Dominion Energy wants SCE&G customers to be thankful that it will maintain some of the highest electricity rates in the nation if it purchases SCANA.
According to SCE&G’s own website, the standard residential rate per kilowatt-hour is 13.6 cents. That’s 41 percent higher than the 9.7-cent rate Duke Energy’s website quotes for its S.C. customers. The average standard residential rate for the continential United States is 11 cents.
The spread between Duke’s and SCE&G’s standard industrial rates is even greater; SCE&G’s being far higher.
Is it any wonder that Dominion wants some of this business, and is willing to pay a premium to the current stock price?
Dominion Energy could offer $10-$15 per share for SCANA (a discount to the current market price) and pass the savings on to SCE&G residential and industrial customers.
Nationally, electricity rates have been falling, primarily due to falling costs of natural gas and coal.
Have SCE&G’s rate increases over the past eight years covered more than just the costs associated with the Jenkinsville expansion?
Have they disguised poor performance in SCE&G’s core generation business?
If you subtract the value of the these rate increases for SCE&G from SCANA’s earnings, you can see how poor SCE&G’s performance is.
I would hope that our state regulators and legislators have been looking at the differences in electricity rates between suppliers and between states, but I am not at all confident that many people are paying much attention to these simple comparisons.
SCE&G customers have been paying very high rates for electricity, and this is harmful to us all, especially the poor.
The Midlands needs lower electricity rates to be competitive with surrounding states.
The Texas legislature has created competition in electricity generation (not transmission); our Legislature needs to investigate this option.