Dominion seeks higher ROE, rate hike in South Carolina starting in July

Core Viewpoint - Dominion Energy has proposed a 12.7% increase in residential customer bills in South Carolina to fund system upgrades and meet rising electricity demand [1][5]. Group 1: Rate Proposal and Regulatory Context - The South Carolina Public Service Commission is expected to decide on the proposed rate changes by July 2, with implementation in the first billing cycle of that month [2]. - Dominion is seeking a return on equity (ROE) of 10.5%, higher than the 9.94% allowed for 2024, which reflects the company's view of current financial markets and business risks [2][3]. - The average ROE for electric utilities in rate cases during the first nine months of 2025 was 9.66%, with an average of 9.74% for 2024 [2]. Group 2: Demand Growth and Financial Justification - Electric demand in South Carolina is projected to grow at an annual rate of 1.2%, leading to a 25% increase by 2044 [4]. - Dominion has requested a revenue increase of approximately $322 million to support $1.4 billion in investments in the electric grid [4]. - The company’s capital structure is proposed at 53.52% equity and 46.48% debt [4]. Group 3: Impact of External Factors - The proposed revenue increase also addresses the aftermath of Hurricane Helene in 2024, which necessitated the largest restoration and rebuild effort in the company's history [5]. - If approved, the average residential bill for a customer using 1,000 kWh monthly would rise by about $20 to $177, while commercial and industrial customers would see increases of approximately 5.9% and 14.9%, respectively [5]. - Dominion attributes rising costs to a growing customer base, tariffs, inflation, and increased regulatory obligations related to grid security and environmental compliance [6].