Who should pay for $20M Santee Cooper sale plan?

Jerry Bellune
Posted 7/18/19

Santee Cooper has dug in its heels against a powerful state lawmaker.

The taxpayer-owned utility does not want to follow Senate Finance Committee Chairman Hugh Leather-man’s orders to pay $15 …

This item is available in full to subscribers.

Subscribe to continue reading. Already a subscriber? Sign in

Get 50% of all subscriptions for a limited time. Subscribe today.

You can cancel anytime.
 

Please log in to continue

Log in

Who should pay for $20M Santee Cooper sale plan?

Posted

Santee Cooper has dug in its heels against a powerful state lawmaker.

The taxpayer-owned utility does not want to follow Senate Finance Committee Chairman Hugh Leather-man’s orders to pay $15 million of the $20 million cost for consultants to decide if it should be sold.

In a July 5 letter, Santee Cooper CEO Jim Brogdon challenged Leatherman’s authority, The State newspaper reported. Brogdon is stepping down to be replaced by Mark Bonsall of Arizona.

Brogdon wrote that lawmakers’ written plan for offers to buy or manage San-tee Cooper didn’t include the $15 million nor was it debated at the Statehouse.

He said Santee Cooper:

• Will pay only if all lawmakers vote to require it.

• The $15 million will be deducted from $17 million Santee Cooper pays the state each year.

The state Administration Department says it needs $20 million to hire experts to review offers, but lawmakers set aside just $5 million.

Leatherman wrote Santee Cooper that they will be expected to cover the rest.

Mid-Carolina Electric Coop in Lexington County and 19 other electric co-ops that buy Santee Cooper power agree with Leatherman.

In a letter they called the $15 million request “reasonable and necessary” for a multi-billion-dollar sale.

Brogdon is making a rare show of defiance. This is expected to delay negotiations to buy or take over the management of Santee Cooper.

$4 billion of its $8 billion debt came from mismanagement, delays and cost overruns of the failed $9 billion nuclear plant it was building with SC Electric Gas of Lexington County.

Robert Hochstetler, CEO of Central Electric Cooperative which buys power for the 20 co-ops wrote, “We realize that experienced and qualified investment bankers are expensive, but we are convinced they are necessary for a successful process that will produce the best result for the state.”

Comments

No comments on this item Please log in to comment by clicking here