State regulators have bowed to political pressure and dropped a questionable consulting contract.

The consultant, Pegasus Global Holdings, has deep ties to big power companies.

The company stood to make up to $175,000, but had not yet been paid for any work.

Under political pressure, the Public Service Commission ended the contract last week, the Charleston Post and Courier learned.

The commissioners were accused of withholding information about Pegasus.

The consultant was to help set prices for Dominion Energy, SC Electric & Gas’s new owners, and other investor-owned utilities to pay for power from independent solar companies.

Lawmakers, environmental groups and the solar industry criticized the firm’s connections to Duke Energy and Dominion Energy, the state’s 2 largest utilities.

Pegasus Chairwoman Patricia Galloway had served on the board of SCANA Corp., which Dominion bought earlier this year.

Duke Energy paid Pegasus more than $3 million in 2011 to defend it in a massive Indiana coal project.

At a hearing, commissioners said they were blindsided about Pegasus’ earlier work for Duke Energy.

Commissioner Justin Williams blamed Pegasus for not disclosing that contract even though the coal gasification project is prominently listed on Pegasus’s website.

“I don’t think Pegasus truly appreciates the current climate that we are in,” he said. “There’s no room for mistakes or excuses.”

Commissioner Swain Whitfield blamed the oversight on tight deadlines the PSC works under.

“Sometimes when you are moving expeditiously, things don’t always come to light,” Whitfield said.

All but 1 commissioner voted to end the contract.

Commissioner John “Butch” Howard abstained.

Pegasus did not respond to a request for comment.

The PSC will search for a replacement, but they plan to vet consultants in public with a court reporter.

Commissioner Tom Ervin wants consulting firms questioned under oath to gauge conflicts of interest.

He said the utilities and solar companies should be allowed to submit questions to the consulting firms.