Gov. Mark Sanford's office orchestrated the hiring of an investment bank to determine how much Santee Cooper would fetch in a sale that would privatize the state-owned utility, according to newly obtained documents and a former board chairman.

Sanford has denied for months that he is interested in privatizing the Moncks Corner-based power business, and has said the study was undertaken to see how Santee Cooper stacks up against other utilities.

But Graham Edwards, former chairman of Santee Cooper, said Thursday that the governor proposed selling the utility in a November 2003 meeting held to discuss the utility's contributions to the state's General Fund.

Edwards said the bank's valuation study was pursued at Sanford's behest to address whether privatization was a good idea.

In mid-November, Santee Cooper signed a contract with Credit Suisse First Boston LLC to analyze the utility. The contract, obtained under the Freedom of Information Act, said the bank would provide "strategies to maximize the company's value under its existing structure or any viable alternatives."

Santee Cooper Chairman Guerry Green said Thursday that he was joined by director Keith Munson, the governor's wife, Jenny Sanford, and Marshall Evans, an adviser in Sanford's office, in interviewing investment banks that bid on the project. Jenny Sanford is a former investment banker.

Other documents obtained from Santee Cooper also show that Evans helped hammer out details of the contract.

Sanford's office has said the idea to examine the utility was proposed by Edwards. Asked March 24 whether the governor's office helped solicit bids for the study, Will Folks, a spokesman for the governor, said, "We didn't initiate it, we didn't conduct it and we didn't take part in any of it. ... Our only involvement in the process was to say, 'Yes, Mr. Edwards, we think that is a good idea.' "

Folks backtracked Thursday, saying he had misunderstood the question. "I was not correct," he said. "There was involvement, but I don't know the precise extent."Edwards said Thursday that the idea for a valuation exam was first proposed by John Rainey, one of Sanford's economic advisers.

Edwards was in favor of the study, but not of privatization.

"Our position was that if you privatize Santee Cooper, then the rates are going to go up," Edwards said. "(Rainey) told the governor he needed to do his own study, for him to have confidence in the results."

Edwards said his only part in the process was asking the board to approve funding for it.

Rainey confirmed Thursday that the study was his idea. "I have thought for some time that all this was general knowledge," he said. "It's time to move on."

Regardless of its intent, the Credit Suisse report has prompted questions from Santee Cooper customers and board members. Many suspect that Sanford -- who has consistently preached the virtues of small government -- wants to privatize the utility.

"What they intend to do with the study, I don't know and can only guess," Pat Allen, a Santee Cooper director, said Thursday. "The fact is you don't pick a Wall Street firm that specializes in IPOs (public offerings of stock) to look at the efficiencies of an electric utility."

Along with helping take businesses public, Credit Suisse regularly assists companies in mergers and acquisitions.

Previous studies by the utility have shown that if Santee Cooper was sold to a private-sector company, its rates would rise to the level of those at private utilities, which are about 30 or 40 percent higher.

Some of the state's biggest industrial plants have said they would relocate to other states if their power prices were to increase substantially.

Credit Suisse officials did not return phone calls or e-mails. The aim of the bank's examination is not clear based on the institution's correspondence with Santee Cooper officials.

According to the documents, the bank sought wide-ranging information about the utility's financial reports and operations.

FILE/AP Gov. Mark Sanford's office has denied any interest in the privatization of Santee Cooper.

It also asked Santee Cooper executives to highlight any power transmission constraints between Santee Cooper and surrounding markets.

And it asked how customers have reacted to rate changes and how likely South Carolina electric cooperatives were to cancel contracts.

Sanford was grilled about the study last week at a public hearing in Moncks Corner to discuss pending legislation. The governor denied any intention to sell the utility to the private sector.

"You've heard me talk about a lot of things, but one thing you haven't heard me talk about is the privatization of Santee Cooper," Sanford told about 160 people at the meeting. "If I propose the sale of Santee Cooper, you'll be the first to hear it."

Sanford has burned some political capital in his oversight of the state utility.

A Wall Street bond-rating firm cited board changes made by Sanford when it lowered its outlook on Santee Cooper credit in December. A group of lawmakers, including Republican Senate power broker Glenn McConnell, have filed bills that would greatly reduce the governor's control of Santee Cooper.

And Sanford was booed at last week's hearing when he told the crowd that he hasn't given specific instructions to any of the board members he appointed.

At the same meeting, Ken Ford, a former Santee Cooper chief executive officer, said he had "deep concerns" about the board's current make-up, citing members' lack of experience in the utility industry.

He also accused the directors of "slapping around" the utility's executives. Ford told the assembly that he voted for Sanford and would not do so again. His comment was met with applause.

"I thought he was smarter," Ford said of the governor.

It's unclear when the Credit Suisse study will be completed. The governor's office, Santee Cooper executives and board members who dealt with Credit Suisse all said they had no idea when the New York bank might deliver.

On March 22, Santee Cooper asked the consultants via e-mail when the study would be presented. The query has not been answered.

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Kyle Stock covers utilities. He can be reached at 937-5763 or kstock@postandcourier.com.