RICHMOND, Va. – Virginia-based Dominion Energy is surely keeping an eye on a federal lawsuit that may affect how it is looking to buy a South Carolina utility company.
A lawsuit brought by South Carolina Electric and Gas (SCE&G) Friday in U.S. District Court accuses lawmakers in South Carolina of passing a law unconstitutionally after a failed nuclear power plant project by the company.
Dominion Energy announced in January its intentions in buying SCE&G for $7.9 billion, and the Richmond headquartered company has been reported to be looking to expand its pipeline projects into the Palmetto state as well.
South Carolina state legislators passed a law recently to cut rates of charges for customers in the state after a failed nuclear plant project by the company. The loss in taxpayer money and jobs of those at the plant led to South Carolina’s state house lawmakers passing legislation that would cut cost.
The states’ governor, Henry McMaster, vetoed the bill but was unable to stop it from being overridden.
Dominion Energy said in January that it has a plan for a certain percent rate reduction for SCE&G customers, thanks in part to lower corporate taxes under the new federal tax law in Washington.
The rate cut that lawmakers in South Carolina are looking for would be at 15 percent, more than Dominion Energy’s offer.