Santee Cooper approves 4-year rate freeze as part of SC nuclear lawsuit settlement
Santee Cooper, which provides electricity to about 2 million people in South Carolina, will freeze its electric rates for four years as part of a plan formally approved by the state-owned utility’s board on Friday.
The rate freeze is part of a $522 million settlement agreement stemming from a ratepayer lawsuit over the failed V.C. Summer nuclear plant expansion project in Fairfield County.
“Specifically, we are freezing base rates and holding fuel costs and other normally adjustable charges to levels provided in our reform plan,” said Mark Bonsall, Santee Cooper’s CEO.
As part of the settlement, nearly all of Santee Cooper’s 1.7 million residential, commercial, industrial and other customers also will receive a cash payment or a credit on their bills.
Santee Cooper is chipping in $200 million and Dominion Energy is chipping in $320 million to pay for the cash refunds which will go to ratepayers who were customers from 2007 through Jan. 2017. Plaintiff’s lawyers in the lawsuit will administer the refunds.
Santee Cooper and SCANA were partners in the nuclear project. In 2018, SCANA was purchased by Dominion Energy.
There may be additional savings for Santee Cooper customers during the next four years. The utility expects fuel costs, which it passes on to customers, to drop by 7% between now and 2024.
Santee Cooper said it plans to cover any increased expenses with existing cash reserves and other operational savings as it transitions to more solar energy and reduces its use of coal-generated electricity as part of its ongoing reform plan.
”Santee Cooper is focused on increasing value for our customers,” Bonsall said. “We are expanding our leaner, greener power supply, paying down our debt, and building on our commitment to economic development in South Carolina.”
This story was originally published July 31, 2020 at 11:58 AM with the headline "Santee Cooper approves 4-year rate freeze as part of SC nuclear lawsuit settlement."
