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

Page Finder Index

| Printed Page 2380, Feb. 24 | Printed Page 2400, Feb. 24 |

Printed Page 2390 . . . . . Thursday, February 24, 1994

James Leon Cannon

The Committee notes Mr. Cannon's many years of past service to his community as a magistrate and appreciates his continued willingness to serve the public. The Committee is concerned, however, that Mr. Cannon's lack of experience in the area of public utilities may place him at a disadvantage in evaluating future avenues of development in the utility industries.
FINDING: Qualified

Maxine T. Dawes

The Committee commends Ms. Dawes for her continuing desire to dedicate herself to public service. Despite a lack of experience in the public utilities field per se, Ms. Dawes gave strong responses to the Committee's questions and possesses a general understanding of accounting and taxation principles. The Committee notes Ms. Dawes' overall emphasis on balancing competing concerns, such as environmental issues and utility and community prosperity.
FINDING: Qualified

Ervin E. Lambert

The Committee recognizes Dr. Lambert for his desire to protect and represent the interests of consumers in this state. The Committee seriously questions, however, Dr. Lambert's ability to adequately execute the duties of commissioner while maintaining his current responsibilities as a full-time employee of the U.S. Postal Service and as a minister. Dr. Lambert informed the Committee during questioning that he would be unwilling to relinquish his current positions.
FINDING: Not Qualified

Paul W. Smith, Jr.

The Committee appreciated Mr. Smith's interest in environmental issues and consumer protection. Mr. Smith has some experience with utility rate-making from his service as a city councilman, and emphasized his desire to evaluate the environmental impact of utility production on the surrounding community.
FINDING: Qualified


Printed Page 2391 . . . . . Thursday, February 24, 1994

AT-LARGE

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 offer to 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

Robert Walter Hundley

The Committee was impressed by Mr. Hundley's general understanding of the role of the Commission and his awareness of current industry trends and concerns. The Commission also wishes to note Mr. Hundley's past experience in the utility industry, his private business management experience, and his federal governmental service. Although the Committee was concerned about Mr. Hundley's current ownership of certain utility stock, he voluntarily expressed his willingness to divest himself of such should he be selected to serve on the Commission.
FINDING: Qualified

Clayton Baker Ingram

The Committee wishes to commend Mr. Ingram for his obvious study in the area of public utilities and regulation. The Committee was particularly impressed with his knowledge of and familiarity with concerns and trends facing the industries. Although Mr. Ingram does not possess any formal experience in the utility industry, he appears willing to dedicate the time and effort necessary to master this field.
FINDING: Qualified

Rudolph Mitchell

The Committee thanks Mr. Mitchell for his past service as a Commissioner and feels confident that he intends to continue performing his duties with integrity and fairness. The Committee noted with approval that Mr. Mitchell demonstrated an understanding of the importance of balancing advancing technology with consumer cost concerns.
FINDING: Qualified


Printed Page 2392 . . . . . Thursday, February 24, 1994

TRANSCRIPT OF PROCEEDINGS

Thursday, January 20, 1994

10:10 a.m. - 6:05 p.m.

APPEARANCES:
Senator Donald H. Holland, Chairman
213 Gressette Building
Columbia, South Carolina 29202

Senator C. Tyrone Courtney
604 Gressette Building
Columbia, South Carolina 29202

Senator Darrell Jackson
610 Gressette Building
Columbia, South Carolina 29202

Representative Thomas E. Huff
518A Blatt Building
Columbia, South Carolina 29202

Representative Kenneth Kennedy
328B Blatt Building
Columbia, South Carolina 29202

Representative Timothy C. Wilkes
422D Blatt Building
Columbia, South Carolina 29202

Representative Richard M. Quinn, Jr.,
420B Blatt Building
Columbia, South Carolina 29202

Doctor Barbara R. Hatton
President, S.C. State University
300 College Street
Orangeburg, South Carolina 29117


Printed Page 2393 . . . . . Thursday, February 24, 1994

Mr. J. Steven Bilton
c/o Jim Bilton Ford
P.O. Box 98
St. George, South Carolina 29477-0098

ALSO IN ATTENDANCE:

Michael N. Couick, Director of Research and Attorney to the Senate Judiciary Committee (serving as Council to the Committee to Review Candidates for the South Carolina Public Service Commission).

Ms. Debra D. Hammond, Administrative Assistant

THE CHAIRMAN: This meeting was supposed to have started at 10:00 o'clock. I think if we're to accomplish what we intend to today and what's set for us in the next three days, we'd better move along.

I'm Donald Holland from Camden and I represent Kershaw and Chesterfield County in the Senate. Other members of the committee are Senator -- present at this time are Senator Jackson, Senator Courtney, At Large Mr. Bilton and, of course, two members of our staff here, Mrs. Hammond and Mike Couick, Representative Wilkes and Representative Kennedy are present from the House and are members of this particular committee.

In an effort to -- in view of the fact that this meeting is being taped and the press is present, I'm going to read a statement so there won't be any question about what I said.

Members of this committee, I'm going to call this meeting to order. This is a joint screening committee of candidates for the South Carolina Public Service Commission. This committee screens those candidates who apply for consideration by the General Assembly in election for seven positions of the Public Service Commission.

Our basic duties are set out by statute. Not only are we to inquire as to the legal qualifications of the candidates, but we're also required to determine their fitness to serve based upon their experience, knowledge of utility regulation and personal character.

This hearing will be basically conducted by the chief counsel for the Judiciary Committee which is Mr. Couick on my left here and members of the committee will ask questions they have of the candidates. I understand from Mr. Couick who is chief counsel for the Judiciary Committee that there are certain questions that must be discussed in Executive Session before this -- we start this meeting.

And for that reason, I'm going to -- I would entertain a motion at this time to go into Executive Session and let's clear any problems that we


Printed Page 2394 . . . . . Thursday, February 24, 1994

might have in the future conduct of these meetings. There is no objection. We'll now go in Executive Session. We hope to be brief and we'll have you back in here for the start of this process.

(Executive Session)
THE CHAIRMAN: I call the meeting back to order. At this time
the counsel for the committee has a statement to make in regard to the proposed conduct of this committee. Mr. Couick.
MR. COUICK: Mr. Chairman, as decided by the committee during this Executive Session over the last few minutes, the committee feels it's imperative that this process be a public process and that is the whole purpose of having these hearings today to ensure that the public has confidence in the proceedings going on before this committee. The press have free and unfettered access to the proceedings of this committee and the public feel that when this process was over that they had a full access to a fair process.

In addition, the committee feels that it's imperative that the process be fair, that it be a fair process to all concerned whether it be an incumbent or nonincumbent and for that reason while having it remain a public process, they would request that all candidates or anyone else affiliated with a candidate, please be sequestered during the proceedings unless they're with the candidates being actively questioned at that time.

To illustrate the reason for that, the questions are going to be asked of all candidates as to their knowledge of the functions of the Public Service Commission. It would be patently unfair for a candidate to sit through two and a half days of hearings and appear on Monday afternoon and have the benefit of not only hearing the questions, but hearing everyone else's answers.

So to some degree this is like the Miss America contest when they go into the glass booth, so we would ask for those persons who are not being actively questioned to please report to Room 201, make yourselves comfortable. We'll try to keep on a schedule between 30 and 45 minutes per candidate for questioning.

You're welcome to check back with Room 105, the office in the front of the Gressette Building, if you have any questions, and you're also welcome to check from time to time for messages there if you want to leave that number. Please make yourself comfortable.

We'll try to come find you if we get ahead of schedule, but please try to anticipate when we would call you back. We'll post lunch times on the door if the committee breaks for lunch or for any other reason. The press is welcome to stay. Members of the public are welcome to stay, but


Printed Page 2395 . . . . . Thursday, February 24, 1994

please interpret liberally the admonition of the committee that if you're affiliated with a candidate as well to please excuse yourself as well.

It's important not only for the candidates to excuse themselves, but if there is anyone here that's related by family or employment to a candidate, please excuse yourself as well.

Mr. Chairman, I ask on your behalf that we do that at this time.
THE CHAIRMAN: Do you have an order of candidates that are to appear before us?
MR. COUICK: Yes, Mr. Chairman, and the candidates have received copies of that. Mr. Chairman -- thank you, Mr. Wilkes. If you -- the families of candidates and fellow employees are welcome to come at the time the candidate is being screened himself. You're welcome to have your family come back or anyone here with you at the time you're being screened. Mr. Chairman, if we could take a few moments to allow folks to exit the committee room.

Mr. Chairman, Ms. Bowen would be the first candidate.
MS. BOWEN: Should I remain then?
MR. COUICK: Yes, ma'am. Ms. Bowen, if you would come up and take a seat at the hearing table over here on the left. I think the far seat might be the best one. Let's see if we can make sure if the court reporter can see you. There is a microphone there in front of you.
MS. BOWEN: I see that.
MR. COUICK: If you would pull up -- pull the button on the top towards you.
MS. BOWEN: All right. I believe it is.
MR. COUICK: All right, while you remain standing, I'm going to go ahead and swear you in if you will raise your right arm.
ANNE BOWEN, having been duly sworn, testified as follows:
MR. COUICK: Mr. Chairman, under Tab 4 are the materials for Ms. Anne Bowen. Please have a seat, Ms. Bowen. Ms. Bowen has asked, Mr. Chairman, to present a statement to the committee this morning. She submitted this as an affidavit as is required by our rules. That's the first document under Tab 4.

Ms. Bowen, would you like to submit the statement to the committee to be included in the record now with the consent of the committee or would you like to read the statement?
MS. BOWEN: I'm willing to just submit it.
MR. COUICK: Mr. Chairman, counsel would request that you allow that statement to be submitted for inclusion of the permanent record. It's a statement I believe mainly of her experiences and qualifications.
MR. CHAIRMAN: You want the statement admitted?


Printed Page 2396 . . . . . Thursday, February 24, 1994

MR. COUICK: Yes, sir.
THE CHAIRMAN: The statement is admitted.
MS. BOWEN - EXAMINATION BY MR. COUICK:
Q. Ms. Bowen, you were presented with a copy of your Personal Data Questionnaire Summary this morning and given the opportunity to review it. I believe you had certain typographical corrections on it, namely the spelling of your name in one case and also designating that Hilton Head Island is a town.

Are there any other corrections or additions or deletions that you would like to have made to that questionnaire summary prior to its being entered as a part of the permanent record of these proceedings?
A. No, sir.
Q. Thank you. Would you please state for the committee your full name, Ms. Bowen?
A. Anne Marie Gwen Bowen.
Q. You're a resident of where?
A. Of Hilton Head Island.
Q. Ms. Bowen, I believe you received a letter earlier this week from me asking for you to bring evidence of your residency. Do you have a copy of your certificate -- voter registration or your driver's license with you?
A. I do have a driver's license. I did not receive such a letter, but, fortunately, I have my driver's license with me. Shall I present it to you?
Q. Yes.

Mr. Chairman, provisions of law require that a commissioner must be elected from the Congressional District in which he resides unless he's elected At Large. A letter went out I believe on Monday and perhaps some of the candidates haven't received it yet asking them to bring evidence of their residency.

Mr. Chairman, the driver's license Ms. Bowen indicates that she resides at 4 Nautilus Road in Hilton Head, South Carolina, 29928? Ms. Bowen, is that correct?
A. Yes, sir.
Q. Ms. Bowen, what prompted your interest in serving on the Public Service Commission?
A. I see this as a natural continuation of what I'm presently doing in my role as vice chairman of Sea Pines Public Service District. I also am keenly aware of what the future holds in terms of technological things that are coming down the line that I feel like this Commission, in particular, has the potential to really determine if those future enhancements and services will be available to all the people of South Carolina or perhaps just an elite view. And I'm very interested in being a part of that process.


Printed Page 2397 . . . . . Thursday, February 24, 1994

Q. Ms. Bowen, your service on the Public Service Commission District there at Sea Pines is compensated. You receive $5,000 in salary a year from that service. How much time do you serve in that capacity on average on a weekly or monthly basis?
A. Well, historically, it is not designed to be as intensive as, in fact, it has been. You may be aware Hilton Head is facing many challenges in the water area and has been for several years. I would suspect that it's in excess of a full day a week at this point.
Q. And what are your responsibilities? What types of utilities do you oversee? What generally makes up your responsibilities?
A. Well, the Sea Pines Public Service District is a Public Service District of South Carolina. There is a water treatment plant. We are in the process now still of expanding sewer service to everyone in the district. We should be fully sewered by the year 2000.

My duties involve reviewing bids and contracts for construction on those services, determining which areas
-- which geographic areas to extend sewer service to.

I'm also vice chairman -- I'm sorry, chairman of the finance committee of that body and in that capacity, review regularly the debt of the commission. I also look at the depreciation reserve to determine that it's adequate to meet our future needs. Those are some of the duties.

We are wrestling with a future source of a supplemental water supply at this time, so conservation efforts are very important to us and receive a lot of focus. In fact, we've recently enacted a rate structure for our customers to encourage conservation and it's been very, very successful in that matter.
Q. Ms. Bowen, for those of us who are not familiar with the confines of that district, does it only serve the Sea Pines area or does it extend beyond the boundaries?
A. No, sir, it extends beyond the boundaries of Sea Pines Plantation. It also encompasses a portion of Shipyard Plantation, down Palmetto Bay Road and Point Comfort Plantation, a part of Pope Avenue as well.
Q. Is it supported solely by the revenues derived from the providing of -- provision of water?
A. And sewer, that's correct.
Q. Is an effort made by that district to provide water to folks that may not afford to live in one of those plantations or other areas? Is there any lower income neighborhoods that are provided water or sewer by this Public Service District?


Printed Page 2398 . . . . . Thursday, February 24, 1994

A. Our district, you know, we're most -- we are charged to provide services within our district and within our boundaries. We really do not have any residents who would meet that criteria within our boundary.

However, I can tell you that we have entertained going forward -- again, in the situation on the island where there are residents on the north end who are not being served, we have entertained the idea of forming some type of a coalition with other utilities to attempt to see what can be done as far as giving service to those individuals.
Q. Are those areas contiguous to any area served now by your service district?
A. Not by Sea Pines, no, sir.
Q. Would you briefly state for the committee your educational background, if you would.
A. I graduated from Sea Pines Academy in 1980. And I graduated from the College of Financial Planning with a degree in 1992. That was a three-year course that I began in August of 1989. There are classes that are held with the course at the College of Charleston; however, I did not take any classes. I took it all on a home study basis. All of the examinations were held at the College of Charleston. They were proctored exams, but I was successful in completion of all of the examinations and completed the course in a timely fashion.
Q. Is that a baccalaureate program, Ms. Bowen?
A. It's an equivalent to a baccalaureate program, yes, sir.
Q. And in your occupation as financial planner, are you self-employed or --
A. I'm self-employed.
Q. Given that the duties of the Public Service Commission are extensive, what are your plans in terms of your self-employment as a financial planner should you be elected to this position?
A. If I'm successful in being elected to this position, the Public Service Commission would be my first professional priority. If I'm able to successfully discharge my duties in that capacity and in addition to maintain the clients that I have at this time that I think that if it's acceptable to whoever would determine if that's a acceptable procedure, then I would endeavor to do that. However, I do understand that the Public Service Commission would be the number one priority.
Q. In your capacity as a certified financial planner, what type of fees do you receive for your services?
A. I'm paid on an hourly basis by my clients.
Q. Do you receive --
A. Sometimes --


Printed Page 2399 . . . . . Thursday, February 24, 1994

Q. I'm sorry. Go ahead.
A. That's okay. There is within my fee schedule the option to be paid on a percentage of assets basis for asset management. However, at this time I don't have any clients that are under that arrangement. Everyone is worked on an hourly or flat fee basis. I do not sell securities or insurance of any type.
Q. In terms of your financial planning, though, would you be called upon to create a portfolio of investments that may include regulated securities?
A. Yes. There is the potential for that.
Q. And would there be the potential that some of those securities maybe utility stocks?
A. Yes, there is a potential for that.
Q. What approach would you take for your service on the Public Service Commission and your dual employment sense that you're offering this financial advice? How would you avoid the appearance of impropriety of offering that advice as to investment in utility stocks?
A. Well, generally, the way that I handle my asset management is to only utilize no load mutual funds, so I'm not presently and do not anticipate becoming involved in the market place of buying individual stocks, or bonds, for that matter, of any nature.

So there -- I don't believe there would be a conflict since the portfolio managers of each of the mutual funds are the ones making the decisions to buy and hold those securities. I believe that would be adequately addressed by that.
Q. So the closest you would come to actively being involved in utility stocks would be perhaps suggesting a utility based or oriented --
A. To recommend a mutual fund that met those objectives.
Q. That was based or somewhat oriented toward utility stocks?
A. That's correct.
Q. Have you ever served as a lobbyist or a lobbyist principal, Ms. Bowen?
A. No, sir, I have not.
Q. Are you actively involved at any point in any political campaigns at this time?
A. No, sir.
Q. Have you contributed any funds to any person running for public office since your declaration of candidacy for this position?
A. No, sir.
Q. You indicate on your Personal Data Questionnaire that you've expended $49.30 in sending letters to all 170 members of the South


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