Early this year Dominion Energy (D) went public with its intention to buy SCANA Corp (SCG) – the parent company of South Carolina Electric & Gas (SCE&G). The Richmond, Virginia-based energy company now moves closer to its planned $14.6 billion acquisition of SCANA as it received a green signal from the Georgia Public Service Commission.
Georgia becomes the first state to roll out their decision on the proposed merger. However, Georgia’s approval is just the start of a long road. The Dominion/SCANA deal needs to get an approval from SCANA shareholders, South Carolina and North Carolina regulators, nuclear regulatory commission and the Federal Energy Regulatory Commission.
Dominion hopes that the proposed merger will clear all the regulatory investigations and that the transaction will be completed later this year.
Dominion’s acquisition of SCANA is said to create one of the largest natural gas storage systems with a massive capacity of 1 trillion cubic feet. A state probe was initiated on this deal after lawmakers in South Carolina received fake emails supporting the deal. The fake emails were rolled out in the name of a few residents without their knowledge.
Dominion hopes that the proposed merger will clear all the regulatory investigations and that the transaction will be completed later this year
Dominion that is known to have close to 5 million customers believes that this deal would help increase their customer base and deliver energy to over 6.5 million customers. The deal will also help the combined company increase its presence in close to 18 states.
If the merger thrives, Dominion Energy has agreed to offer a dozen of incentives to the customers of the troubled utility. These include $1.3 billion cash payment to SCE&G customers and a 5 percent rate reduction. This incentive is aimed to offset the payments customers paid for the nuclear construction project that failed to take off. Dominion has also decided to write-off $1.7 billion in assets linked to the nuclear project. Hence, there is a huge support for this deal among South Carolina residents.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to