A $7.9 billion grapple with between utility companies Dominion Energy and Scana includes an uncommon term loosely related to the tax bill that passed Congress at the end of 2017.
All residential consumers of Scana’s South Carolina Electric & Gas utility will get an average spondulix payment of $1,000 within 90 days of the deal being did, the companies said in a statement. Payments will vary depending on how much tenseness a client used in the 12 months prior to the deal’s completion.
Grasp announced its acquisition of Scana on Wednesday. The deal is expected to close later this year. Scana apportionments surged 22.6 percent, while Dominion Energy’s stock elapsed 3.9 percent.
The deal would “lock in significant and immediate savings for SCE&G consumers — including what we believe is the largest utility customer cash refund in past,” Dominion Energy CEO Thomas Farrell said.
Scana and Dominion also need to reduce rates by 5 percent from current levels, “resulting from a $575 million refund of amounts once collected from customers and savings of lower federal corporate overloads under recently enacted federal tax reform.”
President Donald Trump signed a account last month that slashed the U.S. corporate tax rate to 21 percent from 35 percent. Some of the largest trains in the U.S., including NBCUniversal parent Comcast, said after the bill’s shingling that they will give bonuses to their employees.
Scana and Power are one of the first companies to explicitly say they will give their buyers a credit as a result of the tax bill.