Dominion Energy submits settlement agreement for approval by Public Service Commission of South Carolina

COLUMBIA, S.C. (WOLO)– Dominion Energy South Carolina, Inc. (DESC), an owned subsidiary of Dominion Energy, Inc. (NYSE: D), with other parties submitted a settlement agreement in DESC’s pending general electric rate case for approval by the Public Service Commission of South Carolina (PSC).

Dominion says the settlement includes all parties signing on or not opposing.

Also, the company says the requested rate increase to base rates is the first in nearly four years.

Since 2019, DESC has added around 40,000 new electric customers to its system and invested $1.6 billion in its electric system to provide reliable, affordable and increasingly clean energy to power its customers every day.

 DESC and intervening parties presented the settlement to the PSC at a hearing scheduled to begin July 15.

After a review, DESC expects the PSC to make the final decision and adjust rates as appropriate.

Dominion Energy says 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 – a level that ensures residential rates remain below the national average. Compared to rates at the time of the original request in March and offset by the fuel cost reduction and other factors, the settlement’s rate request would represent a net 1.0% increase for a residential customer’s electric rate.
• A one-time bill credit of $7.5 million funded by shareholders would be applied this year for residential and small general service customers.
• The Neighborhood Energy Efficiency Program budget would increase by $3 million in shareholder funds over five years beginning in 2025.

The proposed settlement also supports:

• An authorized return on common equity of 9.94%.
• A regulatory capital structure of 52.51% equity and 47.49% debt.
• A revenue increase of $219 million, representing about 28% less than the original request of $303 million in March.

There is no change to Dominion Energy’s existing financial guidance.