SCANA Corporation SCG announced a settlement with the customers of South Carolina after the plaintiffs sued the company for charging lofty electric rates associated with a failed nuclear development.
The class-action lawsuit stemmed from the fact that SCANAconcealed information from customers regarding difficulties that the nuclear plants had been facing long before the project was declared abandoned — in July 2017. Notably, backed by the Base Load Review Act, the company went on charging customers to recoup costs of nuclear units during the construction phase despite the fact that the project was about to shut down.
With roughly $2 billion of settlement, SCANA announced plans to relieve customers in terms of future electric rate credit. However, the settlement deal awaits approval from the court.
Moreover, the settlement fund allocation is dependent on the approval by South Carolina Public Service Commission for the proposed SCANA−Dominion Energy Inc. D merger. Notably, for the merger to close, this approval would be the last.
Overall, the news of the settlement on Nov 24 has pleased SCANA investors as reflected from the stock’s surge of more than 5%, as of the closing price on Nov 26. Looking at the year-to-date pricing chart, SCANA has rallied 17.2% against the 0.2% collective decline of the stocks belonging to the industry.
Presently, SCANA carries a Zacks Rank #4 (Sell) while Dominion Energy carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the utility - electric power space include Atlantic Power Corporation AT and Black Hills Corporation BKH. Both the stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atlantic Power beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 25.6%.
Black Hills will likely see earnings growth of roughly 2% in 2018.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SCANA Corporation (SCG) : Free Stock Analysis Report
Atlantic Power Corporation (AT) : Free Stock Analysis Report
Black Hills Corporation (BKH) : Free Stock Analysis Report
Dominion Energy Inc. (D) : Free Stock Analysis Report
To read this article on Zacks.com click here.