At the same time, directors of the state-owned power company agreed to set aside $300,000 next year for education and $4.3 million in case the Commerce Department needs funding for economic-development projects.

Santee Cooper has 1,740 people on its payroll and has been one of the state's biggest and most reliable philanthropic forces. The spending blueprint approved Monday includes funding for aggressive expansion but trims a number of the utility's charitable commitments. Its giving policy, though intact, is now more focused on economic development, as opposed to education, the environment or community-improvement initiatives.

"I feel good about this budget," said Lonnie Carter, Santee Cooper's president and chief executive officer. "I feel that we've squeezed it hard."

Santee Cooper plans to spend $1.7 billion next year, compared with $1.6 billion in 2004 outlays. Of that amount, $1.19 billion will pay to generate and distribute electricity, and cover a $12.3 million contribution to the state's General Fund.

Because of rising fuel prices, the utility will pay about 7.5 percent more next year to run its power plants and transmit electricity. About 60 percent of Santee Cooper's 2005 outlays will go to buying fuel for its power plants and electricity from other utilities.

The Moncks Corner-based utility will spend $498 million on capital projects next year, 26.9 percent more than it did in 2004. About $301 million of that money will pay for expansion of the Cross coal-burning plant. An additional $76 million will pay for pollution-control devices and other environmental initiatives, while $83 million will be spent on new power lines and transmission equipment.

Santee Cooper plans to generate 5.6 percent more power next year than in 2004, because Georgetown Steel, a major electricity user, is operating again and because of population growth along the coast.

Directors trimmed about $758,000 in contributions and sponsorships at the recommendation of the utility's executive staff. Some of the organizations that will no longer receive Santee Cooper dollars include the South Carolina Aquarium, the Heritage golf tournament, the Family Circle Cup and the South Carolina World Trade Center. Santee Cooper has committed to spend $1.98 million on philanthropy and economic development next year, down from $2.73 million this year.

An additional $4.3 million was set aside to be doled out for economic-development projects on a case-by-case basis. Carter said the line item would act as a "placeholder" and may not necessarily be spent.

The board expressed solidarity and a desire to move forward in the wake of a personnel shakeup that unfolded last week. Gov. Mark Sanford ordered chairman T. Graham Edwards to step down and named Guerry Green interim chairman. He also named Carl Owens Falk, a Pawleys Island philanthropist, to the board. Meanwhile, director Vernie Dove from Horry County resigned. Both Edwards and Dove had opposed policies Sanford had urged Santee Cooper to adopt.

"We've had some controversy, we've had some difficulties, but you know that's part of the process," said director Clarence Davis. "That's what's made our country great. That's what made Santee Cooper great."

But Will Folks, a spokesman for Sanford, said there may be more changes to the board soon. Last week Sanford called Director J. Calhoun Land IV. Land, like Edwards and Dove, has consistently voted against policies that Sanford urged the board to adopt. Land declined to detail the conversation he had with Sanford, saying only that after 30 minutes Sanford said that he would get back to him.

Folks declined to comment on Sanford's phone call or whether he planned to ask Land to resign.

Earlier in the day, Land expressed confidence in the board, despite the recent changes.

"I'm not worried about a thing," he said.

"I think this board has the right attitude and I think Santee Cooper is going to be fine."

Click here to return to story:
http://www.charleston.net/stories/121404/loc_14santee.shtml