Report of the Department of Administration pursuant to Section 9 of the joint resolution (A95, R113, H4287) regarding the South Carolina Public Service Authory

Abstract

The report that follows is at its core a discussion about the future of Santee Cooper and how it can be best positioned to serve the interests of its customers, the taxpayers of South Carolina, and the State of South Carolina itself. The abandonment by Santee Cooper in 2017 of Units 2 and 3 of the Virgil C. Summer Nuclear Generating Station left the State with a $4 billion problem--namely, how to provide relief to Santee Cooper’s retail and wholesale customers burdened by the payments on debt incurred for a costly power plant that would never provide them with electricity. In drafting the Joint Resolution, the General Assembly charged the South Carolina Department of Administration and its outside advisors with considering three paths to solve this problem: Analyze a plan by Santee Cooper for its reform, restructuring, and changes in its operations; Conduct a competitive process seeking proposals for third-party management of Santee Cooper in lieu of its sale; and · Conduct a competitive process seeking bids for a sale of some or all of the assets of Santee Cooper.