Santee Cooper approves $2.1B budget

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The Santee Cooper board of directors has approved a $2.1 billion budget for 2019.

The budget, approved Monday, includes $1.7 billion for its electric system, $9.9 million for water systems and $296.9 million for capital expenditures, according to a news release. Approximately 40% of the electric system portion of the budget is allocated for fuel and purchased power.

State-owned utility Santee Cooper has around 2 million S.C. customers.  

“With this 2019 budget, Santee Cooper will continue to provide reliable, competitively priced electricity and maintain a strong financial position and credit ratings, all without a rate increase,” Santee Cooper interim president and CEO Jim Brogdon said in the release. “This reflects our ongoing commitment to hold the line on costs to benefit our customers and the state of South Carolina.”

The $296.9 million for construction and capital equipment spending includes $115.6 million for environmental projects and $181.3 million for transmission and distribution systems and systemwide improvements.

The board also approved 2020 and 2021 budgets for planning purposes.

Along with SCANA Corp. subsidiary S.C. Electric & Gas, Santee Cooper co-owned abandoned twin nuclear reactors at the V.C. Summer Nuclear Power Station in Fairfield County. The utilities poured $9 billion into their decades-long construction before the nuclear project was abandoned in July 2017 in the face of rising costs and mounting delays. Ratepayers for both utilities were saddled with increased rates.

Santee Cooper faces customer lawsuits related to the failed reactors and filed a motion on Nov. 28 to intervene in a proposed $2 billion settlement reached by SCANA in a class action SCE&G ratepayer lawsuit. The filing says the settlement will “impair or impede” Santee Cooper’s “ability to protect its interests.”

Prior to that filing, Santee Cooper asked the S.C. Public Service Commission on Oct. 26 to set aside $351 million of a proposed refund offered by Virginia-based Dominion Energy to SCE&G customers for the state-owned utility’s ratepayers. Dominion, which has proposed to acquire SCANA in a $14.6 billion deal, asked the PSC to dismiss that request.

The PSC is expected to rule by Dec. 21 on the fate of the Dominion deal and on permanent rate relief for SCE&G customers.