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 2550, Feb. 24 | Printed Page 2570, Feb. 24 |

Printed Page 2560 . . . . . Thursday, February 24, 1994

are no negative entries on those. And I add that for purpose of the record.

Mr. Butler, the environment has gotten to be more and more important and more of a concern to folks. What role does the Public Service Commission have to ensure that the environmental matters are properly considered during a rate case or during a siting permit case?
A. On the siting law, there are two -- we have to have hearings on the -- when a plant comes on-line and when they apply for 750 megawatts, I believe, we have to have a public hearing on that. And we always make sure that all the other agencies that are connected with, not only the environment, but environmental problems, that they clear those before we issue the permit.

Also the 125 -- I had some notes here, but there's two cases here, 125 KV line, we have to have a public hearing on that and that's when we really get into -- heavily involved in the environmental. Of course, we encourage as much as possible the use of natural gas because that definitely helps our environment. It's the cleanest -- one of the cleanest sources of use of electricity there is.
Q. Mr. Butler, just to make sure the record is clear, you mentioned you had some notes there. You don't have any preindication of what my questions are going to be, do you?
A. No, sir.
Q. All right. The notes you were --
A. Let me explain this, if you don't mind.
Q. Okay.
A. As you know, I've -- I used to have to go before the Merit Panel.
Q. Yes, sir.
A. And I have -- some of this stuff goes back several years.
Q. Yes, sir.
A. In my own handwriting. I have all kind of things here.
Q. Okay.
A. And I continue to add to it because we are furnished this data. We are audited from our companies we regulate.
Q. Yes, sir.
A. And, no, sir, I don't have --
Q. Yes, sir, I would not think so, but I want to make sure. You were not present yesterday when the chairman admonished everyone to please be careful and not spread questions around. I know that you wouldn't have had advanced notice, I would think, but I want to make sure.
A. No, I don't have any.


Printed Page 2561 . . . . . Thursday, February 24, 1994

Q. What is the role of the PSC staff? How do they assist ya'll out there, Mr. Butler? Is there something that you would like to expand with the role of staff?
A. No, sir. I personally believe we have a very competent staff. As you know we have -- have to have technical people in practically every department and I think we have an outstanding staff. They do a superb job.

I've been involved in hiring practically everybody that comes there -- that is there now. It's just Mr. Ballentine and one secretary are the only people that have more time there than I have, so I was very influential in hiring Mr. Scott when he came there because he used to be our attorney and --
Q. Yes, sir.
A. -- we picked up on him. And I frankly think we've got as good a staff as possible and it's in my opinion so much ahead of some of these other states.
Q. Yes, sir.
A. They are dedicated people and they keep us informed on all these technical matters and they're on top of everything in my opinion.
Q. Mr. Butler, we've asked all the other or most of the other candidates about the Consumer Advocate.
A. Yes.
Q. So I'm not specifying this question just to you. The role of the Consumer Advocate, is that a cooperative role with the commission or when Mr. Hamm or his staff walks into a hearing whether it be rating or rate setting or siting, how do you view his role versus your role?
A. Well, to be completely honest with you, I think he does a good job, but he basically is for the consumer and lots of times he agrees with what we agree with, so they settle it out of court so to speak and it never goes to a hearing.

A good bit of that goes on, but as you know the law says we have to give a fair and reasonable rate of return and they can come in any time within six months. They have to wait six months before they apply for another rate increase, so he presents his expert witnesses in these major cases. The Legislature is wise in giving him money to hire experts, so -- and the companies have their experts, but the CA and the commission agree on lots of points. There are some points we do not agree on, but I think he does a good job.
Q. Mr. Chairman, that's all my questions.
THE CHAIRMAN: Any question of any member of the committee?
SENATOR COURTNEY: One question.


Printed Page 2562 . . . . . Thursday, February 24, 1994

THE CHAIRMAN: Yes, sir.
EXAMINATION BY SENATOR COURTNEY:
Q. Mr. Butler, I just want to ask you something we've been asking everybody. Have you had any involvement in the political campaigns of any member of the General Assembly in the last five or six years?
A. I'm sorry. I didn't hear the first part of the question.
Q. Have you had any involvement with the political campaign of any member of the General Assembly in the last six years as far as working in campaigns or donating money to members of the General Assembly?
A. I have not been involved in any campaigns. The last six years? I don't recall. I haven't been involved -- as far as I know, I haven't. I know I haven't been in any campaigns, but I don't think I've done any fund-raising. I really --
Q. Donated money?
A. I don't think I have, sir.
Q. Thank you.
THE CHAIRMAN: Any other questions? You're excused, Mr. Butler.
A. Thank you very much.
MR. COUICK: You did get your license and voter certificate back, didn't you?
A. Yes.
MR. COUICK: Thank you.
A. Thank you all.

PERSONAL DATA QUESTIONNAIRE SUMMARY

1. Guy Butler

Home Address: Business Address:

212 East Northside Drive 111 Doctors Circle

Greenwood, SC 29646 P.O. Drawer 11649

Columbia, SC 29211

2. He was born in Greenwood, South Carolina on March 26, 1926.
Social Security Number: ***-**-****.

3. S.C. Driver's License Number: *******.

S.C. Voter Registration Number: 0 525 482.

4. He was divorced from Nancy G. Butler on May 24, 1954. Nancy G. Butler was the moving party, and the action was commenced in the Court of Common Pleas. He has two children: Diane B. Moody,


Printed Page 2563 . . . . . Thursday, February 24, 1994

age 45 (manager of Lander College Bookstore) and Debra G. Allen, age 40 (housewife).

5. Military Service: He volunteered for service in the U.S. Navy for a few months in 1944. He was honorably discharged due to a swollen left ankle.
Service #: 932-43-33; Rank: E-1.

6. He attended Greenwood High School from 1939 to 1943, when he graduated.

7. He served in the S.C. House of Representatives from 1960 to 1963, when he resigned upon being elected to the Public Service Commission. He has served as a Public Service Commissioner since 1963.

8. He ran unsuccessfully for Greenwood City Council in 1951 and for the S.C. House of Representatives in 1956 and 1958.

9. He owned and operated a taxi fleet with 4 cabs from 1943 to 1946 and owned, operated, and managed retail Grocery and Produce Markets from 1946 to 1974. He sold the market in 1974 because his duties as a Commissioner became more demanding.

14. He was sued in his capacity as Public Service Commissioner in 1979. Plaintiff sought a declaration that S.C. Code Section 58-3-142 was unconstitutional and requested both punitive and actual damages and an injunction against the statute's enforcement. The suit was settled with no damage award to the Plaintiff.

19. He served as a Member of the S.C. House of Representatives from 1960- 1963 and has served as a Public Service Commissioner since 1963.

22. In seeking the office of Public Service Commissioner, he has spent a total of $216.50: $49.30 on stamps, $48.20 for stationary and envelopes, and $119.00 for the typing of letters and addressing of envelopes.

26. Professional organizations: National Association of Regulatory Utility Commissioners (1963-present); Southeastern Association of


Printed Page 2564 . . . . . Thursday, February 24, 1994

Regulatory Utility Commissioners (1963-present). SEARUC is an organization of Public Service Commissioners from 11 states in the southeastern region of the U.S.

27. Civic, charitable, etc. organizations:Mason, Shriner, Legionnaire, Loyal Order of Moose, South Main Street Baptist Church.

28. He has been a member of the Public Service Commission for approximately 30 years and has served as Chairman for two 1-year terms and one 2-year term. He has served as Vice-Chairman for two 1-year terms and one 2- year term. He successfully completed a course in Utility Regulation at the University of Wisconsin in 1963, shortly after his election to the Public Service Commission. He was successful in operating a retail produce and grocery business in Greenwood that grew from a 20' by 40' building to Greenwood's largest supermarket, with 30,000 square feet of space.

29. Five letters of reference:

(a) L. Giles Daniel

(b) L. Wayne Gantt

1425 Montague Avenue

Greenwood, SC 29649

(803) 223-2223

(c) Marjorie Amos-Frazier

361 Ashley Avenue

Charleston, SC 29403

(d) Harold E. White

(e) Jeannette Jernigan

Banking Officer, NationsBank

440 Knox Abbot Drive

Cayce, SC 29033

(803) 931-3180

30. He is seeking the position of Public Service Commissioner for the Third District.

MR. COUICK: Mr. Chairman, Ms. Derrick is on her way down. She'll be here in just a minute.

Ms. Derrick, please have a seat there at that far seat and if you have your driver's license and your voter registration certificate with you.


Printed Page 2565 . . . . . Thursday, February 24, 1994

Good morning, Ms. Derrick, if you would raise your right hand and take the oath.
MARY HOLSTEIN DERRICK, having been duly sworn, testified as follows:
MS. DERRICK - EXAMINATION BY MR. COUICK:
Q. Mr. Chairman, I have Ms. Derrick's driver's license. It represents she lives at Saluda Road, P.O. Box 446 in Johnston, South Carolina, 29832. Ms. Derrick, is that your correct current address?
A. Yes, it is.
Q. And what county is that?
A. Edgefield.
Q. And you've been a resident of Edgefield County for some period of time?
A. Yes, sir. Since 1976.
Q. Would you briefly describe for the committee your employment experience and what you've occupied yourself with the past several years?
A. Well, for last -- well, since 1976, I have been broker and owner of Derrick Realty in Johnston. Prior to that, I was a school teacher and guidance counselor in the county public schools. And prior to that, it was college and graduate school.
Q. Do you own any utility stocks, Ms. Derrick?
A. No, I do not.
Q. Does your husband own any utility stocks?
A. No.
Q. Anyone else in your household own any utility stocks?
A. No, sir.
Q. Ms. Derrick, what has convinced you that you should run for the Public Service Commission? What is your interest in the Public Service Commission?
A. Well, Mr. Chairman, I guess I would like to make an impact on my stay. I have been fortunate enough to be able to serve on a number of boards and commissions in my local geographical area that I feel like would give me a training ground to make the kind of decisions that the commission position would need.

Because of my business background, I think having to start a business from scratch and to turn it into a viable business, I can understand not only the business aspects that the companies would have to deal with, but also the consumer.

I have been a life long resident of South Carolina. My family has benefitted from this state for generations. I've always lived here and gone


Printed Page 2566 . . . . . Thursday, February 24, 1994

to school here, been educated here and intend to make it my home forever. And I'd like to make a contribution on the state where I live.
Q. Your ownership of Derrick Realty, do you share that ownership with anyone that's employed by a public utility?
A. No, sir, I am the sole owner.
Q. Do you from time to time buy or sell properties from public utilities or holding companies of public utilities such as SCANA?
A. No, I do not.
Q. Would you intend to continue your ownership in the Realty company if you were to be elected?
A. Yes, I would. I have three agents who are full time, one part time. Of that, two of those are men who are brokers and have broker's licenses. Either of those two could manage the business on a day to day operational basis without any additional training because they're both very seasoned and experienced people.

I also feel a great sense of loyalty to those people who have worked with me and the company and I don't think it would be fair to them to shut the door to them, so to speak, because of my interests going elsewhere.
Q. Would you continue to be a broker with the company?
A. Probably until such time as we can make the transition.
Q. Is it your basic approach to this position that it would be a full time one?
A. Absolutely.
Q. As soon as possible once you transition?
A. Absolutely.
Q. One concern of the committee has been the orientation of those persons who are running for the commission. You've mentioned earlier that you've been on both the business side and you are also able to see the consumer side.

Sitting in cases, whether they be rate cases or siting cases, what ultimately are going to be the factors that influence your decision? How often would the emotions of concerned citizens or their strong feelings affect your decision or is it going to be strictly a numbers driven decision in terms of perhaps rate setting? How will you approach a case?
A. I think you have to have a nice balance between the two. From the business standpoint, one could not expect a utility company to continue to stay in business if their bottom line is not a positive one. On the same -- along the same train of thought, however, I think I would be very sympathetic for the consumer who ultimately who might be, for instance, a divorced mother of three who might be working two shifts to make all


Printed Page 2567 . . . . . Thursday, February 24, 1994

of the family expenses covered and to whom if you had a rate increase it might mean that she could not buy a pair of shoes for the children.

But I think you have to be fair and equitable and look at all of the factors that would be involved on both the consumer and the business end.
Q. Ms. Derrick, is it your understanding that you would need to relinquish whatever positions you have -- public service positions upon election to the commission?
A. I'm sorry. Would you --
Q. I believe you continue to serve on a couple of -- the County Planning Commission in Edgefield and the --
A. That's prior. The County Planning Commission was a service that I rendered, I think, in --
Q. Okay.
A. -- roughly '85 to '89.
Q. So you are no longer serving in any other public office?
A. That's correct.
Q. You forthrightly put forth on your application that your business has been sued once and I take that to be a pending suit?
A. Yes, sir. That is correct.
Q. Without delving too much into particulars, were there any allegations of any fraudulent behavior on your part or anybody you directly supervised?
A. Absolutely not.
Q. Mr. Chairman, we've had an opportunity to review Ms. Derrick's report and SLED report from SLED. They are both negative in terms of there are no entries therein indicating any type of problem.

Ms. Derrick, as to your service on the commission, is there any particular one or two issues that you think would be more important or immediate in terms of -- that are confronting the commission right now that you would like to mention to the committee that you would like hit head on?
A. Unfortunately, I'm not aware without inside knowledge of what the commission has been -- what's on the table at this point in time. I really couldn't speak intelligently to that question.
Q. Mr. Chairman, that's all my questions.
REPRESENTATIVE WILKES: Thank you. Are there any questions for the candidate from the members of the committee? Senator Jackson.
EXAMINATION BY SENATOR JACKSON:
Q. Are you familiar with the Consumer Advocate's Office?


Printed Page 2568 . . . . . Thursday, February 24, 1994

A. I know within the Public Service Commission there is a Consumer Division, but as far as the Consumer Advocate's Office being separate from that, I'm not familiar with the workings of it, no, sir.
REPRESENTATIVE WILKES: Any other questions?
EXAMINATION BY REPRESENTATIVE WILKES:
Q. I have a question for you, Ms. Derrick, and again following up on Mr. Couick's mentioning your disclosure of this pending lawsuit and without getting into any of the details that might --
A. I would be happy to answer any questions.
Q. -- effect the outcome, if the outcome of that lawsuit were to be adverse to your company, would that in any way affect your credibility as far as serving on the commission?
A. No, sir. I would --
Q. Okay. It's just a -- it's a business matter more than one of ethics or of criminal intent or anything like that?
A. Yes, sir. If I might, I will be happy to tell you a little of the details.
Q. Well, I don't know that that would be necessary or proper given the fact --
A. Well, my attorney --
Q. -- that it's still a pending suit?
A. Well, my attorney tells me that the attorney for other side is more than likely going to drop the case, that he doesn't feel that it will ever go to trial.
REPRESENTATIVE WILKES: Then I have no question and if there are no other questions of the committee, you may be excused. Thank you so much for coming.

PERSONAL DATA QUESTIONNAIRE SUMMARY

1. Mary H. Derrick

Home Address: Business Address:

"DeerHill" Derrick Realty

Saluda Road, P.O. Box 486 602 Lee Street

Johnston, SC 29832 P.O. Box 486

Johnston, SC 29832

2. She was born in Columbia, SC.

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

3. S.C. Driver's License Number: *********.

S.C. Voter Registration Number: 1 209 190.


Printed Page 2569 . . . . . Thursday, February 24, 1994

4. She is married to Thomas Scott Derrick. She has one child:Louise H. Derrick, age 15 (student).

6. She received a B.A. from the University of South Carolina in 1972 and a M.Ed. from USC in 1976.

7. She has been appointed to the Edgefield County Planning Commission and the Upper Savannah Council of Government Historic Preservation Committee (approx. 1978-1982).

9. She was a teacher/guidance counselor with Aiken County Public Schools from 1972 to 1976. She has been the owner and Broker-in-Charge of Derrick Realty since its opening in 1976.

10. She is the owner/Broker-in-Charge of Derrick Realty and is Secretary of Heritage Trace of Johnston, Inc. (Development Group).

14. Her business has been sued once. Any action brought against a Derrick Realty agent results in an action against the agency. This was the situation here, and her attorney believes that the matter may be dropped.

26. Professional organizations: Ridge Board of Realtors (has been Pres., V.Pres., Sec., and Treas.); Aiken Board of Realtors; S.C. Association of Realtors; National Association of Realtors; Edgefield County Chamber of Commerce (Board Member); Johnston Development Corp. (Board Member).

27. Civic, charitable, etc. organizations:Episcopal Church of the Ridge; Edgefield County Cancer Society Board; Johnston Merchants Association; Johnston Town Forum (Organizer); Palmetto Trust for Historic Preservation; Chamber of Commerce; Johnston Great Town Committee; Edgefield County Heritage Corridor Volunteer Group.

29. Five letters of reference:

(a) Mr. Jim Jameson

Vice-President, NationsBank of Batesburg-Leesville

128 Church Street

Leesville, SC 29070


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