Should ratepayers or lawyers get $64M?

Posted 5/22/19

Who will benefit most – SC Electric & Gas ratepayers’ lawyers or their clients?

The decision is ultimately up to Circuit Judge John Hayes who heard lawyers argue more than 3 hours last …

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Should ratepayers or lawyers get $64M?

Posted

Who will benefit most – SC Electric & Gas ratepayers’ lawyers or their clients?
The decision is ultimately up to Circuit Judge John Hayes who heard lawyers argue more than 3 hours last week over whether he should approve:
• A $2.2 billion class-action lawsuit settlement over SCE&G’s failed $9 billion nuclear fiasco.
• $64 million in fees for  13 law firms for representing the ratepayers.
The settlement could give SCE&G’s 725,000 electric customers up to $200 million in cash refunds from the utility’s new owner, Dominion Energy. Former SCE&G customers who paid higher power bills for the nuclear fiasco are eligible for some money.
The ratepayer attorneys’ fees want $2 billion in rate credits that Dominion is giving customers in a $22-a-month cut in their bills.
The Public Service Commission approved the lower rates late last year.
Ratepayer attorney Edward Westbrook told Judge Hayes why his colleagues should get 3% of the total $2.2 billion settlement.
He said the 13 law firms took a tremendous risk in suing SCE&G. Facing long odds and high-powered defense lawyers, they spent 15 months, 26,000 hours and $865,000 building their case with star witnesses and crucial documents knowing they wouldn’t be repaid unless they won or settled.
Westbrook said they provided witnesses and strategy to utility watchdog Office of Regulatory Staff in fighting to lower SCE&G rates. 
In contrast, Rob Dodson, attorney for 7 SCE&G ratepayers, said Dominion offered to buy SCANA and give $1.9 billion in rate relief almost a year before the attorneys settled.
“The idea that class counsel is responsible for this $2 billion in rate relief is also not real,” Dodson said.
Emails and letters to ratepayers did not disclose that attorneys would request up to $66 million, he said.
Instead, the attorneys said they would request only 5% of the settlement.
“This lack of transparency is one of the reasons lawyers get a bad reputation,” Dodson said. “It’s one of the reasons people are suspicious and mistrustful.”

nuclear fiasco aftermath, sce&g lawyers, lawyers

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