Posted on Wed, Apr. 20, 2005


Democrats question study of Santee Cooper utility


Staff Writer

Democrats and Gov. Mark Sanford traded jabs Tuesday over whether the Republican governor intends to sell the state-owned Santee Cooper utility.

S.C. Democratic Party chairman Joe Erwin and some Democratic lawmakers accused Sanford of practicing “deception” and of taking secret steps toward selling the utility.

Sanford attended the Democrats’ morning news conference, then called reporters over afterward to reply.

The sparring occurred as lawmakers from both parties continued pushing legislation to limit Sanford’s power over Santee Cooper’s board. A bill backed by Senate President Pro Tem Glenn McConnell, R-Charleston, moved closer to final Senate passage this week.

Erwin said Sanford’s intentions are revealed by a recent research contract under which Santee Cooper is paying an investment bank to gauge a potential sale price for the utility.

Santee Cooper spokeswoman Laura Varn declined to answer questions about the purpose of the study because it was initiated by Sanford’s office.

Sanford walked in on Erwin’s news conference and stood about six feet from the lectern. Erwin took the opportunity to hand Sanford a Freedom of Information Act request asking for details about the contract to study Santee Cooper.

“Governor Sanford should not have misled us, and now he needs to come clean,” Erwin said. Handing Sanford the request, he added, “You saved me some postage.”

Sanford later told reporters that he does not intend to sell Santee Cooper, but that he needs to know its market value to understand the utility’s efficiency.

Sanford said Santee Cooper might need to sell unproductive assets, cut expenses and perhaps contribute more money to state government than the 1 percent of yearly revenue the utility now contributes.

Santee Cooper supplies electricity to 40 percent of the state’s residents, either directly or through electric cooperatives.

Sanford said questions about his motives are part of a “struggle between the executive branch and the legislative branch” over how government should operate.

Partisan politics were injected into that struggle when Erwin delivered his information request on Democratic Party letterhead, Sanford said.

The conflict has turned some state residents against Sanford, he acknowledged. “I would boo me, too, if I’d gotten (the) level of misinformation” critics are spreading, the governor said.

Sanford disclosed some details about the study of Santee Cooper. The governor said his administration chose the Credit Suisse First Boston LLC bank to conduct the study.

He said the choice was made with input from S.C. first lady Jenny Sanford, a former investment banker. Sanford said his wife was involved in choosing the bank because her prior work experience gave her insights that his administration lacked.

Sanford said any effort to sell Santee Cooper would require public hearings in the General Assembly.

Reach McWilliams at (803) 771-8308 or jmcwilliams@thestate.com.





© 2005 The State and wire service sources. All Rights Reserved.
http://www.thestate.com