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 2460, Feb. 24 | Printed Page 2480, Feb. 24 |
Printed Page 2470 . . . . . Thursday, February 24, 1994
lot with companies who, of course, use the utilities and I see their problems and I feel that my insight -- I could better understand and do a better job as a commissioner.
Q. What type of hat do you think you would typically wear on the job as a Public Service commissioner? Would you be a traffic cop, a public relations expert, a judge or an agency director in terms of personnel director? What hat would you typically wear as a PSC commissioner?
A. I think as a judge quite frankly because we -- as a commissioner you sit just like you are and the different clients or firms being regulated come before you, so I would say being a judge would be primarily my responsibility and the hat that I would wear.
Q. What does public service on the Public Service Commission to mean to you? I mean when you sit there as judge, what's your obligation to the public versus your obligation to the public utilities that appear before you?
A. Well, the first thing is that the -- we, the South Carolinians, want good reliable service from the companies that are being regulated and to do that, there has to be -- companies have to be, let's say, profitable. Let's say they have to know -- have people work there who know what they're doing and carry out their responsibilities. If -- like up in -- our friends up north right now, say, in Washington, DC, they have no electricity and they had to shut down the US government.

Obviously, something went wrong in their utility regulatory program, the same exact with New Jersey and Pennsylvania. So to really have good service, I think it's tantamount, the first responsibility of the Public Service Commission.
Q. What topics do you consider to be the most important at the PSC right now? Where do you think are some cutting edge problems that are going to confront --
A. Well, first and foremost is we must be competitive in doing business in the State of South Carolina. We must be competitive with other states and other nations if businesses are to come here and those that are here are to stay here, so that's the number one consideration.

If we become no longer competitive and the Public Service Commission does have a great deal of response and responsibility in this area, then, you know, businesses will not grow, will not stay here and in the long run every one, utilities and the public, will be at a disadvantage.
Q. Santee Cooper offers a range of rates to various utility customers that use it, whether it be the electric co-ops whether it be a company like Valu-max (phonetic) or whether it be the residential consumer that may buy directly in that area. Is it appropriate for a utility regulated by the

Printed Page 2471 . . . . . Thursday, February 24, 1994
PSC to offer a broad band of rates in order to be more competitive to attract industry in South Carolina?
A. Well, let's just take Valu-max, that's 900 people who are working in the area right near where I live at and those employees in the area that enable people to come here, increase the payroll, I think, two million dollars a year. And if it hadn't been for that special rate, that 50 million dollar a year payroll would not be here in the area where I live.

And there has been many spin-off jobs. It's sort of a gut-wrenching decision making process to give industry a special rate. And I don't think it should be given. It has to be given with the idea to some surgical precision, but if we don't do that, then we don't have employment and then we're all going to be worse off. So I feel that, yes, it should be based on job creation and specific requirements, but I think it is something that needs to -- it should be done.
Q. Do you recognize the term generational mix as it relates to fuel sources?
A. Yes, that'd be like nuclear power, coal, oil, fire boilers, hydroelectric.
Q. What -- how would that impact environmentally? How would you -- and what role would you see the PSC taking in those areas in terms of requiring or encouraging certain generational mixes?
A. Nuclear power has a -- and the only problem with nuclear power, quite frankly, is the fact what are you going to do with the disposal of the waste. Of course, presently, it's coming to Barnwell County, South Carolina.

But beyond that situation and the thought maybe the threat of a nuclear accident, it is an excellent source of power and when things -- when the power demand goes down, for instance, SCE&G runs -- they shut everything else down, they keep running the Duke Sumner nuclear plant.
Q. Mr. Schuster, speaking a little more generically rather than trying to identify what's clean power and what's not, I guess my question I would like to focus on is it appropriate where something may be more expensive, but a cleaner burn to opt for the more expensive, cleaner approach to generation of power as opposed to the most -- to the least expensive generation of power, to mandate that as a Public Service commissioner?
A. Well, I think quite frankly in that situation, we at the PSC should touch base with the health departments, the environmental quality control and work together and really just make a decision.

If they feel that is an air pollution problem, then you -- the power that we have over the utilities, tell them, you know, yes, we're going to have

Printed Page 2472 . . . . . Thursday, February 24, 1994
to go to this, but we also know it is going to cost more and ultimately the rates will go up.

But I don't think the PSC should be legislating by itself air quality control standards. I think they need to really talk especially to people who really know what they're doing which would be the environmental section of DHEC.
Q. Are you aware that the Public Service Commission has environmental authority when it comes to the siting decisions as it relates to new plants?
A. No, I did not know that.
Q. A couple of short questions, are you familiar with the concept of wheeling as it relates to the wholesale distribution of power?
A. No, I don't.
Q. What other types of utilities does the PSC regulate other than electricity generated power?
A. Well, you have private water systems, private waste water systems, we have, of course, natural gas. You have transportation, highway and railroad. It also regulates, of course, the safety aspects of truck driving in this state.
Q. Thank you. And I don't believe that I've mentioned yet for the committee's benefit, Mr. Schuster, that your credit reports and SLED reports were positive in that there were no negative entries. I wanted to be sure that was on the record.

Then, finally, would you have any recommendations for this committee as it would relate to the screening process itself to improve it?
A. Well, it seems like it was a little longer like, for instance, we first met and then you had to decide whether or not on whether to have all of the candidates or not, maybe get that resolved. But you need have a thorough process, you know, in doing this for the candidates.

Like I said, I -- in the letter I sent you speaks for what I feel about what the Public Service Commission stands for. I guess all the members got that, so that's really -- you know, you have a really -- a very important responsibility and I appreciate your consideration. And I think you have a lot of candidates here. You have a tough job ahead of you.
Q. Thank you. Thank you, Mr. Chairman.
REPRESENTATIVE WILKES: Would any of the screening committee members like to ask questions of the candidate?
SENATOR COURTNEY: Mr. Chairman?
REPRESENTATIVE WILKES: Senator Courtney.

Printed Page 2473 . . . . . Thursday, February 24, 1994
EXAMINATION BY SENATOR COURTNEY:
Q. Mr. Schuster, I just want to ask you a couple of things. I notice in your summary that you submitted -- that you also have been involved in the political process before in running for public office?
A. Yes, sir.
Q. And I just want to ask you if you have in the last four to six years been involved in either directly or indirectly, contributing money or helping someone with their political campaign?
A. Yes, I have. I have a State Senator Bill Mescher, State Senator Mike Rose, State Representative Sandy Walker. Those are the three that are in the General Assembly. Do you want others also?
Q. Thank you.
A. Sheriff Isgett, Berkeley County.
Q. Just the legislators is all I was concerned about.
A. Okay.
Q. When you're talking about setting rates and all by the Public Service Commission --
A. Right.
Q. -- you have to look at things -- particularly, you have to look at expenditures by the utilities and so forth. There has been some controversy about utilities using funds to invest in things that are not actually related to generating power or water or sewer service. Do you have any problem with them doing that?
A. Yes, I do. I have -- if you look at -- I read a book,
"The Down -- The Collapse of the Penn Central Railroad," and that was a utility who invested its money not back in the railroad, but instead they spent it in real estate and other ventures because they were making more return instead of getting the utility, the railroad, straightened up and in the end the doggone -- you know, the whole system collapsed.

So we -- you need to make sure that they are keeping the utility up to par. You know, first rate, first rate people, first rate facilities and --
Q. Assuming that the investments that they make are good investments, money making investments, that don't detract from their overall financial situation, is it all right for them to use money generated from their utility service to invest in other areas even though that may reflect on their need for an increase in rates?
A. So in other words if because of their putting money into other investments requires them to go up on the rates, is that your question?
Q. Yes, sir.
A. I'd look very unfavorably upon that, Senator.
Q. Thank you. Thank you, Mr. Chairman.

Printed Page 2474 . . . . . Thursday, February 24, 1994
REPRESENTATIVE WILKES: Senator Jackson.
EXAMINATION BY SENATOR JACKSON:
Q. Mr. Schuster, let me ask you a question, are you familiar with the South Carolina Consumer Advocate's Office?
A. Yeah, Mr. Hamm, I think is the director.
Q. Right. How do you think that office fits with the Public Service Commission and what do you see the role of the Consumer Advocate?
A. I think he can be or she can be a very -- the department can be a very good source of information to, say, a utility rate or regulating any entity, you need to have as much input as possible with as many people as possible. And as a commissioner, I would listen to everybody and I feel that he/she can really bring in some good views that I haven't listened to and I would -- so that's -- you know, I would welcome it.
EXAMINATION BY REPRESENTATIVE WILKES:
Q. Mr. Schuster, since you've indicated when you were answering Mr. Couick's questions a few minutes ago that the hat that you would most likely wear as a commissioner would be that of a judge, I feel like it's only fitting maybe that I ask a few questions about your temperament and how you perceive yourself.

If I were to ask you are you emotionally driven or logically driven or somewhere in between, how would you respond to that?
A. Logically driven.
Q. That's an unqualified answer. All right. How about --
A. I was told I have a -- I'm as serious as a heart attack.
Q. How about the development oriented versus environmentally oriented? We seem to be living in a time of extremes in adversaries sometimes, so --
A. I would have to -- you can have good development and be environmentally sound. It's possible with the proper planning, it can be done, so I would say -- I could -- I'm not going to say -- it's not either or. I think with the proper planning, we can do both.
Q. So you would strike a balance then?
A. Yes, sir.
Q. How about if I were to pose this scenario, urban oriented versus rural oriented?
A. Again, one of the big fallacies we're having in this state and nation is the fact that central urban areas are decaying and we're going out urbanizing the rural areas. I think what we really need to do is do what Oregon has done by the way is restricting growth around the cities, so you can develop within this area and not develop outside of that and then really spend our time and effort redeveloping our urban areas because

Printed Page 2475 . . . . . Thursday, February 24, 1994
we're sort of going off in all directions and our urban areas are sprawled and becoming environmentally unsafe and unsound.

At the same time, we are becoming more -- it takes more energy just to do merely the things that we want, so I feel that we should be -- urban areas should remain urban and rural areas should remain rural and we should plan -- work to keep it that way or the best we can.
Q. If as a commissioner you may have to make a decision sometimes that might adversely effect a rural area or vice versa, so do I understand you to say that if -- that maybe we don't need to look at economic development particularly in the rural areas as far as, let's say, extending infrastructure at the cost of the rest of the state possibly to underdeveloped or undeveloped rural areas?
A. Well, we have a bunch of -- well, it depends on how you determine rural. A lot of people -- I think the classification I always remembered was a town of 500 people is rural, but actually that's a small town.

What I'm saying is that if we want to -- if we let -- small towns and central cities of this state are decaying, so if we develop, why not develop the small towns or the central city areas and the rural areas, but not just, say, if someone wants to develop something four miles out in the woods somewhere, that's rural, but it's probably if we could do it around an urban, existing small town or urban area.

So what I'm trying to say is that we should try to direct our growth, so that we don't have urban sprawl which costs a lot for utilities to service the areas and also it costs a lot of good farmland and stuff.
Q. Thank you.
REPRESENTATIVE WILKES: Any other committee members have a question for Mr. Schuster? If not, Mr. Schuster, thank you for your time and you may be excused.
A. Thank you very much.

PERSONAL DATA QUESTIONNAIRE SUMMARY

1. Mr. Charles E. Schuster

Home Address: Business Address:

27 North Basilica Avenue P.O. Box 11280

Hanahan, SC 29406 Columbia, SC 29211

2. He was born in Greenville, SC on April 9, 1951.

Social Security Number: ***-**-****.

Printed Page 2476 . . . . . Thursday, February 24, 1994
3. S.C. Driver's License Number: *********;

S.C. Voter's Registration Number: 1180028.

4. He married Karen Reynolds on March 24, 1989. He was previously married to Sarah Ballard Duvall from 1985 to 1987. They divorced in Charleston County in 1987. He has one stepson:David Corey Scott, age 16, student.

6. He received a B.S. in Food Science from Clemson University 1972, and a M.B.A. from the University of South Carolina in 1978. He has completed 28 hours of short courses between 1973 and 1993.

8. He was defeated in a 1980 bid for State House District 99.

9. From 1974 to present, he has worked for the S.C. Department of Agriculture as a food and cosmetic inspector.

19. From 1974 to present, he has worked for the S.C. Department of Agriculture as a food and cosmetic inspector. His supervisor is Thomas W. Brooks.

22. He estimates having spent approximately $20 on telephone calls and $52 on typing.

26. Professional organizations: Alpha Zeta Honor Agricultural Fraternity; Gamma Sigma Delta Professional Agriculture Society.

27. Civic, charitable, etc. organizations:Berkeley County Historical Society; Berkeley County Republican Men's Club (officer); Berkeley County Republican Party (officer for 12 years); Clemson University Alumni Association (past area representative); Hanahan Arts Council; Hanahan High Parent Teacher Assoc.; Otranto Civic Club; St. Philip's Episcopal Church; Toastmasters International (officer for 10 years); University of South Carolina Alumni Assoc.

29. Five letters of reference:

(a) Sheriff Ray Isgett

Berkeley County Sheriff

300 California Avenue

Moncks Corner, SC 29461

(803) 761-8190

Printed Page 2477 . . . . . Thursday, February 24, 1994
(b) Wade C. Arnette

Berkeley County Coroner

300 California Avenue

Moncks Corner, SC 29461

(803) 761-8178

(c) Janet Brown Jurosko

Berkeley County Auditor

223 North Live Oak Drive

Moncks Corner, SC 29461

(803) 761-6900 ext. 4036

(d) James K. McMillan, Jr., Esquire

P.O. Box 488

Sumter, SC 29151-0488

(803) 775-2455

(e) Jill Galdier

South Carolina National Bank

8599 Rivers Avenue

North Charleston, SC 29406

(803) 724-5148

30. First District.

MR. COUICK: Mr. Tyler I believe is coming in the door. Mr. Tyler, please come forward and take the seat on your extreme left. Mr. Tyler, while you're putting your things down, if you would take out your driver's license or your voter registration card, whichever is most convenient.
MR. TYLER: I have both of them.
MR. COUICK: Did you by chance receive the letter?
MR. TYLER: Yes.
MR. COUICK: Good. Mr. Tyler, if you would raise your right and be repeat the oath or take the oath.
HUBERT TYLER, having been duly sworn, testified as follows:
MR. TYLER - EXAMINATION BY MR. COUICK:
Q. Mr. Tyler, your South Carolina driver's license indicates that you live at Route 3, Box 472, Ridgeland, South Carolina, 29936. Your voter registration card indicates the same address. I believe that Ridgeland is in Jasper County; is that correct?
A. Yes, it is.
Q. And you have been a resident of Ridgeland for some period of time, I take it?
A. Life.

Printed Page 2478 . . . . . Thursday, February 24, 1994
Q. In fact, you were a math and science teacher for 31 years; is that correct?
A. Yes.
Q. Just retiring, what, three years ago? Three or four years ago?
A. In 1990.
Q. And you've also served on the Jasper County Board of Education for close to, what, 20 years or getting close to 20 years?
A. Well, 17.
Q. You've been very active in education. How do you come to have an interest in the Public Service Commission?
A. Well, sir, after having served as a public school teacher, as a public servant, as a member of the Jasper County Board of Education, I always wanted to serve my country.

I served honorably in the United States Army for three years and as a Board member for 17 years and I feel that now it's time for me to move onto larger or to more diversified group of individuals.
Q. Aside from your service on the Jasper County Board of Education, do you have any other outside interest right now other than just being retired? Do you have any other employment or any other business interests at this time?
A. Yes, I -- at the present, I have a part time position with the United States Postal Service as a rural carrier in Hardeeville, South Carolina, which is in Jasper County.
Q. And I believe that's as a substitute; is that correct?
A. Yes, it is.
Q. How much control do you have over the hours you spend in that position?
A. None whatsoever. It's set.
Q. I guess my next question is would you anticipate that if you were elected to the PSC that you would have to relinquish those responsibilities as a substitute carrier?
A. Yes, I would.
Q. Mr. Chairman, in our research with SLED and a credit bureau, we found that both indicate very positive reports on Mr. Tyler. No negative entries reported by credit or judgment search. What would you think would be one or two major issues confronting the Public Service Commission at this time, Mr. Tyler?
A. Well, I think one of the major issues would be fuel consumption and the natural fuel that we use to generate electrical entities or whatnot. We'll have to look at some alternative sources simply because our natural resources is going to soon run out if we continue to use it.

Printed Page 2479 . . . . . Thursday, February 24, 1994
Q. You indicate from your answer, and maybe I'm reading too much into it, that the solution is one of expanding the pie rather than narrowing the pie in terms of reducing usage, in terms of working on the demand side rather than the supply side or vice versa, that you would rather find more supply rather than reduce the demand?
A. Right.
Q. Is that true?
A. Yes, I certainly would.
Q. Have you heard of a concept of generational mix as it relates to fuel sources?
A. Generator --
Q. Generational mix?
A. No, I'm not familiar with that.
Q. How about wheeling of wholesale supplies of power? Wheeling, W-h-e-e-l-i-n-g?
A. No, I have not.
Q. How about a company's rate base?
A. Rate --
Q. Rate base? Rate base, b-a-s-e? Rate base?
A. Have I heard of the rate base?
Q. Base, yes, sir.
A. The only thing that I am familiar with that you -- I would get a printout of the basic rate from the electrical company that serve me and --
Q. What types of utilities does the Public Service Commission regulate? Other than electrical power, what other types of public utilities does the Public Service Commission regulate?
A. Use of gas, natural gases and also to a certain extent regulate use of public transportation, some forms of transportation.
Q. Mr. Tyler, the Public Services Commission often has the Consumer Advocate appear before it. What do you think your role is with him when he is there? Is it a cooperative role? Are you an advocate for the public as well? What's your role there as a Public Service commissioner?
A. Okay. Certainly, I would be an advocate of the public at all times. I think any commissioner should always have an open mind at all times. Positive open-minded at all times.
Q. If you're sitting there, what type of hat do you think you're most often going to wear? Is it going to be a traffic cop or a public relations expert or a personnel director in terms of being over the personnel of the commission or as a judge? What type of hat do you think you're most

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