Santee Cooper costs will only rise

At first glance, Santee Cooper customers seem to be getting a better deal than SCANA customers. However, unlike state-owned Santee Cooper, SCANA has shareholders who can absorb some of the losses from the failed nuclear construction project; Santee Cooper has only debt-holders and customers.

As my research explained, Santee Cooper is only servicing its debt from the project, not principal. It still owes $9 billion in principal and amortized interest.

South Carolinians are the only source of funds Santee Cooper has to absorb the defunct project. How much more customers must pay depends on the extent of reduced customer demand at higher prices, whether or not the Central Electric Power Cooperative will pay higher rates and when rates are increased (the longer the delay, the higher they must go).

Santee Cooper and co-op customers throughout our state are shouldering a large debt — more than $9 billion of principal and interest if it isn’t paid off until 2056. This is a festering wound that needs treatment ASAP, because it will continue to get worse with time.

The State publishes a cross section of the letters we receive from South Carolinians in order to provide a forum for our community and also to allow our community to get a good look at itself, for good or bad. The letters represent the views of the letter writers, not necessarily of The State.

This story was originally published May 8, 2018 at 2:18 PM with the headline "Santee Cooper costs will only rise."