Journal of the House of Representatives
of the Second Session of the 110th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 11, 1994

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| Printed Page 2370, Feb. 23 | Printed Page 2390, Feb. 24 |

Printed Page 2380 . . . . . Thursday, February 24, 1994

believes that the reluctance of a candidate to readily recognize or willingly divest or divorce himself of such interests during the intense public scrutiny of these screening hearings is a likely indicator of that candidate's future unwillingness to avoid conflicts of interest when called upon to do so in a less public forum--Public Service deliberations.

Understanding of Public Policy Issues

Candidates should have empathy for the concerns and needs of all South Carolinians, not just those South Carolinians who have interests similar to those of the candidate. A candidate should understand and appreciate the broad spectrum of thought on such important issues as universal availability of public services, protection of the environment, and the affordability of basic utility services. The Committee sought to measure each candidate's intuitive ability to grasp public policy concerns. The Committee realizes that while the consumer advocate often represents the views of the mythical "average South Carolina consumer," responsibility for ensuring that the great diversity of the needs of South Carolinians ultimately rests with a responsible, empathetic Commission. Moreover, the Commission must ensure through the grant of fair rates of return to the state's public utilities that there is a ready and available source of water, power, and communications available to all South Carolinians. The grant of monopoly status is, in fact, a recognition of an extraordinary public need which can only be met through the grant of monopoly status and the oversight of a strong, visionary regulatory board. To this end, the Commission looks for candidates who can not only recognize the need for a balanced hand in determining fair rates of return, but who can also discern the necessary distinction between unregulated and regulated segments of the utility industry.

Knowledge of Commission Operations

The Committee uses a sliding scale in judging the qualifications of each candidate in this area. It would be patently unfair to require challengers to have accumulated a wealth of knowledge about Commission operations, specifically, or regulated utilities, generally. Unlike incumbent commissioners, challengers have not had the benefit of a compensated opportunity to educate themselves in hearings or through conversations with staff. However, every candidate, either incumbent or challenger, must be required to demonstrate some basic understanding of the role of the Commission and adequately display thoughtful reflection on issues likely to come before the Commission. Candidates should also be generally aware of the time commitment necessary for productive service


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as a commissioner. Each candidate must provide adequate assurance to this Committee of his commitment to meet the demands of the office. From incumbent commissioners and others who have benefited from intimate involvement with the Commission's affairs, this Committee looks for a thorough knowledge of Commission operations, an informed opinion as to matters of important public policy pending before the Commission, and demonstrated leadership on these matters of public policy. The Committee does not seek to prompt commissioners to certain decisions on individual issues through its questioning or the questioning of its counsel, but seeks to determine each candidate's capabilities to explore the demands of public policy balanced against the mathematics of the financial requirements of the state's public utilities. As previously noted, the Committee expects and, therefore, justifiably demands that incumbents and others with substantial experience before the Commission be able to discuss these matters with a greater fluency than those persons who have to date committed themselves to other employment.

Balanced Approach to Determining Rates

While candidates must show a marked commitment to ensuring that South Carolina's consumers are protected, they should also demonstrate an understanding of the simple business principle that only profitable business enterprises can survive to provide important public services. As aforementioned, the Committee places great emphasis on the ability of candidates to distinguish between the regulated and unregulated business activities of the state's public utilities. It is important that regulated activities not serve to subsidize unregulated activities and that consumers of South Carolina can depend upon the Commission to serve as a watch dog over utility holding companies having unregulated subsidiaries.

Screening of Candidates

A transcript of the Committee's extensive examination of the thirty-six candidates on January 20, 21, and 24, 1994, is appended to this report as required by law. [3]

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[3] Mr. George V. Atkison has applied for election to both the Fifth District and At-Large seats on the Public Service Commission. The Committee determined that there was no legal prohibition to Mr. Atkison seeking both seats. Subsequent to his screening, yet prior to the release of this report, Mr. James L. Felder withdrew his candidacy for the Second District seat. At the time of the release of this report, there were 34 candidates (including Mr. Atkison, who seeks the two aforementioned seats).


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In consideration of these findings of fact, the Committee finds all candidates to be legally qualified for service as Public Service commissioners. The Committee makes the following findings of fitness and general qualifications for candidates for the Commission:

FIRST DISTRICT

Anne M. Bowen

The Committee finds Ms. Bowen to be an outstanding candidate for the Commission. Ms. Bowen's service as vice chairman of the Sea Pines Public Service District and her employment as a certified financial planner give her excellent experience that would be analogous to work on the Commission. The Committee also finds that she has an even temperament and an understanding of the legal and ethical constraints on public service. Ms. Bowen's experience lends her a thorough knowledge of the applicable public policy issues and the need to balance the interests of consumers and industry in rate making and other functions of the Commission. Ms. Bowen also has a good knowledge of the workings of the Commission, commensurate to someone with her level of access to information.
FINDING: Qualified

Mignon Letitia Clyburn

The Committee finds Ms. Clyburn's temperament and understanding of the legal and ethical issues involved in public service to be good. She also understands the need to balance the interests of consumers and industry. However, the Committee finds that Ms. Clyburn demonstrated a somewhat limited knowledge of Commission functions and operations commensurate to others with her level of access to information.
FINDING: Qualified

Eugene Novgorodoff

Mr. Novgorodoff has outstanding experience with a variety of diversified utilities. His work experience and involvement over the years lends him extensive knowledge of utilities, particularly with respect to design and engineering issues, and somewhat with respect to the components of rate base. Mr. Novgorodoff is especially well-prepared to face the coming technological revolution. The Committee also finds that


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he seems to have a good approach to ethical considerations and the need to fairly balance the interests of consumers and the industry.
FINDING: Qualified

Furman M. Reynolds, III

Mr. Reynolds is currently employed as the Director of Public Service for the town of Mount Pleasant. This position has enabled him to gain valuable experience. However, in his testimony before the Committee, Mr. Reynolds indicated that he intends to remain in his position as Director of Public Service for the town of Mount Pleasant even if elected to the Commission. The Committee is concerned that Mr. Reynolds fails to recognize the potential ethical and time conflicts involved in dual service for the town of Mount Pleasant and on the Commission. Mr. Reynolds may not be sensitive to certain ethical constraints on public service. Furthermore, Mr. Reynolds was not familiar with some of the issues important to service on the Commission and did not demonstrate a strong understanding of the functions and operations of the Commission commensurate with others with his level of access to information.
FINDING: Not Qualified

William Saunders

The Committee finds that Mr. Saunders has good experience and a firm grasp on the legal and public policy aspects of service on the Commission commensurate with others of his level of access to information. The Committee is concerned about a letter Mr. Saunders sent to all members of the General Assembly. In his letter, he made a "formal request to solicit... support" for his candidacy. Mr. Saunders testified that he was not aware of the ethics law at the time he sent the letter, but that he believes he did not violate the law because he was soliciting "support" instead of "votes."
FINDING: Qualified

Charles E. Schuster

Mr. Schuster demonstrated a good understanding of the functions and operations of the Commission in his testimony before the Committee. He was also familiar with some of the more important policy and technological issues that are, or will be, before the Commission. Mr. Schuster also demonstrated an even temperament and was sensitive to the legal and ethical constraints on public service. The Committee is aware of Mr. Schuster's wife's employment as a designer of electrical substations


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for Santee Cooper and finds no appearance of impropriety in her continued fulfillment of the job responsibilities outlined in Mr. Schuster's testimony.
FINDING: Qualified

Hubert Tyler

The Committee finds that Mr. Tyler has experience that would be helpful in service on the Commission. He has also been a public servant for many years and is sensitive to the legal and ethical constraints on public service. Mr. Tyler demonstrated knowledge of the policy and technological issues that are now, or will be, before the Commission and an understanding of the functions and procedures of the Commission commensurate to someone with his level of access to information. Mr. Tyler's background in the sciences and mathematics could serve him well as a Commissioner.
FINDING: Qualified

Flemister Lamarr Wiley

The Committee finds that Mr. Wiley is sensitive to the legal and ethical constraints on public service and the need to balance the interests of consumers and industry. Mr. Wiley demonstrated a somewhat limited knowledge of Commission operations commensurate to someone with his level of access to information. Mr. Wiley did not, however, demonstrate an understanding of some of the important policy and technological issues that are now, or will be, before the Commission.
FINDING: Qualified

Richard Ganaway

The Committee recognizes Mr. Ganaway's experience in managerial work and his emphasis on providing quality service to consumers on a least-cost basis. Mr. Ganaway demonstrated an understanding of Commission operations commensurate to someone with his level of access to information. He also appears to recognize the ethical constraints on public service.
FINDING: Qualified

SECOND DISTRICT

Robert Buford Dibble, Sr.

Mr. Dibble has been a public servant for many years and has an admirable desire to serve his state. He understands, and has experience with, the legal and ethical constraints on public service. Mr. Dibble also


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recognizes the issues involved in fairly balancing the interests of consumers and industry. The Committee finds, however, that Mr. Dibble has a limited understanding of the functions and operations of the Commission commensurate to others with his level of access to information. He is anxious to learn, but does not possess a current understanding of some of the more important matters before the Commission.
FINDING: Qualified

Carl F. McIntosh

The Committee finds Mr. McIntosh to be an outstanding candidate for the Commission. He has excellent experience and a thorough knowledge of the functions and operations of the Commission. He also has an even temperament and is sensitive to the legal and ethical constraints on public service. In his testimony before the Committee, he demonstrated a thorough understanding of the applicable public policy issues and of the issues involved in balancing the interests of consumers and the industry.
FINDING: Qualified

C. Robert Moseley

Mr. Moseley has business experience that could serve him well as a commissioner. He also has an even temperament and experience working with the public. Mr. Moseley demonstrated a fairly general knowledge of Commission functions and operations commensurate to others with his level of access to information. He also appears to have a fairly general understanding of some of the more important policy and technological issues that are, or will be, before the Commission.
FINDING: Qualified

Margaret B. Reese

Ms. Reese has excellent experience as a school teacher, and an commendable desire to serve. Ms. Reese also has an even temperament and is sensitive to the constraints on public service. However, Ms. Reese demonstrated a limited understanding of Commission functions or operations and some of the more basic aspects of utility regulation.
FINDING: Qualified

Charles Dukes Scott

The Committee finds Mr. Scott to be an outstanding candidate for the Commission. He is currently serving on the Commission staff as Deputy Executive Director. Mr. Scott has excellent experience and is extremely


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knowledgeable. Mr. Scott also has an even temperament, and is familiar with, and sensitive to, the constraints on public service. He thoroughly understands the functions and operations of the Commission and the issues involved in balancing the competing interests of consumers and industry.
FINDING: Qualified

THIRD DISTRICT

Guy Butler

Guy Butler has served as a member of the Commission for thirty-one years. During his tenure, he has served on multiple occasions as Chairman or Vice- chairman. During his interview, Mr. Butler indicated a sensitivity to the various demands placed on commissioners, noted his respect for the role of the Consumer Advocate, and offered insight as how to improve the deliberations of the Commission. The Committee was also impressed with Mr. Butler's studious preparation for these hearings and his balanced approach to the interests of the consumer and the utility industry.
FINDING: Qualified

Mary H. Derrick

Mrs. Derrick, a real estate broker residing in Johnston, expressed her desire to serve on the Commission as wanting "to make a contribution on the state where I live." Mrs. Derrick's previous public service as well as her commitment to make the Commission her full-time job impressed the Committee. Mrs. Derrick forthrightly dealt with the Committee's inquiries regarding conflicts of interest and the balancing of consumer and industry interests. However, the Committee does note its reservations as to Mrs. Derrick's general qualifications in that her interest in public service in public office appears to be a general one insofar as she was unable to identify any issues she would like to address in serving on the Commission. The Committee well realizes that challengers are not in the same position as incumbents to intimately familiarize themselves with Commission operations and emerging issues, but is concerned if a candidate has not considered the role of a commissioner on at least a minimal level.
FINDING: Qualified

Lewis E. Jordan

Mr. Jordan impressed the Committee with his distinguished military career and his desire to serve the people of South Carolina. His


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commitment to serve as a full-time commissioner is also viewed positively. Mr. Jordan displayed a working knowledge of the general responsibilities of the Commission and a determination that the Commission pro-actively consider the ramifications of deregulation and the radical changes coming in information technology. Mr. Jordan's graduate education and recent private business experience strongly argue that he would be a successful and productive member of the Commission.
FINDING: Qualified

John T. Nave

Mr. Nave has served as Mayor of the City of Greenwood for the past twelve years. Mr. Nave clearly demonstrated a working knowledge of the general responsibilities of the Commission, expressed his commitment to fairly balancing industry and consumer interests, and spoke convincingly of his desire to ensure fair hiring practices. Nave's understanding of the ethical restraints on his service also meets the Committee's expectations.
FINDING: Qualified

FOURTH DISTRICT

Philip Tibbs Bradley

Mr. Bradley demonstrated a knowledge and heightened level of awareness as to many issues likely to be addressed by the Commission. The Committee views Mr. Bradley's business experience as an asset as well. During the course of his screening, Mr. Bradley noted the need of the Commission to have ongoing communication with the legislative and executive branches of government so as to ensure a finely woven fabric of utility regulation. The Committee concurs in this goal and feels that the candidate's previous legislative service could aid this effort. Mr. Bradley's commitment to full-time service and his quick grasp of ethical concerns also argues for his being qualified for election to the Commission.
FINDING: Qualified

Robert G. Rowell

Mr. Rowell has served on the Commission for less than one year and forthrightly noted that it had been a learning process. He demonstrated a firm grasp of Commission operations, issues likely to be confronted by the Commission, and ethical constraints on public service. Mr. Rowell also expressed his continued commitment to thoughtful participation in the Commission's deliberations on a full-time basis.


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FINDING: Qualified

Frank B. Stone

The Committee finds Mr. Stone to have basic business experience which may aid the Commission in its deliberations. While Mr. Stone's knowledge of Commission operations and awareness as to pending issues is somewhat limited, the Committee noted with approval Mr. Stone's well-reasoned responses to its inquiries regarding industry rates of return and consumer expectations of affordable utility products and services.
FINDING: Qualified

FIFTH DISTRICT

George V. Atkison

Mr. Atkison offers substantial, high-level corporate experience drawn from nearly half a century as a business manager and product director with several Fortune 500 companies. Mr. Atkison, now retired, would serve full time on the Commission and noted that he would set an agenda of encouraging "stability." Mr. Atkison noted a partial loss of hearing that might affect his service on the Commission. The Committee finds Mr. Atkison's overall knowledge of Commission operations and pending issues to be of a general nature, but found his grasp of the economics of the marketplace to be more advanced.
FINDING: Qualified

Cecil A. Bowers

Mr. Bowers has served on the Commission for twelve years. The Committee finds Mr. Bowers to have a strong commitment to serve the public interests and a general grasp of the many public policy issues likely to confront the Commission in the future. Mr. Bowers' failure to grasp certain details of Commission decisions must be balanced against his general testimony indicating a strong desire to properly allocate costs and to balance the interests of industry and consumer. Mr. Bowers' expression of a strong commitment to progressive employment practices at the Commission met with Committee approval.
FINDING: Qualified

Mary Gail Douglas

The Committee finds Mrs. Douglas to be a very civic-minded advocate for the rights of many South Carolinians, such as the elderly, who may find difficulty in voicing their own concerns. The Committee finds Mrs.


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Douglas' advocacy to be well-tempered and her overall approach to rate-setting, permitting, etc. to be one where the "economic issue would . . . be first and foremost." Mrs. Douglas has substantial budgeting, accounting, and personnel experience, and through her testimony, provided evidence of a hands- on, well-reasoned approach to ensuring fair hiring practices. The Committee finds Mrs. Douglas' knowledge of Commission operations and utility issues to be commensurate with her prior access to information.
FINDING: Qualified

Richard A. Hall

Mr. Hall's previous experience as an employee of a utility company and as a director of a local natural gas authority provides him with a base of experiences on which to draw should he be elected to the Commission. He demonstrated a working knowledge of Commission operations and of many issues likely to confront the Commission. The Committee expressed its concern over a family member's ownership of a local telephone company's stock, but was assured by Mr. Hall that he would divest himself of this stock if elected.
FINDING: Qualified

SIXTH DISTRICT

Warren D. Arthur, IV

The Committee is impressed by the diligence and seriousness with which Mr. Arthur has performed his past duties as a Commissioner. The Committee found Mr. Arthur to have a solid understanding of both technical and industry trends and appreciates his efforts to recognize consumer, as well as corporate, concerns. Mr. Arthur currently serves as the President of the Southeastern Association of Utility Commissioners.
FINDING: Qualified

McKinley Lee Blackburn

The Committee is likewise impressed with the level of technical understanding displayed by Mr. Blackburn and recognizes his past experience in the utility industry, as well as his past service to the Commission (appointed by the Governor to serve in a vacancy). The Committee is satisfied that, if chosen, Mr. Blackburn would execute his duties with diligence.
FINDING: Qualified


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