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 2600, Feb. 24 | Printed Page 2620, Feb. 24 |
Printed Page 2610 . . . . . Thursday, February 24, 1994
In the field personnel, people in the Transportation and Enforcement Division, we've only hired once since I've been there, but I was a little shocked at that procedure where we had seven or so applicants and we went to the meeting not to interview or review the applications, but to vote on a motion to hire one of them. And that's how the person was hired. And I immediately put into the minutes at that time that I felt that we should either interview, review the application or recommendation of the staff. The staff (sic) had specifically said we don't want your recommendation. We'll make these decisions on our own. You know, and all other hires it's based on staff's recommendations.
Q. In this instance --
A. And I feel it should be --
Q. In this instance, you're saying the staff did not recommend this person nor were there interviews held by the --
A. The staff interviewed the people to see if they were qualified, much like you folks interview to see if we're qualified. They did not make any recommendations to the commission, and when I asked they said that we were specifically said not to make recommendations.

This is an area in which the commission makes its own decision. This -- as I said I've only been through it once. I was shocked and I hope if it comes up again, that we at least have a chance to change the procedure somewhat.
Q. Well, then, I'm really concerned now because you're saying that this person was hired without being interviewed by the commission, but without any recommendation being made by the staff, so how does something like that happen? Is it some mystical experience that somebody had or --
A. Mr. Wilkes, I can't answer the question except it takes four votes to elect and the person had the four votes necessary to be elected.
Q. Thank you, Mr. Rowell.
THE CHAIRMAN: Representative Kennedy.
EXAMINATION BY REPRESENTATIVE KENNEDY:
Q. I'd just like to follow up with Mr. Wilkes' question. Mr. Rowell, explain to me the management protocol at the Public Service Commission? Who --
A. Well, we -- first, we have an executive director who is in charge of the overall operation of the business and he also handles the budget aspects and the like. We have a deputy executive director and the person who is also liaison with the commission, Mr. Scott Dukes (sic), who is the one that helps us get information we need for issues that are coming before us.

Printed Page 2611 . . . . . Thursday, February 24, 1994
Then we have the department heads of each of the different districts, utility, transportation, gas and so on. Often times when I'm reading about information or understanding things, I may go straight to the department head and say what are we doing here or what's happened here or how did this work or what's the background, so we work in terms of individual commissioners getting information from the staff from the different departments.

When it comes to the meetings, the agenda is prepared by the staff and with coordination of the chairman in terms of what is ready for a decision. It takes certain requirements before you can bring it before the commission in terms of notices being given and posted and this type thing. We deal with administrative matters with Mr. Ballentine, the executive director. Answering questions and giving information to us is on the agenda.

Then we move to the utilities division and deal with the different areas of utility with each special department head. And Water and Sewer would be there to handle to those issues, Telecommunications on those issues, so we go through each one with that department head being present to help us with each issue that we're voting on. Then we go to Transportation.

So we go through generally with the staff specialist there in the particular area that we're dealing with as we go through the whole agenda.
Q. So one of the commissioners act as chairman of your group?
A. Yes. Correct.
Q. And who would that person be? The senior --
A. Mr. Yonce is chairman.
Q. The senior member of the -- is that the way it's --
A. Well, it's not senior. It's elected. You're elected to a two-year term as chairman.
Q. By the members?
A. By the members.
THE CHAIRMAN: Any other questions from any members of the committee?
MR. COUICK: Mr. Chairman, one short question from staff, if possible.
RE-EXAMINATION BY MR. COUICK:
Q. Mr. Rowell, you have been through the screening process twice now, what recommendations do you have for the committee?
A. The only thing I think would be helpful to the people that's being screened is maybe when they file an application would be a little mimeographed sheet saying here is procedure, here is what happens next, here is what we go through because I know particularly for the ones that

Printed Page 2612 . . . . . Thursday, February 24, 1994
hadn't been through before need to understand when you can contact the legislature, what you can say to them or can't say to them.
Q. You did not get that with your copy?
A. I don't believe I did, no, sir.
Q. We mailed out about a six-page packet that laid all that out.
A. I got a packet, but I don't remember that. If I overlooked it or if it's in there, I apologize for it. But I felt familiar with what the procedure was, but I think the new people may not and particularly the changes we had this year from the old system.
Q. Mr. Rowell, have you lobbied for changes in the selection of Public Service Commissioners?
A. No.
Q. No legislator or any --
A. No.
Q. -- elected official?
A. No.
THE CHAIRMAN: Any other questions? Thank you, Mr. Rowell.
A. Thank you very much.

PERSONAL DATA QUESTIONNAIRE SUMMARY

1. Mr. Robert G. Rowell
Home Address: Business Address:

162 Henson Street P.O. Drawer 11649
Spartanburg, SC 29307 Columbia, SC 29211
or:
P.O. Box 2766
Spartanburg, SC 29304

2. He was born in Branford, Florida on December 6, 1932.
Social Security Number: ***-**-****.

3. S.C. Driver's License Number: **********.
S.C. Voter Registration Number: 1 367 349

4. He was married to Edith Marie Gorlick Rowell on August 18, 1956. He has three children: Dr. Craig G. Rowell, age 34,(radiologist); Calla Rowell Snow, age 33, (guidance counselor); Christopher P. Rowell, age 30, (Food Service and Flight Attendant).

Printed Page 2613 . . . . . Thursday, February 24, 1994
5. Military service: US Army Finance Corp from 1955 to 1957, Reserves from 1957 to 1966, Captain, Honorably Discharged in 1966.

6. He graduated from the University of Florida in 1955 with a B.S.B.A. degree; Florida Trust School, Univ. of Florida, from 1961 to 1963, one week of school annually; National Graduate Trust School from 1976 to 1978, Northwestern Univ., two weeks annual education.

7. He was the Chairman of the Spartanburg County Council from 1975 to 1982; Commission of Public Works, City of Spartanburg from 1975 to 1982; Mayor, City of Spartanburg from 1990 to 1993; Commissioner, South Carolina Public Service Commission from May 1993 to present.

8. He was an unsuccessful candidate for Spartanburg County Commissioner in 1974.

9. He worked as a sales representative for Illinois Mutual Life Insurance Company in Orlando, Fla. from 1960 to 1961; Trust Officer for Commercial Bank and Trust Company in Ocala, Fla. from 1961 to 1966; Vice President and Trust Officer for South Carolina National Bank and First National Bank of SC in Spartanburg, SC from 1966 to 1987.

10. He is the President and Treasurer, Director and Owner of Spartan Mortgage and Investment Corporation.

14. He has been sued in his capacity as Chairman of the Spartanburg County Council and as Mayor of Spartanburg several times; none resulted in damages. He has never been sued in a personal capacity.

15. An ethic complaint was filed against him in his capacity as Chairman of the Sewer and Water Service, investigated, and dismissed.

19. He served as the Deputy Insurance Commissioner from 1957 to 1960, State of Florida; South Carolina Public Service Commissioner since May 1993.

21. He reimbursed the Public Service Commission $25.00 after he had a secretary type a letter to be sent to all legislators.

Printed Page 2614 . . . . . Thursday, February 24, 1994
22. In seeking this office he has spent these amounts: $49.30 for postage, $56.70 for stationary, $25.00 for secretarial services, $119.00 for printing, total of $250.00.

26. Professional organizations: National Associates of Regulator Utilities Commission Committee on Water; Board of Directors, Municipal Association of SC; Past Immediate President, Spartanburg County Municipal Association; Appalachian Council of Government.

27. Civic, charitable, etc. organizations: Spartanburg Rotary Club; Central United Methodist Church; Carolina Country Club; Piedmont Club.

29. Five letters of reference:
(a) Wayne Bowers
P.O. Drawer 1749
Spartanburg, SC 29304
(803) 596-2026
(b) James B. Drennan, Esquire
P.O. Box 5446
Spartanburg, SC 29304
(803) 585-5800
(c) Edward P. Perrin
P.O. Box 1655
Spartanburg, SC 29304
(803) 583-5461
(d) John S. Poole
P.O. Box 5029
Spartanburg, SC 29304
(803) 582-1500
(e) Wayne E. Iseman
P.O. Box 251
Spartanburg, SC 29304
(803) 583-7361

30. Fourth District

MR. COUICK: And while you're standing if you will raise your right hand and take the oath.
FRANK B. STONE, having been duly sworn, testified as follows:

Printed Page 2615 . . . . . Thursday, February 24, 1994
MR. STONE - EXAMINATION BY MR. COUICK:
Q. Mr. Chairman, I have the copy Mr. Stone's driver's license indicating he lives at 134 Pinewood Drive in the town of Woodruff, South Carolina, 29388. His driver's license indicates -- excuse me, his voter registration certificate indicates the same address. Is that your current address, Mr. Stone?
A. Yes, sir.
Q. Thank you. Mr. Stone, have you had an opportunity to review your Personal Data Questionnaire Summary?
A. Yes, sir.
Q. Are there any corrections you would like made to it?
A. Well, there is a hiatus there in '77 to '78. I omitted a
-- one employer there for about a 20-month period.
Q. And who was that?
A. It was on outfit called Sunbrand Corporation out of Atlanta, Georgia.
Q. Please mark it on the copy. What business was that --
A. It was sewing related also. Industrial sewing.
Q. If you would make that correction at the end of your testimony, perhaps you could hand that up. Do you own any utility stock?
A. No, sir.
Q. Does anyone in your household own any utility stock?
A. No, sir.
Q. Would you please briefly describe to the committee your current employment status and briefly describe also your previous employment positions.
A. Well, my current employment status, I own a little outfit called Shirann Industries. It's a combination of Shirley and Ann. I started out with a partner whose wife was Ann and my wife is Shirley. It has evolved from an sewing industry that I started into originally into the auto electric rebuilding in Spartanburg. We remanufacture, rebuild starters, alternators, generators and that sort of equipment.
Q. Mr. Chairman, we've had an opportunity to review Mr. Stone's credit reports and also the report from SLED, both are negative in that there are no negative entries on either one of them.

Mr. Stone, why do you seek the position of Public Service Commissioner?
A. Believe me, I've asked myself that question. I see it as a challenge. I see it as something that I can offer some expertise and some value and the judgment and decision making, the technology and things that are passing in the industry.

Printed Page 2616 . . . . . Thursday, February 24, 1994
While I'm not versed in all of the things that are before the commission, I think that some of the things that are going to come to pass here in the next few years are going to be very interesting and I'd like to be a part of it.
Q. What are the one or two things that are getting ready to happen in a couple of years that you're interested in?
A. I saw a report the other day about the fiberoptics and the transmission of -- the two-way transmission interactive telephone, television type thing and I'm really intrigued with the idea that in two seconds a fiberoptic cable will be able to transmit the entire Encyclopedia Britannia some 34 million words, whereas current technology is about 15 minutes with all this -- same program now.

The cable television, the offering of television through the telephone company is something to be interesting things, too, because the cable companies are now holding territories. We may be seeing some territories cut back.
Q. You indicate that you have an affiliation with Laurens Electric Co-op as a supplier; is that correct?
A. Yes, I do their starter and alternator work as a supplier for their land trucks and vehicles. No other -- nothing other than that.
Q. And also the Spartanburg Water System in Spartanburg and Sanitary and Sewer District is also a customers?
A. Yes, sir, that is the same thing. As a supplier only. I have no part in their decision making or anything like that.
Q. Do you sell your services or any other product to any other public utility?
A. No. I have at one time done some work for Duke power, but I don't have -- in the work for Duke Power, but that since has been sold -- taken over by Spartanburg City.
Q. Do you anticipate that if you were to be elected that you would continue your business interest with this company?
A. No, I'm really at a point where I was planning on semi-retiring. I have a real good second man in my business and he's a young fellow, 23 years old, and I plan to sell him the business at the end of this year.

This particular calendar year, I'm bringing him in on a lot more decision making in order to let him take over the business and I plan to finance it for him and just let -- move out and let him take over.
Q. So your financing would not be as an investment, it would more or less be as a note payable to you or whatever?
A. Right. That's true.

Printed Page 2617 . . . . . Thursday, February 24, 1994
Q. So you would have no other employment other than your service as a Public Service Commissioner?
A. I currently serve as a director of the Woodruff Federal Savings and Loan for which I receive a fee.
Q. I believe your wife works for the State of South Carolina with DHEC; is that correct?
A. That's true. She works in Children Rehabilitative Services of DHEC.
Q. And your children, neither one of those work for any regulated utility, is that correct, as well?
A. That's true.
Q. Your service on the commission will cause you to wear a number of hats or serve in a variety of roles. What role do you think you most often would be called upon to fill? What do you think happens day to day at the commission? What are you going to be called upon to do?
A. Well, I, for one, if you look at my education here, I have a strong background in the sciences. I have an analytical mind to gather -- to compress all the information to make decisions.

And I think that good decision making is a part of life and something that the commission certainly is going to be a part of and I think that just an ability to assess the situation, to take the facts and make decisions based on the facts.
Q. Yes, sir. Is there any other matter that you'd like to bring before the committee's attention so as to emphasize some particular abilities or capabilities you may have that would serve you well at the commission?
A. Well, I think versatility and resiliency, I would take that from my line of business here. I started in 1978 in the industrial sewing business for which I've been a part of since the fifties and I -- after manufacturing and selling two automated machines to a concern in Taiwan. I spent 15 days in Taiwan and evaluated my situation there in that I couldn't compete any longer. I guess the 1.20 an hour employees, they were getting ready to ship their stuff over here to compete with me.

I came back and reassessed my situation and made a somewhat probably radical move in that I started my electric business to show that I can survive. I'm not here because my company is in any bad financial shape or I'm in any bad financial shape. In fact, the money that you pay is not the prime concern. I feel that I have something to offer and I feel like as a commissioner on this board that I can function and do well in a superior manner.
Q. And finally, Mr. Stone, if -- from what we've heard through your testimony, you had serviced on a corporate board there with Woodruff Savings and Loan, I believe?

Printed Page 2618 . . . . . Thursday, February 24, 1994
A. Yes, sir.
Q. You've worked in business. You've had a significant business experience. If someone were to question your advocacy in the consumer position, what response would you give to that?
A. I think the Public Service Commission is a delicate balance between the consumer and the producer. The -- you know, nothing -- a locomotive has a throttle and a control. Unthrottled and unbridled, some things would be our concern. And I think that the Public Service Commission and the consumer advocacy to look after the concerns of the public, that would first and foremost. The profits of the large corporations, while this is a driving force behind most of American business, I think that some of this has to be sidetracked in order to protect the consumer.
Q. Thank you. That's all, Mr. Chairman.
EXAMINATION BY REPRESENTATIVE WILKES:
Q. Mr. Stone, your opening statement was you asked yourself why you had applied for this position. I hope that there has been no unpleasant experience as a result of your having to come down here to Columbia?
A. Well, I have a splint in my mouth. I'm prone to close mouth so tight and I do have a little high blood pressure. That's the only thing. I mean to put myself in a stressful situation.
Q. Well, you certainly seem to have handled yourself very well.
A. Thank you.
Q. One further question and then I'll defer to the other committee members. You said that you're a small business person and seem to have an affinity towards small business and I'm a small business person myself.
A. Yes, sir.
Q. But you are in an area that has had explosive industrial growth in the last 18 months or the last couple of years actually and there has developed in the State of South Carolina somewhat parochial feelings, urban versus rural, and that sort of thing.

Would you be able to divorce yourself from the area in which you live and give attention to statewide matters urban as well as rural?
A. Sir, I don't know your name and I don't know who I'm addressing.
Q. My name is Tim Wilkes.
A. Sir, I believe fully that this is a problem with our national system that some decisions are made not for the good of the whole, but for the individual constituencies, so that we reelect the people that we've got in office. This may bother some of the people sitting on the board, but I think that the decisions that I would try to make, even though they would not maybe agree with my personal opinion of where I would like to see

Printed Page 2619 . . . . . Thursday, February 24, 1994
this area thrive, but I could make decisions based on the whole and for the good of South Carolina.
Q. Thank you.
REPRESENTATIVE WILKES: Are there any questions from other committee members for the candidate? If not, thank you very much, Mr. Stone. You're excused.
A. Thank you very much.

PERSONAL DATA QUESTIONNAIRE SUMMARY

1. Frank B. Stone

Home Address: Business Address:

134 Pinewood Drive P.O. Box 605

Woodruff, S.C. 29388 Woodruff, S.C. 29388

2. He was born in Woodruff, South Carolina on November 29, 1938.

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

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

S.C. Voter Registration Number: 1 660 933.

4. He was married to Shirley Anne King Stone on June 11, 1966. He has two children: Wayne Lawrence Stone, age 23, (student at Napier University, Edinburgh, Scotland - on exchange at UNCC); Brandon Kyle Stone, age 16, student.

6. He attended Fair Forest High School and graduated from Wofford College in 1964 with a B.S. in Psychology. He attended the Medical College of South Carolina from 1964 to 1966 but left due to conditional grades in two subjects.

7. He has served on the board of trustees of the Spartanburg Regional Medical Center since 1989, and on numerous committees.

9. He sold and serviced industrial sewing machines for Union Special Machine Co. in Chicago from 1957 to 1961; he was a production manager for Ace Sweater (Campus Inc.) in Union, S.C. from 1967 to 1969; he was the technical representative to any sewing related problems from 1969 to 1977 for A&E Thread, Mt. Holly, N.C.; he was a district representative for Sunbrand Corp., Atlanta, Georgia from 1977 to 1978; and he has owned Shirann Industries Inc. Db2

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