Dominion Energy Inc. and SCANA Corp. announced today an agreement for the companies to combine in a stock-for-stock merger worth about $7.9 billion. Including the assumption of debt from SCANA, the value of the transaction is approximately $14.6 billion.
The deal includes several benefits for South Carolina power customers to offset previous and future costs related to the VC Summer Project. Upon closing of the deal, the combined company will pay $1.3 billion to customers of SCANA’s South Carolina Electric & Gas Co. subsidiary, or about $1,000 per customer.
“We believe this merger will provide significant benefits to SCE&G’s customers, SCANA’s shareholders and the communities SCANA serves,” Dominion Energy chief executive Thomas Farrell said in a statement. “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.”
South Carolina Gov. Henry McMaster called the proposed merger a step forward, but noted that it only addressed part of the political ramifications from the failed power plant, which also involved state-owned utility Santee Cooper. Scana owned 55% of the Summer nuclear plant. Santee Cooper owned the rest.
The deal will need the approval of SCANA’s shareholders; the U.S. Federal Trade Commission; the U.S. Department of Justice; the Nuclear Regulatory Commission; the Federal Energy Regulatory Commission; and the public service commissions of South Carolina, North Carolina and Georgia.