Dominion, SCANA announce agreement to combine companies in stock-for-stock merger

Dominion Energy’s $14.6bn merger deal with South Carolina-based gas and power supplier Scana has been approved unanimously by the Georgia Public Service Commission (PSC).

The deal announced in January is now subject to approvals of Scana’s shareholders and also from the PSCs of South Carolina and North Carolina. It is also awaiting authorization of the Nuclear Regulatory Commission and Federal Energy Regulatory Commission.

Last month, US Federal Trade Commission (FTC) approved the deal by granting early termination of its antitrust waiting period. The 30-day waiting period under the federal Hart-Scott-Rodino Antitrust Improvements Act was one of the major conditions to be satisfied for the completion of the all-stock merger deal between Dominion Energy and Scana.

Dominion Energy chairman, president and CEO Thomas F Farrell II said: “We greatly appreciate the prompt action by Chairman McDonald and the other commissioners in moving forward with our proposal.

“This is an important step in bringing a brighter energy future to customers, communities and others served by the SCANA companies. We look forward to receiving the additional required regulatory approvals and completing our transaction by the end of this year.”

The merger will create a combined company that will provide energy to nearly 6.5 million regulated customer accounts and have a power generating portfolio of about 31.4GW and 93,600 miles of power transmission and distribution lines.

The combined company would also have a natural gas pipeline network of 106,400 miles while operating natural gas storage systems with 1 trillion cubic feet of capacity.

Upon completion of the deal, which is expected in 2018, Scana would operate as a wholly owned subsidiary of Dominion Energy.

The deal will offset the previous and future costs related to the scrapped V.C. Summer nuclear Units 2 and 3 expansion project in South Carolina, US, providing significant benefits to Scana’s South Carolina Electric & Gas Company subsidiary (SCE&G) electric customers.