ML20112F787

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Santee Cooper 1984 Annual Rept
ML20112F787
Person / Time
Site: Summer South Carolina Electric & Gas Company icon.png
Issue date: 12/31/1984
From: Robert Davis, Mescher W
SOUTH CAROLINA PUBLIC SERVICE AUTHORITY (SANTEE COOPE
To:
Shared Package
ML20112F781 List:
References
NUDOCS 8503270562
Download: ML20112F787 (76)


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i . 1984 Annual Report . g9 gg a khhkf  ;  ;;  ;$l hi f WD& ws,ww/, M@%QJkkWj

m Wr em and I ;#$ 1984 / 4 d, _. L i M l improving the quality oflife in a> J { South Carolina was the major pur-I pose of Santee Cooper's creation l during the depths of the Great 7 Depression, and it has remained a 1 - corporate commitment through-out the company's fiftyyears of --- f service.This commemorative annual report uses that cominit. Previous pages: ment as a theme to provide a Almost a half-century apart. the current and the first Boards of stereo perspective on that half- Directors of Santee Cooper stand on approximately the same spot. In century of history and on the the large photograph, the 1984 board stands atop Hydro Unit No.1 at progress made during the past the Jefferies Generating Station. Left to right they are George W. Jones, fiscalyear.The specialhistoric Jr., J.l. Washington. Ill. Harold M. Robertson, J. Thomas Grier. Robert S. feature is presented under the Davis, Chairman: Walter T. Cox. John E. Miles. Eugene F. Oliver. B.G. FIFTY YEARS heading,while 1984 Aldeanan, and Marvin M. Thomas. Missing from photo is C.B. Boyne. is a report of Santee Cooper pro. Santee Cooper's original Board (insert)is shown pictured on the original gress and developments during the site of the Pinopolis Power House on the first day of construction. past fiscal year. August 24.1938. Left to right d anding are T.W. Woodworth. D.D. Witcover. A. Stanley Llewellyn. W.L. Daniel, and W.L. Rhodes. Seated are Burnet R. Maybank. Chairman, and Edwin B. Boyle. 2

p c COMPARATIVE HIGHLIGHTS -. . . .

                                                                      ..            . CONTENTS
   - FiscalYear-                              1984        - 1983 - % Change            Chairman's and President's.
    ' Retail Customers Served .           - 67.572 . 61.169           10.5          : Message . . . . . . . . . . . . . . L6 Average Annual Residential:                   .       _       .

OGSales.

Energy of hntee. . . . Coop.
                                                                                                                 . . ......1   ....=           {3 -

Consumption (kilowatthours) - .12.240 11.708 .4.5

                                                                                    . District Operations. . . . . . . 14 e    on & bad hh . . 18 -
   . (per k owat hour)                        5.50'        '5.020         - 9I6 Station Construction. . . . . . . 18
    -- Operating Revenue -          $358.699.467 $322.708.318            .11.2         Production Engineering. . . . .' 19.

Crossincome ' $373.880.643 $337.767.973 10.7 Production Operations. . . . . . 21

                                    $285.511.415 . $257,663.315          .12.9 Nuclear Fbwer. . . . . . . . . . . . 22 Electric Operating Expenses Reliability . . . . . . . . . . .'. . . . 25 .

Gross Expenses $361.378.593 $301.607.274 19.8 - power gypply.............. 25 6

   . Energy Sales (milhon                                                              Engineering. . . . ... . . . . . .               26 kilowatthours)                         9.784        8.912 -           9.8     . Transmission. . . . .        . ....          . 27 Bu!k Energy 5 ales to other                                                      Energy Management. . . . . . . 29 Utibties(megawatthours)            . 118.890      126.602            (6.1)    ' General Maintenance. . . . . . . 31.

ood Co h . .. ....... Temtoria! Peak Demand Corporate Communications. .

                                                                                                                                                 ..K
   - (megawatts)                            .1.810         1.676            8.0 -                                                       35 Economic Development. . . . . 36 :

Caiendar Year 1983 1982 % Change Water Quality Management. . 37

                                                                                    ' Environmental Resources. . . . 39 Temtorial Peak Demand -                                                          Horticulture. . ........ .. 39 (megawatts);                           1.810         1.685            7.4 Aquaculture. . . . . . . . . . . . 40 Property Management. . . . . 40 Human Resources.            .....         . . 43 Occupational Health. . . . . . . ' 47.

Training and Development. . 47 Safety........ . . . . . . . 48 - Program for Employee . . . Participation. . , . ...... 49

                                                                                    - Corporate Forecasting. Rates -

and Statistics. . . . . . . . . 51 Managementinformation Systems . . . . . . . . . . . 51 Financial Summary. . . . . 53 Generation and Transmission System Map. . . . .. . . . . . 54 - Electric Statistics. . . . . . . . 56

                                                                                    ~ Schedule of Bonds Outstanding. . . . . .. ...                   58 Financial Statements. . . . . .                  60 Auditor's Report. . . . . .           .   .. 61 State Ownership. . . . . . . .

72 Boa d of Directors. . . . 72 Management. . . ... 73 is 3

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k CHAIRMAN'S AND Also provided is an accounting of Santee Cooper customers have PRESIDENTS MESSAGE the chrtenges, opportunities, and played the other major role in any Thisyear Santee Cooperis problems which the ccmpany has success which this company has celebrating its 50th anniversary of experienced during the past fiscal achieved. These include residential service to the people of South year and which are projected for and business customers who de-Carolina. Itis appropriate that we the future. pend on Santee Cooper power;in-examine the extent of oursuccess This has been a year of change. A dustries which are the source of and our preparedness to face the yearof analyzing. debating,and jobs essentialto economic growth challengesof thefutureinterms modifying our responses, methods, and development; municipal power of the charge given us by the and management style to accom- departments which serve their South Carolina General Assembly modate major economic, business, own customersin Bamberg and in 1934. and sociologicaladjustments Georgetown:and Central Electric That charge was for" improving within our service area. Ebwer Cooperative,Inc., which the quality oflife in South in this our 50th year, we see no through its 15 REA cooperatives, Carolina"and is the theme of our let-up in growth, having ex- distributes Santee Cooper-commemorative observance and perienced the largest single annual generated power to more than this annual report. 3pecifically, the increase ever recorded.10.5 per- 300.000 customers throughout 35 General Assemblyestablished cent,in customer additions to the counties of the state. Santee Cooper"as a corporation system.That record, however,is We start our second half-completely owned by and to be projected to be exceeded in the century with confidence provided operated for the benefit of the coming year. by a financially sound organization, people of South Carolina for the The story of Santee Cooper is a superb work force, adequate improvement of their health and one of people. The achievements generation with a low-cost fuel welfare and material prosper- and contributions of Santee mix, a strong transmission and ity. " The success of our com- Cooper in its first fifty years of ser- distribution system, and the pany must be measured in those vice have been the result of the lowest electric ratesin the state. terms each fiscalyear. By any dedication of thousands of people: With that reinforcement we measure. Santee Cooper has suc- those who had the foresight to believe our future will be atleast cessfully met those original pursue the originalidea and enabi- as good asif not better than the challenges and has proceeded to ing legislation:those who con- past, for our customers, our bond-apply its human, technological, tinued that charge for the ensuing holders, our employees. and the and energy resources to further half century;and those who today general publicin our service area. improve today's quality oflife in carry on that goal.The legacy of South Carolina, those thousands of people has in this report,a series of unique been maintained by dedicated perspectives on howlife in South board members and employees. Carolina has changed over the past working closely with governors, several decades and some of the advisory board members, and Robert S. Davis legislators who have provided the Chairman of the Board challenges of the future are ex-pressed by 10 South Carolinians. leadership and support for the Each has been part of or witness organization's commitment to ser- M d$ bed to the dynamics of change within vice. That is asimportant in 1984 William C. Mescher the state and Santee Cooper's ser- as it was in 1934. President and vice area. Chief Executive Officer b Previous pages: February 17.1942. Inset photos the Wateree and Congaree Rivers Robert S. Davis, Chairman of the show original Chairman Burnet R. shows the beginning of the Board, and William C. Mescher. Maybank. left, and Genera! Santee River. When the project President and Chief Executive Manager Robert M. Cooper. was completed. the results were Officer, on the transformer deck of illuminating (photo insert), deli-the Jefferies Hydro Electric Sta- Opposite page: vering electric power and light tion. where the first Santee WHEREIT ALL BEGAN. A 1934 to the darkened rural corners of Cooper power was generated on aerialviewof theconfluenceof South Carolina. 6 I

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SANTEE COOPER CELEBRATES FIFTY YEARS OFSERVICE TOSOUTHCAROLINA On April 7.1984. Santee Cooper. South Camlina's state-owned electric utility, was a half <entury old. On that date in 1934. GovernorIbra C. Blackwood signed the Enabling Act which created the South Camlina PublicService Authority for the purpose of constructing and operating the San tee-Cooper Hydm Electric andNavigation Pmject. What followed was construction of a small TVA-type project which required the largest clearing operation in the nation's history and the country's fint hydro electric project built in a tidal area. That project. known simply as " Santee Cooper *: has come a long way from its hydro electric beginnings to become a major energy and economicresource for thestate. Impmving the quality oflife in South Carolina has been one ofSantee Cooper's prime commitments from the beginning. and there are many parallels between economic challenges and use of resources today and during the early days of construction and operation. A STRUGGLE TO GETSTARTED But the beginnings were not without struggle and opposition. There were many private interests in the state who simply didn't wan t public power since it would be more economical and thus present the poten tial ofcompetition. That wasin the days before the Great Depression when many of South Carolina's ruralareas were stillin the dark with no electricpower. Private utilities considered it economically Infeasible to supply power to those sparsely populated areas. But the need was iden tifled and San tee Cooper was created to meetit. The idea that led to Santee Cooper's even tual creation originated in the 1920's with TC. Williams. a Columbia businessman. He hada dream of building a lowland hydro electric and navigation project that would connect the San tee and Cooper Rivers and even tually provide a source ofinexpensive power to rural and urban areas of South Carolina. Williams' dream would create the first divemion in America of one river to another for the purposes of power generation. navigation. and flood control. Critics of the project gathered the support ofscientists and engineers who scoffed at the idea and said it wouldn't work. The dams and dikes uvuld literally not hold water, they declared, because it would allrun out through the underground aquifer. "Besides." they declared.

   "if they did hold water and it did work. }ou'd never be able to sel! all that electricityanyway."

Although the public was unconvinced and Willi 2ms was rid:culed for his idea he and a growing cadre of public power supporters steaafastly pressed the case forJavelopment of the Santee Cooperproject. The legislature was finally convinced of the need for the projectand passed the enablinglegislation in 1934 R

The new law created theSouth Carolina PublicService Authorityand I l described plans for the hydro electric and navigation project to be - developed. These included " developing the Cooper. Santee. and Congaree

       ; Rivers forinterstate andin trastate commette; the production, distribu<

tion. and sale of electric power; the reclamation and drainage of - swampy and flooded land; and the leforestation oflands around . its takes" But while the Enabling Act gave authority to b'uild the project. the

       ' state did not provide any means for funding either construction oroperation;
           ^ Nevertheless, guided by the persistence of PublicService Authority

[ officials led by chairman Burnet R. Maybank ' top state governmen tal leaders, and others who believedin the idea. funds to build the project were pursued. Supportets of theSantee Cooperidea filledspecial trains bound for Washington. With the stalwartleadership of such South Carolinians as State Senators Strom Thurmond of Edgefield Coun ty. R.M. Jefferies of Colleton County, andJames Hammond of Richland A County. a convincing case was made to federalofficials. A $48 million federalloan and grant was obtained the followingyear

       . through President Franklin D. Roosevelt's Progress Works Administration
      - (PM). At that time there was a need to createjobs and getpeople off .
      ; relief rolls and back to work. And that coincided with the need to build thispowerproject.

But building the project remained only a dream for the next three Jyears. Three private power companies in the state filed suits to block construction. Those disputes were finally squelched by the U.S. Supreme Court on May 23.1938, when it upheld the rights to construct andoperate the Santee Coopersystem as authorizedin the Enabling Actaf 1934.

      - PROJECT WAS MASSIVEIN EVERY RESPECT When construction began, it was fast and furious. as if making up for
      . those threeyears oflost time. When clearing and construction began.
thousands ofpeople from every countyin the state were taken off the
      ~ reliefrolls and put to work on the massive clearing operation.

Butit was not modern machinery that was used mostly to shape the massive project. It was men, mules. and muscles. In fact, the rule of work was, thatif a task could be done with modern equipment, it was

       . nonethelesspreferable to use the men and mules.

At the peak ofconstruction. more than 12.000 people were employed in the clearing of more than 225 square-miles ofswamplands located in Berkeley. Clarendon. Orangeburg. Sumter, and Calhoun Counties. More than 40 million cubic-yards of earth were removea to create 12kes

      ~ Marion and Moultrie, and construction included 42 miles of dams and
      ~ dikes, a sesen-mile diversion canal. anda powerhouse and 7S-footlock
       ~a t the Pinopolis Dam.

The pmject w massive in evety respect. It required the putthase of

       ;1.326 separate tracts onand; the resettlement of 901 families; reloca-tion ofmore than 6.000 graves; and the removalof more than 49 million board-feet of timber fmm theSantee Swamp alone.

Lakes Marion and Moultr!e d'ffer greatly ln the;r tcpagraphy, due primarily to the impending threat of World War 11 during construction. The clearing nculd have been completedin 12ke Marion, which lagged

      ' behind lake Moultrie, ifit hadn't been for the foreseen involvement of America in the war. President Roosevelt declaredSantee Coopera na tional defense project on June 27. 1941, and. Shortly thereafter, he

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f. 4' , . ottiered the clearing stopped and the lakes filled to generate power in i' support of the defense effort. The first turbine tests at the newpower-y house beganjust eight days after the combing of1%arl Harbor. 1 A GOLDENFLOWOFPOWER An earlySan tee Cooper annual report described the finalstages of L, completion forthepmject: ..  !

                                             "On May 15,1941. the mightySantee wasstopped on its wasteful
                                    . surge toward the sea and the impoundment of an average of 12 billion
                                    . gallons of water a day began. On February 17,1942.160.000 acres of reservoir space was filled and the order given for the huge gan try crane atop the power house to lift the stop-gates and let in the powerproduc- '
                                    ' ing waters through thepenstocks to the five mighty turbines which.

Upon that date. began to spin out a golden flow ofnew wealth for the state which ownsandoperatesit."

                                          . Less than threeyears after the clearing had begun, power was delivered to the first Santee Cooper customer - Pittsburgh Metal-1 lurgical Company in Charleston - a producer of armorplating used a     ~

during the war. The Santee Cooper project was also developed for navigation and flood control. The fullpotential for navigation - from Columbia to Charleston -was never realized however, because of the lack of demand forbarge shipping coupled with the extmme costs which would be necessary to main tain a sufficient channel depth in the Congaree Riser. Flood control. on the other hand. has been a major accomplishmen t ofSantee Cooper. Containing the inflows from a 15.000 square-mile watershed, flooding along the Santee River has been reduced by more . , than 75percertof what occurred before construction of the project. However. ? %e Cooper's primary purpose has been to produce the electricite , , .sn is vital to the economic growth of the entire state.

                                       - ELECTRICITY FLOWING TO THREE-QUARTERS OFSTATE Today. Santee Coopergenerates more than 9.8 billion kilowatthours of electricityannually which flows to more than 373.000 consumers throughout35countiesin thestate. About 65.000of thosepower-usets are residen tial and commercial customers served directly by .

Santee Cooperin Berkeley. Harry, and Georgetown Counties. More than 300.000 customers who use Santee Cooperpower have it delivered - to them by two municipalpower departments and 15 electric cooperatives. It was through the' distribution lines of those 15 rural electric cooperatives thatSantee Cooperpower flowed to light up darkened , . homes located throughout 35 of the state's 46 ccunties. Aslate as 1965 a large gathering ofState officials, media ripr&3en-l ' tatives and local residents on Sandy Island. located near Georgetown. ' ~ - witnessed as Santee Cooper officials " threw the switch" to bring electricity ard modern living to that darkened corner of the state.

  • OtherSan tee Cooper customers in clude three military installations -

Charleston Air Force Base. Charleston Navy Base. and Myrtle Beach Air Force Base - and26latyeindustries. m . !1 _ 10 L.

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                 ' industrial customers include those which produce aluminum, steel,
            " paper, chemicals,' wood pmducts, cement. textiles, solid-state elec '

t tronics, carbon electrodes, and gaseous airproducts.

To generate the electricity demanded bya gmwing number of customers, Santee Cooperadded new forms ofgeneration to its hydro electric base with oil, coal, and nuclear fuel sources Fmm its initial generating capacity of 128,000 kilowatts at theJefferies Hydro Station -

in 1942. Santee Cooper's capacity hasincreased more than 2,000per-

             - cent - to 2.7million kilowattsin 1984. .

RESOURCEFULNESSHASBEENSUCCESS . San tee Cooper takes pride in being one ofAmerica's most msoutreful ^ electric u tilities, by also becoming involved in innovative and energy-saving operations and activities in addition to power generation.

                 - Efforts include a ttracting new industries underits new economic

( development' program which offers an incentive to newindustries or .

              ' existing expanding industries based on the number of newjobs they create.

To save millions of dollars annually on the cost of generation. Santee . Cooperpurchased its own railroad cars to ship coal from mines in eastern Kentucky to its generatingstations And to save even more. . Santee Cooper became the first utilityin the nation to use railcars madeoflightweightaluminum. F

                 . ' Aquatic management is also a field that is vital to San tee Cooper.
because Lakes Marion and Moultrie am vital recreational resources for
the people ofSouth Carolina in addition to their value for hydro power genera tion, navigation. and flood con tml. Main taining wa ter quality is a

[commitmen t tha t includesyear-round monitoring and seasonal battles to maintain control over noxious aquatic weeds A t one generating station. heat extracted from the cooling cycle of , the plan tis being used in an aquaculture program to raise tropical fish which are stocked in smallponds and reservoirs to maintain weed control. Atanothergenerating facility, a horticultureprogram uses heat discharged through the cooling cycle to heata 2 -acre

            - greenhouse in which flowers, plants, and vegetables are being commerciallyraised.^

The utility has developed as a significant resource for economic [ growth and development throughout its service area and as an asset belonging to the citizens ofSouth Carolina. W Santee Cooper has come a long way in accomplishing what it does and how it does it, but the overall goal - to improve the quality oflife

            . in South Carolina - has not changed.

A SERIES OFPERSPECTIVES

                . How the quality oflife has changedin South Carolina during the past                                        i SOyears is expressed throughout this report in a series of unique perspectives individuals who cbserved ana in many cases influenced
            . these impmvemen ts in llfestyle share theirobsenations on the progress
            . that has occurred and Santee Cooper's contributions ton ard it.

I t 11

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               "When it was being cleared and burned, you could ride                   ENERGY SALES
         - down the Moncks Corner Road at night, and in every direc-                      Attheendof thefiscalyear.
         - tion allyou 'd see were piles of burning trees pushed up                    Santee Cooper was providing elec-together. It looked like the sky was aflame."                              . trical service to 67.540 residential.

RUSSELL CROSS commercial,and other retail customers.anincreaseof 6.402. On an early autumn day, a group ofsoldiers on a potato digging or 10.5 percent. over the previous expedition in the woods near Eutawville. S.C. bump into a traveler. He year.Of thisincrease.5.355cus-informs them thatplans are being made to attack the encampment tomers were residentialand 1.018 they had left behind. Although they don't believe the colonial deserter's were commercial.The overall story, the tip is enough to keep these British infantrymen alert growth ratein new customers and wary. was 32.9 percent greater than the it is September 1781. and an area now partially covered by San tee 7.9 percent growth rate the - Cooper's Uke Marion is about to become a battlefield, a losing battle- previousyear. Vield for colonial troops under the command of 18th -century tactical Sales to these retailcustomers luminaries like Francis Marion. Thomas Sum ter, and Nathaniel Greene. were 1.360.663 megawatthours Colonial forcesactually won the firstpart of the Battle ofEutaw of electricity. up 15.7 percent over Springs But the localswamp trudgers overindulged with the heavy the previousyear.This compares stores of food and whiskey captured from the Redcoats The visitors tolastyear's growthin energy wen t on a drinking and eating binge, consuming the fruits of that first sales of only 4.2 percent.and skirmish. Itleft them in no condition to fight, an advantage that the represents 273.8 percentimprove-British quickly turnedinto victory.. mentin the growth rate. A colorfu! snippet of history. yet it is only one of thousands from an Theseareallindicationsof the area which would be dampened by the waters ofSantee Cooper' s two beginning of a strong economic reservoirs some 160 years after that defeat. They are aliimportant to recovery, particularly throughout

      . localhistorian Russell Cross, however, who makes it his business to           the tourist and resortareas which remind all of us about past even ts many of which were witnessed only          make up the majority of Santee byyoung oak saplings of this portion of the IDwcountry. Those events           Cooper's retail market.

began long before gold-seeking Spanish explorers braved the swamps The average annualconsump-and mosquitoes in the ISSO's. The Cross. S.C. native says area history tion of electricity by Santee Cooper began with bands ofpeople named Eutaw. Santee. Wando. and Sewee. residentialcustomersincreased to With help fmm the white man, who introduced smallpox whiskey, and 12.240 kilowatthours 4.5 percent perhapssyphilus, the Indians decimated theirown ranks before the greater than the previousyearand Revolutionary War had begun. The Sewees made a final valiant attempt 34 percent greater than the to stop the white men from takingadvantage of them. Theysetout nationalaverage. from what is now McClellanville to take their case to the King of The average cost per kilowatt-England - by canoe. Most dmwned in an A tlantic squall. Meanwhile. hour for Santee Cooper residential

     . permanent settlers moved in, according to Cross                                customers was 5.50 cents. 9.6 per-
           "The French were the first to make a large settlement in this section,     cent higher than the previousyear down at Simpson's Basin. whem San tee Cocper's.)efferies steam p! ant          but 22 percentlower than the na-is today. They were attracted inland because they nanted elbow room;           tional average.

freedom to think without harassment. The land here was either free or The average cost of power for cheap. Early Moncks Corner consisted only of a couple of taverns. and Santee Caoper commercialcus-branch offices for tbree or four Charleston memnants. The roads tcmers remained the same avren't mJch. and most goods nere sent to Charleston by coat from as 1983. at 4.8 cents Stoay Unding cn the Coo;)er River. A fter the war. the Piedmontsection per kilowatthour, t of the state develnped as people fmm Fbnnsylsania and Virginia settled Industrial sales were 4.232.994

     ' that area. They needed a method of marketing their crops" The result           megawatthours, up 7.4 percent was an ancestor of the Santee CooperProject. A canal was cut to                from the prevlousyear.Tbe connect the San tee and Cooper rivers through a series oflocks Goods           average cost of power toindustrial could then be moved fmm upstate to Charleston. It operated for nearly          customers was 3.1 cents per 40 years, finally falling victim to a combination ofpoor climate and           kilowatthour, essentially the same advancing technology.                                                          as the previousyear.

13 L -

1 l l l Sales to U.S. Air Force bases at " Drought, the coming of the railroad, and the state's road building Charleston and Myrtle Beach and projects spelled the demise of the Santee Canal. It was never really a to the Charleston NavalStation money-making proposition, but it looked good on paper and helped increased S.1 percent, from the economy." 373.403 megawatthours to If there was a " good old days" era ofl.owcountryliving. It was during 392.309 megawatthours. the pre-Civil War days. according to Cmss. Sales to 15 electric cooperatives "There were a lot of big plan ters in this area; people who had made tbrough Central Electric Power fortunes in business in Charleston. They built plantations here. hunted. Cooperative. Inc..and to the and raised cotton. frter Gaillard, up near what is now Rocks Ebnd was municipalities of Bamberg and the first successful plan ter, and after that it spread like wildfire. frople Georgetown increased 11.0 per- like the Ebrchets moved here from St. Stephen. Plantations weren't very cent. to 3,798.454 megawatt- large. but owners had a good many slaves, and cotton was king. They hours. This compared to a 2.1 per- could afford to send children to school." centincrease experienced the One of those sent off to school was Cross' grandfather Adam, who previousyear.The electric attended Wofford College until 1862. War between the states had cooperatives distribute Santee begun ayear earlier. and Adam was off to serve the Confederacy. Cooper power to about 300,000 "Everyone in this area felt it was a patriotic duty. My grandfather customersin 35 counties of joined the 4th South Camlina Cavalry under Captain Thomas Pinckney. the state, immediately after the war the price of cotton bottomed out. Most of Overall. Santee Cooper saw total the plan ters sold their lands for 10-25 cen ts per acre and moved to energy sales rise 9.8 percent.The Charleston. They were lucky enough to be educated, and, if nothing cost of power to Santee Cooper else, could always teach. They also became lawyers politicians. and customers in every class, however. doctors. A few, including mygreat-grandfather stayed here. He hadsold remained thelowestin the state his cotton before the price decreased." and among the 5 lowest forlarge Shortly after the turn of the cent 'ny. Russell Cross was born in a log utilities nationwide. house not far fmm where he lives now. You'd be hard pressed to convince visitors that Cross' home community was once a bustling business area. MVRTLE BEACH DISTBlCT The 70 year-oldis forced to raise his voice only once about every 15 The communitiesin the Myrtle minutes as a truck makes its way through the shady two-lane called Beach District continue to develop Highway 6. as one of the fastest-growin9 "This was a veryimportant business section in the early 1900's. My resort areasin the southeast, fa ther had about 14 clerks working in his general merchandise store - When Santee Cooper began opera- that's how busyit was. f%ople avuld come here from towns like Moncks tions in 1942. the largest com- Corner. Goose Creek, and Ho!!y Hill to conduct business. All through the munity in the area - Myrtle woods, dirt mads came together from all directions, and people would Beach - was primarily an ride oxcarts, buggies, or Model Ts to get where they were going. I agriculturalcommunity w;th graduated from Wofford in 1935. and avrkedin the store untilI went l fewer than 2.000 permanent into thearmyin 1941: residents. By 1980, the year-round community population had gmwn to 18.758. o I I' The Myrtle Beach district serves . p, ?.' q7 a approximately 53.000 customers .v N y ,g 4Z yg -] b c ;,,QM; i. along the Grand Strand from 4 ,g

                                                                                     - h,>   .

k- f.C. Georgetown to the Ncrth CaroF.na ( , .:. 7 ' ( ' n g, Q , >' L j state hne and extendsinland from . 3-@

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the At'a1 tic Ocean to the intra-  ? . s< f bI i'

                                                                                                                                   $. h coastal Waterway. Tne district in--

cludes the municipalities of Myrtle y W ~ . ( gO[f a Y a -- . g) )] 4 F g; Beach. North Myrtle Beach. Surf- ,.,-" -

                                                                                                         . _M . ,.-g.        g3J'C-side Beach. Atlantic Beach, and            -
                                                          /@/                     -4
                                                                                               ?    ' ?-
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4 corporated areas of Horry and Georgetown counties. - gg [ip ~

                                                                                               ;                  DF 14 l

i l And between his graduation and entrance into the army. a monstrous The Grand Strand has become clearing project began on 200.000 acres ofland near the Cross the onlylarge family-oriented household. Federal funds were approved to put thousands ofpeople to resort area along the east coast. work building a massive power project to electrify ruralSou th Carolina. Not only an attractive vacation "When it was being cleared and burned. you could ride down the community.the area has become Moncks Corner Road a t night, and in every direction allyou 'd see were an ideal retirement community. piles of burning trees pushed up together. It looked like the sky was Increases in golf and tenni' .lubs aflame. The project was the chief topic of corwersation in this area. TC. have extended the tourist season Williams and my father were good friends, and Mr. Williams would stop from three to elght months.This by here a great deal to talk. Theysay he was the fatherof the Santee- has been the catalyst forincreased Cooper Pmject, but it wasn't his idea to build the lakes; he wan ted construction of medium to high-something like the old canal. I remember him saying to my father, density residential developments

  ' Press. I have misgivings about this. There will be plenty of fools who        for rentaland fulitime occupancy.

Willgo outon thatlake not realizing that theycould drown. It's going to The Grand Strand's permanent be a dangerous thing:My father was a member of the association that population of approximately tried to fightit. But people were out of work. and one of the main ideas 45.000is expected to increase to of Santee Cooper was to give peoplejobs. And the churches were filled 56.500 by 1985. Summer tourist each Sunday with groups of workers who had been brought out; stores population swells to an average of did a booming business. And when Icame back from Officers Candidate 300.000 each weekend. Resort Schoolin 1941 the water was there. Icould hardly believeit." development has continued at a record pace, considering infla-F . tionary economic conditions. More

      ,/
              .y
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O than 5.000 condominium and

      /.                 7-
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                              ~ .g e                                                           units were constructed during
                                      =     ,y 3      -
                                                                       .[8I       the pastyear, with permits
                                                     . -f            _

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                                             ; 4 man 4, " f/ 7                    granted for construction of n: 7% [

r; another 11.000. The district gained 5.180 i customers, a 10.8 percent increase Officials had offered Pressley Cross $20 an acre forpmperty they over the previousyear. Energy needed as part of the prt lect lands. He refused it. 'lwo weeks before a consumption along the Grand , condeinnation hearing was to be held. Cross was offered $43an acre. Strand is more than one biilion Since those who owned nearby Wampee Plantation had made only $5 kilowatthours annually. with a  : an acre aftera court proceeding, he took the offer Events such as that, peak demand of 300 megawatts, coupled with hundreds of family relocations, 6.000 grave removals, and an increase at an annual rate of < watery tombs fcr many abandoned plan tations of historical value approximately 5 percent. nould seem to : tick in the craw of anyone whose life has been devoted Line crews which perform all to studying the lives of others. Yet because of that same extensive construction. operation, and knowledge. Russell Cross can see beyond the traditional facts. His mainter,ance work on the distribu-academic insight allows ham a bmader view of the p3st, giving him tion system in the district alt,o res more information to arrk with in pass;ngjudgment. "Ti1ose who avre pond to emergency needs of com-relocated found themselves in cetter housing tilan they had before. The munities outside tre district anc: watersof theprojectcaviredhistorics'tes, butmestof thepeople who other utilities throughout the were around those sites y eren? aware of any histontai significance. state. They worked arouna the Those who owncd them oidn't have the money or desire to do anything clockin Apnl to belp restore power with tnem. The few old plantation houses that were left in this area to citizensin Marlboro County had be6n allowed to go to wrack and ruin." following tornadoes which ripped And Russell Civss is one historian who keeps an eye on the future. through the state. looking to a newly completed generating station nearby as a ca talyst to return the Cross. S.C., area to its bustling past.

     "!'m veryhopeful that with the new Cross Generating Station we'll be able to attract new industries to this area. A lot of development has occured in certain parts of the Lowcountry; perhaps it's our turn, now."

15

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   ' "It was envisioned by us as a means of bringing economic                       MONCNS CORNER DISTRICT
  ' development and an improved quality oflife to the people of                         The Moncks Corner Districtin-South Carolina."                                                                cludes the towns of Moncks Cor-STROM THURMOND             ner and St. Stephen, and the unin-corporated areas of Pinopolis. Bon-
        "IfIhad not avrked so closely with the South Carolina PublicService         ne u Beach, and Lions Beach.

Authority thmughout it's history. I migh t be as amazed as Rip Van During the pastyear home con-Winkle awakening fmm SOyears ofsleep to see how far this project has struction continued at a brisk pace progressed from the idea conceivedin 1934 bya smallgroup ofstate in the Moncks Corner area.Tbe legislators of whichIwasone... numberof customersincreased Whetherattributed to his longevity in public service or his distinctive 2.62 percent in 1984, to a colloquialspeech, the voice ofSenatorStrom Thurmond has an ex- total of 4.625. tremely high recognition factor among constituents and colleagues . Underground service was pro-

 ' Now the senior U.S. Senator from South Carolina, and Presiden t Pro             vided to 104-unit apartment Tempore. Thurmond served as the State Senator from Edgefield County             c mplex, nd severalsmallcom-when he and several others initiated the Santee-Cooper Project in the           merci i customers were con-19301 Then. asnow, the people heservedhaddefinite needs.                        nected.Tbree distribution feeders "Ihave never known a avise time economicallyin mylife than that             were raint rced to provide for ex-which was occurring between 1931 and 1933. Everyone was anxious to              isting and future load growth.

get thosejobs forSouth Carolina which would come from the building The Westside substation was ofSantee{ooper. I was especially in terested in the project. because as a converted from 4.000 to 12.000

 . state senatorIhad attempted to getsome electriclines built out in the           volt , completing the conversion ofth      onck       er District to count . We were unsuccessfulbecause the cost wasabout $10.000 It was a highlyprohibitive expense in normaleconomic times butit CONWAY DISTRICT was even worse during the Great Depression. Sure the project would be The Conway service areain-good for flood control and navigation. But the Rural Electrification Act clades the municipalities of Con-wouldalso be passedin 1935. promising agranan South Carolina the way and Loris, the communities of glimmer of electricity. The plan was for rural electric cooperatives to Bucksport. Cool Springs.

bring the power to the farms, andSantec Cooper avuld generate the Allsbrooks. Red Hill. and Gurly, and powerand bring it to the co-ops. Though GovernorIbra C. Blackwood the ruralareas along the major had signed the project's enablinglegislation in 1934, there were road ~ connecting highways of these blocks ahead in the attempt to secure Federal funding. towns and communities.

      "The state did not have the financialmeans to approve the project. In The number of customersin-fact, the whole state budget wasonly $6million; thisproject was going creased 6.3 percent to 9.373, to cost $37 million. We had to go through a great dealof red tape. As while energy salesincreased soon as we wouldgetapprovalfrom one agencyin Washington there 1S.3 percent.

wouldbeanother to dealwith. . then another. Therejustseemed to The area between Conwayand be no end to the application process. My partne:s in promoting the pro-Myrtle Beach slong U S. Mighway ject were R.M. Jefferies of Colleton County andJames Hammond of 501 has snown slgnificant growth. Richland Counfy." and its potentialfor future growth Thurmond remembers vividly the struggles. obstacles. and opposi-isobvious. More than 50 new retail tion that confronted the project during its infancy. The existing power stores and three new motelswere companies came in to oppose it, as did many others. "Idon't think those added in the Waccamaw outlet who opposedit had the vision to see the importance of whatit could do Pat k and Mall. for thisstate, especially the LDwcountry. A delegation was formedand The process of converting the made a number of trips to Washington. to confer with the Secretary of remaining 4.000 volt primary theInterior. AIIof this was veryhelpful." system to a 12.000 volt system has begun, and it willim-prove customer service in the Conway District. 17

GENERATl0N AND LOAD GROWTH Those efforts were culminated in Presiden t Roosesrit's approval of SanteeCooperfacilities in- funding for the San tee-Cooper Pmject. The Sena tor r. otes tha t. in cluding one-third ownership of addition to electrifying ruralSouth Carolina, the pron.ise of further the VirgilC. Summer Nuclear economic gmwth provided an additional bargaining chip. Station, generated 9.647,678.000 'There was some question at that time as to how much power would net kilowatthours of electricity be available, in the event we could attract new industry. But when this year,an increase of Santee Cooper was finished, we had a talking point. We cc JId sellpower 820.021.000 kilowatthours, or and sellit to industry at a reasonable price. In other words. it was 9.1 percent over last year. envisioned by us as a means of bringing economic developna en t and an of thetotalpowergenerated, improved quality oflife to the people of South Carolina. Witt, ':!si::; and 74.0 percent was produced by coal. careful planning. San tee Cooper has constructed new electrical 19.6 percent by nuclear. 6.4 per- generating capacity to meet not only the needs of farming operations cent by hydro. and less than 1 and homeowners, but also those of new industry." percent by oiland gas. Peak hourly ~ " ,- { demand for the year reached 1,810.000 kilowatts, an increase of

                                                                                                         ~ '

( 8.0 percent over the previous year. STATION CONSTRUCTION i On October 15,1983. at 6:35 I~~~~ f i a.m., the Cross Generating Sta- . -g tion's Unit No. 2 was synchronized j with Santee Cooper's electrical $ , power grid. This began an inten- ' _4 y sive start-up period which con- eg Ni cluded with officialcommercial . *  ! ! operation on May 1,1984.This - i^ S 'tI- T- , 3; ' b ~

                                                                                                                                       .- j ^
                                                                                                                 ~
;      achievement reflects the suc-                      -

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                                                                                                                   ^

! cessfulconstruction of Santee ' .. N  ; . . A Cooper's first 499-megawatt unit, ' '- 1 ,, 4 f. :~J. . ~ Z5%i ,V~ l' 2q* -a ' j

                                                                                                          'Q h which wascompleted on schedule                                                     , ']

and under budget. +

                                                                                  .g     t-(             y ,c The Cross unit uses the most
                                                                                          'Y                                                                       -

1 up-to-date environmental control ' systems available.Thisincludes a flue gas desulfurization system, \ 1 which removes sulfur dioxide (S02) - f from steam generator combustion 7 l gases.This process assures that  ;; , 7 1i the Cross unit will meet the state and federal regulations 84 gI-{ ' 6 which provide for protection of the environment. __

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Thurmond goes beyond the obvious in describing his admiration for in addition. Cmss Unit No. 2 an organization which he helped bring to the Palmetto State. utilizes closed-loop cooling for the "With responsibility and sensitivity. San tee Cooper people have taken heat rejection system which steps to pmtect and improve the environment on which we are all prevents any thermalwater pollu-dependen t. it has reacted calmly but swiftly to any poten tial threat to tion. The closed-100p cooling public safety associated with the project. such as the leak resulting system discharges no heated from failure of a pipe cap, which was promptly con trolled and repaired. waterinro the Santee Cooperlakes Santee Cooper is the kind of success story that makes my public service but circulates approximately 50 satisfyingand worthwhile." 2'O.000 gallons per minute thruugh an eight-cellconcrete mechanical-draft cooling tower which dissipates heat to

                                                                                !                                      the atmosphere.
                                                                          .fx./'   -

y; ; . PRODUCTION ENGINEERING g j i A comprehensive environmental

                    ,                                                    .g ' ;'.                   $                 assessment of the Pee Dee site in c                              E.                                                           Flcrence County was completed
              ' gM, , g..                .

C*>'g+% 7  ; and subjected to an extensive and thorough public review process. i Santee Cooper's environmental ethic calls fora minimum of U*

                                                .g. 3%    . . G.N. ,             d-.--ps:k    c . 6. .m   ,a          ecological disturbances during con-

! g,[ D 7 71 8,I b " W d. < struction and operation of the l Q h.*ge eg3* - * ^ h' plant which is scheduled for the late 1990's. This ethic and plans

 'e                                               ,
                                                                                             . ,                      for the site were communicated
 $:'                                            <?                                                                    to interested and concerned

[ citizens through a public

                                                                 ~

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awareness program. An additional future site, "Z", g @M.2 - k$ag

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4 was selected, with great emphasis k* f C M XJ' F ! yM;. C sM' .. 42 J'. placed on demographic and en-

 ._                                                                                                                   vironmentalconsiderations.This l                                                                                                                    willenable Santee Cooper to res-G                                                          ,

pond to future growthin the most environmentally acceptable manner possible.

                                       ~/                      -

Proper operation of pollution

                            ,    ,"                           j.                                                      Control equipment at generating j<                                             ,

stations was assured through numerous stack tests to maintain

                                                                                         ,'                     ,     the accuracy and calibration of g'y                          d         emissions monitors.

Operating data were used to

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                                                         ,L                          ;         . ' ~W                 determine the relative efficiencies
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_ 3pf-F K.D W assist in scheduling the operation

                                      .g        g                            __Jg-t g*m                               of the most economical units, thus
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  • lowering Santee Cooper's costs.
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            "It made power and helped to give people work. Soon, a lot                    PRODUCTION OPERATIONS ofindustries began to move in to take advantage of that                         Since Santee Cooper generated
          ' power."                                                                      the first kilowatthourof electri-ED FUCIK     city on February 17,1942, the reliable flow ofinexpensive
          - */ was nervous because people had told me about the rattlesnakes.             hydto electric power has been a and where we were doing the work was theSanteeSwamp There were                    significant resource for fallei, trees, heavyswamps, and bayous. All of a sudden one of the in.           Improving the quality oflifein j       spectors gave a loud scream. Hanging off a tree branch was a great big            South Carolina.

cottonmouth with its mouth wide open." The first unit of the new Cross N' Four decades and thousands of miles fmm San tee Cooper. the chair. Generating Station was syn-mari emeritus of Harza Engineering Companystill vividly remembers chronized on October 1S.1983. When that water moccasin said 'ah'.' As a 24 year-old engineerin 1938. and began commercialoperations Ed Fucik had been assigned thejob ofgetting information on the on May 1.1984.Tne unit underground geology of the South Caiolina LDwcoun try. His company aperattng capactty factor was up had been contracted for the development of the Santee-Cooper Hydm to 63.3 percent in June. During Electric and Navigation Project. He recalls the speed with which activity the year.0perations and

  .s    took place.                                                                      maintenance personnel.were

?' "It was a very rushedjob. Icame in July of 1938. and bySeptember statfed and trained for the new we had 18 dri!!ing rigs from the north side of the Santee River to the generating facility. located Pinopolis Reservoir. We were really working as fast as we could. My adj cent to the Diversion Canaiin b!ggest challenge was to get thejob dothe and assemble information Berkeley County between Lakes

  • obtained. Allsampleshad to beproperlylabeled, identified.andstored Moultrie and Marion.

in the lab.^From the design standpoint. the biggest challenge was the Santee Cooper was the focus of spillway. It had to pass so much water, andit wasn't on a solid concern forSouth Carolina LOW-mck bottom." country residents and received Water moccasins didn't hold a candle to sinkholes, which seemed to n tionalattentionJuly 6,1983. be everywhere. Everybody knew the caverns were in the area, but when a section of a wooden cap on nobody was exactlysure what to do about them. They would regularly n unused 6-foot diameter appearin the bottom of borrowpits. And Fucik does notpardon his industrial water supply pipe at the puns when he says that the situation opened up whole new pmblems. East Pinopolis Dam began toleak.

             "We then set up a special con tract to drill holes every two or three      This failure released a large flowof
     ' feet along the east dike all the way to St. Stephen. We filled them with         water from Lake Moultrie tbrough a slurry mixture of clay and cement. Mr. Harza had gotten a fellow from          the pipe, which discharged with TVA who had been doing the same thing at that project. The solution             erosive forces at the foot of the worked fine. Harza himself was an expertin this type of work. and               d m djacenttotheJetferies followed thatjob as closelyas anyone."                                           Hydroelectric Generating Station.

The sinkhole dilemma probably provided fuel to the fire of controversy %fle maintenance crews and about the Santee-CooperProject. A Columbia University geologist was engineers struggled to control the credicting that the reserwir would never hold water. Harza's consulting I rge flow of water and stop the geologist hada different theory, leak. residentsliving downstream "The geologist we had on the pmject was Dr. Steven Tabor from the from the dam were evacuated University ofSouth Carolina, and he was a pretty smart fellow. I was tbrough the response to Santee just ayoung man, and Ilearned a lot fmm him. He was very confident Cooper's Emergency Action Plan, Departments within the company. that it could be built. There are earthen dams around the world that are along with local, state, SOOyears old. and they generally wear very well once they're settled. county. and federal agencies. and onceyou see to it - like Santee Cooper does - that whatever leakage occurs is Uniform and not changing. All earth dams leak. But all responded to the emergency and wo, ked together in a wel1-earth dams are designedso that whateverledage takes place is con. trolled and doesn't cause erosion... coordinated fashion. 21

            ._                                                   _                                        ~                    _.

Thesourceof theleakwas Earth dams are designed to leak, accortling to Fucik, who says one of quickly detected and 17 hours the leading men in the field of earth dam design was an Austrian later temporary measures were named Terzaghi who had a quite simple definition of a dam: "A struc-successfulin stopping the flow of ture that willsafelypass water from upstream to downstream."In water and bringing the crisis to an other words. it willleak butit willleak safely. end. All residents were returned to Despite the snakes and sinkholes and disbelief by many in the scien-their homes within 24 hours after tific community, the project avrked, and also did wonders for Fucik, the evacuation. who says it launched his career. He mse to vice presiden t of Harza Permanent cepairs were com- Engineeringin 1950, president 13 years later, and chairman in 1973. pleted within days,and measures Now 70, he recalls that them was nothing butpine woods along the were taken to prevent any re- road from Charleston to Moncks Corner during his days o') the San tee-currenceof thatincicknt. Cooper Project. And he remembers the depressed conditions of farms On October 21,1983, the first and the people who ran them. So it follows that whatimpressed him major maintenance on hydro about the project was not engineering logistics alone. generator No. 2 since it began operation in 1942 was begun.This was 41 years,8 months, and 4 days after that water turbine unit delivered the first Santee Cooper-generated power to Pittsburgh Metallurgical Company in e, ,

                                                                                 ?( g#                                u y-~W-Charleston. During this W iM r*M O M G. A N                                       ,               ~> -               .

g maintenance outage, all under- '~ T . M fk M Y [ @, E - [ m.-'k water parts of the turbine were -*

                                                                                                                            , p.g' g $ . ( .;                      "i
                                                                        @ ,. M M ,f y 1 removed, inspected, and restored to as-built conditions.                                              #                   .. T'sGarp4                                                    .

NUCLEAR POWER ., Z. During fiscal year 1984, the V.C. ..' Summer Nuclear Station supplied ' ' 1,931,314.000 kilowatthours of - . .- , N electric power for Santee Cooper's

                                                            ~.[ ~~
                                                         ,~ ' '

customers, or appmximately 19.9 j percentof thetotalelectrical - ~.,y..a l system deliveries. During this period the 900-megawatt Summer

                                                    ~ ' '"N Q           -
                                                                                                                                                             +-

Station, two-thirds of which is owned by South Carolina Electric

7. 5%[c"; -.

jQ and Gas Company, proved itself to .c y.j,f s .% ' Nis[,Q % g'- W.a.; Y be one of the company's most dependable and economical

                                           %MWMI       l9h5                         a A                           p                     yhd
                                                                                                                                        .gj p3-.-

6 }hygn%y generating units. The nuclear fuel PQ ;4 g J, - - . l l costs were a0 sut one-fourth the costs of fossil fuel, which pro-

                                           },*

E

                                                                                "                                          #,g . , . ."y - - - g" hQ l
                                                                                                                            ') %^1 duced savings on Santee Cooper                                                                                                                                           ,

customers' monthly bills of nearly f

    $29 million.                            g 4       g g Mqh                                                                                                    h
                                            +3 l

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The capacity factor for the Sum-i 'y~ mer Station was 74.7 percent. e % w. , which exceeded the industry I average for nuclear generating E{Ty r y . units in the United States. This D " I'I I I) y y was achieved even with a sche-

  %(%,N ~,hy,     .,                   . % _.

g . ing. . duled outage for steam-generator hbd. ;; ; c. "-~ , inspectionsin the falland another 7Y-  ;*

  • 7g jgy4E" [p. .; outage in the spring for
                  .  .,    ~
  • f; !

4 - maintenance and certain minor yt modifications. Only during L;;q + ;.> 7-W- g;;r  % December and April,when the two outages took place, was the "wd c generating unit's capacity factor i below 70 percent. For 8 of the I 12 months the capacity factor exceeded 80 percent. Theformaldedicationof the Summer Station was May 25, "I was impressed with the fact that here was a pmject that had been  ; 9g4, gg ;gg g;gg 9gg7 pg77. 39, argumentative and at the time was not particularly economical. The ceremonies were attended by cost of energy was to be low, but the project depended upon low In terest gynug999ggg9ggg7;ggoggngugg7, loans and government funding. I don't think it would have been built by and State and federalgovern-priva te interests. But as it was, it made power and helped to give people ments. fncluded in participation on avrk. Soon, a lot ofindustries began to move in to take advantage of the program were Donald S. Hodel, that power, Of course, there were those who had said it was a big boon- Secretary of Energy, and James B. doggle. but by the time it was finished, there seemed to be a fairly Edwards, former governor of unsform feeling thatit wasa greatidea. And the minute the fish began South Carolina and former to bite, I think that changed minds, tool" Secretary of Energy. In addition to the dedicatory plaque honoring Virgil C. Summer, chairman of the board and chief executive officer of South Carolina Electric and Gas Company for whom the station

                                                                                                         ,                    was named a plaque was unveiled
s. ~.s z

sw- "?'C% c V '^^ F "p8 ^

                                                              .        _ ne 1:

7% honoring Robert S. Davis, chair-man of the Santee Cooper board of 3R4

  • directors, for his effortsin achieving thejoint-ownership arrangements for the project.
 .                                                                                                                                 For all of FY '84 the Summer
                                  - Ns[. -
                                                                          .                                                   Station operated on its initial fuel
          ^~3                g(** ,                                   '

load. The first refueling is sche-pp ,.C I y duled for September 1984, which will sustain operations to the fall tg, , s i4;*lg g: -  :' - of1985.

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                                                                                                                                                                                                             ?
           "Those who dmamed of the Santee Cooperproject were                             RELIABILITY saying that 'Yes, we have had tough times, and we'n in                             Santee Coopermaintainsinter-tough times. But we're going to turn those tough times into                    c nnectionswithSouthCarolina good times.' There were people back then who said thatit                                  "d
  • 9 7f,jo7,u c g7,, nn. t couldn't be done - the ama waspoor, thepeople wempoor. George. columbia. and the Sum-Yet there were those who had the leadership, foresight mer Nuclear Station:with and faith in the people ofSouth Carolina to say, "Let's Southeastern Power Administra-go forward." tion. Duke Power Company, and RICHARD W RILEy the Southern Company at Clark Hill;and with Carolina Power and Light Company at Darlington,
             . It made headlines in newspapers throughout the state, and occupied a good portion of radio and television news programs for months. What          Hemingw y.KIngstree.Lugotf, nd Robinson..

Governor Richard W. Riley and many others wanted was to improve education in South Carolina. Them was certainly no objection to that; it SanteeCooperisoneof 30 was the Governor' s proposedmethod thatsetoffskirmishesin the emberorg niz tionsinthe sta te'sGeneral Assembly. He asked that a penny be added to the state Southeastern Electric Reliability sales tax, to provide millions of dollars in support of the objectives of Council (SERC).which includes all the Educational /mprovement Act. p wer suppliersin the region with "The EducationalImpmvement Act is very comprehensive and tle St 25 eg W ttsof gener-touches every childin the state, fmm the moc' rural to the most urban. ting capacnty.The Council assists it willaffect the brightest and the pooreststudent and the handi- ember systemsin thenr coordina-capped studen t. It will reach creative and gifted studen ts. When I talk tion of overall planning andin with industrialleaders, bankers, and utility officials. I try to make that case. We are allin this together and none ofit works if ouryoung people g 97 **l gg Santee Cooperis also one of aren't aware of the fact that this business ofselfimprovementand seven power systemsin the capacity to think and produce has to be part ofsuccess for this state." Richard W. Rileygrew upin the Piedmont ofSouth Carolina, and was . 9.. ' but ayear old when one of his predecessors signed San tee Cooper

  • 0 ACA ) h n ludes Carolina Power and Light Com-enablinglegislation 1n 1934. Yet through his politicalcareeras a state any. Duke Power Company senator; his unprecedented two terms as Governor; and membership by law on Santee Cooper's Advisory Board; he is fullyaware of the ultimate South Carolina Electric and bas Company, Southeastern Power Ad-value of what was taking place in IDwcountryswamps when he was an ministration. Vlrginia Electric and Infant. But he prefers to have an acquaintance from the coastal region PowerCom any,and Yadkin.Inc.
       . describeit forhim.
              "She was telling me whyshe supported Roosevelt rather than the            POWER SUPPLY Santee Cooper Project. tut it was the same message. She described to                 Tbe installation of remote ter-me what it was like to live in a house and not have electricity; hoW            minal unitsin five major sub-people 25 miles away had it. and the difference it made growing up in a         stations during FY '84 increased community without it. She. of course, became a big supporter of Santee          the capability of Santee Cooper's Cooperand the electric cooperative'     s efforts, which really btvughtpro-     computerized supervisory control gress to ruralSou th Carolina. I think the San tee Cooper project has           and data acquisition system enhanced the prospects forpeople of thisstate in terms of better (SCADA)which is the heart of the education. betterjobs, and a better way oflife. Without it, we would            Energy ControlCenter.This SCADA not have been able to have the natural flowofdevelopment fornew                 system provides dispatchers a jobs and industry. I think we have been able to develop the IDwcoun try          means to more etficiently operate region of the state in a much better way becausein the early 1930's             the power supply system and in the hard times - we used resources which enabled us to move                  enable Santee Cooper to meet forward."                                                                       itsload requirements as econom-ically as possible.

25

SCADA has also nelped improve Having cut the ribbon to San tee Cooper's passive solar demonstration reliability of the transmission net- home and presented the company with a state award forits waste heat work by allowing the dispatchers technology programs. Riley is very en thusiastic about diversification to remotely operate the substa- which provides for customer education and more efficient use of tioris and significantly reduce resourcesat hand. J the duration ofinterruptions , to customers. ._I_ .. + Santee Cooper dispatching per-sonnel purchased S1.924.000

                                                                              , gp -          '

5[ _

                                                                                                                ,g*x kilowatthours of power fmm the           .

P . interconnected utilitiesin FY '84 h M -! , to displace higher cost generation fora savingsof $1.167.000.The H vF'. i .

                                                               ~;- '([ 4 , : V .          +
                                                                                                             ~

L dispatching personnelalso sold i'

                                                                                                                            -                                      [ T*,i 118.890.000 kilowatthours of            L power to theinterconnected              l' 4._c m
                                                                                                                                                 .F EM*N f-utilities for a total of $3.897.000. I**                                                                                                    K which enabled those utilities to
                                                                              .                                               i                 [,

also reduce their power costs. '

                                                                                =
                                                                                                                                ,~              .)     ,J.

ENGINEERING - IJ $;.~j ~ ~ Q The design and construct,on i 7

                                                                        .I                 &           '                        ~

costs for Santee Cooper transmis-p P 1' , [ sion and distribution lines and substations were reduced by 10 "I think the idea of passive solar energy is under utilized, and I was percent through expanded use of very pleased that San tee Cooper built a demonstration home to show computer-aided design and the benefits. Use of passive solar doesn't change the quality oflife. nor graphics technologies.This will does it change the way a home looks. I was veryproud ofSantee producelong range benefits of Cooper's mcent accomp!ishment of using waste cooling waterand us-improved system reliability and ing it for greenhause production. That type ofplanning helps the lower costs of serving customers. quality oflife, and Iam pleased that the board is interested in taking ad-Initialphasesof thecomputer- vantage ofsolarpower and trying to recycle energy." ized mapping and records program Riley sees a definite rela tionship between public education and the are nearing completion.This availability of reliable energy sources in the state. system will provide a centralized , data base from which accurate g g 7* j system maps can be produced for / l planning, design, operation. j ' jk[ M ., maintenance, and facilities inven- / [ ,

                                                                                                      ,, pft ,

tory purposes. ,. a q"-

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         "If energy is not available forindustry, commercialinterests will not                                 TRANSMlSSION be active and involved. That means that residents will not locate. and                                           Santee Cooper's transmission the area would 1:e without the dollars to support the publicschools. If                                       systemconsistsof approximately you have energy, industry, commerce, and residential development, that                                         3.200 miles of line and 112 substa-provides a great source of tax dollars on the locallevel for the schools. I                                    tions and switching stations with think the utilityindustryisaware that thisisa two-waystreet; thatif                                           voltages ranging from 34.000 to you don't provide forproper education,you can have all the energyin                                            230.000 volts. Transmission the world at a reasonable price but we will not see much progress."                                           facilities are located in 35 of the Richard W Riley is a study in perseverance. He made no bones about                                    state's 46 counties.

wanting to become the state's first two-term Governor; there were More than 9.5 billion kilowatt-things he wanted to accomplish before stepping down. One of those hours of electricity were delivered was to improve education in South Carolina. and he stood firm when to more than 375.000 customers the proposed program's methods were criticized. It's a character trait he within the state either directly or says he can detectin those who wentaboutdeveloping theSantee indirectly, through Santee Cooper Cooperproject, also, transmission facilities. This in-ciuded power provided for two j

   *                      .y                                                                          .         municipalities, three military ,n-i
                                                        .'g
                           /h:                            .g.            g                      -

stallations. 261arge industnal customers, and 15 of the state's s

             "                 y."      a 'f                               .k g7           20 electric cooperatives served g                    4                             '

through 201 delivery points.The g f_ g', . a co-ops serve approximately E s i. ' 300.000 customers in South if; , [h r N%

                                                 \                         -
                                                                                                    .T-        Carolina's rural areas.

I k jN ' p? %[Nh During the past year, new M M delivery points were added IP - kk " MN to the transmission system for 5 h U

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          /                           p
                                      >~

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                                                              - O
                                                                                   , .$Q electric cooperatives and 2 industrial customers.

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c; , ; .h, Waem,iiiig i The Cross-Carnes and Cross-Kingstree 230.000-volt lines were g \ T .. c placed in service along with several new 115.000 and 69.000 volt line "Those who dreamed of the Santee Cooperproject were saying that sections. Santee Cooper crews con-

 'Yes. we have had tough times, and we're in tough times. But we're                                            structed every new substation and going to turn those tough times into good times: There were people                                            switching station and several back then who said that it couldn't be done - the area was poor, the                                          transmission lines serving newin-people were poor. Yet there were those who had the leadershipg                                                dustrial customers. This in-house foresight and faith in the people ofSouth Carolina to say, " Int's                                            construction helped reduce costs l go forward."                                                                                                  of these stations and lines.

More rapid restoration of service through the use ofloop-feed

                                                                                           }'

transmission systems and the abilityof transmissioncrewsto y o hy ( l perform most maintenance work j QWg on energized circuits provides

                                                                              %           iYb                  Santee Cooper customers with
                                                                             '} y.,                            very reliable service.

I w% yJ

               ,, ,        e                          .

27

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_ q I l "I recall the evening our electricity was turned on. We all got ENERGY MANAGEM'ENT ) into our car with all the neighbors and mde amund the Meeting the specific energy .

 . communityjust to see the effect of the lighted homes, and                         needs of the customeris the prime that was wonderful."                                                            c ncern f Santee Cooper's Energy GUYaJUANITA NICHOLS           Management programs, designed toinfluence peakload growth it was called a light bill back then, ana some folks never have gotten                    "U '        9
                                                                                     9 " i #i

around to calling itanything but. Back then, however, that's aboutall you were paying for. It was when fresh meat was keptin the well to nd Sol r Energy program (WISE) keep it from spoiling: when kerosene lan terns pulled double duty - putting off nigh tfallas long as possible. and then .,ut a;lng a bundled entereditsthirdyear providing baby's bottle in those quiet hours before dawn; when a woodstove's low-intere tloansforspecified cornerof a rural farmhouse was croatied with cold, tired fingers and toes on a frigid South Carolina Midlands evening; when a home had tuo elderly, nd handicapped irons. One being heated overa fire while the other was squeezing the wrinkles imbedded by a washboard out of a cotton Sunday dress. te a e 8 Ligh ts are probably the last thing Guy andJuanita Nichols think of L. cans were made for heat pamp when theypay their electric bill Now. it's heat pumps and color TVs and systems, insulation. and storm an electric clothes dryer. But though they live in Saluda County near windows. with heat pump installa-Prospenty, the town didn't seem to live up to its name back then - In tions accounting for wellover half the late 1920s and early 30s. Guy Nichols was one of a family of I children, a few of whom died before the last was born. He was reared in of the total. More than 600 residential Th oodo dd s?Idon't think we'dwant to go back, butIreckon ' Y P ca ngcu tome s' on i u we had a good time. We certainly lived without money. Idon't see how 9ggggn77gggg9yg,yp.gn.gggg our father was able to feed us all, but we got by. We used to keep a energyinformation and services. couple of milk cows, and we raised a few hogs to get our meat. We went More than 10.000 additional to town occasionally but not very often. In the winter we went to residentialaudits were offered school. Back then theyhadseven months ofschoolandsometimesyou under the ResidentialCon-had to be out to help do the work around home. andyou couldn't go a servation Services program, fullSeven months." demonstrating Santee Cooper's Down the road a piece. the future Mrs. Nichols also carved out a commitment to bcrease con-spartan existence with herparents and tuo brothers. sumers' energy awareness.  :

      " Going outside withyourscrub board to do the laundry on a cold.

To further serve the energy wintery day wasn't fun, butIdid a lot of that drudgery. We heated our needs of commercialcustomers, irons in the fireplace or on the cookstove. We usually had tav or three plans were completed for the Com-heating whileanotherone wasin use. mercialand Apartment Conserva-

      "I recall standing by my aun t as she fixed her hair before her da tes.

tion Service program. which wiIl She would put these little curling irons down in to the lamp and they offercomprehensive auditsin heated, and she would press waves in to her hair. and ljust though t that accordance with this extension of wasit. the National Energy Conservation "I've done all the thingsyou can do on a farm, almost. My father cut Policy Act. the grain and my mother allowed my btvtherand I to carrylittle piles of grain, and I hoed cotton. too. I remember coming home many evenings with all the aches and pains that I could afford from a day in the field. And I mmember the pot-bellied stoves in the school. In fact, that's whereI firstsaw myhusband." Long before wedding bells rang, however. Nichols remembers how word was getting around the community about the possibility of getting electricpower. 29

4 s Construction began on Santee "They were trying to getpeople to sign up fora dollaranda half. And Cooper's Passive Solar Demonstra- I wondered then how I would be able to pay an electric bill ifI had i tion Home. with design and Con- elect.-icity. But, we finally got it, and we got along. somehow. We got struction standards specifled by our electricityin the fallof 1941 through Mid-Carolina Electric the Energy Etficient Home Awards Cooperative in f.exington. When they were in the process of ge tting Program.Tbe house will demon- organized. a good many people met in the high school with some of \ strate how passive solar can con- ficials from Washington. Ihappened to be in the bunch a time or twa I I tribute significantly to the heating served about 27 years on the board of Mid-Carolina, and I don't think I l of a home, and it will provide in- missed more than two meetings." l creased customer awareness of When the power began flowing, so did the water from Nichol's brand Santee Cooper's other energy new pump, which he valued even more than lights. It bmught running management programs. waterinto the house. followed by indoor plumbing. which became a i 1ncreased contact with other newluxuryin those days. Next was a radia and then a refrigerator, and customers was achieved tbrough years down the mad. a washing machine. But for Mrs. Nichols, the lights I additional workshops for profes- did the trick. j sionaland industrial groups. "I recall the evening our electricity was turned on. We allgot into our l Seminars were provided for ar- car with all the neighbors and rode around the communityjust to see ( chitects, builders. and developers the effect of the lighted homes. and that was wonderful. It was > in the area of passive solar beautifuljust to see the ligh ts; a lighted room really showed up pretty.  ; technology. A workshop was con- And nowall of the conveniences thatIhave at this time are the result of j ducted to Update realtors on how electricity that has come to the farm. At the time I was married. I really l energy etficient measures can be wasn't thinking of any of them; theyjust weren't matters of fact." used to market properties. A But things began looking up in Saluda County and around Prosperity. l series of duct design workshops and Guy Nichois recalls how electric power began changing the way l waspresentedtomembersof the things were done aroundhisplace. \ heating and cooling industry to "It made living a lot easier. We bough t a refrigerator and could keep strengthen the energy services of- our food longer and better. Electricity pumped water for home use. We fered to their customers. needed water for the cattle and hogs during dry spells also. Then we To support energy education in got electric heat in 19620r 63. We were among the firstin the area to l the school system. promotion and have it. After we put itin, a fellow from Mid-Carolina came out to figure sponsorship was provided for the what we needed to do to conserve the heat. We putin storm windows l National Energy Education Day and insulation overhead and underneath. Threeyears ago. we put in a l (NEED)Projectobservance. A heatpump. It does a goodjob of circulating heat; much better than schoolin Santee Cooper's service baseboard heat. We sure did enjoy and apprecia te our all-electric home." area won the state NEED School Award and placed second in the nationalcompetition. Additional

                                                                                       , sir._
                                                                                                         ~d3 m     g l

l energy-education curricula j, - S J resources and audio-visual aids ( were made available during 1984. , i A new approach toincrease educa- , l tional services for teachers was achieved through the availability

of energy workshops. Service area i

teachers wereintroduced to the l energy resources offered by

                                                                                                                        %h                   l Santee Cooper and how those
  • l -
resources can be used to educate s I

students in the areas of energy conservation, generation of elec- ,

                                                                             )

V , , A tricity, and electrical safety. - t I

!                                             30

l Mrs. Nichols has seen the changes come also. But though it has GENERAL MAlNTENANCE brough t herlife as a farmer's wife a stream of modern. time-saving The primary cesponsibility of devices, it's those lights thatshe willalways recall. She has a vivid General Maintenance Services is [ memory oflife before the lights, especially one evening in 1939. the safety and maintenance of

            'A home delivery. Ican still visualize a ligh tedlamp being held at the            Santee Coopec's 42 miles of dams foot of my bed. A lady holding a kerosene lamp The doctor took care of                and dikes which retaln approx-                   :

me, withjust that and the neighbors. It would be hard formodern-day imately 160,000 acres of water America to conceive ofsomeone holding baoy bottles overa kerosene that form Lakes Moultrie and lamp to warm the milk at night whenyou had no othersource of heat. Marion.This includes the prepara-Butididjust that, tion forand emergency response "I willsay without reservation that electricity is the cheapest of all to any threat of failure of the servants. even though we are all tempted to complain of the large dams.This response was electric bills. Think of the conveniences andpleasures that electricity necessary on July 6.1983, when a affords" seal on a 6-foot diameter pipe through the East Pinopolis Dam failed. When the failure occurred, allowing water to leak through an unused industrialwater supply pipe at a threatening rate, emergency actions were initiated.

                                                   .                                           requiring the evacuation of about 2,000 people living downstream.
                                    ,/                      5                                  The leak was stopped and the g-                                                             emergency procedures carried out with no downstream damage. An I
                           /                                                                   evaluation following the incident concluded that Santee Cooper's
                              /                                                               " Emergency Action Plan for Dam
                            /

7 Failure"is effective. 3 ', , Reports from the Federal

                                                     %                                      ' Energy Regulatory Commission
       /                                    1        Xfi                                      and independent consulting firms j

M confirm that the projectimpound-gp ment structures are very well , y, maintained and in excellent

                                                        *'o                                   condition for the normal l                      ,

l

  • td forces associated with retaining l kW the lakes.
1. h Recent studies Mdicate, however, that the safety of two i ,
                                                              .f                              project structures, the Pinopolis l                                                                                              West Dam and the Santee North l

Dam, cannot be guaranteed if s therewererecurrenceof the Charleston earthquake of 1886,

u. ' which is the largest to ever occur in the southeastern United States.
                                                                        .]                   While the studies cannot deter-
                                                                     ;                        mine the reaction of these dams to I
                                                                     .'                       the design earthquake Santee 8

[ Cooper has taken steps to increase the earthquake resistance of the J i* ' Pinopolis West Dam and to lessen Ud. 31

                                                                                                                                      ~ , - - -

f s. ?l ' ,

                                                                                             . p t .. p p*Wr7AP[M ~ p*wa
  • the effects of a f ailure of the '

Santee North Dam which would y [bM' 7 not involve a threat to human life. .

                                                                                                   .* '        ,                     f, {

The studies showed that the flood _' # ~ -

  • 1  %

created by a failure of this dam under normal lake levels would be ' jyk% less damaging than a controlled y ,- - ' -

  • y  ?

release of flood waters from the ,p 3400 foot Santee Spillway during a g@$ probable maximum flood. No , y changes are therefore planned for - that structure, but a system will A be developed to inform the

  • downstream populace in the case of an emergency, and therefore .
                                                                                                                                                        ._ m lessen the economic effect of a allure of this dam.

4D 1

                                                                                                                                                        $}
  • The improvements to the .

Pinopolis West Dam and the  ; downstream warning system for the Santee North Dam have been j'- estimated to cost from $22 to S40 = million Through the South Carolina Congressional Delegation. federal fur inng for the project was received and the U S. Army e  ; Corps of Engineers was ass!gned the task by Congress of making the improvements

                                                                                                                                                                  =

FLOOD CONTROL As part of its flood cont col program. Santee Cooper c an ducted one of the longest spilling operations in its history with a total of 142 days during the months of July and December 1983 and January. February. March. April. and May 1984. g __ The maximurn daily average in-flow was more than 672,000 gallons of water per second flow ing into the Santee Cooper lakes. The flood control program reduced the flood crest on the lower Santee River by 66 percent of what it would have ather , wise been - g Photo opposite: s Santee Couper employees form a , i' g human chain to divert water flow - July 6 at the East Pinopolis ,, Dam. (Photo by Gordon Hirsch. ,,

                                                                                      *I State / Record)

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       ' Things were so tough that the people were eating dried                    CORPORATE COMMUNICATIONS apples for breakfast; drinking water for lunch: andJust                        Emphasis on a half-century of swelling up forsupper."                                                    service to the people of South Carolina was coordinated by Cor-REMBERTDENNIS porate Communications to com-
      "My recollection of quiet little Pinopolis constitutes nothing but real
                                                                                      '       #. Cooper' 50th happy memories. The older residents were comprisedafseveral                            ' W     '    "     *'*'

hunters. and in the mid 20's. it was common to hear 75 or 100 hounds g . running thmugh and around the village chasing a fox on moonht nights orin theearlymorning. geg nf;'934 "That's one thing about Berkeley County before and afterSan tee The 50th anniversary was high-Cooper; it's a gmat attractica for fishing and hun ting ' lighted with an open house and A fter hearing gavels poundedin the Sta te House and Senate for commemorative ceremonies April nearly 50 years as a legislator. Senator Rembert C. Dennis still coun ts on

17. honoring the company and the sounds of the huntin his native county to pmvide his sustenance, recognizing emplayees, political "Mr. Rembert" asyou'll hear him called in the office of his law firm in leaders.and individuals who had Moncks Corner, was elected to the House in 1938. He served two terms, contributed to Santee Cooper's and was elected to the Senate in 1942. Yet. as ayoung man. Dennt success.

aspired to the medicalpmfession. That was before his father, a State Commemorative recognition Senator out to rid Berkeley County ofits dubious distinction as a was achieved also through publica-bootleg whiskey capital was felled bygunfire neara watermelon tion of a 50th anniversary wagon on the streets of Moncks Corner. newspaper tabloid. featuresin a His mother was unsuccessfulin the bid for her husband's seatin the number of utility tradejournals legislature. and the prospect of continuance dimmed even more a and nationalmagazines,and ar-Dennis' older brother died. The cloak of public service was donned by ticlesin newspapers statewide. Rembert Dennis. He is most pmud of his efforts at improving education Research and writing of" Fifty and of bettering the lives of those he serves through localindustrial ygg7g;g p;cgn7;g;9;ggo7,ogggggge development. Cooper." was begun, with publica-

     " South Camlina moved to seek quality education at the earliest tion scheduled for November.

economic opportunity. The impoverishment of the Civil War, followed The most concentrated media by the Grea t Depression. so severely affected this state etonomically attention ever experienced by that is was the ' sos befom we could possibly make a move state-wide Santee Cooper occurred July 6. to even appmach quality education. One fellow expressed the Depression 1983. and for several weeks this way: ' Things were so tough that the people were eating dried apples thereafter, following aleak which for breakfast; drinking water for lunch; andjust swelling up forsupper.' developed in the East Pinopolis

  \t>u had talented people in this area who were hunting and fishing for a       Dam.The evacuation of about living. My main publicservice etforts state-wide have been for educa-           2,000 residents downstream and tion. With the passage of our education bill, it's a giant step forward for     the company's successful response quality education - both locally and thtvughout the state. Through              to the emergency situation education. citizens can become notjust recipien ts, but contributors to         attracted network television society, itis the key to progmss."                                              andinternational wire service While it was some 2Oyears after the Depression before quality educa~        and newspaper coverage.Corpor-tion could take a footholdin South Carolina. Senator Dennis notes that          ate Communic, %ns released in-a Federa! funded ptvject in the late 1930's had an almost immediate             formation and provided media impact foran area which would laterstrike an enviable balance be-               support to more than 450 t aten agriculture and industrial developmen t.                                 news representatives.
     "The changes started taking place in this area with the letting of the          "Why Reinvent The Wheel?"

construction contract forSantec Cooper. One of the main featums of was a multi image slide presenta-the legislation was that consideration be given to employment of those tion produced by Corporate in the state. The economy of this ama and South Carolina began to Communications and under-move. and the Santee CooperProject was a tremendous factor. In written by the American Public addition to ruralelectrification, the first tangibie evidence thatSantee Power Association to promote the Cooper was going to pmve to be an industrial bonanza to the lontoun try 35

l association's new Energy Services was the building of what is now the Macalloy plan t. A woolplan t then i Exchange Program. came to Jamestown. Soon followed by Albany Feltat St. Stephen. Santee Cooper's annual report Berkeley Coun tyin the days before San tee Cooper had a tax base of be-wasjudged Best of Showin the tween $2 million and $4 million. Growth was gradual. and the base annualcompetition sponsored by gmw to $10 million by the 1970's. But since then. that t ase - aided by the Advertising Federation of industrial developmen t - has allowed a sprawling, agricultural county l Charleston.and first place by to become the first billion-dollar countyin South Carolina in terms of APPA in its competition among industrialdevelopment." more than 1.400 publicly-owned utilities. Additional recognition for 8 writing and photography was received by Corporate Communica-l tions from the American Economic - Development Counciland in- s. s dustrial Photography magazine. yM. , ,

                                                                                                                                        .w s\

ECONOMIC DEVELOPMENT Santee Cooper continues to play

                                                                                                                                 '~
                                                                                                                                          ~[~             2-
                                                                                                                                                                            ~"i
                                                                                                                                                                                          )

h a major rolein economic develop- -

,             ment throughoutits service area.                ,J1                                                                                                                      ;

The major goalof the Economic j gg (N* '

Development Department is to g /
                                                                                                                                                                       .a-8 fulfillthe challenge defined in the                                              ,

4'- i I l enabling legislation in 1934 of --g's ,;  ; { . tW

 !            " improving the quality oflife in        .

t South Carolina." k ' # $ N T -- Mn' ' # " ' Economic Development's Rembert C. Dennis has had much to do with the industrial explosion in BeMelgounty although he is first to mention by name those who est uc u e to eet t e ds of _ ve i ted in selling the county to prospective employers. Modern new and expanding industries. An I met ds of courting investors notwithstanding. the Senator from Economic Development Rate (EDR) Berkeley SHIl miles on his knowledge of me area when he dans his wasintroduced in November. maMeung hat l 1983, and prompted inquiries from across the country. EDR -

!             offers energy cost savings to ex-                                                                                                      -

itn' isting industrialcustomers with y. , expansion plans and to newin- . ,... .- 7 dustrial prospects, based upon the p / (. , numberof newjobscreated. An W, a ly extensive advertising campaign

  • I S* 7 was developed to provide prospec- *

tive companies with important ' j information needed for their gh4_ location decisions. , 3 j The IndustrialSite Location Pro- W 4 gram catalogues resources b- w:.TI. ~~~CC W *

                                                                                                                                                                                          .]
                                                       ' " " '                           -.. J ,f.- J -

available at numerous sites and l coordinates thatinformation with .J ~ the State Development Board and d :.'. . j local community professionals as a . , ,

                                                                                                                                                                                         *f part of continued support to their                                                    ,            ,
                                                                                                                                       , j '.

Industrialdevelopment programs. . 'c'. r e V ' . . /t, . " , *. ., 36

l l

                                                                                                                                                                 \

Site developmentinformation and

                             !                                                                                     brochures were provided to a wide range ofindustrial prospects dur-
                                                                   'g-              g ,/                           ing the past year.                            ,

The Economic Development unit maintains an extensive contact Nd [ program, which includes localand i 4g il .- county development boards: economic development allies l

                ,,                 .& SJ                                                                           such as railroads, construction.
,                                                             e                                                    and engineering firms:

consultant groups: and the State Development Board. WATER QUALITY MANAGEMENT The water quality management j section continued extensive noxious aquatic weed control ef-l "In the quest forindus..,. vou have to sell those who come to look forts throughout the Santee

     }ou over. You have to sell thens on schools. local government. tax                                            Cooperlakes. Aerialtreatmentof                n benefits, and the future. But what I do - almost invariably - is to tell                                      785 acres of submersed aquatic                ,

! weeds was conducted. utilizing ! a prospect: 'You can't see this flat IDwcountry unlessyou go up in an i airplane. or go where I'm going to takeyou: And then I take them up on $90,000 of federal funding obtained the dike of San tee Cooper's hydro electric plan t. They see that beautiful from the U.S. Army Corps of

take. the powerlines, the countryside. There have been many of them Engineers matched by $38.500 of wha riding along with me, wemn*t too impressed. But when they got Santee Cooper funds. Included in l

Up on that dike, they started showing some realinterest." the treated acreage were 70 acres l

  • of test plots utilizing the ex-perimental use herbicide. Sonar.

l

                      @,,                 p-           '.               -
                                                                                              ,W                   Evaluation of the new herbicide
                                                                    .- . ,, v-               -w         D          will continue throughout the sum-
, , , . - 4e of 19 .
                                                                ,I                                      *
                           ~

m p' ' - Controloperations centered on 9* 7 4,\  ; emergent aquatic weeds were con-

                                                                          %                                        ducted on a wide-scale basis 4' ,, W p ,. /.f (g,                     D.

j, i. during the spring of 1984. High o" ..

                           @ f .[                                     . ,

waterlevels in the Santee Cooper fp g 1 > / .

                                                                          \    W,                                  lakes during the winter and spring
                                                                            \ Ly
                ,f* ] h                                                                                            months appear to have intensified
            ;**                .jff                ,           .~            \        w               ,            an already serious problem.

[. ~ , ' -

                             /

y .

                                                             .1         *
                                                                                               *5     I               Under the ambient water qual-ity monitoring program sampling
                                                       #                       3 was conducted on a scheduled
          - 4]; /                                                               g L                                                                                        MI           basis at some 50 points through-out the lake system. In excess of i

i The hounds still bay near Rembert C. Dennis' 18th <en tury L.ewisfield 30.000 water quality analyses were Plantation home on the banks of the Cooper River. And tl'e Senatoris performed in the water quality just as comfortable in hunting garb as he is in a three-piece suit in the laboratory. Resulting data are sub-State House. The satisfaction he feels toward his half-century of public mitted to the Environmental Pro- \. service comes from the realization of one of his foremost goals. tection Agency'sSTORETcom- i ! "I've always said that I hope to live to see the day when a Berkeley puter program in Raleigh, N.C.. via l County citizen didn't have to cross coun ty lines to seek gainful employ' in housecomputer. l ment. I think we'vejust about reached that point." i 1 37 .

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  "Yes, sir. I thought It was a wonderful thing to go cut on a                  ENVIRONMENTAL RESOURCES Ilght instead oflighting a lamp. It really would be somethin'                     Mosquito abatement activities to do withoutit now."                                                         were performed in the five-county A.D. HEMINGWAY       area surrounding the Santee Cooperlakes,with more than A.D. Hemingway can slip a cricket on a fish hook with the best of            100.000 acres treated forlarvae them, and has been pulling feisty bream from the waters of L2ke                andadultcontrol. Agoalof the Marion formostofhis 72 years. Addhuntingin the woodsofhis native               mosquito control program is to

- Jordan to plowing amund the cypress-kneed creeksin the hand-hewn prevent the transmission of bateau, andyou've come upon a formula to keep this man happy for the mosquito-borne diseases and to restof hislife. pr vide a pleasant environment And when A.D. Hemingway takes his spotin the rustic rocking chair for outdoor recreation, inside Brunson'sgrocery store, the tales from his life curi upward to inexcessof 500.000 Gambusia reach the tongue-in-groove store ceiling like the wafts of white vapor ffinis were stocked in known from hispipe. mosquito breeding sites forlarvae He has memories to share - some good, some bad. Embedded in his control.Thismosquito eating mind are scenes of squirrels scampering up and down the gangly arms fish is a low cost, biological control oflive oaks as families enjoyed picnics and children played nearby. He gent thatis an environmentally says he thinks about thatall the time. Yet he also balances that dreamy safe control tool to usein scene with the stark reality ofan area which depended upon qu ticecosystems. agriculture. hunting. and trapping forsurvival. And the Depression HORTICULTURE uvuld continue to flailawayat thelocaleconomyin the 1930's. A two and one-half acre com-

    "It was bad, awfully bad, to tell the truth. R'ople survived but they       merical greenhouse complex with worked for forty cen ts a day I was farming a little bit then, but even       support facilities was constructed whenyou soldyour cropyou couldn't get anything forit. Cotton was              at the Cross Generating eigh t or nine cen ts a pound, and tobacco was no good. When Hoover            Station at a cost of $1 million for was Presiden t. I'll be dcggone if we didn't have a time ofit. Then           usein residual energy application Roosevelt came along and passed that milef nvrk. You d come outside            by horticulture.

everyday and thered be 75. sometimes 80 people, waiting to work, and More than 34,000 rose plants theyd have foremen out there. Sometimes theyd payyou in one dollar were planted in one acre of the bills so new they looked like they was itoned. It was still no bed of mses. facility,and willyield about 1 But it helped because it gave people mom nork and gave them more million blooms annually, pay so they could have a little more to live on." Because of construction prob-Soon, bands ofstrangersappearedin Hemingway's neck of the lems,it was necessary to delay the woods. taking surveys and measuremen ts, and eventually taking axes planting of some crops as much as to some of the timber. And A.D. had heani what they were up to. "They six months: however, marketing came out here on all these flats and creeks and put little red flags all of cut roses to wholesale florists over it. I thought to myself. this will never be;it will never happen. And should begin in August,1984. theyput these camps up one, twa three, in the swamp and they went The horticulture program drew at it. Wasn't no time at all before they had it cut out. I was coon huntin' nationalattention through a cover hem and I would kind of hate it because I was making a livin' out of feature in Public Power magazine. hides and all - gettin' mom out of hides than I was in the farm. But it Additional recognition for both wasn't no time at all before the water was comin' up" horticulture and aquaculture was Yetjust as A.D. Hemingway balances the bad with the good of his received from Technology childhood, so does he remember the ultimate benefit which came as Transfer *80s, a nationalawards some of his coon hun ting turf disappeared under the blows of axes. program for energyinnovation

    'A t that time I didn't exactly know what it was allabout. But I could     sponsored by the United States see that it benefited the people that it put to avrk. Thatproject sure ucrkeda lot ofpeople."

And there was mom. 39

l i . Department of Energy.The use of "~~] '7 ' " ' ~~' " ~y residual heat from the Cross Generating Station's cooling 3  ; Y ' j system to provide energy for the greenhouse operation and the pro-m r

                                                                                                                                                                                                 'Q duction of Tilapia fish at the
Winyah Generating Station won . w first placein state-widejudging L * ,N' 4
                                                                                                                                   ~.e and was selected for participation                                      -

in nationalcompetition. AQUACULTURE h ' The aquaculture waste heat pro- p

gram at Winyah Station produced b 4 i more than one-half million Tilapia - , --

l fish during the year. More than [

                                                                                                                                                                             ^~

300.000 were stocked in the sta-l tion cooling reservoir for aquatic weed control, while more than - 7 ' %;. . ..7'

                                                                                                                                                             ;.F
                                                                                                         ' "*w A2 em _ 4* O                             r 250,000 were marketed to                                                                                               -

municipalities, industries, and ..,"- farm pond owners. Income from ~ j "'.' the sale of these fish amounted to ~2- - more than S62,000.

                                                                                               ..Didn't have a thing in the world forlights but a lamp an old lantern Representativesof theOrgan~

Iamp andit would smoke up and go out. Sometimesyou d go to ligh t ization of American States (OAS) one and drop the shade and break it. Andyou d go out to the welland visited the aquaculture center draw water with an old bucket. We enjoyed electricity from the first along with other professional, time we had it. When you get used to a new way of doing things, you l educationa\, and civic groups. . (gg t stand life without it. Yes, sir. I though t it was a wonderful thing to PROPERTY MANAGEMENT go cut on a ligh t instead ofligh ting a lamp It really would be somethin' l' The Santee Cooper Projectin, to do withoutit now" cludes an estimated 178,744 acres ofland and water resources. The  %'~ two reservoirs. Lake Marion and  ; 4" Lake Moultrie, have a combined ------ , surface area of about 1S2,668

                                                                                                ~

ij , {;  ;[ y acres, with approximately z "q d d 4 ,, f, 4i 23.381 acres of shore lands and *

                                                                                                                                                                 >l           si :w. E 1 approximately 2.69S acres in-f'"         _

l 1.. M' (= a M9 .g %d cluded in islands. Since construction of the Santee

                                                                                                                                                                           w'9-. p*

Cooper Project, numerous recrea- b . tionaldevelopments have been established on landsleased to C ["; Ts1. , public agencies, commercialenter-j prises, semi-public entities, and ,

 ,                  other individuals.                                                                                                                                        A The Property Management Divi-                                                                                                           e

I sion administered 4.146 leases - M'

!                   around the Santee Cooperlakes,                                                                                                      1                a. ih; , . .'k           #

which include approximately

 ;                   2.936 recreationallotsin Santee                                                                                                                   !
                                                                                                                                       -u 40
   ,-.ew.-,.,-----          - - - - , . - - . - - - - - , - , - . ,   -,--,e,,,--,--.-~                   , -

l i Cooper subdivisions.1,059

                                                                                           ~

marginallots adjacent to privately i owned subdivisions. 95 commer-

                                                                                                              '     -    t                           ciallots,18 miscellaneousleases, 7

and 38 gratis leases to public and

                                                                                                                                       ~
                                                                                                           .                                         quasi-public entities. The benefits                         !

associated with these leases pro-

                                                                                                   ,     S                                 .         vide a wide variety of recreation-                          !
                                                                                                ,t(~                                  ;              oriented facilities to the public.

[ Atotalof 296accesssignswere maintained on major roadwaysin

.. theareaof theSanteeCooper
                                                                                       ,1' '

[$( lakes, guiding the public to various g$ 7 points of access on Lakes Marion

y..., and Moultrie. Many of thesa access
                                                                                              .          .?                                          areas provide boat launching, food, i

l y boat and motor rentals, fishing,

                                                                                                     ,1                                              waterskiing, golf, hunting, camp-
                                                                                                ']g                                                  ing,and many other types of
                              ,d'+:'s..
                                                                                         ,(g                                                         recreation to the visiting public.

A totalof 18.599 acres of prime

                       . x"aj ./        i

{ 3g

                                                                                                      ;;                                             wildlife and waterfowl habitat Eh                                                              g                                               was leased to the S.C. Wildlife and j                     .
                             ,.                                                                                                                       Marine Resource., Department on L
  • TM W j a a gratis basis. A 350-acre water-
                   ,          [,1                                                                                 7                                  fowlimpoundment is being e         a? , !                  '                                                          '

developed to provide additional N , hunting opportunities to the

                                                                * "'-          , e                                                                   general public.
  • f y; g, nn w

. 4 3,

                                          ,            ,4 y

P" #"p% .gg---*~~ -m . ,, 7 _ Santee Cooper's forest lands are under an even-age system of

                                                  ^                                                                                                  forest management, based on a 60-

)'

                           "' bu .                           .a                                 du                                    -

year rotation. In addition to the , To A.D. Hemingway's pleasan t surprise, the San tee-Cooper Project many silvicultucalactivities per-enhanced the recreational value of his corner of the world nearJordan. formed, intensive prescribed burn-Though the lakes and creeks today are a haven for thousands of visitors ing procedures were carried out at a year who hun t and fish the 200.000 acres, he still has what he wants. Variousintervals for the purpose "I was always used to this wildlife; been that way all my life. I farmed of enhancing wildlife habitat, con-and I was raised in the coun try, and Ijust love old coun try living. No, sir, I trolling forest diseases,and n t Hke town livin: I was born in the woods. I reckon that's where d CI 9 U d U g , 89,000 pine seedlings were I < ~ - planted in previously non-forested

                                                                   '         I                                                                       areas. Approximately 575,000 m,                                                                                       board feet of pine sawtimber, 1
                                                                                                                                    .-               22,000 board feet of hardwood "g                 '                                             'L                        sawtimber,32 cords of hardwood.

W

                 ~

F and 2,274 cords of pine

                                                .,         ,e              **                ,                                                       pulpwood were harvested from
!                I                                 '
a. , - $ /> Santee Cooper's forest lands.

I 8 f Revenue from the sale of forest l ' Y f 4 j,'L' products and agriculturalleases totaled $250,545. a

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  "Pmgress began with ruralelectrification. Aftergoing fmm                     HUMAN RESOURCES
. one of the richest counties in the state to one of the poorest                   Tbe title of the Industrial Rela-after the Civil War, electricity played a large mie in bringing              tions function was changedin it back up to what I consider to be a viable county. I don't                  ',",,Qjn g            o der to more ac-know of a nicerplace to Ilve. With the mix of the old and the                curately represent the goals and new, we'tw trying to impmve the quality oflife in                            objectives of this division and be Georgetown County. And with the five rivers, the ocean, and .                consistent with terminology used the Industry, we can have that, pmvided we protectit."                       in companies nationwide.

Santee Cooper has continued the DOCLACHICOTTE tradition of hiring and promoting a highly qualified workforce. Total Captain Josh Ward knew there had to be a more comfortable way of empl ymentincreased S percent getting some shut-eye aboard ship, A fter running a load of rice down to 1.412. less than half the 1983 the river to Charleston. the harborpilot would try to sleep out the increase of 12 percent.

                                                                               " Promotion-from-within", a sweltering summer nigh ts in Georgetown using a Navy-issue canvas sack strung up in his boat. Necessityin this case became the motherof          m n gement philosophy, proved a hammock made ofin tertwined strands of cotton rope braced by                 successful.as more than 400 nooden wagon-wheelrims An air <ooled bunk. The "OriginalPawley's              emplayees applied throughjob Island Rope Hammock'                                                           postings for consideration Captain Ward was an uncle of A.H. " Doc"Uchicotte, whose Hammock           ony riouspositions,and Shop and peripheral business enterprises on Highway I7 between                  171 employees realized

- Georgetown and Myrtle Beach am a magnet, attracting auto license prom tionsand new respon-plates from all over. Doc has now diversified his in terests The success af sibilitles as a result. what was a necessity to Uncle Josh has allowed Uchicotte to expand Employment applications into realestate development. But he hasn't forgotten the past when decce sed slightly tojust over Pawley's Island was known as Waverly Mills, and the rice culture ruled. 4.900,or 11 percentless than last "My great grandfa ther came in to this community about 1849 to run ye r. However, to make best use of current statfing and limit per-the rice millat Brookgreen, which was the largestplantation in America at tha t time. They grew some 4 million pounds of rice. Waverly. along sonnel growth. temparary with Brookgreen. Hobcaw. Atcadia. Hagley. True Blue, and Caledonia. '

  • 9'*Y "' h 'd '* ' * *

were some of the earliestplantations in this area. He bought itin 1871. th n 50) bassignmentsduring and had about 500 acres of rice fields My grandfather farmed about th'Y' '" ddI*****9'*Y*'"' pers n p cipa ed in a variety acres of the delta, butit gradually went down and then out g nclud ng college nd blgh school Actually, the rice culture had been in death throes since the Civil War. But before it grudgingly let go, a lumber industry had sprung up in

                                                                               '                    9*       '
                                                                                       ' gd f,'*g     ,        g ,

Georgetown. Atlantic Coast Lumber Company, located where H ndic ppedCom ittee. Georgetown Steelstands today, employed more than 1.000,yet disap-pearedin 1932. Amazingly, there nas no market forits products. W;th nothing in the Waccamaw Neck to sell the rope hammock became a productof the Depression.

    "My father and Captain Ward had been making them since the 1880's. In the 1930's, we had a little shop on the island; my sister and I would make hammocks under the houses and people avuld put them on porches Somebody would see one, take it somewhere, and want anotherone."
    %s kids we used to go to Georgetown, an all-day trip, We had a ferry called the Cornwallis & Fblican, and the ride nas about 45 minutes All the mads were dirt even the tvad to Myrtle Beach. But they built the bridge to Georgetown in 1938 paved the road and called it Ocean Highway. That sameyear, this place startedas a hammock shop, with rugs, baskets. and pottery. We did weIIin the summer, but st3rved to 43

l The Santee Cooper Affirmative death in the winter. That's when I went to Clemson and got into hor-Action Plan was revised and sub- titulture; we needed some way to get some cash flowin the win ter." i mitted to the Soutn Carolina Lachicotte began growing camellias and azaleas and other ornamen-Human AtfairsComrnission. tals. building up what he terms "a pretty nice nursery business." i Employment, compensation, pro- Though in the 1950's, allyou'd see along the highway were a few motion, and otherJob-related countrystores. l decisionsare based solely onjob- Families, whom Lachicotte remembers by name, would comeyear related qualifications without afteryear. Pawley's Island still was a sleepy summer community. Just i regar d to race. color. sex, religion, about as sleepy as 2Oyears earlier, when people claimed the in troduction l national origin, age. or of electricity would " ruin the island." What has happened since those handicap:except where sex. age, countrystores functionedas the sole landmarks of the Waccamaw l or handicapis a bona fide occupa- Neck is nothing short of remarkable. They come now not only to buy a , tional qualification. gift ora hammock. They come to play golf and tennis. to visit gardens. Numerous presentations and to dine in period restauran ts Andjudging by real estate developmen t. i 3 meetings were conducted by the many come to stay. 4 Employee Relations staff at all { locations to discuss with jJ " personnelcompensation and benefits changes, new procedures, general company policy,and I employee concerns. I Company and employee con-tributions and volunteer participa-tion increased again for United [I , Way,and additionalsupport was  %

given for volunteer employee par- t i ticipation in several other i charitable programs.

! Employee interest shown in l company-sponsored activities was , }' excellent. More than 30 percent of ' all personnel were members of one , . of the seven employee associa-tions,and along with other employees and their dependents, participated in such diverse ac- Q tivities as aerobics, softball, - j bowling, golf, and basketball. l "Georgetown County has fairly stringent zoning. but whether we like , it or not, it's going to grow. Whatyou aim foris low-density growth, without the high-rises. We hope to have a more high-quality residen tial area to make that growth compatible with life as it always has been. We think we are a great buffer for the commercialism of the upper Grand Strand. I'm not knocking the GrandStrand;it's been very valuable to me l in putting bread on my table. But Ido think people who live here 1 permanen tly would rather have a much lower density than in l Myrtle Beach. l 1

                                                          "When InternationalIbperand Georgetown Steelcame to the county.

l it was a tremendous boost to the economyand they've been awfully good neighbors. With the ocean, rivers, and creeks of this Waccamaw Neck section, we will be an area that willappeal to a great many people.

;                                                       We are the last public area untilyou get to the Isle of Palms 60 miles I

south, 60 miles of area that will never be developed." 44 i i 1

               " Doc"inchicotte was one of two people out of 100in his senior high                            More than 2.100 emplayees and

,; school class brave enough to mturn to Pawley's Island: only 10 or 12 their dependents - thelargest l returned to Georgetown. They probably remembered how they had group ever - attended the 50th made spending money during school days - fishing or digging clama anniversary company picnic honor- i l and oysters and selling the seafood on the beach. But he took the ing Santee Cooper retirees and challenge, and watched it all happen before him in his portion of current employees. Carnival games Georgetown County. And much ofit happened because of electricity. and activities contributed to a l' festive family atmosphere at the l _,

                                                         =

lakeside recreational facility. l ! ) Participation in the localin- l I b dustrial health coalition generated new ideas of wellness programs. O j 2 health appraisals,and medical { coverage. Cost containment was l l achieved byincreasing thelimit on I ! diagnostic testing charges and

requiring pre certification

! for several non-emergency surgical conditions. A newinsurance option under

the state deferred compensation e plan wasintroduced.This flexible l %nc-.., % - cai,v.= m -, universallife plan allows
              ' Progress began with ruralelectrification. Aftergoing from one of                      employees to varyinsurance pro-l         the richest counties in the state to one of the poorest after the Civil                      tection for themselves and their i         War, electricity played a large role in bringing it back up to wha t I con.                  dependents as personal situations

, sider to be a viable county. Industry played a vital role by provid.ngjobs. Warrant,as wellas offering l There were absolutely none in existence. and they were a godsend to paid-up insurance at retirement. I Georgetown. So when people complained about the way the paper mill Tbx savings result by using l smelled. I nvuld tell them it smelled like strawberry shortcake to me. I betore-tax dollars to purchase think this end of the Grand Strand has a definite mie to play in growth the coverage.

of tourism in South Carolina. For the things Ilike to do. I don't know of Exempt and non-exempt perfor-

! nicerplace to live. With the mix of the oldand the new, we're trying to mance evaluation forms were improve the quality oflife in Georgetown County. And with the five extensively revised. Changes l rivers. the ocean and the industry, we can have that, pmvided we were made which emphasized pay- ' protectit; for-performance through formal goal-setting. d The non exempt pay structure t was modified to provide com-p petitive wages which can lJ n]' A fA , attract and retain skilled I employees. Merit pay was pro-

                                                                   'a                                vided for superior performance.
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m "The 'off-season' has begun to shrink. Mom and more OCCUPATIONAL HEALTH

    - businesses am keeping their doors open during the winter                           With earlyidentification of season. AIIof thisis verygood for theyear-mund econorny."                       health problems as a major goal.

more than 1.000 Santee Cooper POLLYLOWMAN employees participated in the medicalsurveillance program. which included hearing, pulmon-On Friday evenings in early summer. Fbily Lowman sits in her office ry function. vision.and other and listens to the population of herhometown growing. Automobiles loaded with vacationers fmm amund the countrypour into Norrh Myr- *9* ** "9' tie Beach, filling six lanes of Highway 17 from both directions . The wellness program empha-stzed person I re pon ibility for

  . Restauran ts. convenience stores beachwear outlets and service sta-he lth, coupled with individual tions awake from the near dormancy of the dwindling off-season to sell Ginners, soft drinks, flip-flops, and gasoline. North Myrtle Beach is
                                                                                      '*"    '""9 "        '

regi tered professlonal nurses. about to increase itsyear-round populate of 4.500 by a whopping 400 , percen t. It is a merchan st' bonanza and a field day for the Chamter of

  • 9"* '"'

Commerce. Butitis not withoutits problems Forexample more than a which will be used to analyze pro-quarter million people - not 4.500 -- will be making demands on the 9' " * * '*" city's watersupply thtvughout the summer. P" ' ' " "

       "We have at least 12 developers righ t now who wan t to build high-rise condominiums, and we simply cannot accommodate them. During the monitor nformat n n b            nce summer, our wa ter flow and supply gets low. ye t almost every nigh t, and chemicalsin use.and 300.000 people are taking showers. We stillhave about 1.300 homes schedute the required training of here thatare not on the city's sewersystem. And the impact charge, employeesin safe handling of or tap-in fee. has been raised fmm $60 to $1.500. Ikople are complain-             gg737goug gngggancgg, ing because they have to paya higher fee to accommodate tourists The                  A respirator training program way I see It, the choices are either to increase all the mon thly bills, put a ggg yg999,,9gcg plg(gg mg3nc moratorium on furtherdevelopment. or havejust the newer resident emphasis on employee health.This pay this fee. We're growing but we have a developer and planner for the progracn was supplemented by in-city. They're working togethernow on what I think will be a good water creased monitoring of employees.

plan forlocal residents as wellas tourists. It's a very new problem for us. More than 1.000 employees and we're going to have to reach a happy medium." have been trained and updatedin Fbily LDwman is publisher of the North Myrtle Beach Times CPR skilis and more than 500 were newspaper. A pastpresident cf the South Camlina Press Association gg99ygg;7gt.ggg, and first woman to hold that uffice, she haslistened and watched her Bloodmobile visits to Santee section of the Grand Strand loosen its belt buckle for more than 40 Cooper offices and generating years. And the strains on the municipality's watersupplyis nothersole stations provided more than 500 concern. LDwman also sees a need to improve the condition of roads in units of blood to the American Red North Myrtle Beach. Rather than building new roads, she says better Cross blood donor program. maintenance on existing thoroughfares uvuld help.

       "We don't really need new mads; there are potholes that need to be            TRAlNING AND DEVELOPMENT sealed on existing roads They need mworking or resurfacing, but the                    During 1984, more than 120 main tenance has not been as efficien t as it should on state roads as well        training and development pro-as Ocean Boulevard. This also is being worked on by the new city ad-               grams were provided to assist ministration in colljunction with the highway department. Like                     managers and emplayeesin attaln-everything else. it can't be done overnigh t; itjust takes time."                  ing optimum performance.

Aiong with the optimism she holds at solving these majorpmblems. Othersmallerpmjects in the cityare ofgreat interest to lowman. One in particular may help recall earlier " family atmosphere" days in North Myrtle Beach.

       "We have a study going on now for the renovation of Main Street, which hasjust about died. When I was gmwing up in the 1950's, it was just a thriving place; busy all the time. I'dsay we had a population of between 500 to 1.000 andpeople avuld come from cities like LDris.

47

More than 2.000 emplayees par- Calabash. and Tabor Cityjust to go to the two movie theatres. Main ticipared in an array ofinternal Street was the busiest place in town. This project will revitalize and and external training activities landscape the street and give it an air to get people to come back again. which included supervisor and We try very hard here to maintain this as a family beach. even though management programs, com- we're growing and becoming much more commercialized. But that's puters and micro-processors, com- progress, that's growth." munication techniques, stress _ ___ _ _ , _ __ _ management, customer service, , electrical / electronic instru menta- + tion, mechanical maintenance. Ng~!~ f ^ *

                                                  ~

power plant courses, and on- ' going programs for unit K operators on the power plant Simulator. New lineman training d IM,p -[j " h, h _ . t programs such as pole top rescue.

                                                                                                  ~'

basic pole climbing techniques. and 5 - transformer concepts were pro- , - a.-C W~ -- vided,and work began on new lineman training facilities. gN c Q 5-y.gy h ,

                                                             'fE'                                   *M-              -

A skilled craft and technical

                                                                                  ' k,(c ,WMM                      "
                                                                                                                         ' J
                                                                                                                                  ~

training program was begun u _. J g a.c_ m ; b b J*r h, m_. system-wide. The program is designed to identify needed train. Those two theatres have become a pizza parlorand a church. and ing to emplayeesin skilled craft bwman says the population increase has removed a bit nf the and related technical positions togetherness she remembers. But while mindful of what 300.000 can that will improve productivity and do to a city's water supply. She also realizes what this crowd can do for provide the opportunity for the local economy. The cmwds are getting larger, and they're also stay-advancement to positions of ing longer. The "off-season"has begun to shrink. More and more greater cesponsibility. businesses are keeping their doors open during the winterseason. More than 275 employees par. "Ican remember when oursummerseason was three mon ths: now ticipated in tuition aid courses it's nine or ten. I was amazed in the pastyear to see businesres which offered bylocalcolleges and normally called it a season in October who were still going strong in technical education centers. January. Allof this is very good for theyear-round economy." Employment opportunities in North Myrtle Beach have expanded SAFETY with increased business activity. Since there is only one localindustry, Santee Cooper earned the employing about 2SOpeople, tourist-related ventures hold the most American Public Power Asscciation promise forlocal citizens. But there is more to it than selling second place award forits safety suntan lotion. record among utilities operating with 2 million or more man-hours  ; of exposure annually.Since 1964, l l Santee Cooper has never failed to l receive an annual award from APPA forits safety record, placing in the top four categories every ,& year and winning the first place award an unprecedented 13 times. In 1983. 20 units also earned '9 ) awards from the NationalSafety ' Counciland the South Carolina , OccupationalSafety Council. Qg'

                                               $,"T ffp?W                               -

l t dfQh., ,). . n bk..gW359eq% 48

         "7burism is number one as faras employmentin the city. This in-                          Santee Cooper has historically cluc*?s those who work in local business or banks. Many people are in to                    maintained anincident rate for real estate as bmkers or sales represen tatives. It's the going thing and                   lost-time accidents far below the sales have been great."                                                                     nationalaverage for electrical No doubt many cities across the nation avuld like to have North                        utilities.The excellent safety Myrtle Beach's " problem" of dealing with astronomical growth in                            record is a result of a combined ef-popula tion, resulting in heavy increases of business activity. And                         fort of all emplayees to though it puts a strain on city services, Ibily Lowman has no doubt that                    make safety a part of their the trend willcontinue.                                                                     daily concerns.
                                     ~~ ~
                                                   '^ '                     '

e PROGRAM for EMPLOYEE PARTICIPATION Santee Cooper nears completion of a 10-year program designed to

                                              ~

ll; reinforce and improve its power

                                   ?      -             ;             rr -                    production, delivery,and customer g                               8' 3 h s'i                 service systems. Concentration
                             ,M,
                          -9,4[l 3

s a a n [! 8 ' ! hra over the past decade has,of

  -           a                                                                 '-
                                                                                    ,,        necessity, been on a constrdction p"
          $lM   ~)..     ~dl.                                                          E l

program geared to provide the in-creased generating capacity while

  • continuing to place new customers
  @f                                                                                          in service and meet growing power needs.

With this portion of our con-

        I foresee a lot of growth. a lot of new businesses. My family was in                struction program coming to a the gmcery business in the '50s and '60s, and for2Oyears. we had the                      close. management thisyear only grocery store in the area except for one in the Cmstent section and                    began a review of all phases of the anotherin Cherry Grove. When we wanted to go shopping for other                            organization, searching for ways items, we had to drive to Wilmington or Charleston. Butjust within the                     to tine-tune opciations. A perma-past three years. several na tional store chains have come in to the ama.                    nent task force with rotating These and other businesses see a lot of potentialin condominium                             membership was established to pmjects: they realize that more and more people are in to time-sharing.                     develop a program to encourage These companies are purchasing property long before they build on it.                      greater employee involvementin They know that the in flux ofpeople is going to be greater on a                           these etforts.The resulting Pro-year-round basis because of this in tervalliving. Life is a bit more                        gram for Emplayee Participation hectic: the pace oflife somewhat faster; but we've improved the                            { PEP)gives employees the oppor-quality of our status ofliving. The beach. after all, is our drawing card.                  tunity to work on projects which Aod n#ve got to grow with it"                                                               willimprove work methods and procedures and strengthen customer service.

PEP was begun in a pilot stage in the transmission branch. Employee groups were formed to I identify betterment opportunities ( 3Q , p. ,I erwurmP in their own areas and propose l {t[ lc r- .- (~ - solutions to management. Based on a review of PEP's resultsin transmission, the task force will

                                                                           ,'                develop a plan forintroducing the
               <m                                                                            program m other departments.

4 m: 49

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    " Santee Cooper has, without question, an unqualified record                      CORPORATE FORECASTING.

of outstanding service to the people of South Camlina, RATES & STATISTICS whetheryou'm talking about putting people back to work, cj jnt oduced Econo lc eradicating malarla, or pmviding inexpensive electricpower.,, Development Rate which provides WALTEREDGAR for newindustrieslocating in Santee Cooper's service area and Whatyou envision is an elderly gentleman hunched over a desk in a forindustries presently being musty room piled high with moth-eaten books and hundred-year-old served by Santee Cooper who add newspapers. The blinds have been closed for days and only a small table electricload andjobs.The purpose lamp argues with the shadows. Quiet, please. Historian at work. of theincentive rateis to sell Yet with his boyish grin. rapid-fire wit. and eagerness to share his excess reserves and brirng more findings. Walter Edgar defies that traditional characterization as he jobsinto the state. pens a history ofSantee Cooper for the company'sSOth anniversary. A Recognizing that rising fuelcosts, professor of history at the University of South Carolina. Edgar holds an capital costs, inflation, and increas-undergraduate degree from Davidson College and Ph.D. fivm USC. ing interest rates are not unique to where he is also director of the Institute forSouthern Studies. Institu- Santee Cooper, a Corporate Key tional history is his speciality. and he says the fieldis enjoying a renewal Indicator Program (CKI) develop-ofsorts. ment was begun which will com-

      "Institu tional history is really popular righ t now. Many companies are       pare selected keyindicators of having their histories written. but in many cases what they wan tis a            Santee Coopec's operations to that whitewash: they don't want a history, in all my dealing with Santee              of similar utilities.The program Cooper, however, theysaid they wanted the story told. warts and all,             should provide an etfective man-which is mally the only wayI would undertake thejob. And I have had              agement tool to measure Santee complete freedom to say what I wanted to say."                                   Cooper's productivity and effi-And one of the things he said in his book - in so many words - is             ciency and is scheduled for com-that there has been no otherproject in the 20th century that has had             pletion in the fallof 1984.

more ofan impact on the state than theSantee Cooperproject. A pilot program was also begun

      " Santee Cooper was considered crucial to South Carolina's economic           to determine the reliability of survival during the Depression. The en tire state budget in thoseyears            billing data obtained from solid-nas about S or 6 million dollars; the Santee Cooperproject cost about            state recorders being read via
   $40 million. I had known beforehand that the formation ofSan tee                 telephonelines.These recorders Cooper had a great impact, but Isoon discovered its all-pervasive impact         are expected to replace the to be simplyastounding. The prevalence ofmalaria - people were dy-                current magnetic-tape recorders ing by the dozens in Orangeburg County, for example: the fact thatless            that have been utilized since 1974.

than three percent of the people in this state had electricpower; those The new solid-state recorders will types of things were astonishing. Ialso knew howpoor the state was at speed up billing, detect faulty bill-that time, but the photographic evidence from the National Archives ir.g equipmentin the field almost and the Library of Congress was unbelievable." immediately, and help determine According to Edgar. one of the distinct aspects ofSantee Cooper's im- where heavy electricloads exist on pact on life in ruralSouth Ca:olina is that it happened within the Santee Cooper's system during its lifetime ofpeople stillalive today. And he includes himself. peak periods.

      "Many of these changes have occurred in my own lifetime. My children can't walk down a road and see a man behind a mule and plow;            MANAGEMENTINFORMATION but that happened to me regularlyas a child. I can remember dashing to           SYSTEMS the outhouse on my visits to the country. And although I'lladmit that                Santee Cooper's maintrame pies cooked in a wood-burning stove get a crust on them that can't be            computing system was upgraded duplicated. I doubt ifyou'd find many people today willing to stand over         significantly with the addition of thatstove and bake one."                                                         fourlarge high-speed disc storage devices and two control units to handle the flow of data to the users. Additionalsystem develop-51

I_ ,_ ment and the ever-increasing Edgar notes that Santee Cooper's accomplishments are not easily demand for additionalinforma- recalled by manySouth Camlinians. Ironically. he says that the company l tion created the need for these was probably better known during the time it was under construction. upgrades. ~ The retailcustomer billing U T W J. system was greatly improved through the introduction of hand-h"'by-M ' bNNh held meter reading devices, which ~ l allows Santee Cooper to bill I customers on the sar.ie day that j the meters are read. Additionalsystems were  ; developed to provide services for l ! the following areas: Safety - To recerd. store, and { retrieve all safet)-Islated

incidents and awatts that were presented throughout the cor pany.

Building Services -- To provide [ 4 preventive maintenance ! scheduling for all plant and equipment within the main of-fice complex. Engineering Design - To "One of the greatest challenges the utility faces todayis helping record information cancerning people understand whatSantee Cooperis allabout. In the 1930'syou engineering drawings. had to find a deep Swamp in the state beforeyou would find someone l MIS - To record ar.6 analyze all who hadn't heard of San tee Cooper. The service is there, but I don't information on computerlease, think there is an appreciation for what has been done and what is being j maintenance.and software done bySantee Cooper. A vast majority of the state's population is agreements. served by Santee Cooper, even though they may not realize it." Additionally, procurement's in-ventorysystem was enhanced to provideit and warehouse with more vendorinformation and capability for tracing activities for specific parts. g i in the technicalsupport area. , F new software packages were in- -3 l 6N stalled to provide users with the Y l capabilities for color business ste$,gNike y M7 I Ms graphics, business and engineering programs, and access to the cor- f porate data bases, all interactively. > To further increase the capabilities > of the mainframe computer, ~ techr!calsupport began installa- ' - %, , tion and training for an integrated - corporate-wide office automation I% system that willincorporate word

o r,_

l processing, document storage and *'r ~ . . i 'J~ 7#.:.= == C i" retrieval,and personalcomputing l  : g 81l M y, j with access to most of our current f -

                                                                                                                **      ~
                                                                                                                                        ~

business systems. 52 {

i i J l Service to the people ofSouth Camlina is seen by Edgaras Santee FINANCIAL

SUMMARY

Cooper's grea test institu tional strength. Since Santee Cooper was

_ _ - _ _ _ _ _ established in 1934, a net amount I of $2,015.074,000 has been in-l ... Vested in its production, transmis-sion, distribution, and general plant facilities.These capital i . . additions have been financed

                                         , .f                                                                                                                                                    through reinvested earnings.

Ai.- - issuance of electric revenue bonds and notes, lease contracts, and a g." '

                                                                                                                                                                  .                              federal grant-in-aid p                                                                                                                   ~. . ' .9                                            of $34,438,000.

I,' .J , . .. E ~; . (, . . ,4'. A ' ,,- l 'j Santee Cooper's net earnings before taxes since the first power l r- - T

                                                                                                                                                     ~'

was generated in 1942 total

                                                                                                                                                                                                 $246,680,000. Payments in lieu of   i taxes have been made to the State
                                                       ,g.                                    7 g gg,                                                 g                                         of South Carolina totaling
                                                                                                                                                                                                 $22,823.000, and to the counties
                                   " Santee Cooper has, without question, an unqua!ified record of                                                                                              and municipalities within the com-outstanding service to the people ofSouth Carolina. whetheryou're                                                                                                          pany's service territory totaling

[ talking aboutputting people back to work, eradicating malaria, or S10.167,000.The remaining net providing inexpensive electricpower. And the record has taken on a lot earnings of $213.690.000 have ofdifferent meaningsjust within the last decade. The company's been reinvested in system Outreach Pmgram, and efforts to attract industry with reduced improvements. rates - allof this was designed to help people in 35 counties, notjust Revenue bonds totaling the immediate service area. Santee Cooper has done - and is doing - S2,281.594.000 have been issued what those who originally wantedit to do. and thatis to improve the since theincorporation of Santee quality aflife in South Camlina. It has fulfilled their dreams." Cooper. Bonds which were originally issued in 1949,1971, I e and 1976 were advanced refunded in 1973 and 1977,and have been defeased. Also, $ 127,000.000 0f l , C.. - m -

                                                                                                                                                                    , W^Tf                       1982-A and S 100,000,000 of h                              gg                                                                                 I                            1981-C bonds were advanced p                            i                                                                                      refunded and defeased by issuance g9} j                                                                                                                                             . . .
                                                                                 ~

of 1982 Refunding Bonds. All

                                                                                                                                                                                        '       refunding bonds had an outstan-
                         *D h                                  -
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                                                                                                                                                                                 ~
                                                                                                                                                                                   ;.           ding balance of $442,674.000 at N[T ,; .                                                    (4Pg"

(;e J -$ f'S ' ,

                                                                                                                                                          ~  ' Q f ~  ;

the time they were refunded. Prin-cipal payments on allbondsissued,

                                          'i
                                                                                                                                            ~

y including theissues refunded,

                                      *                                  ~-

n.d- M :2.-  ; ~ total $50,170,000. Outstanding _ % . y_ . _ , g7 f*1 [ , bonds as of June 30,1984, totaled

                                                                                                                                                                                                $ 1,788,750.000. The average l                    .                          ~
                                                                                                                                                      .y>                                       annualinterest cost on these 1 ' '                                                                                                              bonds is 8.32 percent.

As of June 30,1984, unex-I E c pended funds from the sale of bonds amounted to $ 111.207.000. l 4' ~ , in addition to debt reserve, debt 9% service, and interest funds, which

                                         +                                                           ""i4 M.u                  "-                                                               tctated $294,871.000.

53

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o l sP "l!= ISLAND Generation and1Yansmission System Legend 5 Steam E CombustionTurbine 8 Hydro E Nuclear A SanteeCooperSubstation G CentralElectricor Customer Owned Substation

                                                                                  -if- Interconnection
                                                                                 - Transmission Lines
                                                                                ---- Proposed or Under Construction 54

WHERETHE POWER COMES FROM WHERETHE POWER GOES RetailCustomerArea Arcadian shores 1.oris cencrating commercw constructen Atlantic Beach lower Waccamaw Neck

                                                 . capabdtty -             operanng     Cost       - Bonneau Beach Moncks Corner ceneratingunie '        toraten            (mecanets)       ruct -    care -   tsexw)-       Briartliffe Acres Myrtle Beach Chestnut Hill             N.Myrtte Beach oJeffedes Hydro MonCks C
# 1.2.3.4, & 6 Corner 128 ~ Hydro 1942 $ 458. c rdYnCity nopois
     ' Santee                  Wilson's ._                                                           Litchfield Beach st. stephen 200.        Little River             surfside Beach Spillway                1.anding                     2 Hydro         1950 Jefferies -             MonCks                                                               MilitaryInstaliations
Steam #1 & 2- Corner- 92' Oil 1954 171. Charleston Air Force Base Chanest n Navalshipyard -
     ~ Combustion ~             Myrtle                                                               Myrtle Beach Air Force Base Wrbine #1 & 2 - Beach                              20       Oil      1962           145.

IndustrialCustomers - Grainger b Steam #1 & 2 ' Conway 170 Coal 1966- 172. y,$'u,o tdalcases Jefferies - MonCks Albanyinternational. Inc. Corner- 306 1970 179. Alumax of south Carolina.Inc.

        #3 &4                                                     Coal Amoco Chemicals Corp.

Combustion Myrtle Andrews Wire Corp. Wrbine #3 &4 Beach. 40' - Oil 1972 113. A.o. smith Corg

                                                                                                     ##''"I '"

Combustion Hilton C.R. Bard. Inc. Wrbine #1 Head 20 Oil - 1973 135. Georgetownsteet Corg Georgia-Pacific Corg Combustion" Hilton '*'*" " " Wrbine #2 Head 20 Oil 1974 110. f'c"*)fg

                                                                                                            ,      Ca International Paper Ca Winyah .

Steam #1 Georgetown 270 Coal 1975 231.

                                                                                                      $d5          n Combustion .            Myrtle                                                                Mobil Chemical Ca
       -Wrbine #5               Beach                      30       Oil      1976            90.    . Plusa. inc.

santee Portland Cernent Ca

      .- Winyah -                                                                                     Uniroyat inc.

Steam #2 Georgetown 270 Coal 1977 271. United Merchants and Manufacturers. Inc. W ccamawClayProductsCa Combustion Hilton Waccamaw Lumber Ca Wrbine #3 Head 57 ' Oil 1979 172. - JimWaiterMetalsCorg Weltman Industries. Inc. Winyah Steam #3 - Georgetown 270 Coat 1980 439. 'MunicipalDistributors Winyah Bamberg Steam #4 Georgetown 270 Coal 1981 '404. ceorgetown Summer. Electric Cooperative Distributors ' Nuclear *

  • Parr 300 Nuclear 1983 1.088. Aiken Electric Cooperative Berkeley Electric Cooperative Cross #2 Cross 499 Coal 1984 8 01.

Black River Electric Cooperative Coastal Electric Cooperative Edisto Electric Cooperative Fairfield Electric Cooperative r Generanng units manned Horry Electric Cooperative a underconstructen capaary - tesnmated) Lynches River Electric Cooperative Cross #1 Cross 500 Coal May 1991 957. $d C$roinI tr perative Newberry Electric Cooperative

  • Excludes financing costs. . _

Palmetto Electric Cooperative "one third ownership beingjointly constructed with south Carolina Electric & Gas Co. Pee Dee Electric Cooperative santee Electric Cooperative TH-County Electric Cooperative

                                                                                                        ~ rnrougn centrai csectrw amer cooperative SS

r ELECTRIC STAT STICS Fiscal Year 6/30/84 6/30/83 6/30/82 6/30/81 C/30/80 6/30/79 6/30/78 6/30/77 6/30/76 6/30/75 Total Utihty Plant-net includ;ng nuclear fuel (at year end) (in thousands of do!!ars) 1.783.215 1.682.027 1.465.919 1.204.325 950.628 759.839 577.936 437.162 355.971 277.976 Bonded Indebtedness (at year end) (in thousands of dol:ars) 1.788.750 1.796.545 1.735.850 1261A20 990.100 917.690 810.190 495.190 481.210 383.050 Operating Revenues (in thousands of do!!ars) Residential 35.572 28.098 27.121 21.949 17.639 15.255 14.585 10.801 9.109 8.354 Commeraal 37,865 28.853 28.145 22.452 18.835 16.822 15.530 12.439 10.738 9.665 Industrial 132.833 124.015 131.189 99.551 40.417 35.131 26.672 21.557 19.357 20.929 Military 13.978 12.893 12A87 9.225 6.954 6.567 6.330 5.049 4.754 4.564 Municipal 1.254 1.029 955 704 587 546 526 422 391 257 Wholesale 140.211 126.104 105.994 90.971 65.997 59.975 54.101 42.265 36.215 32.038 , Other Electric Utihties* - - - - 975 507 1.021 Mscellaneous 1.986 1.716 1.840 1.494 1.364 1A01 1.236 1.219 1.168 (1.516) Total 358.699 322.708 307.731 246.346 151.793 135.697 118.980 94.727 82.239 75.312 Operation & Maintenance Expenses Charged to Operations (in thousands of dollars) 236.389 218.976 226.320 187.890 109.997 103.928 88.144 71.904 57.737 59.214 Payments in Lieu of Taxes Charged to Operations (in thousands of dollars) 1.750 981 565 966 928 726 658 734 550 405 Payments to the State Charged to Reinvested Earnings (in thousands of dollars) 1.600 1.500 1A00 1.300 1.300 1.200 1.201 1.797 844 764 Net Operating Revenues Avai!able For Debt Service (in thousands of dol lars) 136.186 118.230 94.219 66.503 46.732 35.958 33.796 28.091 29.799 19.983 Reinvested Earnings" (in thousands of dollars) 12.502 36.161 38.610 21.048 21A06 10.791 5.516 8.978 11.902 8.060 Debt Service Coverage: Expansion Bonds 1.83 1.69 2.18 1.90 2.41 2.12 2.30 3.34 3.25 4.52 Pnority Obligation & Expansion Bonds 1 78 1.65 2.07 1.79 2.14 1.88 1.98 2.46 2.45 2.56 Kilowatthour Sa:es (in thousaads) Residential 646.467 559.929 541.522 536.461 472.495 443.186 446.247 403.107 342.232 319.744 Commeroa! 688.748 595.724 569.474 549.737 511.726 506.243 489A37 449.335 404.501 375.320 Indusmal 4.232.994 3.940.370 4.049.632 3.952A08 1.890A15 1.788.087 1.441.494 1.356.706 1.202.291 1.240.927 Mi!!tary 392.309 373.403 350.127 343.258 306.582 316.537 323.763 302.789 301.172 291.632 Muniopal 25.448 20236 17.841 17.572 17.506 16.966 16.670 15 495 14.381 13.075 Wholesale 3.798.454 3A22.275 3.351.388 3A70.042 3.099.574 2.881.781 2.843.955 2.576.794 2.220.559 2.018.602 Total 9.784A20 8.911.937 8.879.984 8.869.478 6.298.298 5.952.800 5.561.566 5.104.226 4.485.136 4.259.300 Number of Customers (at year end) Residential 55.610 50.255 46.310 43A62 40.053 38.058 35.590 32.513 30.738 ;8.580 Commercial 11.601 10.583 10.129 9.754 9.236 8.859 8A66 8.102 7.558 7.280 Industrial 26 25 25 25 24 21 20 19 21 21 Mi!itary 3 3 3 3 3 3 3 3 3 3 Muniapal 329 300 224 216 212 207 197 189 183 163 Wholesale 3 3 3 3 3 3 3 3 3 4 Total 67.572 61.169 56.694 53A63 49.531 47.151 44.279 40.829 38.506 36.051 Residential Statistics (average) Kilowatthour Consumption / Customer 12.240 11.708 12.093 12.875 12.151 12.097 13.174 12.832 11.551 11.487 Cents /Kilowatthour 5.50 5.02 5.01 4.09 3.73 3.44 3.27 2.68 2.66 2.61 Generating Capab:lity (year end) (megawatts) 2.764 2.265 1.965 1.965 1.736 1A56 1A00 1.120 1.120 1.092 W Aquirements and Supply l (kilowatthours in millions) j Generation-Hydro 628 694 522 414 824 680 702 715 739 784 Steam 7.287 7.840 8A92 8.620 5.800 5.343 5.238 4A02 3.779 3.012 Combustion Turbine 2 - 18 31 10 6 38 21 2 11 Nuclear 1.931 494 - - - Total 9.848 9.028 9.032 9.065 6.634 6.029 5.978 5.138 4.520 3.807 Purchases. Net interchange. Etc. 355 333 380 371 193 429 95 474 429 882 Total 10.203 9.361 9.412 9.436 6.827 6.458 6.073 5.612 4.949 4.689 Calendar Year 1983 1982 1981 1980 1979 1978 1977 1976 1975 1974 Terntonal Peak 1. cads (megawatts) 1.810 1.685 1.754 1.554 1.352 1.231 1.161 1.065 943 911 () Denotes Negative

  • Effect:ye July 1.1977. Interchange sales were reclassified as a cred:t to purchased power.
  " Reinvested earnings referred to above and on pages 64,65 and 66 ref;ect revenue available to meet Santee Cooper's Bond indenture and Resolution requirements.

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1981B issue 1981C issue 1982A Issue 1982B Issue 1982 Refunding issue Total Accruing Total Priraipal Interest Debt nt. Rate Amt. Int. Rate Amt. Int. Rate Amt. Int. Rate A mt. Int. Rate Amt. Maturities Service 9060 149.138 158.198 10.500 148.679 159.179 10'/, 710 95/, 1.375 9'/, 565 13.720 148.i25 161.845 10' /. 785 10.00 1.465 10.00 655 7'/. 435 15.025 147.273 162.298 11.00 865 10'/, 1.595 10'/. 740 7'/, 470 16.015 146.308 162.323 11'/. 965 11.00 1.735 to'/, 835 72/. 505 17.095 145.247 162.342 11'/a 1.070 11'/, 1.905 10'/. 940 8.00 545 18.275 144.085 162.360 112/. 1.185 IIS/. 2.105 11.00 1.060 8.20 585 19.535 142.840 162.375 12.00 1.315 12.00 2.335 1 1 ' /. 1.195 8.40 635 20.925 141.472 162.397 12'/ 4 1.470 12.30 2.590 11.60 1.345 8.60 690 22.450 139.964 162.414 12'/, 1.635 12.60 2.895 11.90 1.515 8'/. 750 24.125 138.303 162.428 1.00 3.090 13 ' /. 1.875- 12.10 1.815 93/. 815' 26.010 136.431 162.441

1. t 0 4.000 13'/. 1.530' 12.20 2.040 93/. 890* 28.040 134.412 162.452 1.20 4.220 13'/. 1.925* 12.30 2.295 9 5/. 975* 30.255 132.208 162.463 1.30 4.590 13' /. 2.250' 125/. 85* 95/. 1070* 30.190 129.788 159.978 1.40 5.090 13'/. 2.545' 12'/. 95" 93/. 1165' 32.550 127.427 159.977 1'/, 12.010 93/. 1275' 38.510 124.847 163.357 13' / . 9.875* 123/. 100* 9'/. f.395* 38.290 121.685 159.975 13'/. 5.265' 123/. 1.330- 98/. 1.525' 41.525 118.450 159.975 13'/. 14.735* 125/ 4 1.530' 9.60 1.670* 44.935 115.044 159.979 123/. 17.320' 9.60 3.000' 49.035 110.943 159.978 123/ 4 19.540' 9.60 3.275' 53.375 106.606 159.981 13 00 915* 9.60 3.575- 37.015 101.333 138.848 13.00 1.050' 9.60 3.895* 39.580 99.269 138.849 13.00 1.200* 9.60 4.250* 42.410 96.437 138.847 13 00 1.375' 9.60 4,640' 45.460 93.388 138.848 13.00 1.570- 9.60 5.070* 48.760 90.090 138.850 4 ' /. 8.520' 13.00 1.800* 9.60 3.755' 52.320 86.530 138.850 9.310* 13.00 2.040' 9.60 4.105* 56.075 82.773 138.848 f,' /. 10.170* 13.00 2.320' 9.70 4.485* 60.120
    /.                                                                                                            78.728   138.848 2 CD        1.195*  10.00     9.353'                   13 00      2.625'   9.70      5.465*         64.480       74.367   138.847 2.00        1.335' 10 00     10.635'                   13.00      2.990'   9.70      5.645'         69.425       69.426   138.851 2.C0        1,480'                                     13.00      3.395*   9.70     17.885*         74.565       64.284   138.849 2.C0        1.655'                                     13.00      3.885'   9.70     19.575*         80.085       58.760   138.845 2.00        1.845*                                     13.00      4.445'   9.70    21.425*          86.025       52.821   138.846 2.00     34.905'                                       13.00      5.095*   9.70    23.445*          92.495       46.354   138.849 2.00     46.585*                                      13.00       5.830'   9.70    25.815'         101.730       37.113   138.843 3'/,     50. COO"                                     13.00       6.665*   9.70    56.330*         112.995       25.853   138.848 13.00     62.800'   9.70    62.970*         125.770       14.272   140.042 l

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f ~ . . FINANCIALL

                                                                              ~

1 L STATEV EVE ,.... J-SOUTH CAROLINA. p iPUBLICSERVICE AUTHORITY g Fiscal Year 1984-j.. ., Il s E V r F s 1

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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Advisory Board and Board of Directors South Carolina Public Service Authority Columbia South Carolina We have examined the balance sheets of the South Carolina Public Service Authority at June 30.1984 and 1983, and the related statements of reinvested earnings, accumulated earnings reinvested in the business, and changes in financial position for the years then ended. Our examinations were made in ac-cordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing pm-cedures as we considered necessary in the circumstances. In our opinion, the above-mentioned financial statements pre-sent fairly the financial position of the South Carolina Public Service Authority at June 30,1984 and 1983, and the results of its opera-tions and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. h Coo;fers & Lybrand Columbia. South Carolina August 31.1984 61

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                                                                                  ~
  • BALANCE SEEETS ,

l tSOUTH CAROLINA'PUBLIC SERVICE AUTHORITY s l June 30,1984 and 1983

                        ^ Assets;             -                                                                                 1984'                  ~1983
                        ;Uti'ity Plant l .At Cost'(Notes l'and 3):-

S 1,894.794,565:

            -                 Electric plant in service :                                                                              . $ 1,378.389,661
       ~                                                                                                                                                          '

(Construction work in progressJ > 97,503,142 z 468,980,471~ f-Total. . , , .

                                                                                                                  .1,992,297,707           1.847,370,132(            .
Less accumulated depreciation:: :231,859,129- :186,827,617:-

4 s , . f Electric plant - net - .1,760,438,578 1,660,542,515 l 22,776,113 - - 21.484.293: 7 l Nuclear fuel- net (Note 3) J Utility plant - net 1,783,214,691- 1,682,026,8087

                  - K 0ther Physical Property (Net of .
                           - Accumulate'd. Depreciation))                                                                  ' 410,757 -             x 421.309 '       -

N (Unexpended Funds from Sale of Electric:. . ~ I System Expansion Revenue Bonds (Note 2) 111.207,289: ~106.558.891 _ c = Debt Service and Other Special Fun'ds (Note 2)' 294.870,829; -392,799.5653 , Current Assets:'

                           . Cash'and securities:

Held by trustee . 215,470,636; 13.834,466 L c 10theri , l 10,477,127 : 16,780,569 c

                           .._ Accounts receivable,less allowance of' G                                . $4,636,784 in 1984 and $4.350,407 in 1983                                             ~ 30,181.942 '        ~ 31,269,376.
              . ,          ; Accrued interest receivable.                                                                -2.500,698.              2,563,924 7 s                     ) inventories, at average cost:
                                - Fuel (coal and o!!)                                                                  L 43.293,827'         - 47,058,126:;
- Materials and supplies! ,

4,659,485 :4.271,373; y Prepaid expenses 1,600,529 1.389.603 7btal current assets - 108,184.244 107,167,437' N-

Deferred Debits:
                             ' Unamcrtized debt expense'(Note 1)                                                         23,146,177            24,255,948
Unamortized loss on refunded debt (Note 1) .71.132,770. .71,439,166
                           ~ Other                                                                                        1,043,008 <              1,305,168 Total deferred debits                                                           95,321,955:         197,000.282 n

H Total- S 2,393,209.765 $ 2,385,974.292-t

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The ac. ompanying notes are an integrai part of the financiat statements. 62 he a _ b .

7 - - , L

      .Li;bilities                                                                        '1984-                     ~1983 -

Long-Term Debt (Note 4): Priority obligations ,;$ '65,823,280_ $ - 67,469,840f Electric System Expansion Revenue Bonds 1.723,135,000, 1,729,705,000 ' Subtotal . 1,788.958,280.. ~ 1,797,174,840

         - Electric Revenue Notes'                                               .135,000,000             135,000,000 Capitalized lease obligationsf                                         '79,898,586      _
                                                                                                            -82,467,110 Other                                                                                 -

75,000 Total long-term debt -2,003,856,866. 2,014,716,950 t e s:

          - Reacquired debt'                                                         1,580,000                   500,000
         ' Unamortized debt discount and premium - net                             23,770,326            - 24,780.255
                  - Long-term debt - net                                       1,978.506,540           1,989,436,695 Accrued Interest on Long@rm Debt                                           -76.180,280               -83,331,019 Construction Fund Liabilities - Accounts Payable                             18,288.447              :22,223.134 -

Other Non-current Liabilities 1,553,651 :702.497

Current Liabilities:

Commercial paper (Note 5) 25,000,000' -15,000,000 Accounts payable 22.010,464 .18,810,459 Customer deposits 2,890.843 2,588.239 Accrued sums in lieu of taxes. ,864,506- 557,777 Other 3,325,970 1,262,196 Total current' liabilities 54,091,783 - 38,218,671 Commitments and Contingencies (Notes 6 and 7) . Deferred Credits:

         ; Unamortized gain on reacquired debt (Note 1)                               ' 984',217                 757,460 Nuclear fuel settlement (Note 3)                                        :15,476,332-           114.078,208 '

Total deferred credits 16.460,549 > 14,835,668 Capital Contributions - U.S. Government Grants 34,438,264 34,438,264 Accumulated Earnings Reinvested.in the Business 213,690,251 202,788.344-

                 - Total                                                     $ 2,393,209.765         $ 2,385,974,292 63

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i , used i SOUTH CAROLINA PUBLIC SERVICE AUTHORITY Years Ended June 30.1984 and 1983 1984 1983 A sumulated earnings reinvested in the business - beginning of year $ 202.788.344 S 168.127,645 l Reinvested earnings for the year 12.502,050 36.160,699 l Total 21S.290,394 204,288.344 l l Distribution to the State of South Carolina (See note below) 1,600,143 1.500.000 I $ 213,690,251 I Accumulated earnings reinvested in the business - end of year S 202.788.344 Note: The distribution to the State of South Carolina is determined utilizing a calculation formula re-quired under the Bond Indenture which is based essentially on operating cash flow and mandatory reserve requirements. Such ca!cula-tion varies substantially from reinvested earn-ings for the year which includes among other things, interest income earned on restricted funds and an allowance for funds used during construction. { The accompanymg notes are an mtegra;;wt of the fmancan statements. 64

STATEMEXTS OF REINVES"ED: EA3X XGS SOUTH CAROLINA PUBLIC SERVICE AUTHORITY

Years Ended June 30,1984 and 1983
                                                                                                                 '1984-             1983' Operating Revenues:
        - Sales of electricity-                                                                         S 356,713,532    $ 320.992.679 Other operating revenues                                                                           1,985,935         1,715.639 JLtal operating revenues 1_                                                           358,699,467       322,708.318 Operating Expenses:

l Operation expem.3:

            . Production                                                                                 -164,515,248       171,523.177.

Purchased and interchanged power - net 17,471,581 1.331,726 Transmission 1,720,218 1,507,606 Distribution 1,307,917 1,305.113 Customer accounts 2,319.099 2,170.201 97,399 103.125 Sales ..

             - Administrative and general                                                                  20,239,656'       14.662,640 Maintenance expense -                                                                             28,717,632       26.372.895 ~

Total. operation and maintenance expense 236,388.750 218.976.483

         - Depreciation                                                                                     47,372,511     -32.906.088 Sums in lieu of taxes                                                                              1,750,154           980,744 Total operating expenses                                                              285,511,415      252,863.315 Operating income                                                                                     73,188,052       69.845,003 Other income:

Interest income: Other funds . -15,284,985 14.688.623 Bormwed funds 34,069,951 55,102.408 Allowance for funds used during construction - 2,987,309 2.094,489 other than borrowed funds (Note 1) Other income (expense) - net (103,809) 371.032 Total other income- 52,238,436 72.256.552 Total 125,426,488 142,101,555

    - Interest Charges:

Interest on long-term debt 160,258,677 162.553.055 Allowance for funds used during construction - borrowed funds (Note 1) (50,905,897) (59.348,469) 0ther- 3,571,658 2.736.270 Total interest charges 112,924,438 105.940.856

Rainvested Earnings ' S 12,502.050 $ 36.160,699
      - The accompany!ng notes are an integral part of the financial statements.

65 i

r ! STrEV ENTS O? C- AN G ES IN 2 XAXC Ai 30SrTOX l

  ~ SOUTH CAROLINA PUBLIC SERVICE AUTHORITY                                                                                                                                l'
 ' Years Ended June 30,1984 and 1983                                                                                                          1984                 1983 Funds Pmvided By:

Operations: Reinvested earnings $ 12,502.050 s 36.160,699 Charges (credits) to re nyested earnings not providing or mquirirg funds: Depreciation - 47.372.511 32,906,088 Allowances for funds used during construction (53,893,206) (61A42,958) Amortization of debt discount and expense 2,515,393 2,331.503 Amortization of gain or loss on reacquired debt - net . 36,772 48,085-Total from operations 8,533,520 10.003,417 Sale of bonds / notes 75,000,000 354.000,000 Decrease in unexpended funds from sale of L Electric System Expansion Revenue Bonds -- 73,648,349

      ' Decmase in debt service and other special funds                                                                               97,928,736           91,082.115 increase in accrued interest on long-term debt                                                                                           -        10,831.359-Increase in construction fund liabilities                                                                                                -            .799,985 Nuclear fuel settlement                                                                                                          1,398,124          1,734,477-      -

Additions to gain /! ass on reacquired debt - net - 496,381 - f Other 33,314 - 665,605 ~ _) Total funds provided 183,390,075 542,765,307

 - Funds Applied to:                                                                                                                                                        ;
       ' Increase in utility plant                                                                                                    94,656,636         187,560,160      .I
     ' Retirement of long-term debt                                                                                                   ~ 83,291,560      283.798,687 increase in unexpended funds from sale of                                                                                                                        .j Electric System Expansion Revenue Bonds                                                                                     4,648.398                      -

Decrease in construction fund liabilities 3,934,687 .- Decrease in accrued interest on long-term debt - 7.150,73.7 - Principal payments - capitalized lease obligations 2.568,524 '142.436

      - Distributions to the State of South Carolina                                                                                     1,600,143-          1,500,000 increase in unamortized debt discount and expense                                                                                 395.693              943,021 increase in unamortized loss on refunded debt                                                                                            -       62,587.880 Total funds applied                                                                                                 198,246,380        539.532,184 Incmase (Decrease) in Working Capital                                                                                           $ (14,856,305)    $      3,233,123 increase (Decrease) in Working Capital by Component:

Cash and securities $ S 332,728 $ 8,554,428 Accounts receivable, less allowance for doubtful accounts (1,087,434) 3A06.723 Accrued interest receivable (63,226) (343,029) Inventories (3,376,187) 8.149,012 Other current assets 210,926 261,926 Accounts payable (3,200,005) (466.578) Customer deposits (302,604) (103,291) Accrued sums in lieu of taxes (306,729) (149,569) Commercial paper (10,000,000) (15,000,000)- Other current liabilities (2,063,774) (1,076A99) Increase (Decrease) in Working Capita! $ (14,856,305) S 3,233,123 The accompanying notes are an integra! part

   . cf the finandai statements.                                                66

1 1 9 em I 0"ES "O emm. .m. ~e, GANCLAi

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                                          ,   ,    mned > , , . mand . ,

June 30,1984 and 1983 Note I - Summary of Significant construction periods and is capitalized in the same Accounting Policies: manner as construction labor and material costs. Construction projects are substantially financed by A - System of Accounts - The accounting records identifiable borrowings, and AFUDC on specific con-of the Authority are maintained substantially in ac- struction projects is calculated using the effective in-cordance with the Uniform System of Accounts terest rates of the respective borrowings, com-prescribed by the Federal Energy Regulatory Commis- pounded annually. AFUDC for other funds utilized is sion (FERC). See Note F below relating to calculation calculated based on the Authority's average rate of of allowance for funds used during construction. return for the last three years. D - Utility Plant Capitalization and Maintenance- G - Amortization - Unamortized debt discount, Additions to plant are recorded at cost. which in- premium and expense are being amortized to income cludes material. labor, overhead, and an a lowance for over the terms of the related debt issues. Unamor-funds used during construction. The costs of repairs tized gains and losses on refunded debt are amor-and minor replacements are charged to appropriate tized to income as impacted through the rate-making operating expense and clearing accounts. Costs of process, generally over the terms of the new debt renewals and betterments are capitalized. The issues. Original cost of utility plant retired and the cost of removal less salvage are charged to accumulated p Expansi n nds, Debt Service, and Other

                                    -D          eciation - Depreciation is computed on a straight Ime basis over the estimated useful lives of the various classes of the plant. Annual depreciation                                                          Unexpended funds from the sale of expansion provisions, expressed as a percent of average                                                              bonds, debt service funds, and other special funds are depreciable utility plant in service, were approxi-                                                         held and maintained by trustees and their use mately 3.43% and 3.28% for 1984 ar.d 1983.                                                                  restricted in accordance with applicable provisions of respectively.                                                                                               Various trust indentures, bond resolutions, lease D - Operating Revenues and Energy Costs -                                                        agreements. and the Enabling Act included in the Revenues from saie of electric energy. including                                                           South Camlina law. Such funds consist principally of amounts resulting fmm application of fuel adjust-                                                           investments in government securities carried at amor-ment clauses, are recorded as meters are read. Fuel                                                         tized cost.

costs are reflected in operating expenses as E- r$sion Costs - Employees of the Authority are covered by a State Pension Pian administered by The Authority and South Carolina Electric and Gas the South Carolina State Retirement System which (SCE&G) are parties to a joint ownership agreement provides for emp!oyee a~1 Authority contributions. providing that the Authority and SCE&G sha!! own the Contribution rates are established by State statutes. Summer Nuclear Station with undivided interest of The Authnrity's contributions to the State Pension 33 h% and 66%%. respectively. SCE&G is solely Plan were $2.413.843 and $2.090.597 for the years responsible for the design, construction. operation. ended June 30.1984 and 1983 respectively. Data maintenance arid decomm;ssioning of the Summer concerning accrued benefits and pension fund assets Plant, and the Authority is obligated to pay its owner-relating to Authority employees are not available. ship share of all costs ce:ating thereto. At June 30. F - Allowance for Funds Used During Construction- 1984 and 1983. the plant accounts included approxi-The anowance for funds used during construction mately S416.921.000 and $407.164.000 respectively. (AFUDC) reflects the cost for the period of capital representing the Authonty's investment, including devoted to plant under construction, including AFUDC. in the Summer Pl ant. nuclear fuel. This cost represents interest charges on Nuclear fuel represents the Authority's investment borrowed funds and a reasonable rate of return on m the initial core of three regions and a major portion other funds used to finance plant additions during of Region Four that will be used for the first reload. 67

Nuclear fuel costs are being amortized based on final settlement was reached and approved by all par-energy expended which includes a component for tiesin April 1980. estimated disposal costs of spent nuclear fuel. These By terms of the order approving +he settlement, the amortizations are included in fuel expense and are court imposed confidentiality upo^ the details of the recovered through the Authonty's rates. Decommis- settle. ment. The Authority has rece.ved approximately s:ontng costs (costs to take the plant out of service in $10.243.000 in cash as partial sett>.nent of the the future) for the Summer Plant are estimated to be lawsuit. Additionally, the agreement provides for S263 mi lion. for the Authonty's % ownership, based delivery of some uranium, long term delivenes of on a 30 year useful life with decommissioning ex- equipment and services (including conversion and fuel pected to commence in the year 2013. The Autho: ' , fabrication)at a discount and the pmspect of addi-accrues for its share of the estimated decommission- tional cash payments pending the oatccme of 11tiga-ing costs over the remaining life of the faci!!ty. These tion between the supplier and a group of uranium costs are being recovered through the Authority's producers. rates. The estimated decommissioning costs are Amor received have been included in deferred periodica:!y reviewed and adjustments recorded as creQ and will be applied as a reduct.on of uranium appropriate. fuel costs. This is consistent with SCE&G's treatment The supplier under the original uranium supply con- pursuant to an order from the South Carolina Public tract breached the contract in 1975 due to uranium Service Commission. The cost of nuclear fuel pur-market conditions. SCE&G initiated action seeking chased has been reduced by approx!mately $4,010,000. Specific performance of the contract provisions, and a Note 4 - iong-Term Debt Outstanding: June 30 1984 1983 Priority Obligations: Electric Revenue Bonds. Series of 1950, bearing interest at 2.70% and due 1984 to 1993 $ 9.855.000 S 10.120.000 Electric Revenue Bonds. Series of 1967, beanng interest at 4.10% and due 1984 and 2006 50.100,000 50.265.000 Electric Revenue Bonds. Refundmg Series of 1973 bearing interest at 5% and due 1984 to 1989 5,660,000 6.455.000 Contract Obligations, payable 1984 208.280 629.840 Total Priority Obligations 65,823,280 67.469.840 Electric System Expansion Revenue Bonds: Expansion Bonds.1973 Series bearing interest from 5% to 5%% and due 1984 to 1993 and 2013 96,415,000 97.385.000 Expansion Bonds,1974 Series, beanng interest from 6% to 6%% and due 1984 to 1999 and 2014 106,155,000 107,135.000 Ex pansion Bonds.1977 Refunding Series, bearing interest from 4.45% to 6% and due 1984 to 1997 and 2002 and 2016 201,775.000 204.370.000 Expansion Bonds.1977 Series, bearing interest from 4.20% to 5%% and due 1984 to 2002 and 2017 114.170,000 114.580.000 Expansion Bonds.1978 Series, beanng interest from 4W% to 5%% and due 1984 to 1998 and 2008 and 2018 198.805,000 199.700.000 Expansion Bonds,1979 Series A, bearing interest from 5.45% to 6 7/a% and due 1984 to 2003 and 2009 and 2019 109.220.000 109.795.000 Expansion Bonds.1980 Series A. bearing interest fr om 8.60% to 10 Ya% and due 1984 to 1995 and 2002 and 2010 74,595,000 74.740.000 Expansion Bonds.1981 Series A. bearing interest from 7W% to 10% % and due 1935 to 1997 and 2002 and 2020 75,000,000 75.000.000 Expansion Bonds.1981 SeriS R bearing interest from 9% % to 12% and due 1995 to 20 X)and 2013 and 2020 and 2021 200.000.000 200.000.000 Expansion Bonds.1981 Series C. bearing interest from 10% to 13% % and due 1986 to 1994 and 2001 and 2015 50,000.000 50.000.000 68

Expansion Bonds.1982 Series A, bearing interest from 9W% to 13%% and due 1986 to 1994 and 2003 38.000.000 38.000.000 Expansion Bonds 1982 Series B. bearing interest from 9W % to 13% and due 1986 to 1997 and 2005 and 2022 165,000,000 165.000.000 Expansion Bonds.1982 Refunding Senes. beanng interest from 7% % to 9.70% and due 1987 to 1994 and 2002 and 2012 and 2022 294.000.000 294.000.000 Total Expansion Bonds 1,723.135,000 1.729.705.000 Electric Revenue Notes: Electric Revenue Notes.1980, bearing interest at 5% % and due December 1.1983 - 50,000.000 Electric Revenue Notes 1981. bearing interest at 7%% and due June 1,1984 - 25.000.000 Electric Revenue Notes.1983 Series A, bearing interest at 5.60% and due May 1.1985 60,000.000 60.000.000 Electric Revenue Notes 1983 Series B. bearing interest at 6W% and due May 1.1985 75,000,000 -

 - Total Electnc Revenue Notes                                                          135,000,000              135.000.000 Capital Subordinated trase Contracts, payable 1984 to 2015                            79,898,586                82.467.110 Other                                                                                            -

75.000

  'ibtallong-term debt                                                             S 2,003,856,866           5 2.014.716,950 The Authority utilizes proceeds of debt issues                  make required payments when due into the lease primarily in financing its contruction program.                    fund and the capital improvement fund, and to pay The Electric System Expansion Revenue Bonds.1971                the costs of operation and maintenance of the and 1976 Series, were advance refunded and defeased                Authority's electric system and all necessary repairs, in 1977 cy issuance of 1977 Refunding Series Bonds                 replacements and renewals thereof, and Special Obligation Refunding Series Bonds. The The Authority is presently required to pay annually principal amount of the refunded bonds and Special do        ap immeCuh amt ei&

Obligation Bonds outstanding at June 30,1984. to-taled $111.815,000. In November 1982. $127.000.000 together with the amounts deposited therein in the two preceding fiscal years, is at least equal to 8% of of the 14 '/ % 3 ElectricSystem Expansion Revenue the Authority's gross revenues (as defined)in the Bonds 1982 Series A and $100.000.000 of the 13%% three preceding fiscal years. Electric System Expansion Revenue Bcnds 1981 Series C. were advance refunded and defeased by issuance of The Authority may issue additional parity expansion the 1982 Refunding Series Bonds. The principal bonds if, among other things. the Authority's Con-amount of the refunded bonds outstanding at June sulting Engineer certifies that net revenues (as de-30,1984 totaled $227.000.000. Such bonds will be fined) in each succeeding fiscal year after the date retired as they mature from the pmceeds of govern- on which such additional bonds are sold to and in-ment obligations held by the Refunding Trustee. ciuding the later of (a) the third succeeding fuii Although the 1982 advance refunding of debt resulted fiscal year after such date or (b) the first full fiscal in a book loss of approximately $62.588.000 it will year after the est: mated date of commercial opera reduce debt service by approximately $114.000.000 tion of any power plant to pay the cost of construc-over the life of the bonds. This loss is being amortized tion of which additional expansion bonds have been, over such life as impacted by the rate-making process. are being, or are then authorized to be issued shall The Authority's bond indentures provide for certain be at least equal to the sum of the amounts re-

 - restrictions, the most signif: cant of which are:                 qu: red in such fiscal year for (i) debt service on the The Authority covenants to establish rates and             prionty obligations and the expansion bonds then charges adequate to provide revenues sufficient,           outstanding. being issued, or authorized but not yet among other things, to pay debt service when due           issued. (ii) payments into the lease fund and (iii) on the priority ob!!gations and expansion bonds, to        payments into tre capital improvement fund.

69 l l

Matunties of electric revenue notes, priority obliga- above-mentioned facilities. The Authority has an tions and expansion bonds during the years ending option to purchase the leased properties at any time June 30.1985 through 1989, are as follows: during the period of the lease agreement for a sum equal to Centrars indebtedness remaining outstanding i on the property involved at the time the option is -  ! R ue . ot t ons & Notes Expansion Bonds - Totag exercised or to return the properties at the termina- l June 30.1985 s13s.000.000 S 9A79.cs1 s144.479.0s1 tion of the lease. The Authority plans to exercise each J

                                                                                 .and every option to acquire ownership of such June 30.1986               -

10.500.000 10.s00.000 facilities prior to expiration of the leases. Power supply June 30.1987 - 13.720.000 13.720.000 and transmission services are provided to Central in ac-June 30.1988 -

                                                    - t 5.02s.000    1s.025.000   cordance With the Power System Coordination and in-June 30.1989                -

16.015.000 16.01s.000 tegration Agreement dated January 19.1981.This Totar s135.000.000 s 64.739 os t s199.739,0s1 agreement also provides that each party will have an option to share ownership of future generating l The contract obligations included above arose facilities to be constructed by the other. Central has through an agreement to purchase certain transmis ' advised the Authority that it will exercise its option to sion lines (generally known as the "A-B" System) from own 45% of Cross '91 and the Pee Dee generating Central Electric Power Cooperative. Inc. Principal and stations subject to obtaining financing guaranteed interest at 2% per annum are payable in semi-annual by REA.

         . installments. The "A-B" Note was paid in full in July                     The Authority and Central are involved in arbitra-1984 and the Authority exercised its option to assume                 tion proceedings regarding certain interpretations of ownership. See Note 6 for details concerning long.                     the coordination agreement, the outcome of which term lease obligations.                                                cannot presently be predicted. The effect on income or
                                                                                 . expense,if any, of the ultimate resolution will be reflected in the period settlement is determined. In Note 5 - Commercial Paper:

theopinionof management anysettlementwould . not materially impact the Authority's financial . The Board of Directors authorized the issuance of ' position. > commercial paper not to exceed $50,000.000. The . Future minimum lease payments on Central leases, paper will be issued for valid corporate purposes with ' atJune 30,1984 were: a term not to exceed 270 days at an annual interest - Years ending June 30: Amount - rate not to exceed 9W%. As of June 30.1984, and ' 1983 the effective interest rate on outstanding bor. 1985 $ 5.466.280 rowings was 5.77% and 5.02%. respectively. During -1986 5,466.280 1984 and 1983, the average effective interest rate 1987 5,466.280  ; was 5.23%. and 4.63%: the average amount 1988 5,402.104 l outstanding was S iS.382.000, and $10.473.000 and 1989 5.344,450 the average maturity was 21 and 26 days. Thereafter 96,193.931-At June 30,1984. the Authonty had a Revolving . Total minimum lease payments _123,339,325 Credit Agreement with various lenders of Less. amounts representing interest 43,440,739

            $50,000.000. This Agreement is used to support the Authority's issuance of commercial paper. Under the                    Balance at June 30,1984                                                   $ 79,898,586 Agreement the Authority is required to pay a fee of                    Leases, other than Central leases, are not material 3/sof 1 % on the unused balance. No loans were outstanding under the Agreement at June 30.1984.

Note 7 - Commitments and Contingencies: Note 6 - Contracts with Central Electric Power Cooperative: ThWW's construction budget, as adjusted for known changes. provides for expenditures (con-The Authority has lease contracts with Central Elec- sisting of generating facilities - Cross '84. Cross '91 tnc Power Cooperative. Inc. covering a steam electric and other construction)of approximately 5101.398.000 generating p! ant, transmission facilities, and various during the fiscal year ending June 30.1985. and other facilities. The lease terms range fr om eleven to $ 152,516.000 during the following two years. thirty-one years. Quarterly lease payments are based During 1982, the Federal Energy Regulatory Com-on a sum equal to the interest on and principal of mission (FERC) notified the Authority that the Centrars indebtedness to the Rural Electnfication Pinopolis West Dam and the North Santee Dam. which Administration for funds borrowed to construct the form a part of the Authority's electric utility system. 70

l possessed marginal seismic stability under applicable . design earthquake criteria. FERC indicated that remedial measures should be undertaken by the Authority to provide an increased level of seismic stability. The Authority engaged an engineering firm to perform studies and planning to determine the extent and cost of work necessary to correct the design weaknesses. The initial engineering study has been completed and submitted to FERC for its review. As part of its 1983 Supplemental Appropriations Bill, the U.S. Congress authorized the Corps of Engineers to install a closure structure in the diversion canal between Lake Marion and Lake Moultrie and to construct such measures as necessary to improve the seismic stability of the Pinopo!!s West Dam at an estimated cost of $22.000.000. Of the estimated $22,000.000. Congress appro-priated $2,000.000 for the Corps of Engineers to begin immediately with engineering and design studies in connection with the project to improve stabi!ity of the dam. Until FERC has completed its review on the pro-

 . posed modifications to the Pinopolis West Dam and the proposed remedial measures to be undertaken by the Authonty on the North Santee Dam. it is not possible to estimate the extent of work necessary to correct the design weaknesses. Based on the facts as they currently exist, management believes that any cost incurred by the Authority related to the dams would not materially affect the financial position of the Authority.

Note 8 - Major Customers: . Sales to the two major customers. Central Electric Power Cooperative. Inc., and A!umax of South Carolina, Inc., were $ 135.000.000 and $79.000.000, respectively, and $122,000.000 and $77.000.000, respectively, for the years ended June 30,1984 and 1983. 71

{ l STATEOWNERSHIP BOARD OF DIRECTORS

          ' Santee Cooperis an electric util-    Robert S. Davis                    George W. Jones,Jr.

ity which is owned as an asset by Chairman Businessman the State of South Carolina. It was Chairman Emeritus loris, SC established in 1934 as the South The R.L. Bryan Co. Carolina Public Service Authority. Columbia, SC John E. Miles This ownershipis unique because Attorney-at-Law the state has noinvestmentin the J. Thomas Grier Sumter SC company but stillowns allits prop- First Vice-Chairman erties and assets. The original President, Grier & Co.

                                                                                   - Eugene F. Oliver financing (1938-1942)was ay a            Spartanburg, SC -                  Businessman loan and grant from the United                                              Moncks Corner,SC States through the Public Works .        Walter T. Cox Administration, with subsequent          Second Vice-Chairman majoradditions funded partly by          Vice President of Student Affairs  H.M. Robertson earnings but primarily by revenue                                           Pf and Dean of Students bonds sold to privateinvestors.-         Clemson University                 R           ofMeh The South Carolina Public Service                                           Walterboro, SC Clemson, SC Authority was established by Act No.887 of the Acts of the General        B.G. Alderman                      Marvin M. Thomas Assembly of South Carolina in            President                          Owner-Operator 1934 for the purpose of construct-      The Alderman Agency. Inc.          Georgetown I.aundry,Inc.

ing and operating the Santee- Manning SC. Georgetown SC Cooper Hydroelectric Project.This included developing the Cooper. C.B. Boyne J.I. Washington,111 i Santee,and Congaree Rivers for Farmerand Retired Merchant Businessman interstate and intrastate com- Eastover, SC Orangeburg, SC

       . merce: the production, distribu-tion,and sale of electric power:                                                                     '

the reclamation and drainage of

       . swampy and flooded land:and the                                                                      i reforestation oflands around its lakes. Originally known as the                                                                        t Santee-Cooper Hydroelectric and Navigation Project,the organiza-tion is commonly referred to as
      . Santee Cooper.

ADVISORY BOARD Richard W. Riley - Governor J.Ravis Medlock i Attorney General Grady L Patterson.Jr. Stateleasurer Earle E. Morris, Jr. Comptroller General i John T. Campbell Secretary of State 72

r.- 3

MANAGEMENT FOR ADDITIONAL William C. Mescher f LP. Dorman ' INFORMATION CONTACT: .
        . President and Chief Executive   Corporate Secretary              Jerry Stafford Officer :                                                        - or Denise McWhorter                  Dan Coleman Henry N.Cyrus      .

Assistant Corporate Secretary Senior Vice President Corporate Communications Albert Boyt.Jr. Santee Cooper Clarence S.Gramling ' Group Manager One Riverwood Drive - SeniorVice President - . Ransmission Moncks Corner . South Carolina W. Andrew Burke Bill McCall.Jr. 29461

       ,Vice President                   Group Manager                      803/761-4052 Production Operations Kenneth R. Ford Vice President                   Robert F.Petracca Group Manager -

Joe C. Norman Property &~Ransportation Systems Vice President Byron C. Rodgers.Jr. _ Robert E.Rainear Manager Vice President Station Construction Robert V. Tanner Joseph P. Thomas Vice President Manager l Design Engineering Charles H. McGlothlin.Jr. GeneralCounsel Ronald H. Holmes Manager

       ' John E. Bishop                 Human Resources                                                     i f      Controller                                                                                           .-

Jerry L Stafford l i H. Roderick Murchison Director - 1 l 'Reasurer Corporate Communications - I a f 9 5 t k l L

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