WIS-TV
July 15, 2024
How rate-hike proposal could impact power bills for SC Dominion customers
By Mary Green
COLUMBIA, S.C. (WIS) – Hundreds of thousands of South Carolinians could soon be paying more to keep the lights on and keep their homes cool.
Dominion Energy is asking state officials to approve its first base electric rate hike in nearly four years, though it is not as much of an increase as the company first proposed.
After what they described as extensive negotiations, Dominion Energy and other stakeholders came to an agreement late last week on the company’s proposed rate hike.
On Monday, the South Carolina Public Service Commission heard testimony ahead of deciding whether it will accept this settlement agreement or not.
“This settlement is an important step during a transformative time for the electric industry in South Carolina,” Dominion Energy South Carolina President Keller Kissam said during Monday’s hearing. “The parties in this settlement are stakeholders who will need to work together in the coming years as we plan for the tremendous growth and economic development in our state, coal plant retirements, the integration of additional renewable capacity and storage in our system, and expanding energy efficiency programs.”
If approved, the rate increase would go into effect Sept. 1, affecting Dominion Energy’s estimated 764,000 customers in South Carolina.
Under this settlement, the monthly bill for a typical residential customer using 1,000 kilowatt-hours of electricity would go up $15.13 a month, according to the Southern Environmental Law Center.
That increase is less than Dominion’s initial proposal filed in March, which would have raised it $18.86 a month.
“We reduced the rates that were originally proposed for small business,” South Carolina Small Business Chamber of Commerce President and CEO Frank Knapp said. “It was 15% about, and we reduced it by 60%, so now we’re looking at a rate increase between 5 and 6% for small businesses.”
According to Dominion, the monthly electric bill for a typical residential customer under this agreement would be around $148, which it said is still below the national average.
“Our goal is to provide reliability, security, and peace of mind to our customers, who depend upon us each and every second of their day,” Kissam said.
The settlement would also divvy up $7.5 million from shareholders in one-time bill credits to residential and small business customers this year.
“The role of this whole process was to ferret out what proposed increases were not justified, and that did not belong to be put on the back of the ratepayer. We have done that, and we think we’ve done as best we can,” Knapp said.
The Public Service Commission plans to take more testimony on this proposal Tuesday, then make the final decision of whether this rate increase plan will go into effect.
Dominion is not alone in South Carolina in seeking a rate increase in response to rising costs.
Santee Cooper is looking to raise residential rates by nearly 9% next year, which would be its first rate increase since 2017.
Just last week, the Public Service Commission approved a rate hike for Duke Energy Carolinas customers in the Upstate.