SC House makes change to Senate Santee Cooper reform plan. What you need to know

South Carolina House members want to keep alive the option of selling Santee Cooper, the state’s electric utility.

On Tuesday, the House put back a provision that sets up process to consider a sale of the utility into the Santee Cooper reform package after senators voted against revisiting the possibility of a sale.

The Senate last month passed a reform package that forces the replacement of all but one of the Santee Cooper board members and adds state oversight of the utility’s rates, energy generation plans, and the utility’s ability to take on new debt.

“First we’re requiring every major decision must go through a thorough and transparent process,” said Ways and Means Chairman Murrell Smith, R-Sumter.

However, the Senate voted against having a committee of lawmakers in place for 10 years to consider offers to explore a sale, something the House included. House members added that provision back Tuesday while adopting the legislation, and sending the bill back to the Senate.

If the Senate disagrees with the House’s latest version, the bill will go to conference committee where members of both chambers can iron out differences.

The state had a suitor for Santee Cooper until recently. Florida-based NextEra had offered to buy the utility, but withdrew its offer last week.

After the the Senate’s decision, NextEra, last year’s preferred bidder to buy Santee Cooper, formally withdrew its purchase offer and asked for its $25 million deposit to be returned.

“There’s not someone who says they want to buy Santee Cooper,” said Gary Simrill, the House majority leader from York County, referring to how NextEra pulled its offer.

Simrill added, “we short ourselves if we pull that rug” and do not have the process to evaluate bids.

Not everyone agreed: 34 House members voted against adding the sale committee, a provision which causes uncertainty for Santee Cooper’s employees, said state Rep. Russell Ott, D-Calhoun.

“We still will allow this cloud to hang over this agency,” Ott said.

Gov. Henry McMaster has said any reform package should include some sort of sale provision.

“We simply can’t have an honest debate about what’s best for South Carolinians without considering all available options – including the option to sell it,” McMaster tweeted on Tuesday.

Lawmakers for several years have mulled over the future of Santee Cooper after it partnered in the failed $9 billion V.C. Summer Nuclear Station project, leaving billions in debt and ratepayers will have to cover even though the project did not produce any electricity.

Last year lawmakers considered NextEra’s offer to purchase the utility, an offer from Dominion Energy to manage Santee Cooper, and a reform proposal from Santee Cooper. Lawmakers rejected all three proposals.

Under the reform package, the Public Service Commission will have to approve construction of any new generation as well as Santee Cooper’s long-term energy generation plans.

“They will have to prove there is no alternative way to meet their energy needs other than building a plant,” Smith said.

Employment contracts for Santee Cooper’s CEO also will need approval from the Agency Head Salary Commission under the reform package. The previous CEO Lonnie Carter stepped down, and received retirement benefits valued at $800,000 year.

“The generous buyouts that happened in the previous administration that departed will never happen again,” Smith said.