Statement from Dominion Energy on South Carolina House Bill 4375

We did not see the proposed changes to South Carolina House Bill 4375 prior to introduction today, and are in the process of reviewing them.

While our review is continuing, it is clear that if the legislation became law it would put a standalone SCE&G in a precarious financial position.

The House action, assuming it becomes law and survives legal challenges, could offer temporary relief for SCE&G customers, but unfortunately could threaten the permanent solution offered by Dominion Energy.

Regarding our combining with SCANA, as we have said from the beginning any change in law that has a significant financial impact on our proposed transaction would create a path for Dominion Energy to walk away from our proposal and eliminate the immediate positive benefits for South Carolina. We will continue to evaluate any proposals in the House or Senate utilizing that standard of measure.

Significant financial consequences would not allow us to provide $12 billion of relief to SCE&G’s customers.

When we first approached SCANA, our goal was to propose a solution that provided a path forward for their customers and the State of South Carolina. We continue to believe our proposal offers the best and most-certain long-term relief for customers — $1.3 billion in cash payments, a permanent rate reduction and rate stability for the future. Our proposal provides benefits for all stakeholders.

To recap the positive benefits of the Dominion Energy proposal for SCE&G electric customers, it would:

1. Provide $1.3 billion in cash payments to SCE&G customers – payments that would provide $1,000 to the average residential customer, as well as substantial payments to South Carolina businesses and industries in the SCE&G service area;
2. Cut overall rates to customers – not just rates for the nuclear portion of customer bills – by 5 percent immediately, and would shorten the terms of payment for the nuclear portion of customer bills from 50 years to 20 years, producing over $8 billion in customer savings from the debt load;
3. Offer job protections to SCE&G employees until 2020, and also preserve the headquarters in Cayce, South Carolina; and
4. Increase annual charitable giving by $1 million, a 33 percent increase.

We look forward to presenting our perspective to regulators and policy makers in South Carolina.