MCEC faces 12% rate hike

Santee Cooper to raise rates, pay big bonuses

Posted 4/10/19

Santee Cooper plans to raise rates 12% while paying $511,000 in bonuses.

This and other costs may raise power rates for Mid-Carolina Electric members in Lexington County.

How much per …

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MCEC faces 12% rate hike

Santee Cooper to raise rates, pay big bonuses

Posted

Santee Cooper plans to raise rates 12% while paying $511,000 in bonuses.
This and other costs may raise power rates for Mid-Carolina Electric members in Lexington County.
How much per household this may be is not known.
Mid-Carolina has held its rates stable for 6 years.
The cooperatives buy power from other sources than Santee Cooper.
Senate Minority Leader Nikki Setzler, D-West Columbia, questioned the bonuses at a Senate hearing.
Senate Majority Leader Shane Massey, who represents Lexington County, said, “For many of us, Santee Cooper paying bonuses in this environment seems incredibly tone-deaf.
“I don’t think you ought to do it anymore. It is bad considering everything that’s going on with Santee Cooper and utilities in general in South Carolina. This comes across really poorly.”
Yet lawmakers took no action to stop them, The State newspaper reported.
Santee Cooper CEO Jim Brogdon said he approved the bonuses to 7 executives due to uncertainty over the utility’s future. 
Many lawmakers and the governor want to sell the taxpayer-owned utility that is $8 billion in debt.
Senators told Brogdon his desire to retain top brass doesn’t justify paying bonuses while raising power bills for Mid-Carolina and other electric cooperative members to pay for its share of a $9 billion nuclear project.
 Brogdon defended the bonuses as the executives have great experience in finding ways to reduce costs and be more efficient.
One bonus has already been paid: $27,680 to Chief Financial Officer Jeff Armfield on Dec. 31, 2018.
Armfield was to get 2 more $55,360 bonuses.
Brogdon became interim CEO last year after longtime CEO Lonnie Carter retired and will not get a bonus.
As it pays off its debt, its electric rates are expected to rise about 12%.
This is not the 1st Santee Cooper bonus issue.
Last year, The State reported Santee Cooper paid SCANA $9 million to help pay bonuses to its executives for their work on the failed nuclear project.

Santee Cooper, nuclear fiasco aftermath, MCEC

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