PSC backs Dominion and NextEra plan to decide megamerger in SC by early 2027

PSC backs Dominion and NextEra plan to decide megamerger in SC by early 2027

Story by Sammy Fretwell

A plan to decide on the merger of NextEra and Dominion Energy in South Carolina by late January 2027 received unanimous approval Tuesday from the S.C. Public Service Commission, despite a flurry of pleas to hold off on establishing the deadline.

Setting a date of Jan. 29, 2027, to decide on the megamerger raised flags among public interest groups that said South Carolina should not hamstring itself with a hard deadline because the proposed merger is complex and needs careful scrutiny.

But the commission moved forward with the plan Tuesday, voting unanimously - and without discussion - to set the Jan. 29 date for a final decision, as supported by the energy companies.

The commission, however, voted to allow interested parties to appeal to extend the schedule "for good cause,'' according to a motion submitted by Commissioner Delton Powers.

"This schedule provides all parties with adequate opportunity to meaningfully participate in this proceeding,'' Powers said Tuesday, Aug 4, reading his motion.

Groups urging the PSC not to set a deadline for a vote in January included the Southern Environmental Law Center, the Sierra Club, the S.C. Small Business Chamber of Commerce, the Southern Alliance for Clean Energy, the S.C. Coastal Conservation League and the Appleseed Legal Justice Center.

Many submitted requests this week to not set the schedule. They argued that customers could be hurt - possibly through higher power bills - if the PSC doesn't grant ample time to consider the request by Dominion and NextEra. The merger would create a massive utility serving some 10 million customers from Virginia, the Carolinas and Florida.

Utilities' commissions in North Carolina and Virginia also must vote on whether to approve the merger. Virginia has discussed getting rid of a state deadline because of complexities in the merger. Critics said South Carolina should wait on making a decision until after Virginia and North Carolina make theirs.

Kate Mixson, an attorney for the law center, said she was disappointed in the commission's vote. While it does leave open the door to appeal to extend the deadline, Mixson said that would be a major challenge without additional information the commission is not aware of.

"We provided good enough information to extend the deadline already,'' she said. "Generally, we are disappointed. This is a serious decision and six months is too short of a time to make sure this gets the thorough review it deserves.''

The law center favored a May 2027 deadline, while others said there should be no deadline.

The PSC's vote Tuesday follows correspondence from state House Speaker Murrell Smith and Senate President Thomas Alexander, who told the commission they did not oppose the schedule backed by Dominion and NextEra.

Smith and Alexander have not commented beyond correspondence with the PSC, but critics have expressed concern that their involvement could influence the utility commission to support the power companies' efforts to gain approval. Smith and Alexander sent correspondence to the commission at virtually the same time the PSC was to vote on the deadline July 30. That caused the commission to delay the vote until Tuesday, Aug. 4.

Neither Dominion nor NextEra has responded to requests for comment from The State, but PSC records show that the companies' favor a deadline of Jan. 29 so that they can provide bill credits to customers sooner. The companies have offered an average of $10 in monthly bill credits to South Carolina residential customers over a two-year period, the companies' petition to the PSC says.

Overall, the companies say utilities are facing "historic challenges'' because of unprecedented demand for energy.

"In South Carolina, there is substantial in-migration and economic growth in the manufacturing sector and otherwise,'' the companies filing with the PSC says.

As a result, a merger would help economically with greater financial strength and expertise, supporters say. Those following the companies' merger plans say they suspect the effort also is being driven by the need to supply energy-hungry data centers in the state.

Despite company arguments that customers would benefit from getting a decision on the merger in late January, the Appleseed Legal Justice Center said the argument is unconvincing.

The power companies haven't provided enough information that a resolution by January would make a difference on bill credits for customers, the justice center said in an Aug. 4 letter to the commission.

"The payment of those credits is not tied to the conclusion of this proceeding,'' the center said.

This story has been updated with details about the proposed merger

A coal plant operated by Dominion Energy near Columbia, S.C. The plant is along the Wateree River in Lower Richland County. Dominion and NextEra plan to merge.