PAWLEYS ISLAND - The governing board of Santee Cooper agreed Friday it will not increase payments to the state Treasury beyond the $13.5 million it already promised.

The board also argued for two hours, without resolution, on whether it should continue to give donations to local groups, and if so, how much.

The issue of using money collected from ratepayers in the three counties served by the electric and water utility to boost the state's budget riled local lawmakers during the past legislative session.

State Sen. Luke Rankin, R-Myrtle Beach, tried to pass a bill forbidding the money exchange. But he said he does not object to the transfer as long as no more is allocated beyond the 1 percent of revenues the utility pays to the state each year.

In recent years, that has equaled about $11 million.

Santee Cooper, which serves customers directly along the coast in Horry and Georgetown counties and indirectly through co-ops and the city of Georgetown, agreed to give the state the money from the sale of 33 parcels of property.

The most valuable lot is one on Ocean Highway near the entrance of Litchfield Country Club.

"If asked, are we going to make an additional payment to the state or are we going to stick with our position that this $13 million was a one-time payment?" board Chairman Graham Edwards of Moncks Corner asked the other 10 members Friday.

"It needs to stay a one-time payment," said board member Richard Coen of Mount Pleasant.

Dial DuBose, a board member from Easley, said it is not Santee Cooper's responsibility to provide money for the state.

If the state wants more, it should send a bill or change the law, he said.

Utility President Lonnie Carter said the staff is working with the electric cooperatives to find other ways to help the state, especially with economic development.

Board member Guerry Green of Pawleys Island agreed with that approach but said he wants to see a plan soon.

A far longer discussion occurred over the $3.4 million Santee Cooper spent last year on donations, advertising and sponsorships.

The board adopted a new policy in February, and expenses were cut to $2.2 million so far this year, Carter said.

The donations include advertising in all area high-school yearbooks, support for cultural activities and institutions, and gifts to health and welfare organizations.

The allocation is 0.07 percent of Santee Cooper's $1.1 billion budget, Edwards said. He repeatedly asked the other members to let the existing policy work, but some were ready to amend it again or forbid any donations.

Green said he agrees with Gov. Mark Sanford, who raised questions about the donations.

"We're supposed to become a more accountable, lean organization," Green said.

Coen was one who wanted many such expenses cut out.

"Just because we've done something that way for 25 years does not make it right," Coen said.

Patrick Allen, a member from Columbia, said the utility should not consider cutting out all donations.

"We need to do what's right for South Carolina whether the governor agrees or not," Allen said.

The long discussion included a closed-door session to receive advice from company attorney John West on whether customers could support Santee Cooper's donations by rounding up their utility bills to the highest dollar.

West said that even though his advice did not involve pending litigation, a reason given in state law for closed sessions to hear attorneys' advice, the agency could be the subject of litigation if it did the wrong thing.