SC Gov. McMaster signs Santee Cooper reform plan, but still will push to sell utility
Santee Cooper will remain state-owned, for now, as Gov. Henry McMaster on Tuesday signed a Santee Cooper reform plan that includes increased oversight of the utility.
But in a signing statement, McMaster said he will continue to push for a sale of the utility, which has $6.8 billion in debt.
McMaster has been a proponent of selling the state-owned utility that provides electricity directly and indirectly to 2 million South Carolinians, but the reform package does not include a process to consider purchase offers for the utility.
“As I have frequently noted, there is no state agency more in need of reform or privatization than Santee Cooper,” McMaster said. “...To be clear, my preference is still to privatize Santee Cooper; however, the status quo has been and continues to be unacceptable, even in the short term.”
The reform package includes legislative oversight on whether Santee Cooper issues long-term debt. It also replaces current board members over the course of four years. The Agency Head Salary Commission, which is comprised of lawmakers who set salaries for state agency directors, will have to approve employment contracts and severance packages of Santee Cooper’s CEO.
Among the other aspects of the Santee Cooper reform package is approval by the Public Service Commission, which regulates investor-owned utilities in the state, when the utility wants to build new electricity generation.
The reform also includes setting up a PSC-style process when Santee Cooper wants to increase rates, which would includes public notification of a rate increase proposal. The Office of Regulatory Staff, which represents the public’s interest in utility rate cases, also will have input over electric rate increases. Customers and the ORS also may appeal Santee Cooper rates to the State Supreme Court if they believe there was an error on whether the law or correct process was followed correctly.
Lawmakers in the reform package also evaluate the closure of the coal-fired Winyah Generating Station by 2028, as well as putting together an electric generation plan that will be meet a net zero carbon emission goal by 2050.
“This legislation has the potential to bring Santee Cooper into the 21st century, turning our publicly owned utility into a leader on the clean energy future our state deserves,” said Natalie Olson, campaigns director for Conservation Voters of South Carolina.
Santee Cooper said it would embrace the reforms outlined in the legislation.
“Throughout this process, we have listened to the concerns of legislators and others, and we have already begun preparing to meet these new requirements that will increase our transparency and accountability,” said Mollie Gore, a spokeswoman for the utility. “Our employees are committed and working very hard towards a leaner, greener utility that creates savings for customers and value for all.”
Since 2017, lawmakers have wrestled with what to do with the utility after it partnered in the failed V.C. Summer Nuclear Generating station project, which added billions to Santee Cooper’s debt customers will have to eventually pay even though it never generated a watt of electricity.
Last year, lawmakers considered options to sell the utility, have an outside company manage it, or let Santee Cooper reform itself. All three options were rejected and lawmakers sought to craft their own reform plan.
Florida-based NextEra Energy was the preferred bidder to buy Santee Cooper, but it withdrew its offer earlier this year after the Senate passed a reform plan without exploring sale options.
The House had proposed having a committee of lawmakers in place for 10 years to consider offers for all or parts of Santee Cooper. The Senate, however, overwhelming voted against that idea.
This story will be updated.
This story was originally published June 15, 2021 at 1:39 PM.
