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Dominion/SCANA merger deal arrives at FERC

Dominion Energy Inc. and SCANA Corp. have asked for the Federal Energy Regulatory Commission's approval of their $14.6 billion stock-for-stock merger deal.

Each of SCANA's common shares will be converted into 0.6690 validly issued, fully paid and nonassessable Dominion Energy common shares, which is equivalent to $55.35 per share, or about $7.9 billion, based on Dominion Energy's volume-weighted average stock price of the last 30 trading days ended Jan. 2.

Additionally, each of Dominion's shares will be converted into and become one validly issued, fully paid, and nonassessable share of common stock of SCANA. As a result SCANA will become a wholly owned subsidiary of Dominion Energy.

Dominion said in a Feb. 23 application that the merger will bring financial benefits to SCANA utility South Carolina Electric & Gas Co.'s customers, offsetting previous and future costs related to the abandoned V.C. Summer nuclear project, including a roughly $1.3 billion cash payment to all customers, worth about $1,000 for an average residential customer, and about $1.7 billion in write-offs of existing V.C. Summer costs, allowing for recovery of the remaining project costs over 20 years rather than 50 to 60 years.

The companies said SCE&G and Dominion Energy's regulated electric utility Dominion Energy Virginia, known legally as Virginia Electric and Power Co., would not be merged or operated together.

The commission has been requested to approve the application by July 31. (FERC docket EC18-60)