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South Carolina Lawmakers Issues Santee Cooper and Education

3 Things That Happened During South Carolina’s Three-Day Special Legislative Session

Featured Image Source: Andrew Whitaker, Post & Courier

South Carolina’s regular legislative session came to an end early last month, but lawmakers returned to the statehouse a few weeks later for a three-day special session.

Having finished their special session a day early, lawmakers met on May 21 and May 22 to discuss legislation and finalize the budget. And, of the legislation being reviewed, two major bills were up for debate, including Santee Cooper and the Carolina Panthers.

The Largest Budget In State History Was Passed

Both the House and Senate passed the largest budget in state history with a total spending package of $29.8 billion with a 105-6 and 32-8 vote, respectively. Revisions to the budget include the removal of provisos that would have added tolls along I-95 and a reduction of the “Be Pro Be Proud” program, which is a program that started in Arkansas and tours the state to give students exposure to industries. Originally $950,000 of the budget was allocated to the program before being reduced to $642,500.

Lawmakers Agreed To Explore The Sale of Santee Cooper

Lawmakers adopted a final version of the resolution which will allow the Department of Administration to oversee the process of collecting and reviewing bids for state-owned Santee Cooper. The Department will hire experts to assist it in analyzing and recommending three proposals to be passed along to lawmakers. The three proposals will consist of one purchase offer from a third-party, one management offer and a final reform proposal from Santee Cooper. While this resolution was passed, the future of Santee Cooper is still undecided and will likely be decided during the next legislative session, continuing to leave Santee Cooper direct serve and coop customers without any relief from the VC Summer debt while SCANA customers have already received some rate relief from the debt.

Carolina Panthers Receive Major Tax Breaks

According to the newly adopted Carolina Panthers resolution, the Panthers don’t have to pay state income taxes for players, coaches, or other employees for the next 15 years as long as they build their new complex near Rock Hill. Governor McMaster is hoping the Panthers’ move to South Carolina will create jobs for many South Carolinians.

South Carolina’s next regular legislative session will start back up in January 2020.

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santee cooper cooperatives

Local Cooperatives Ask For A Full Solution To Santee Cooper Debacle As South Carolina’s Special Legislative Sessions Begins

Feature Image: Post & Courier

South Carolina lawmakers headed back to the statehouse today for the first of a three-day special session to discuss topics such as the state budget and Santee Cooper.

The regular session ended May 9 with a compromised piece of legislation that would allow the Department of Administration to seek offers from potential buyers, potential outside managers, and Santee Cooper itself, and create a team of experts to review them with.

The bill is now in conference committee, which is comprised of three Senators and three House members, and while there are many considerations to keep in mind while lawmakers debate, one thing, in particular, is the role the state’s cooperatives play and their outstanding lawsuit against Santee Cooper and its $8 billion debt.

Santee Cooper generates most of the power for the coop’s 800,000 members, who are currently on the hook for the largest percentage of Santee Cooper’s total debt, $4 billion for V.C Summer unfinished nuclear plant and $4 billion in operating debt, plus interest expenses, estimated at $1 million per day. Central Electric and consumers are challenging Santee’s Cooper’s ability to recoup the nuclear debt cost from ratepayers in a class-action lawsuit and billions of dollars are at stake.

If the lawsuit results in Santee Cooper being able to charge the coops for this debt, coop customers would be responsible for paying back billions of dollars with no return. But, if the results are in favor of the cooperatives, Santee Cooper would have to file for bankruptcy which would eventually leave Santee Cooper unable to maintain operations or fulfill their obligations to debt-holders.

The local coops are hoping lawmakers keep this in mind when deciding on the new legislation. They want the decision to include a solution that resolves their lawsuit and involves transparency, a clean process, and a purchase offer that would eliminate the debt and lower rates.

SC Living reported the coops are not interested in a management agreement since it wouldn’t include a lawsuit settlement or resolve the massive debt and interest owed by Santee Cooper.

While we’re still a ways away from the final decision being made about Santee Cooper, over the next three days, we should know whether or not the Department of Administration will be able to start seeking and reviewing offers.

Read the full coop piece at SC Living.