SCG/D: Judge Childs Holds First Day of Hearings on SCANA Request for Injunction; Still Weighing Defendants Motion to Dismiss

Event Driven Takeaways

  • Federal district court Judge J. Michelle Childs yesterday, July 30, held the first of two days of hearings on SCANA’s request for a preliminary injunction to prevent implementation of legislation temporarily cutting the construction surcharges SCANA collects to offset the costs of its now-abandoned $9.5B V.C. Summer Nuclear Power project. The complaint was brought by SCANA’s principal operating subsidiary South Carolina Electric & Gas, or SCE&G.
  • Dominion Energy has made clear in recent weeks that the disposition of this action will not cause it to abandon the bid for SCANA. Dominion’s position was reiterated in court and was not disputed by any of the parties.
  • Judge Childs, who on Friday dismissed SCANA’s original complaint, is still entertaining three motions to dismiss the revised complaint filed by the defendants, the PSC, and the each of the two intervenors, State House Speaker Jay Lucas and State Senate President Pro Tempore Hugh Leatherman, collectively on behalf of the General Assembly.
  • Following opening statements, SCE&G presented four witnesses: two company executives and two utility rate experts who testified to the imminent harm SCE&G will face if the PSC is not enjoined from implementing the rates.
  • SCE&G alleges that the two acts, collectively referred to in the complaint as “the Act” passed by the General Assembly in late June is unconstitutional on four grounds: the Act is a bill of attainder, it is an unconstitutional taking of SCE&G property, it deprives SCE&G of substantive due process and it deprives SCE&G of procedural due process.

Federal district court Judge J. Michelle Childs on Monday, July 30, held the first of two days of hearings on SCANA’s challenge to the constitutionality of recently-enacted legislation and its request for a preliminary injunction against implementation of the mandated experimental rates that temporarily slash the surcharges SCANA collects to offset the construction costs of its now-abandoned $9.5 billion V.C. Summer Nuclear Power project. The complaint was brought by SCANA’s principal operating subsidiary, South Carolina Electric &