Rogue, arrogance, incompetence, errant — the Governor of South Carolina used these words in his State of the State message to describe Santee Cooper. Wow!
Here’s a quote from the Governor of South Carolina in his January 13 State of the State address:
There is no state agency in more need of reform or dissolution than Santee Cooper. This rogue agency and its leadership have displayed arrogance and contempt for state law and the truth. Their incompetence helped create the largest nuclear power fiasco in modern times. They have saddled their customers with billions of dollars in debt and have ignored the authority of our constitutional officers and this General Assembly, creating a toxic environment inside this Statehouse. Errant board members are shielded by laws governing appointment and removal so cumbersome, onerous, litigious – and politically designed years ago to discourage and prevent a governor from acting – that they are immune from discipline or accountability. The time has long passed for the resolution of Santee Cooper’s fate.
ECC blog pages have noted business issues about Santee Cooper. The issues call for a clear, factual business analysis and decision that benefits the State of South Carolina and Santee Cooper customers.
A few of our points and blogs for your consideration:
- Capital intensive industries require heavy investment in fixed assets simply to compete, to measure up, to serve customers well. In the utility industry assets that make, transmit and maintain electric service are big investments. Read our blog, Utilities: A Capital Intense Business
- As utilities across the US build the power generation and grid of 2030, Santee Cooper manages the debt of 2017. Our blog: Santee Cooper’s Finances in Focus
- “Warning signals are starting to flash in the market for junk debt… companies with high debt loads could be at risk…” From the Wall Street Journal in our 2019 blog, Looming Santee Cooper Debt Can be Eliminated
- “Zombie companies get their nickname because of their tendency to limp along, unable to earn enough to dig out from under their obligations, but still with sufficient access to credit to roll over their debts. Our blog: Santee Cooper – A Zombie Company?
- As the state of South Carolina and the nation face huge issues, Santee Cooper’s board seems mired in its past. It takes its valuable time to figure out how to cover for its problems. See Santee Cooper’s Board of Directors Meet, Kind of
- Repeated misfires, lack of judgement, disregard for policymakers (and the public?), adds to the business straitjacket from the debt. Less financial flexibility means a tougher lift to improve the system for customers. See: Santee Cooper Customers, State, Face Unnecessary Risks