South Carolina Business Law Blog

On April 26, 2010, the South Carolina Supreme Court affirmed the decision of the South Carolina Public Service Commission (Commission) approving SCE&G’s application to construct and operate a two-unit nuclear facility in Jenkinsville, South Carolina and to revise its rates to reflect the cost of capital applied to the project. Friends of the Earth v. The Public Service Commission of South Carolina , et al ., Op. No. 26811 (S.C. April 26, 2010). Friends of the Earth, a not-for-profit group, opposed the new facility before the Commission. On appeal, Friends of the Earth urged the Court to apply a new standard of “heightened scrutiny” when reviewing this decision of the Commission under the recently enacted Base Load Review Act . The Court found no basis in law for this request, stating that varying degrees of scrutiny are ordinarily limited to those cases where a state statute’s constitutionality is being challenged under the Equal Protection Clause. Accordingly, the Court app

Oral arguments at 10:00am this morning in South Carolina Energy Users Committee v. The South Carolina Public Service Commission, South Carolina Electric & Gas, and Office of Regulatory Staff. The South Carolina Public Service Commission (Commission) approved SCE&G's Application for a Certificate of Environmental Compatibility and Public Convenience and Necessity and for a Base Load Review Order to construct and operate a nuclear facility in Jenkinsville. The Baseload Review Act, enacted in 2007, requires the Commission to review and approve certain generating facilities proposed by investor owned utilities (of which SCE&G is one) that are going to serve retail customers in South Carolina. The issue before the Court, raised by the South Carolina Energy Users Committee , is whether the Commission lacked the authority under the Base Load Review Act ("Act") to approve capital cost contingencies and include them in the forecast of the anticipated capital costs.