Reference is to Printer's Date 01-11-18-H.
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION __.
(A) There is hereby created the
Santee Cooper Evaluation and Recommendation Committee to be
composed of nine members, three of whom are appointed by the
Governor, three by the Speaker of the House of Representatives,
and three by the President Pro Tempore of the Senate. Each of
these sets of three members must consist of one resident of
Horry County, Georgetown County, or Berkeley County; one member
who is a customer of an electric cooperative served by Santee
Cooper; and one member at large. No person shall be appointed
or confirmed to the committee if such person is employed by,
receives compensation from, or accepts retirement or other
benefits from a publicly-owned utility, an investor-owned
utility, an electric cooperative, or any association or
organization that represents a publicly-owned utility, an
investor-owned utility, or an electric cooperative or otherwise
participates in the energy industry or marketplace. Vacancies
shall be filled by appointment in the manner of original
appointment.
(B) The members of the
committee shall elect a chairman and such other officers as they
consider necessary. The committee shall meet upon the call of
the chairman or a majority of its members. A member shall
receive per diem, mileage, and subsistence as provided by law
for members of legislative or other state committees as
appropriate to be paid from the approved accounts of the office
or House of their appointing authority. Meeting space and staff
support shall be provided by the General Assembly as needed and
required. The committee shall render recommendations to the
General Assembly as soon as practicable, at which time the
committee is dissolved, unless otherwise continued as provided
by law.
(C) The committee shall
evaluate the following non-exhaustive list of objectives:
(1)
determine the manner in which the
General Assembly may best protect ratepayers and taxpayers in
regard to Santee Cooper;
(2)
analyze whether selling Santee Cooper
is in the best interests of South Carolina taxpayers, the
ratepayers of Santee Cooper, and the Ratepayers of the Electric
Cooperatives of South Carolina;
(3)
determine whether the assets of
Santee Cooper should be considered for sale as a whole or in
parts, and which assets of Santee Cooper, if any, should be
retained by the State;
(4)
obtain a valuation of Santee Cooper
and its assets;
(5)
develop a transparent and public
process to conduct hearings, receive bids from potential
purchasers, and evaluate a potential sale of Santee Cooper;
and
(6)
determine the future role of Santee
Cooper, whether sold or retained by the State.
(D) To assist with
meeting those objectives, it is recommended that the committee
consider, but is not limited to, the following:
(1)
determine the criteria necessary to assess the viability
and feasibility of the potential sale of Santee Cooper;
(2)
identify all assets of Santee Cooper and then determine
which assets if any of Santee Cooper should be considered for
sale;
(3)
evaluate whether Santee Cooper water system or the Santee
Cooper lakes, or both, should be part of any sale;
(4)
obtain valuation of Santee Cooper assets, both
collectively and separately, with specific valuation for the
transmission, distribution, and generation assets of Santee
Cooper;
(5)
establish the criteria, parameters, and process to receive
bid proposals from potential purchasers of Santee Cooper
assets;
(6)
evaluate whether the Procurement Code or other state law
or regulation impacts the sale parameters, and if so, determine
the best course of action to address same in their requests for
proposals;
(7)
as allowed by the Procurement Code or other state law or
regulation, conduct public hearings to receive a bid from each
potential prospective bidder and set time for same;
(8)
analysis of a potential sale of Santee Cooper on current
employees and retirees and whether bidders must maintain current
workforce levels and pension commitments for a set period post
sale;
(9)
develop or cause to be developed the request for proposals
to be used by potential bidders;
(10)
establish the time frame for receipts for proposals from
potential bidders, evaluation of proposals by committee, and
make a recommendation to the General Assembly on whether a sale
is in the best interests of ratepayers and taxpayers;
(11)
require that all bid proposals shall be made as the best
and final offer from each bidder;
(12)
identify legislation needed to complete any potential
sale;
(13)
determine whether the committee should hire an investment
bank or other third party expert to assist with evaluation of
offers received;
(14)
determine the impact of Santee Cooper debt, including all
bonded indebtedness, in the sale of Santee Cooper assets and
including a requirement that all bids must satisfy indebtedness
of Santee Cooper existing at close of sale;
(15)
identify potential risks to South Carolina taxpayers and
ratepayers that could result from sale of Santee Cooper either
in whole or in part including, but not limited to, loss of tax
exempt status of buyer, impact on economic development, and
whether sale at this time would not preclude South Carolina from
recovering full value of Santee Cooper;
(16)
determine what course of action, whether a sale or nonsale
of Santee Cooper or other option, provides maximum rate relief
to Santee Cooper ratepayers, customers of the Electric
Cooperatives of South Carolina, and industrial customers of
Santee Cooper;
(17)
determine the total assets of Santee Cooper and identify
those not necessary for generation, transmission, or
distribution needs so such assets can be sold without violating
Section 58-31-360;
(18)
evaluate Santee Cooper's plan and strategy for future
generation facilities in order to meet future electric demand,
Santee Cooper's timeline for same, and costs for such projects
to the ratepayers;
(19)
ascertain future economic development projects for Santee
Cooper and the projected revenue estimated from same and whether
an investor-owned utility can provide the same economic
development impact as Santee Cooper;
(20)
calculate the revenue to Santee Cooper from the industrial
and other nonresidential ratepayers, excluding revenue derived
from the Electric Cooperatives of South Carolina;
(21)
evaluation of whether diversification of Santee Cooper's
generation portfolio, including purchases of generation from
outside Santee Cooper, provides a more cost effective manner to
service customer need;
(22)
obtain information on current amounts of cash on hand and
in reserve of Santee Cooper;
(23)
obtain current estimate of Santee Cooper pension
liabilities;
(24)
evaluation of projected revenue growth and impact on same
on the ability of Santee Cooper to meet debt obligations;
(25)
quantify current amounts of long-term and short-term debt
of Santee Cooper;
(26)
identify the structure of each of Santee Cooper's bond
offerings;
(27)
review proposed rate schedules in both the long and short
terms to determine full impact of V.C. Summer on ratepayers;
(28)
determine whether Santee Cooper's debt to equity ratio
comports with market ratios of other electric utilities;
(29)
determine whether Santee Cooper has obtained efficiency or
performance studies related to expenses for workforce management
and how Santee Cooper's ratios relate to industry standards;
(30)
evaluate the electric cooperative structure, including the
continued role of the Central Electric Power Cooperative;
(31)
evaluation of options to provide maximum rate relief to
electric cooperative customers either through sale or retention
of Santee Cooper;
(32)
analysis of the central contract between Santee Cooper and
the electric cooperatives to determine the impact of that
agreement on any sale or management agreement involving Santee
Cooper;
(33)
solicit input from the electric cooperatives and other
industrial customers on potential sale or long-term viability of
Santee Cooper;
(34)
direct Santee Cooper to inventory all assets at V.C.
Summer site and obtain a salvage or sale valuation for those
assets and that any monies received from such salvage or sale be
used as directed in the Rate Relief and Stabilization Fund;
(35)
determine whether Santee Cooper should be subject to
oversight by the Public Service Commission or Joint Bond Review
Committee;
(36)
provide alternative governance structures for Santee
Cooper other than a board of directors based on other state
owned utilities; and
(37) any other factors
that the committee finds relevant to the objectives contained in
this section. /
Renumber sections to conform.
Amend title to conform.