing financial guidance
DESC and intervening parties will present the settlement to the PSC at a hearing scheduled to begin July 15. After a thorough review, DESC expects the PSC to make the final decision and adjust rates as appropriate. If approved by the PSC, the proposed settlement would allow DESC to recover some of the rising costs of investments needed to keep its plants running, systems reliable and grid secure while also listening to concerns of customers and other stakeholders.
Key components of the proposed settlement, which requires PSC approval, provide significant customer benefits:
- Starting Sept. 1, the bill of a typical residential customer using 1,000 kilowatt-hours of electricity per month would be approximately
$148 1.0% increase for a residential customer's electric rate. - A one-time bill credit of
$7.5 million - The Neighborhood Energy Efficiency Program budget would increase by
$3 million
The proposed settlement also supports:
- An authorized return on common equity of
9.94% . - A regulatory capital structure of
52.51% equity and47.49% debt. - A revenue increase of
$219 million 28% less than the original request of$303 million
There is no change to Dominion Energy's existing financial guidance.
Intervening parties have engaged with DESC for several months to reach the settlement agreement. They include the
About Dominion Energy
More than 4.5 million customers in 13 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 providing reliable, affordable, and increasingly clean energy every day and to achieving Net Zero emissions by 2050. Please visit DominionEnergy.com to learn more.
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SOURCE Dominion Energy