Why Dominion Energy SC electricity customers should brace for a big rate increase | Opinion

First the good news: In the final days of the legislative session that ended Thursday, the state Senate wisely held up a massive bill that had generated more questions than answers about energy production, reliability and cost. The Senate and the House, which had moved too hastily on the bill, agreed to try to hash out their differences in a joint committee in a special session. That’s a win not only for public policy, but also the public itself. We must always guard against a fiasco like the $9 billion V.C. Summer nuclear plant, which halted construction in 2017, but which Dominion Energy ratepayers won’t stop paying for for 15 more years.

Now the bad news: Electric rates for Dominion’s 800,000 customers in South Carolina will soar this year if regulators approve a requested hike.

The worse news? Dominion, the state’s single largest utility, is being deceitful about the rate hike it first sought from regulators at the Public Service Commission in March and that could go into effect in September.

A March 1 press release from the company minimized what it wanted from regulators, saying that the effect on residential customers would be only a “net 3.58% increase.” At least two TV stations ran with the fuzzy math when they should have been more skeptical of a statement containing the word “net.” The company’s characterization helped shield it from criticism.

In its release, Dominion said the average customer’s monthly bill would jump only $5 to $151. But a hearing notice from the PSC said the average Dominion customer in South Carolina would actually see an $18.86 monthly increase in electricity bills if approved — a 12.89 percent increase.

The reason for the discrepancy: Fuel prices, which fluctuate from year to year, are down so the company will temporarily charge customers less for the fuel component of their bill. Critics say the two numbers should be viewed separately because rate hikes apply in perpetuity while fuel prices rise and fall but tend to trend up over time so any reduction is temporary.

In a wide-ranging, hourlong interview Monday, Dominion Energy South Carolina President Keller Kissam acknowledged the criticism but defended the math, saying, “They are two separate numbers that go into what the customer looks at. That’s the cost on the bill.” We disagree on that framing, but agree on a lot, including that Dominion is investing large sums in technology and infrastructure and that we are not now in an energy “crisis,” an overused word. He said we’re having a “wake-up call” and could one day face a crisis because of population growth, economic expansion and the long lead time — seven years or more — for building new plants.

Kissam has been paid more than $1 million a year for at least a decade for his efforts to help keep the lights on in one of the fastest-growing states. He is looking forward to additional serious energy conversations, but declined to criticize House members who played legislative games at the end of the session by adding the language of the energy bill to several unrelated bills to spur action on it. One of those bills addressed suicide prevention, a subject too painful and important for brinkmanship.

The energy bill would allow Dominion to pursue building a natural gas plant with the state-owned utility Santee Cooper. Supporters call it essential for energy consumption. Critics decry its use of fossil fuels and complain, correctly, that the bill would weaken public oversight.

As the industry regulator, the PSC exists to determine the fate of any new project — and the size of any rate increase for utility customers. As the PSC reviews Dominion’s request to decide whether, and by how much, to increase rates, there is ample time for anyone to file a letter of protest, testify at a handful of hearings or formally “intervene” in the case.

Only 12 states have higher monthly electricity bills than South Carolina so we should all understand the true scope of any proposed rate hike – and all demand that our legislators take no power away from the Public Service Commission.

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