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Santee Cooper reports oversubscribed bond sale, $7.6 billion capital plan and modest rate impact from Cook settlement
Summary
Ken Lott, Santee Cooper's chief finance officer, told the Senate Finance Committee the utility sold long‑term debt in an oversubscribed offering, raising $600 million in new money and refinancing about $460 million, generating estimated customer savings of about $30 million and a total borrowing cost near 4.4 percent.
Ken Lott, chief finance and administration officer for the state‑owned utility Santee Cooper, briefed the Senate Finance Committee on recent financing, rate and capital‑investment developments.
Lott said Santee Cooper went to the market under authority approved by the Joint Bond Review Committee and received very strong investor demand. He said the utility increased the planned issuance and obtained about $600 million in new money plus about $460 million in refunding bonds; the total sale produced what Lott described as a roughly 4.4 percent all‑in interest cost and is expected to yield about $30 million in interest savings for customers from refinancing.
Why it matters: Lott said the financing supports a $7.6 billion 10‑year capital plan to meet forecasted load growth — roughly 1,100 megawatts — and upgrades to transmission. He also described Santee Cooper’s first rate adjustment since 2017 (a 4.9 percent overall rate change) and said the Cook settlement will add about 2.9 percent to rates, an amount he estimated would be less than $5 per month for an average customer.
Key facts reported
- Debt issuance: Authorized up to $750 million; initial target about $650 million; final results: roughly $600 million new-money issuance and about $460 million in refinancing; the sale was more than ten times oversubscribed in banker feedback, Lott said.
- Interest cost and savings: Lott reported a roughly 4.4 percent blended cost on the issuance and estimated about $30 million in present value savings from refunding bonds.
- Rates and operations: Santee Cooper implemented a 4.9 percent rate adjustment (first since 2017). Lott said the Cook settlement adds an estimated 2.9 percent to rates and described that amount as less than $5 per month for customers.
- Customers and workforce: Lott said Santee Cooper serves about 216,000 retail customers directly, about 2 million customers directly or indirectly, and 200,000 wholesale water customers; he said the workforce is about 1,600 employees, roughly a 10 percent reduction over five to six years.
- Capital plan and reliability: The utility projects roughly $7.6 billion in electric investments over the next 10 years, including about $2.7 billion in transmission upgrades, more solar capacity in the 2020s and a need for combined‑cycle or combustion‑turbine capacity and battery storage as modeled in its integrated resource plan.
Quotes and context
"So that's a big deal for Santee Cooper, very good for our ratepayers," Lott said describing the debt settlement and market reception.
Lott told the committee the utility expects to return about $23 million to the state in 2025 under a 1 percent payment tied to revenues.
Ending
Committee members thanked Santee Cooper for the update and noted improved financing and reliability metrics. Lott said Santee Cooper was prepared to provide more detail if the committee requested a follow‑up hearing.
