In January, Dominion Energy notified the Public Service Commission of South Carolina, as well as the South Carolina Office of Regulatory Staff and the South Carolina Department of Consumer Affairs, of plans to request a review of electric rates. We filed that request on March 1.

On July 12, Dominion Energy South Carolina, together with other parties of record, submitted a comprehensive settlement agreement in the company's pending general electric rate case for approval by the Public Service Commission of South Carolina. The settlement includes all parties signing on or not opposing.

Dominion Energy and intervening parties will present the settlement to the Public Service Commission at a hearing scheduled to begin July 15. After a thorough review, Dominion Energy expects the Public Service Commission to make the final decision and adjust rates as appropriate.

If approved by the Public Service Commission, the proposed settlement would allow Dominion Energy to recover some of the rising costs of investments needed to keep our plants running, systems reliable and grid secure while also listening to concerns of customers and other stakeholders.

Key components of the proposed settlement, which requires PSC approval, provide significant customer benefits:

• Starting Sept. 1, the bill of a typical residential customer using 1,000 kilowatt-hours of electricity per month would be approximately $148 – a level that ensures residential rates remain below the national average. Compared to rates at the time of the original request in March and offset by the fuel cost reduction and other factors, the settlement's rate request would represent a net 1.0 percent increase for a residential customer's electric rate.
• A one-time bill credit of $7.5 million funded by shareholders would be applied this year for residential and small general service customers.
• The Neighborhood Energy Efficiency Program budget would increase by $3 million in shareholder funds over five years beginning in 2025.

Since 2019, Dominion Energy South Carolina has added approximately 40,000 new electric customers to its system and invested $1.6 billion in its electric system to provide the reliable, affordable and increasingly clean energy to power our customers every day. As a responsible energy company, we must invest money and recover the increasing costs needed to keep our plants running, our system reliable and our grid secure.

Investments in technology and infrastructure, including year-round enhancements to the electric transmission and distribution systems, are necessary to meet the growing need for energy in South Carolina as well as increasingly strict safety, reliability and security standards. These investments include:

• installation of more than 19,000 distribution transformers, nearly 1,600 miles of distribution lines as well as new or replacement transmission lines, switchyards and substations, including two solar substations.
• upgrades, improvements, and additional environmental controls for generation plants.
• technology, systems and equipment to better serve customers and enhance system security.
• storm response and restoration, vegetation management and environmental remediation.

The fuel cost reduction is the primary offset to this rate request. That is a reduction of $14.45 per month for a 1,000-kWh bill.

Cost control, efficiency and productivity improvements have successfully lessened a significant part of the cost increases required for continued investment in our electric system. Our diligent management of electric fuel costs resulted in a savings for customers starting in May. It will also help minimize this necessary increase to base rates, which will be the first in nearly four years if approved.

As a regulated public utility, we have an obligation to serve all customers in our service area. Meeting that obligation requires that we continue building and maintaining our system to meet the growing energy needs of our customers. Investing in infrastructure and equipment – and having the right people to maintain and operate that infrastructure – are critical to service reliability.

For example, when storms hit, investments made in safeguarding the system allow power to be restored as quickly and safely as possible. Dominion Energy South Carolina consistently ranks among the leading utilities in the southeastern U.S. for reliability.

Through an independent, public and transparent regulatory review process, the Public Service Commission of South Carolina allows us to recover from customers the costs we prudently incur to generate, transmit and distribute electricity to their homes or businesses.

This is the first requested increase to base electric rates in nearly four years, and it reflects the work we have done to operate even more efficiently and cost effectively.

A review of rates for regulated companies like Dominion Energy is an independent, public and transparent process. The Public Service Commission conducted a series of customer public hearings this summer.

Our dedication to supporting customers remains stronger than ever. We continue working with customers to find programs, services and payment options that best match their individual budgets and circumstances. Many assistance options can be conveniently accessed 24/7 through a customer’s online account or Dominion Energy’s app. Customers can learn more online at DominionEnergySC.com/assistance or by phone at 800-251-7234.

There are two parts to electric rates. The first, often referred to as base rate, includes the costs involved with providing service to customers, as well as the opportunity to earn a fair and reasonable return on the investments in our electric system and assets. This is what we are now preparing to take before the Public Service Commission of South Carolina. Through a public, transparent process, the Commission independently determines what are fair and reasonable rates. A comprehensive financial audit and operational review are conducted by the South Carolina Office of Regulatory Staff. A consumer advocate from the South Carolina Department of Consumer Affairs will also likely participate in the proceedings to provide legal representation for consumer interests.

Fuel costs are the other part of electric rates and are also subject to review and approval by the commission. These costs include the purchase and transportation of fuel – such as natural gas – to run Dominion Energy South Carolina’s power plants. Fuel costs, subject to commission approval, are a direct pass-through to customers. In other words, customers pay what the company pays. Fuel costs are reviewed annually, and this part of electric rates is adjusted up or down to reflect those costs. This is called a fuel cost adjustment.

Our customers’ electric bills are below the national average.

No, Dominion Energy is not guaranteed a profit. In fact, unlike most businesses, Dominion Energy is capped in terms of the amount of earnings the company can realize. The company’s earnings are tied to our ability to provide our customers reliable, affordable and increasingly clean energy, and doing so in an efficient, cost-effective manner. We must rely on investors to provide the capital necessary to build, maintain and operate our service infrastructure for our customers. Our ability to provide a fair and reasonable return to investors is essential to the financial health of our company and, in turn, our ability to make the investments necessary to support future growth and to fuel economic development in our state.

Dominion Energy South Carolina’s current authorized return on equity is 9.5 percent, but our actual return on equity is currently 4.32 percent, which is 55 percent below the authorized return.  The proposed rates and charges would permit the company the opportunity to earn a return on common equity of 10.6 percent, which represents a more appropriate return based on current financial markets, the risks inherent in our business, regulatory lag and uncertainties related to future electric demand.