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Dominion Energy "Still Optimistic" About Possibility of SCANA Merger

The Dominion Energy/SCANA merger is one step closer to being reality. Now, both utility companies are awaiting the outcome of a federal lawsuit against the law that requires SCE&G to cut their nuclear rates.

Columbia, SC (WLTX) - Dominion Energy is one step closer to sealing their deal with SCANA, that's if a federal judge sides with SCE&G in a recent lawsuit.

Last week federal regulators gave the first of several levels of approval to the Virginia-based power company's proposed merger with SCANA. The Federal Energy Regulatory Commission ruled that the combination of SCANA Corp. and Dominion Energy, Inc. "is consistent with the public interest and is authorized."

"That was a big approval for us, getting the Federal Energy Regulatory Commission to sign off," says Chet Wade, Vice President of Corporate Communications for Dominion Energy. "The next big approval we would expect would be the SCANA Shareholders and that's on the 31st of July, their scheduled meeting."

Dominion needs a two-thirds vote approval by shareholders.

While that hurdle may be easier to get over, they are still concerned about the Public Service Commission's pending decision in December and the outcome of the SCE&G lawsuit.

SSCE&G says the South Carolina General Assembly's passage of a law cutting nuclear rates by 15 percent and forcing the utility to give refunds going back to April, is unconstitutional and only temporary.

"If that were to stick, that allows us an opportunity to not go forward to the deal, to not pay the customers the $1,000, to not take on the nuclear debt and do all of those other things and lower their rates," says Wade. "Right now, what our chairman says is we are not going to leave right now."

Dominion is waiting to see the results of this lawsuit, which could come by the end of the month.

Last week in Florida, a federal appeals court sided with Duke Energy Florida and Florida Power & Light in a class-action lawsuit that sought to recover money paid by utility customers under a controversial 2006 nuclear-power law.

Wade says he understands SCE&G customers are frustrated over the failed nuclear project at V-C Summer.

"I know how upset they are and I understand that. I wish I could figure out a way to turn the clock back. We can't, no one can. What we want to do is give them the benefits we can give them as soon as possible, most sure as possible, rather than have them wait for perhaps years to see if anything comes out of it and it might not be anything."

Dominion Energy is offering to give $1,000 back to the average SCE&G customer, drop rates by 5 percent and fund $1.7 billion in nuclear costs.

"I am and we are still optimistic (about the merger) because we feel it is still the best solution for the people of South Carolina."

The hearing for SCE&G's lawsuit, asking the courts to stop the rate cuts created by the lawmakers is scheduled for July 30-31.

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