Bill curbs
governors' removal powers for Santee Cooper board
JIM
DAVENPORT Associated
Press
COLUMBIA, S.C. - Governors would need strong
reasons for removing members from Santee Cooper's board under a bill
now on the Senate floor.
The legislation moved out of a Senate Judiciary subcommittee
Wednesday and was immediately put on the Senate's calendar for
consideration in the next few days.
It's a reaction to board members being removed by former Gov. Jim
Hodges and Gov. Mark Sanford, state Sen. Luke Rankin, R-Myrtle
Beach, said.
The legislation adds the state-owned utility to a list of
agencies that governors could replace board members only for
specific reasons, including incompetence, absenteeism and
misconduct. It also sets professional standards for the utility's
board and gives its customers power to sue board members who act
inappropriately, similar to private power company shareholders
have.
"The hope is this is an accountable board that's run like a
business and not like a political football," Rankin said.
While the board's members are supposed to serve for seven years,
it has lost 17 members in that time. The longest serving board
member has been there only four years, Rankin said.
Last year, the governor ordered then-chairman and former Santee
Cooper chief executive Graham Edwards, one of his own appointees,
off the board. Days later, credit rating firm Fitch Inc. lowered its
outlook on the utility's debt.
"The fruit-basket turnover of the board itself, starting back
with Gov. Hodges till just recently, is the No. 1 cause for concern"
for the credit rating agency, Rankin said.
The legislation also bars Santee Cooper from selling or leasing
property tied to its utility operations without first getting
approval from the Legislature. That's intended to head off any
effort to privatize or sell Santee Cooper.
Rankin's subcommittee packaged all of that into one bill. It also
approved a second bill that only bars removal of board members.
Sen. Bill Mescher, R-Pinopolis, said that was needed just in case
the Senate ran out of time to get a bill to the House by a May 1
procedural
deadline. |