Reference is to the resolution as introduced.
Amend the joint resolution, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. The purpose of this Act is to protect the individual and corporate ratepayers of Santee Cooper and the electric cooperatives of this State who receive electric power from Santee Cooper from rising electric power rates due to grossly excessive debt and costs incurred in the construction of the two abandoned nuclear reactors at Jenkinsville, South Carolina.
SECTION 2. The
Committee, created by Paragraph 117.162, Section IB of Act 264
of 2018, through the February 27, 2019 vote, is authorized to
receive the information needed to evaluate the current bids and
receive a best and final written contractual offer to purchase
all assets and assume or satisfy all liabilities of Santee
Cooper upon those terms and conditions as the Committee
considers in the best interest of the State and its taxpayers
and ratepayers, after considering all other offers. It is
recommended that any offer submitted by the Committee to the
General Assembly for approval must include, but is not limited
to, the following terms and conditions:
(1) The final
acceptance and approval of the contract of sale is contingent
upon its acceptance and approval by the General Assembly in the
manner required by this Act.
(2) The obligations and
covenants made by the State of South Carolina in Section
58-31-360 of the 1976 Code in regard to the bonded and other
indebtedness of Santee Cooper must be complied with including
complete defeasance of all bonds and other indebtedness of
Santee Cooper.
(3) The purchaser must
covenant and agree to provide meaningful rate relief in the form
of reduced short-term and long-term rates for all customer
classes.
(4) The purchaser must
covenant and agree to provide long-term resource planning and a
diversified generation portfolio to prevent long-term rate
fluctuations.
(5) The purchaser must
make suitable and reasonable financial and other protections for
Santee Cooper employees and retirees.
(6) The purchaser must
set forth a location for the headquarters of Santee Cooper
post-acquisition.
(7) The purchaser must
agree to comply with all applicable federal and state
environmental protections regarding Lakes Marion and Moultrie,
their rivers and tributaries, and other recreational assets of
Santee Cooper, including a covenant to maintain the present
status quo regarding these lakes and other resources and the
quality of and access to them.
(8) The purchaser must
agree to partner with the State for future economic development
projects.
(9) The Committee can
include any or all other terms and conditions as authorized by
Paragraph 117.162, Section IB of Act 264 of 2018 that would be
in the best interest of Santee Cooper ratepayers and South
Carolina taxpayers.
SECTION 3. The Committee shall hire appropriate legal and technical experts to negotiate on behalf of the Committee with the qualified bidders for the purposes of receiving a best and final offer. The co-chairmen of the Committee shall submit to the Chairman of the House Ways and Means Committee and Chairman of the Senate Finance Committee an estimate of the expenses associated with hiring experts necessary to carry out the obligations under this Act. The experts shall report to and receive guidance from the Committee, which is charged with representing the House, Senate, and the Governor's office in the negotiations.
SECTION 4. (A) When the Committee receives
and approves a signed offer in accordance with the terms set
forth in Section 2 herein and the Committee considers to be the
most advantageous for and in the best interest of this State and
its citizens and ratepayers, the co-chairmen of the Committee
shall notify the Speaker of the House of Representatives and the
President of the Senate of this decision in writing. The
co-chairmen of the Committee also shall attach to this written
notification a copy of the applicable contract of sale executed
by the purchaser and all supporting documents. If the General
Assembly is in regular session when this notification is
provided, it must remain in session until a decision to approve
or disapprove the contract of sale is made in the manner
required by this Act. If the written notification is provided
while the General Assembly is not in regular session, the
General Assembly shall return in statewide session at the call
of the Governor, but not earlier than thirty days after receipt
of the written notification, to approve or disapprove the sale,
and the General Assembly must remain in statewide session until
a decision to approve or disapprove is made.
(B) The Speaker of the
House and the President of the Senate shall transmit the written
notification, together with the contract of sale executed by the
purchaser and all supporting documents to the desk of their
respective chamber to be placed on the calendar for approval or
disapproval by that chamber. The question before each house
shall then be the approval or disapproval of the contract of
sale which must be decided by a vote of "yeas" or
"nays". If the contract of sale is approved by both
houses, the Governor and other appropriate officials of this
State then shall sign the contract of sale on behalf of the
State of South Carolina as the seller and then at the closing of
the sale, execute the deeds and other necessary documents to
effectuate the sale. The proceeds of the sale must then be
deposited in the State general fund pending further action by
the General Assembly.
SECTION 5. The provisions of the Consolidated Procurement Code in Chapter 35, Title 11 of the 1976 Code, the provisions of Chapter 31, Title 58 relating to the South Carolina Public Service Authority, and any other provisions of the general law of this State in conflict with the provisions of this Act, are hereby suspended for purposes of this sale only, it being the intent of the General Assembly that this Act, to the extent of its provisions, is the sole governing instrument regarding this sale and that a vote of the General Assembly in favor of approving the sale in Section (4)(B) of this Act is sufficient to authorize the Governor to execute the sale.
SECTION 6. (a)
The Committee shall concurrently review all of the
non-full acquisition proposals, reform proposals, and management
proposals (collectively "Proposals") received by the
Committee. The Committee received eight such Proposals that
included partial acquisition, management and/or operations
agreements, requirement or other power sales contracts, and any
such hybrid combinations.
(B) The Committee is
authorized to hire appropriate legal and technical experts to
negotiate with the eight entities submitting a Proposal in order
to obtain a best, final, and binding non-sale proposal. The
experts shall report to and receive guidance from the Committee,
which is charged with representing the House, the Senate, and
the Governor's Office in the negotiations. The co-chairmen of
the Committee shall submit to the Chairman of the House Ways and
Means Committee and Chairman of the Senate Finance Committee an
estimate of the expenses associated with hiring experts
necessary to carry out the obligations under this section.
(C) The Committee,
through its experts, shall also evaluate and compare the
Proposals based on evaluative criteria established by the
Committee. The evaluative criteria must include, but is not
limited to, how each proposal will:
(1)
resolve the debt repayment related to the two abandoned
reactors and how the proposed treatment of such costs and
associated debt with impact rates and price;
(2)
assess the impact of such a proposal on the Santee Cooper
contract with Central;
(3)
coordinate with Santee Cooper to ensure necessary
information is provided to the Committee for evaluation of these
proposals;
(4)
assess the impact of these proposals on Santee Cooper bond
covenants and advise as to whether bond counsel should be
retained to analyze those bond covenants; and
(5)
implement any or all other terms and conditions as
authorized by Paragraph 117.162, Section IB of Act 264 of 2018,
to determine if such proposals would be in the best interest of
Santee Cooper ratepayers and South Carolina taxpayers if such a
proposal were adopted by the General Assembly.
(D) The Committee can
determine which of the Proposals, if any, would be the most
advantageous for and in the best interest of this State and its
citizens and ratepayers if such proposal is accepted by the
General Assembly. If such recommendation is made by the
Committee, the Committee shall draft the legislation necessary
to allow the General Assembly to effectuate the proposal. Such
draft legislation must require that the question before each
body shall then be the approval or disapproval of the proposal
which must be decided by a vote of "yeas" or
"nays".
SECTION 7. This joint resolution takes effect upon approval by the Governor. /
Amend the title to read:
/ To provide that the Public Service Authority Evaluation and Recommendation Committee may utilize state appropriated or authorized funds, including the use of those funds to retain necessary experts, legal counsel, banking institution, or any other financial entity, to evaluate and review a potential, complex financial transaction for the potential sale of Santee Cooper and any or all other related financial transactions necessary for use in this financial evaluation, which the Committee considers to be in the best interests of this State and its taxpayers and ratepayers, to provide that the actions of the committee are subject to final approval by the General Assembly, and to provide for the manner in which this offer is transmitted to and approved or disapproved by the General Assembly, including a timeline requirement. /
Renumber sections to conform.
Amend title to conform.