SC utility regulators do not protect ratepayers.

The Public Service Commission protects utility executives, their investors, lenders and profits.

That’s the assessment of a veteran energy expert on SC’s regulated monopolies.

“The idea that utility regulators protect customers is completely wrong,” says Jim Clarkson, CEO of Resource Supply Management.

Clarkson advises major electricity users on how to control their energy costs.

He said the real purpose of state regulation is to protect utilities from competition and assure they recover bad investment costs such a the failed $9 billion SCANA-Santee Cooper twin nuclear reactor project.

The Chronicle has asked the PSC, the Office of Regulatory Staff and Dominion Energy, which now owns SCANA, for comment.

In a note to his clients shared with the Chronicle, Clarkson wrote, “In the PSC’s worst decisions, SCANA’s investors were favored over customers.”

SCANA – now owned by Dominion Energy – made a huge mistake in building a nuclear plant, he said.

With the PSC’s approval, Dominion now wants a 7.7% rate hike to collect millions to pay off the debt.

“When seeking approval to collect the multi-billion-dollar debt, SCANA said they would go bankrupt if they could not pass the cost to the party least guilty, customers of the debacle.

The PSC should have denied recovery of any cost and let nature take its course. Bankruptcy would have been a better choice.”

Another energy expert, Tom Clements of Savannah River Watch, agreed.

“While a case can be made to abolish the PSC which has always been in the pocket of the utilities,” Clements told the Chronicle “a more significant initial step would be the elimination of the monopolies.

“The legislature should allow competition which would defang the PSC.”

Lawmakers “will have to be dragged kicking and screaming by the public from the grip of utility lobbyists who call the shots.”

Clarkson said “We never needed a Public Service Commission in the 1st place City-owned electric systems and electric cooperatives are not regulated.

“The commissioners do whatever the General Assembly wants so why bother with a middle-man PSC?”