The South Carolina utility surveillance agency asked Dominion Energy on Monday to delay its ongoing tariff hike request, which could increase the monthly energy bills of 753,000 customers by 7.7 percent.
Officials at the SC Office of Regulatory Staff, which represents the dealership’s customers, asked Dominion to agree to a six-month “break” while the dealership’s contributors continued to deal with the coronavirus pandemic and the economic consequences of the public health crisis. .
Nanette Edwards, ORS Executive Director, sent a letter to Dominion and state utility regulators at the SC Public Service Commission on Monday requesting a break in the tariff case, which has been the subject of hearings for almost a week .
During a Monday morning hearing, Edwards emphasized the increase in the rate of coronavirus infection in South Carolina, the continuing drag that the virus has caused in the economy and the number of Dominion customers who have called to complain about the financial impact that the rate increase would have on their lives.
“I think we can all agree that Dominion’s customers are facing unprecedented challenges during this time,” Edwards told PSC members, who serve as judges in public service cases.
Edwards made it clear that his agency cannot force Dominion, one of the nation’s largest publicly traded energy companies, to withdraw its request to raise an extra $ 178 million a year from utility taxpayers.
Under state law, the PSC typically has six months to make a decision when a for-profit utility in the state asks to increase customers’ monthly energy bills. If they don’t, the utilities can get everything they request in their request.
This means that all power is now with executives at Dominion, based in Richmond, Virginia.
Dominion has already rejected several attempts by South Carolina’s leaders to get the dealership to drop its rate hike request until the state can get COVID-19 under control and get its economy back to normal.
Several members of the SC Legislature have spoken out against the request to increase Dominion’s fee during public hearings last year. Governor Henry McMaster also issued a statement in late November urging Dominion to postpone its proposal to raise rates, calling it “an untenable burden for many southern Carolinians.”
But this political pressure did not move Dominion’s leaders. They argued that the company needs higher rates to boost its finances and help the utility recover the money it has invested in its plants, power lines and other infrastructure over the past eight years.
When hearings for the tax hike case began last week, several PSC members also asked Dominion if he had considered dropping his request for the time being.
Rodney Blevins, CEO of Dominion’s utility operations in South Carolina, said the company considered and talked to McMaster about it. But in the end, the company chose to carry out its plans.
The problem for Dominion, Blevins told PSC, is that it does not believe that political pressure or the company’s demands will improve with the case being postponed for six months.
“The problem is that it doesn’t get better over time,” said Blevins.
Edwards tried to recognize Dominion’s priorities during the hearing on Monday, while continuing to push for the dealership to drop the fees case.
“It hasn’t been easy for anyone. I don’t intend to minimize the challenges the utility faces,” said Edwards. “What I’m doing today is to reach out across the hall to Dominion and all parties in this case.”
This story is developing. Check back for updates.
Reach Andrew Brown at 843-708-1830 or follow him on Twitter @andy_ed_brown.