SCE&G’s nuclear fiasco

After 15 long days, the S.C. Public Service Commission wrapped up its hearing on the SC Electric & Gas nuclear debacle.

In the next few days, it will rule on how much SCE&G electric ratepayers will have to pay for the $5 billion the utility spent on the now abandoned nuclear energy project.

During the hearing, evidence was shown that SCE&G withheld important information from regulators. Had that information been made public, the project might have been shut down as early as 2015, potentially saving ratepayers billions of dollars.

On one side at this hearing were the representatives of the ratepayers who want to roll back electric rates up to 20% because of SCE&G’s deception. Since 2009, SCE&G ratepayers have had rates raised by 18%.

The Office of Regulatory Staff has proposed a 20% rate rollback as both fair and financially feasible for SCE&G.

Numerous other groups and individuals representing environmentalists, big and small businesses, senior citizens, solar and good government have, too.

On the other side were SCE&G and Dominion Energy, the $79 billion Virginia-based company that wants to buy SCE&G.

They argued that SCE&G did nothing wrong and ratepayers should be responsible for much of the construction costs.

At the end of the hearing, even they agreed to roll back rates 15% if Dominion is approved to take over SCE&G.

Should the PSC rule in favor of Dominion, residential ratepayers will pay more monthly than the ORS proposes.

The PSC has a difficult decision to make. Unfortunately, that decision has been made even more difficult because of the Speaker of the SC House, Jay Lucas.

Lucas formally intervened in this hearing. His taxpayer-funded staff actively promoted Dominion’s settlement offers. The speaker told the PSC that he wanted them to rule in favor of the SCE&G-Dominion proposal.

The speaker has enormous influence over who becomes a member of the PSC. The speaker appoints almost half of the joint legislative committee that decides which applicants for the PSC are to be considered.

Unquestionably, the speaker can almost unilaterally control the future re-election of a Public Service Commissioner. He can do it through the screening process and by his ability to sway House members’ votes because of his powerful position.

The speaker telling the PSC how he wants them to rule is a threat to the integrity of this quasi-judicial process. It should be free of undue legislative influence.

Also troubling is his questionable authority to speak on behalf of House members.

Does the House really support the 15% rollback over the 20% ORS proposed?

The PSC was elected by the legislature and is trusted to make decisions based on the facts. If powerful legislators are to be a part of this process and instruct the commissioners how to rule, maybe we should just disband the PSC and let the legislature make all utility rate decisions.

Mr. Knapp is an intervenor in the PSC hearing and the president and CEO of the SC Small Business Chamber of Commerce.