Santee Cooper wants $163M more

Taxpayers’ utility: it will save $40M

Posted 12/11/19

Santee Cooper’s debt-ridden directors are borrowing $163 million in a bond sale.

The taxpayer-owned utility already owes $8 billion.

$4 billion of it is from an abandoned $9 billion nuclear …

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Santee Cooper wants $163M more

Taxpayers’ utility: it will save $40M

Posted

Santee Cooper’s debt-ridden directors are borrowing $163 million in a bond sale.
The taxpayer-owned utility already owes $8 billion.
$4 billion of it is from an abandoned $9 billion nuclear power project that may never produce a promised kilowatt of cheap electricity.
The announcement said but did not explain how borrowing $163 million more will save it $40 million.
Santee Cooper was a 45% partner with SC Electric & Gas in the failed project in nearby Fairfield County.
Federal investigators are looking into accusations that executives of both utilities hid damning reports of mismanagement at the project and lied to state regulators to gain approval to raise ratepayer’s rates by $2 billion over 9 years.
The board said the added $163 million in debt will:
• Be used to pay off part of its existing debt.
• Give projected debt service savings of $40 million over the next 16 years.
Chief Financial Officer Pamela Williams said there was “strong investor interest” in buying the bonds.
“This debt refunding is another key step supporting our commitment to hold customer prices stable for at least the next 5 years.”
The tax-exempt bonds are to be paid off between 2021 and 2036 at an initial interest rate of 1.19%.
Under law, tax-exempt bonds are free from federal and state income taxes for South Carolina residents.
The 2019 bonds are secured by a letter of credit issued by Bank of America’s BofA Securities.
BofA Securities, Barclays and American Veterans Group act as co-managers.
American Veterans Group is a certified service-disabled veteran-owned small business operating in the debt and equity market. 25% of its earnings are reinvested in military veteran causes.
The final official statement for these bonds will be available by contacting Santee Cooper bondholder relations at 1-877-246-3338 and posted at www.santeecooper.com/investorrelations .
In October, Santee Cooper paid off $360 million in long-term debt as part of a $925 million, 2-year plan to reduce its nuclear debt.
This is part of a business forecast and strategic generation plan for introducing solar power and closing 4 coal units over 4 years.
The Santee Cooper announcement said it is the state’s largest power provider, the largest Green Power generator and the ultimate source of electricity for 2 million people here.

Santee Cooper, nuclear fiasco aftermath

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