Groups reach settlement with Dominion Energy that lowers rate increase

Media contacts: Rachel Chu, SELC, 843-720-5270, rchu@selc.org | Amy Rawe, SACE, 865-235-1448, amyr@cleanenergy.org | Estrella Lozano, Vote Solar, 956-832-7653, elozano@votesolar.org

CHARLESTON, S.C. — This week, multiple groups reached comprehensive settlement agreements with Dominion Energy South Carolina regarding its request for a rate increase at the South Carolina Public Service Commission. The agreements, if approved by the Commission, would lower Dominion’s proposed rate increase and secure $6 million in shareholder commitments for customer assistance and low-income weatherization programs.

The Coastal Conservation League, Southern Alliance for Clean Energy, and Vote Solar, represented by the Southern Environmental Law Center, reached agreements with Dominion and other intervening parties that:

• Reduce Dominion’s requested rate increase for the average residential customer to approximately $11.97 (a 7.62% increase) from $19.98 (a 12.73% increase);
• Result in a return on equity of 9.99%, compared with the requested 10.5%;
• Provide $6 million in shareholder funds to help customers, including $3 million for a one-time bill credit for residential customers, and $3 million over three years for customer bill assistance and low-income weatherization;
• Preserve solar customers’ ability to lower their bills when generating their own solar power by improving “time of use” period restrictions; and
• Commit Dominion to join a proceeding to evaluate issues associated with new large load users like data centers, including how to ensure the rates they pay are sufficient to protect other customers.

“With so many everyday costs rising right now, we’re glad the settlement helps mitigate some of this rate increase’s impact to customers,” said Kate Mixson, SELC Senior Attorney. “This settlement also ensures a fair compensation system for solar customers that generate their own clean power and provides critical funding to weatherize low-income customers’ homes so they can lower their bills long-term.”

“This settlement is very important because reducing the requested ROE in this rate case could help mitigate future rate increases under a recent law that gives utilities an option to adjust rates annually,” said Eddy Moore, Decarbonization Director at SACE. “The customer energy efficiency and solar improvements in the settlement will also provide long-term cost protections for ratepayers.” 

“In the face of so much uncertainty and expected cost increases, now is the time to use all the tools available to ensure families are protected from rising costs,” said Jake Duncan, Senior Southeast Regulatory Director at Vote Solar. “This settlement helps offset the worst of the proposed rate increase by providing direct relief to residential customers, funding for low-income weatherization, and protecting customers’ ability to invest in solar to provide long-term stability for their households.”

“We are pleased that the parties have reached a reasonable settlement agreement that protects ratepayers in the face of rising energy costs, while providing millions of dollars of support for energy efficiency improvements and preserving the value of rooftop solar,” said Taylor Allred, State Energy & Climate Program Director for the Coastal Conservation League.

Along with CCL, SACE, and Vote Solar, other intervenors that engaged with DESC to negotiate the agreements include the South Carolina Office of Regulatory Staff, the South Carolina Department of Consumer Affairs, AARP, South Carolina Energy Users Committee, Frank Knapp, Jr., the Sierra Club, Google, LLC, CMC Steel South Carolina, Walmart, and the U.S. Department of Defense and All Other Federal Executive Agencies.