FERC has given its approval for Scana Corp. and South Carolina Electric & Gas Co. (SCE&G) to become subsidiaries of Dominion Energy Inc.
In an order issued last Thursday, the Federal Energy Regulatory Commission called the proposed merger “consistent with the public interest and is authorized,” but said it was contingent upon the parties satisfying eight conditions, including that they inform the Commission of any “material change in circumstances” used in deciding the matter [EC-18-60].
In January, Richmond, VA-based Dominion unveiled plans to buy Cayce, SC-based Scana in a deal valued at $14.6 billion. The heads of both companies also warned South Carolina regulators that Scana could fall into bankruptcy if the merger were scuttled.
Dominion CEO Thomas Farrell said the FERC order “brings us closer to providing a brighter energy future for customers, communities and others served by the Scana companies. We will continue working toward achieving the other required regulatory approvals and completing our transaction by the end of this year.”
The merger has been approved the Georgia Public Service Commission and the Federal Trade Commission, but it still needs approval from Scana shareholders. It must also pass the scrutiny of regulators in North Carolina and South Carolina, and it needs authorization from the Nuclear Regulatory Commission.
Post-merger, the combined company would operate in 18 states from Connecticut to California, and deliver electricity and natural gas to 6.5 million customers in eight states, with a natural gas pipeline network totaling 106,400 miles and with 1 Tcf of storage capacity, making it one of the nation’s largest natural gas storage systems.
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