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People from all over the country are flocking to cities across the state of South Carolina. In fact, the Upstate expects to have a population roughly the size of Charlotte’s in just 20 years.

Organizations like the Upstate Chamber Coalition are already preparing for the huge surge in population, specifically the need for new jobs, housing, modern infrastructure and an education system that can handle the influx of families.

Jason Zacher, the executive director of the Upstate Chamber Coalition, recently stopped by an event at Lee’s Barbecue in Waterloo, South Carolina to discuss the pressing topics lawmakers need to focus on for the upcoming legislative session. With the session beginning in January, Zacher brought up issues such as pension reform, import-export bank restoration, and the state-owned utility Santee Cooper.

With more pressure than ever on lawmakers to make a decision as soon as possible on the state-owned utility, Zacher went on to say “We’ve supported the sale of Santee Cooper because of the potential statewide budget impact. If we end up having to absorb the debt that Santee Cooper has, that is debt service that cannot be used for higher teacher pay, it cannot be used for infrastructure, it cannot be used for name your program that needs to be funded.”

While much of the focus has been on Santee Cooper’s almost $7 billion of debt, there are other factors to consider. The V.C. Summer project began a decade ago and started to fail several years ago. Since then, lawmakers have spent two years talking about what to do with the state-owned utility that allowed the project to go on even with knowledge it would never be functional while accumulating billions of dollars of debt.

Meanwhile, other important issues are falling to the wayside while lawmakers continue to debate the future of Santee Cooper. With the upcoming legislative session beginning in January, recommendations from the Department of Administration to the General Assembly should come by January 15 on Santee Cooper.

However, it is up to lawmakers to make sure this is a speedy process so that they can turn their focus to other issues such as the state’s failing education system and the quality of the workplace for teachers.

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It’s been a few weeks since state-owned Santee Cooper unveiled their “long-term plan” for the future. Since then, many Santee Cooper direct serve and electric cooperative customers have been wondering, what does it all really mean?

While the plan involves positive initiatives like a transition to more renewable, cleaner energy sources such as solar and natural gas, there are no specifics to how those goals will be achieved.

Breaking down the plan even further, Santee Cooper customers and South Carolina residents have room for concern as it appears there are many unanswered questions.

In order to pay down the debt, the state-owned utility started raising rates a few years back. Now, with the debt in the spotlight more than ever, part of Santee Cooper’s plan is to freeze rates for five years. While this is promising at first glance, many Santee Cooper customers are worried that it will only prolong the inevitable.

Other than closing its Winyah coal plant by 2027 and cutting jobs (another concern for local residents) to reduce costs, the utility doesn’t specify how it plans to pay its billions of dollars of debt and make the investments needed to reach their goals.

Which begs the question – will rates increase even more than anticipated after the five-year freeze?

Additionally, the state-owned agency finds itself in a lawsuit with its largest customer, the twenty electric cooperatives, who is suing the energy provider to stop them from raising their customer’s rates even more to pay for a generating plant that will never operate.

A question that hasn’t been answered – what will happen if the cooperatives win? Will the debt fall only onto the direct serve customers? Will a state-owned agency have to file for bankruptcy?

Many questions and very few complete answers seem to plague Santee Cooper at present.

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After making a surprise announcement that they would be unveiling elements of their reform plan to the public, state-owned Santee Cooper revealed the details this past Monday.

The plan, centered around the utilities’ move from coal to solar power and gas-fired plants, also lays out a business forecast for the debt-ridden utility. In July, Santee Cooper brought on its highly-paid CEO, Mark Bonsall, who led the transition from coal to solar at an Arizona utility company before heading to South Carolina. And news last month previously stated Santee Cooper would be phasing out coal generation and shutting half of its coal plants down. Leaving open the question – what will happen to all the employees that work at these plants?

According to the plan, the percentage of energy generated by coal will decrease to around 30 percent from the current level of 52 percent by 2033. To accomplish this, Santee Cooper will phase out its Winyah Generating Station, add utility-scale solar power while also buying smaller natural gas-fired turbines, all of which will take considerable time and resources to accomplish.

The initial plan involved a cost-sharing agreement to fund this shift with Georgia based, Southern Co., but after major backlash from lawmakers, the Governor’s office and South Carolina residents, this part of the plan was abandoned.

The board was intending to vote on the agreement with the investor-owned utility Monday, but the deal was shut down after state Department of Administration Director Marcia Adams, sent a letter on August 29 nixing the agreement and even threatening a restraining order to shut down the deal if necessary. Adams explained that entering into an agreement “with one more investor-owned utilities that include terms and arrangements that would potentially subvert the process set fort in the joint resolution.”

On September 2nd, S.C. Senate Finance Committee Chairman Hugh Leatherman, widely considered the most powerful legislator in the state, strongly opposed any such agreement and sent a letter requesting Santee Cooper not enter into any agreement that would limit the General Assembly’s options. Senator Leatherman ended the letter with, “in my opinion, such actions would be grounds for board removal if the governor so chooses.” Legislators, state officials and even the co-ops argued that the arrangement would have undermined and hindered the state’s process for assessing the bids for Santee Cooper.

While a plan roll-out from the state-owned utility was expected in the context of a reform deal to be submitted to the Department of Administration and evaluated alongside the management and sale bids, this announcement leaves many South Carolina residents and Santee Cooper customers wondering, what does it even mean?

The transition to renewable and cleaner energy is the future of the energy business without a doubt but Santee Cooper outlined no way to pay for this transition or how it will alleviate customers from rate increases to pay off the $4 billion of debt from the failed V.C. Summer project.

Bonsall pointed out that Santee Cooper plans to pay off $500 million of the debt by next year without explaining how they plan to do so, and still leaving billions unpaid, left to fall onto over 2 million South Carolinians who purchase power from the state-owned utility directly or from one of the 20 Electric Co-ops.

According to The State, Bonsall said Santee Cooper is still interested in partnering with other utilities in order to pay for these transitions even though legislators, government officials and the coops believe this will undermine the plan for the General Assembly to assess bids for the state-owned utility.

So, the question still remains, what will happen to Santee Cooper and its billions of dollars of debt?

Santee Cooper’s largest customer, the electrical coops that buy three-fifths of Santee Cooper’s power which gets distributed to their customers across the state of South Carolina, is suing the state-owned utility. While the coops are by far the agency’s largest customer, a 38-page claim filed in August works to show that Santee Cooper actively kept the problems of the V.C. Summer construction hidden from the coops.

The project left Santee Cooper billions of dollars in debt. To pay off this debt, the burden falls onto both the state-owned utilities’ direct serve and co-op customers. The 20 co-ops who purchase power from the utility are suing to stop Santee Cooper from charging their customers any more for the debt.

The coops attorney in the case explained, “The emails, letters, etc.described above tell the indisputable story of a project beset almost from the beginning with myriad fundamental, entrenched problems that led inexorably to major delays and cost overruns,” the co-ops’ attorney, Frank Ellerbe, wrote in the filing. “Yet, it was a story Santee Cooper kept largely to itself.”

The coops claim to be powerless throughout the construction process of the nuclear reactors and in turn, should not be held responsible for the debt Santee Cooper faces for their failures. While success for the coops will save millions of customers from having to pay off the debt, there are still a lot of questions left unanswered.

If Santee Cooper is blocked from increasing the coop rates, what will happen to the debt and how will it be paid?