Who wants to buy SC-owned Santee Cooper? NextEra asks for seat at the bidding table

The previous preferred — but rejected — buyer for state-owned Santee Cooper says it’s willing to come back to the negotiating table after a top state senator recently called for new offers.

Florida-based NextEra, in a letter to Senate President Harvey Peeler, said it welcomes the opportunity to discuss the terms of a new proposal, after lawmakers rejected Nextera’s purchase offer last year.

“We would genuinely welcome input on our proposal to ensure that we are meeting the relevant interests and concerns,” NextEra CEO and Chairman Jim Robo wrote.

In an email on Monday, a NextEra spokesperson declined to comment beyond the contents of Robo’s letter.

Lawmakers haven’t decided how to respond yet to NextEra’s letter. The Senate president’s office didn’t immediately comment on how the senators would proceed.

The letter comes as the state Senate prepares to begin what could be a long debate on whether and how to reform the state-owned utility Santee Cooper, saddled with billions of dollars in debt from the abandoned V.C. Summer nuclear plant project. Ratepayers were charged for the costs of the project even though it never produced a watt of electricity.

Last year lawmakers rejected a purchase offer from NextEra. House members wanted to continue to negotiate with NextEra while reforming Santee Cooper, but senators wanted a reform only approach. The House earlier this year passed legislation that calls for having a panel review offers for all or parts of the utility.

Earlier this month, Senate Majority Leader Shane Massey, R-Edgefield, called on anyone who was interested in buying Santee Cooper to put in an offer. He conceded that anyone who previously put in an offer would probably be the ones who would most likely provide updated proposals.

Massey suggested if an offer comes, Peeler could set up a negotiating team to evaluate any updated proposals. But any offer that comes in would have to be vetted publicly in legislative committees and ultimately win approval from a majority in both chambers, Massey said.

“Ultimately of course, if there’s any merit to them, they’re going to have to go through the committee process. There would have to be more people involved in it,” Massey said earlier this month on the Senate floor. “I’ve had enough people ask me about this in here that I thought at least we ought to make sure that people know that is something that can be done.”

Last year, the Department of Administration chose Florida-based energy giant NextEra as the preferred buyer. One other bidder — who legislators have identified as South Carolina-based investment company Pacolet Milliken, though that has not been confirmed by the state agency — also made an offer.

The DOA only made public the details of NextEra’s offer. Senators did not like aspects of the NextEra offer, which included having approval of rates and energy generation plans in the hands of legislators rather than the Public Service Commission, which regulates utilities in the state. Last year, lawmakers from both chambers rejected an offer from NextEra to purchase the utility, Dominion Energy’s offer to manage the utility and Santee Cooper’s reform plan.

Since the rejection of the offers, Santee Cooper has settled its outstanding litigation, including contributing $200 million to a $520 million settlement over rates put in place for the V.C. Summer nuclear plant debacle. The ratepayer lawsuit was seen as a large question mark for the utility’s future and its finances.

“We recognize that over a year has passed since NextEra’s proposal was considered by the General Assembly,” Robo wrote. “In assessing our ability to submit a revised proposal that delivers an exceptional package of benefits to South Carolina, we have considered changes in market and other conditions that have occurred since our prior bid was submitted. We also have considered comments received from legislators during the committee meetings at which NextEra was invited to participate.”