SC Gov. McMaster calls on Dominion to withdraw proposed electricity rate increase
South Carolina Gov. Henry McMaster on Tuesday called on one of the state’s major electricity providers to withdraw its request to increase rates on more than 700,000 customers.
But Virginia-based Dominion Energy did not show any plans to do so.
In a two-page letter to Dominion’s President Rodney Blevins, McMaster said that he can’t support Dominion’s application to the state’s Office of Regulatory Staff as South Carolinians continue to “confront myriad challenges related to COVID-19.”
“A sizable rate increase at this difficult time would impose an unexpected and untenable burden on many South Carolinians,” McMaster said. “Moreover, as families work to overcome economic uncertainty and businesses small and large struggle to adapt and remain open during this pandemic, Dominion should not be seeking to increase its profit margin, particularly to 10.25%, which is well above the national average for investor-owned utilities.”
The utility giant filed an application back in August with ORS to increase its rates on about 753,000 customers to about 7.7%, a monthly increase of $9.68 for the average residential customer. That would come out to an average monthly bill of $131.99, up from $122.31 a month.
Dominion would raise an additional $178 million from the increase, according to the company’s application.
The utility’s request is scheduled to be heard by the Public Service Commission in January in hearings expected to last a week.
Dominion bought SCANA in 2019 after the Cayce-based utility was a partner in the failed $9 billion V.C. Summer nuclear project.
In his letter, McMaster told Blevins he is willing to work with Dominion but threatened action should the company be unwilling to rescind its application before the Public Service Commission.
“In the event that Dominion plans to proceed with seeking the PSC’s approval of its requested rate increase, please know that I will ask the PSC to reject Dominion’s application in its current form,” McMaster wrote.
Dominion spokeswoman Rhonda M. O’Banion said in a statement that the utility takes seriously the concerns expressed by the governor but stopped short of agreeing with his request.
As the COVID-19 outbreak wreaked havoc financially on customers, Dominion delayed its initial proposal for a rate increase in May but pushed it back.
“We recognize that there may never be an ideal time to request a rate review,” O’Banion said. “We have been helping our customers who are struggling financially through the pandemic. Our customers also count on us to keep the electricity flowing safely and reliably, and we made our filing to continue to meet this obligation. We welcome the opportunity to work with parties for the purpose of identifying contested issues on which we may find agreement as well as discussing appropriate compromises.”
McMaster’s demand that Dominion withdraw its application follows push back from customers this month.
At a PSC hearing, customers said an increase would put another burden on families already financially struggling due to COVID-19.
Earlier in the pandemic, Dominion waived late fees, ceased disconnections for late payments and waived reconnection fees. However, the company has since returned to its normal business operations and offers customers short and long-term payment plans to help those in financial difficulty, O’Banion said.
“Our goal is to continue working with our customers to keep them connected,” O’Banion said.
In a report, the Office of Regulatory Staff offered its own proposals that included an adjusted rate change to an average increase of just one cent a month.
“The ORS appreciates Gov. McMaster’s letter recognizing the issues facing customers and utilities in the midst of a global pandemic,” said Nanette Edwards, ORS’ executive director.
Customer hearings on the rate hike will continue into the new year on Jan. 5 and 7.
A decision is expected in early next year.
New rates could go into effect in March.
This story was originally published November 24, 2020 at 12:32 PM.
