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Santee Cooper names Bonsall new CEO

Staff Report //July 9, 2019//

Santee Cooper names Bonsall new CEO

Staff Report //July 9, 2019//

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Mark Bonsall, a 41-year utility industry veteran, has been named the new president and CEO of Santee Cooper.

Bonsall, who most recently served as CEO of the Arizona-based Salt River Project, was approved by the Santee Cooper board today.

BonsallThe board also approved the hiring of Charles Duckworth, who also worked for the Salt River Project, as deputy CEO and chief of planning. Duckworth will be in charge of the state-owned utility’s future resource planning, according to a news release.

The Salt River Project is one of the nation’s largest public power companies, with nearly 5,100 employees and more than 1 million electric customers. Bonsall retired as its CEO last year.

Former Santee Cooper CEO Lonnie Carter resigned in August 2017 in the wake of the failed V.C. Summer nuclear project, co-owned by Santee Cooper and S.C. Electric & Gas. Carter spent 35 years at the utility, including 13 as president and CEO.

In December 2017, former Santee Cooper board chairman Leighton Lord also resigned under pressure from S.C. Gov. Henry McMaster.

The shakeup came after SCE&G ratepayers shelled out more than $2 billion to build twin nuclear reactors at the V.C. Summer Nuclear Power Station in Fairfield County. The project was abandoned in July 2017 amid mounting delays and rising costs and in the face of contractor Westinghouse’s bankruptcy declaration, leaving both SCE&G and Santee Cooper customers on the hook for the cost of their decades-long construction.

SCE&G is now a subsidiary of Virginia-based Dominion Energy, which acquired former SCE&G parent company SCANA in December 2018. While SCANA, a publicly traded company, asked for and received nine rate increases related to the project from state regulators, specific rate increases for state-owned Santee Cooper customers aren’t as clear. One study estimated that Santee Cooper residential utility bills could increase by as much as $750 a year until the utility’s V.C. Summer-related debt is paid off in 2056.

“Santee Cooper is a cornerstone to the quality of life and economic prosperity that many South Carolinians enjoy today, and there is still work to be done,” Bonsall said in the release. “I understand the frustration many have over the cancelled nuclear project and debt associated with that, but I know that Santee Cooper can pay off that debt and maintain low customer rates and excellent customer service. South Carolina benefits from a healthy energy sector that includes public power. My job is to prove to customers and the state that Santee Cooper should remain part of South Carolina for generations to come.”

Half of Santee Cooper’s $8 billion in debt is related to the nuclear debacle, and McMaster has been shopping the utility to privately held suitors. Charlotte-based Duke Energy, along with Greenville-based investment firm Pacolet Milliken and Florida-based NextEra Energy, are among the companies that have submitted proposals to buy the embattled utility to the S.C. General Assembly, which would have to approve a sale.

The utility is also embroiled in legal action related to the reactors.

“The sequence of events leading to suspension of the V.C. Summer project has tested the trust of state leaders and customers in Santee Cooper, which is understandable,” Bonsall said. “I am committed to working with the state and our customers to rebuild that trust.”

Santee Cooper said Bonsall would begin a series of “listening sessions” with utility employees, customers and other stakeholders today. He will also work with managers and board members to prepare a restructuring and reform proposal, which Santee Cooper expects to submit to the S.C. Department of Administration later this year.

“Mark brings demonstrated leadership and expertise in all areas that are important to Santee Cooper’s customers and to the state,” said Dan Ray, Santee Coopers acting chairman. “In addition to building SRP’s financial strength, he has made key decisions that reduced customers’ rates. He closed a large coal-fired generating station and replaced it with a mixture of gas-fired capacity and utility-scale renewables. Additionally, his leadership and focus on high-quality customer service helped SRP earn 42 separate JD Power awards.

“With these qualifications and experience, Mark will personally lead the reform team, ensuring that Santee Cooper’s reform effort is substantial and credible.”

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