Are state officials nuts to pay $20 million in hopes of selling Santee Cooper?

That’s a multi-million dollar investment lawmakers hope will pay off in selling taxpayer-owned utility and getting rid of its $4 billion nuclear fiasco debt.

Lawmakers are forcing Santee Cooper to pay $15 million of the cost.

That $15 million may mean higher rates for electric cooperative members including Mid-Carolina Electric in Lexington County.

Lawmakers have told the SC Department of Administration to find and evaluate offers for Santee Cooper.

The officials have hired an investment bank, a law firm and energy consultants, all of them out of state.

They say the expertise needed is not available in South Carolina.

According to energy expert Rod Funderburk of Resource Supply Management in Columbia:

• Moelis and Co., a New York investment bank, will be paid at least $5 million to analyze Santee Cooper’s assets, identify and contact potential bidders, market the utility to those bidders, grade the bids and select the 3 best offers to lawmakers.

That $5 million includes $3 million for completing such tasks as $1 million for marketing materials describing Santee Cooper to potential bidders, $1 million when the bids for San-tee Cooper come in, and $1 million when Moelis delivers its report to the state.

Moelis will be reimbursed for all its expenses.

• The Los Angeles law firm Gibson, Dunn and Crutcher will be paid up to $6 million for legal help with bids and transactions.

10% of these fees will be deferred until lawmakers agree what to do with San-tee Cooper and paid only if they decide to sell it.

• Energy and Environmental Economics of San Francisco will get up to $1.48 million over the next year to consult on energy-related matters.

• Maryland attorney Scott Hempling will be paid $345 an hour to advise the agency on energy policy and law, help the agency develop its request for bids and develop criteria to grade them and explain and interpret technical utility issues.

Hempling also will help hire the other consultants.

Santee Cooper can package and submit its own offer, explaining how it would improve itself if allowed to remain a state utility.

“Does anyone really think lawmakers will sell Santee Cooper?” Funderburk asked.