Economy

Friends of the Earth/Sierra Club Statement on Dominion Takeover of SCANA

Friends of the Earth/Sierra Club Statement on Dominion Takeover of SCANAā€¯

Virginia's Dominion Energy said Wednesday it will buy embattled SC electric utility SCANA for about $7.9 billion in stock. Payments will come within 90 days after the merger closes, and will vary based on how much consumers spent on electricity. It also would write off $1.7 billion of the plants' value, meaning it would stop collecting money for the plant from ratepayers after about 20 years, and spend $180 million to replace some of the power the nuclear plant would have generated.

The proposed 5% reduction in residential rates for SCE&G customers will consist of refunds of amounts previously collected from ratepayers as well as a pass-through of lower corporate taxes the utility will pay as a result of the federal tax bill signed by the president on December 22.

The deal will also result in an estimated additional 5 percent rate reduction from current levels, equal to more than $7 a month for a typical SCE&G residential customer. SCANA has been vulnerable to takeover as it's facing financial and regulatory woes due to pursuit by its subsidiary South Carolina Electric & Gas (SCE&G) of two nuclear reactors that were canceled on July 31, 2017, after a waste of $9 billion. Via a series of rate hikes, SCE&G customers have paid about $2 billion toward the company's debt on the project. Project partners Scana and Santee Cooper said finishing the reactors could cost $25 billion.

The proposed merger hinges on approvals by SCANA's shareholders, the U.S. Federal Trade Commission (FTC)/the U.S. Department of Justice (DOJ) under the Hart-Scott-Rodino Act, and authorization of the Nuclear Regulatory Commission (NRC), and Federal Energy Regulatory Commission (FERC). The only way to resolve this travesty is to sell Santee Cooper.

SCE&G is expected to file a formal abandoned nuclear project cost recovery petition with the South Carolina Public Service Commission around January 8, which FOE said would provide "important details on Dominion's proposed deal". "There is more work to be done, but today, we are headed in the right direction". In particular, SC regulators would have to approve Dominion's plan for customer refunds, executives said during a conference call Wednesday morning. "It would lock in significant and immediate savings for SCE&G customers - including what we believe is the largest utility customer cash refund in history - and guarantee a rapidly declining impact from the V.C. Summer project", he said in a statement. I let them speak for themselves.

The deal represents a 42 percent premium to SCANA's most recent closing price. In November, The State of Columbia reported that SCANA had hired investment bank Morgan Stanley to investigate a possible sale. And SCANA's CEO and Chief Financial Officer both stepped down as of January 1.



Like this

Latest


06 January 2018
Huge swath of USA hit by winter storm bringing, snow, cold
Commuters travel on the southbound side of the New Jersey Turnpike during a snowstorm, Thursday, Jan. 4, 2018, in Woodbridge, N.J. Police urged drivers to stay off the roads in a region little accustomed to the kind of winter woes common to the Northeast.

06 January 2018
Edison International (EIX) Earning Somewhat Favorable Media Coverage, Accern Reports
It is negative, as 33 investors sold EIX shares while 173 reduced holdings. 57 funds opened positions while 179 raised stakes. News stories about Edison International ( NYSE : EIX ) have been trending somewhat positive this week, according to Accern.

06 January 2018
Vermont is on the verge of passing (limited) marijuana legalization
The legislation would make the Green Mountain State the latest to legalize the recreational use of marijuana. The Senate previously had passed the measure, but must review the rewritten language, likely next week.

06 January 2018
Spotify sued for $2b in copyright infringement lawsuit
The music industry has long since been at odds with music streaming and it appears that the battle isn't over yet. It has more than 140m active users, over 60m of which are paying subscribers, and an estimated worth of $19bn.

06 January 2018
Speeding California driver stopped in Rapid City had dead mother in SUV
The woman found dead in an SUV after a high-speed chase has been identified as the mother of the driver, who is a Santa Cruz man. They identified her as Michelle Nanette Walsh, 58, but her cause of death is still under investigation, Palm Springs police Sgt.

06 January 2018
The Mayor loses popularity at ABC
The network ordered three backup scripts and paired it with the popular series, Black-ish, on their Tuesday night comedy line-up. The show averaged a 0.8 rating among adults 18-49 and a 2.94 million viewers in initial airings.

06 January 2018
$0.17 Earnings Per Share Expected for Valley National Bancorp (VLY) This Quarter
AeroCentury Corp. acquires aircraft and aircraft engines for lease to regional airlines in the United States and internationally. Cetera Advisor Limited Liability Co holds 0.02% of its portfolio in Valley National Bancorp (NYSE:VLY) for 32,885 shares.

06 January 2018
Woman gets tattoo that plays voicemail from late grandmother
Sakyrah Angelique, who is based in Chicago, got a soundwave tattoo of a voicemail her grandma left her, a month before she died. A singer has had her late grandma's voicemail tattooed onto her skin, so she can hear her again at the touch of her phone.

06 January 2018
2 planes collide at Toronto Pearson airport
Emergency response crews are on scene, but there have been no reports of injuries at this time. A post on the Sunwing Vacations Facebook page confirmed the collision.

06 January 2018
Texas Instruments Incorporated (TXN): What's the Story?
The stock of Texas Instruments Incorporated (NASDAQ: TXN ) has "Outperform" rating given on Monday, January 9 by Credit Suisse. Texas Instruments Incorporated designs, makes, and sells semiconductors to electronics designers and manufacturers worldwide.



Recommended