SCANA’s Gift

Dominion to buy beleaguered southern utility in $14.6B stock merger

Nuclear plant operator SCANA has been looking for a helping hand since last summer, when the V.C. Summer plant was abandoned.

Dominion Energy, the Richmond-based utility, reportedly agreed to an all-stock merger Wednesday expected to lower customer rates and assist financial obligations related to the V.C. Summer nuclear project.

If approved by shareholders and state and federal regulators, the merger means SCANA shareholders would receive 0.669 shares of Dominion stock for every share of SCANA — or $55.35/share, a 28% premium on Tuesday’s closing price. That amounts to a deal value of $14.6 billion, including debt.

Dominion says it would write off $1.7 billion in costs related to the Summer plant, allowing it to eliminate customer costs for the project over 20 years, instead of the 50-60 years proposed by SCANA. The deal would give Dominion 6.5 million regulated electric and gas customers in eight states,  but is contingent on keeping a state law that allows SCANA to recoup at least some costs for the Summer plant.

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