FRIDAY, JANUARY 14, 2000

Friday, January 14, 2000

(Local Session)

Indicates Matter Stricken

Indicates New Matter

The Senate assembled at 11:00 A.M., the hour to which it stood adjourned, and was called to order by the ACTING PRESIDENT, Senator SETZLER.

REPORT RECEIVED

TO:The Clerk of the Senate

The Clerk of the House

FROM:Committee to Review Candidates for the

South Carolina Public Service Commission

DATE:January 11, 2000

In compliance with the provisions of Sections 58-3-26 and 2-19-30(D), Code of Laws of South Carolina, 1976, it is respectfully requested that the following information be printed in the Journals of the Senate and the House.

Donald H. Holland, Chairman

Pursuant to Act No. 181 of 1993, the Committee to Review Candidates for the South Carolina Public Service Commission (hereinafter “Committee”) was organized to consider the qualifications of candidates for the Second District of the South Carolina Public Service Commission (hereinafter “Commission”), created by the resignation of Commissioner C. Dukes Scott on June 7, 1999, whose term expires on June 30, 2002. The Committee is composed of ten members, six of whom are members of the General Assembly, and four of whom are members of the public. While its statutory mission does not include selecting or nominating the most qualified persons for service on the Commission, the Committee has determined that it does bear responsibility to supply the General Assembly with findings regarding each candidate’s capabilities, giving special attention to any issue or concern which might limit a commissioner’s effectiveness. In making its findings, the Committee is charged with “find[ing] the best qualified people giving due consideration to their ability and integrity.”

LEGAL QUALIFICATIONS

The determination of legal qualifications is limited to a determination of the candidate’s residence in the appropriate Public Service Commission district as established by § 58-3-20, the candidate’s eligibility for election as determined by § 58-3-24, and the candidate’s compliance with constitutional provisions limiting election to those persons eligible to be electors of this State.

GENERAL QUALIFICATIONS

To fulfill its mandate to determine fitness beyond mere legal qualifications, the Committee conducted an intensive review of each candidate’s (1) experience, (2) temperament, (3) sensitivity to legal and ethical constraints on public service, and (4) knowledge of Commission operations.

An explanation of these four benchmarks which the Committee used to judge the qualifications of candidates is as follows:

Experience

By statutory mandate, this Committee is charged with considering the knowledge and experience of potential commissioners “in such varied fields as business, government, accounting, law, engineering, statistics, consumer affairs, and finance.” The Committee looked for persons who have excelled in these fields and those persons’ capability to transfer this success and knowledge to the operations of the Commission. The transcript contained in this report contains each applicant’s background and employment history.

Temperament

The Commission is neither a court, an executive agency, nor a legislative body, but a blend of all three. The Committee sought to determine if a candidate’s sense of the role or roles he is to fill on the Commission is such that his work will be productive, proactive, and protective of the interests of all South Carolinians.

Compliance With and Sensitivity to

Legal and Ethical Constraints/Integrity

Each candidate carries a wealth of life experiences as well as business and personal relationships. The Committee realizes that there is little possibility of electing candidates with no pre-existing conflicts of interest. To do so would, in effect, be asking candidates to have totally disassociated themselves from the “real world” and would be a direct repudiation of this Committee’s statutory mandate to find candidates with experience in business, law, and other fields. However, the Committee finds an important standard to be that a candidate recognizes when he may have a conflict of interest between his existing responsibilities and/or business interests and his future duties as a commissioner. The Committee strongly feels that a candidate should not only readily recognize these conflicts of interest, but should pro-actively and willingly offer to divest or divorce himself from such conflicts of interest. The Committee believes that the reluctance of a candidate to readily recognize or willingly divest or divorce himself of such interests during the intense public scrutiny of these screening hearings is a likely indicator of that candidate’s future unwillingness to avoid conflicts of interest when called upon to do so in a less public forum--Public Service Commission deliberations.

The Committee also strongly feels that candidates for the Commission who serve or have served as public officials, public members, or public employees must have demonstrated high ethical standards through compliance with all laws governing ethical behavior, most notably those provisions of Title 8. In order to withstand public scrutiny and to gain public confidence, these candidates for the Commission must have conducted and comported themselves with the highest regard for ethics in their actions as public officials, members, or employees.

In this regard, and pursuant to Section 58-3-26, the Committee has made findings as to integrity.

The Committee’s findings are designated as follows:

QUALIFIED

UNQUALIFIED

Substantive Knowledge of Commission Operations

The Committee acknowledges its statutory duty to recognize those candidates who are the most qualified in this regard. However, it would be patently unfair to require nonincumbents to have accumulated a wealth of knowledge about Commission operations specifically, or regulated utilities generally. Unlike incumbent commissioners, challengers have not had the benefit of a compensated opportunity to educate themselves in hearings or through conversations with Commission staff. The Committee expects that incumbents and others with substantial experience before the Commission should be able to discuss these matters with a greater fluency than those persons who have to date committed themselves to other employment. However, every candidate, whether incumbent or nonincumbent, must be required to demonstrate some basic understanding of the role of the Commission and its operations. The Committee emphasizes that the substantive knowledge findings contained in this report are merely a measure of a candidate’s knowledge at the time of his candidacy and are by no means indicative of a candidate’s ability to subsequently master Commission operations and the multitude of issues relating thereto.

The Committee adopted a written format to assist in judging the substantive knowledge of each candidate. In previous screenings, where substantive knowledge was examined solely in an oral format, candidates whose screenings occurred toward the conclusion of the hearings were at a decided advantage. Because the Committee’s hearings are open to the public, the content of questions relating to substantive knowledge could be readily discerned from the screening of an earlier-scheduled candidate. The sequestration of candidates did little to remedy the unfairness.

For this round of screening, a written format was used to preserve the integrity of the process and to survey a candidate’s general and specific knowledge of the workings of the Commission. Candidates were instructed to choose three discussion questions among the six provided. No candidate had the personal advantage of access to the questions prior to other candidates; nor did any candidate have the opportunity to divulge the nature of the questions to another candidate. Each candidate was given the choice of writing his or her answers or using a computer.

The Committee feels that the written format placed all candidates on a level playing field.

Miscellaneous

Candidates should also be generally aware of the time commitment necessary for productive service as a commissioner. Each candidate provided adequate assurance to this Committee of his or her commitment to meet the demands of the office.

Screening of Candidates

A transcript of the Committee’s extensive oral examination of the ten candidates on November 15, 1999, as well as the mandatory written examination given on November 5, 1999, are appended to this report as required by law.

In consideration of these findings of fact, the Committee finds all ten candidates to be legally qualified for service as Public Service commissioners. The Committee makes the following findings of fitness and ability for individual candidates for the Commission:

James Blake Atkins

SCORE ON WRITTEN EVALUATION:86/100

Dr. Atkins is currently a research Associate Professor with the Earth Sciences and Resources Institute of the University of South Carolina. Dr. Atkins' educational background includes a B.S. in Marine Science from the University of South Carolina, a M.S. in Environmental Systems Engineering from the Clemson University, and a Ph.D. in Marine Science from the University of South Carolina. He has worked as a senior scientist for SCDHEC's bureau of drinking water, as an engineer for the S.C. Water Resource Commission, and for the N.C. Department of Natural Resources. Dr. Atkins has served on a variety of committees which deal with environmental and water issues. He currently serves as a member of the S.C. Public Service Commission's Water Issues Steering Committee. Dr. Atkins has also been involved with a number of community and church organizations including the S.C. Section of the American Water Resources Association, the S.C. Wildlife Federation, and the S.C. Student Judicial Council.

Lynwood A. Avin

SCORE ON WRITTEN EVALUATION:61/100

Mr. Avin currently owns and operates a Columbia collection agency. Mr. Avin served in the U.S. Army from 1950 to 1953. Mr. Avin received a GED from the University of North Carolina and attended the University of Miami for a year prior to accepting a position as Vice-President with the Peoples American Bank. His past work experience includes positions with the Greensboro Redevelopment Authority and the U.S. Department of Housing and Urban Development. Mr. Avin was recognized for outstanding production of assisted housing in South Carolina and for introducing the State to solar energy use in assisted housing. Mr. Avin is a member and past Master of the Richland Masonic Lodge #39. He is also public relations chairman of the Jamil Shrine Temple.

Michael L. Bell

SCORE ON WRITTEN EVALUATION:64/100

Mr. Bell is currently a sales associate with Del Webb Communities, which sells homes to customers within the active adult community. His educational background includes a B.A. degree from Albany State College and some post-graduate study at Webster University's extension campus in Beaufort. His previous work experience includes consulting real estate developers and serving as Senior Planner of the Long Range Planning Division for the Town of Hilton Head. Mr. Bell has served on the Beaufort Jasper Water Sewer Authority since 1992 and has at various times served as secretary, treasurer, vice chairman, and chairman of the Water Sewer Authority. He has also been involved in a variety of community and church organizations including the Board of Directors for Leadership Hilton Head, Habitat for Humanity, and Hilton Head Island Recreation Center.

Darrell W. Boyd

SCORE ON WRITTEN EVALUATION:64.5/100

Mr. Boyd is currently retired from Saudi Aramco Oil Company where he worked as a senior consultant. Mr. Boyd has also worked for the Public Service Company of Indiana as a senior engineer. His educational background includes an associates degree in Electrical Engineering Technology from Indiana University at Kokoma, and a B.S. in Electrical Technology from Purdue University in Indianapolis. Mr. Boyd is a member of several professional organizations including the American Businessmen's Association and Senior Member of the Institute of Electrical & Electronic Engineers. He was recognized in the 1999 Who's Who in Engineering Science and will be recognized in the 2000 issue of Who's Who in the World. His community service activities have included managing a little league team and being president of a golf club.

Jonathan W. Brown

SCORE ON WRITTEN EVALUATION:52/100

Mr. Brown currently works as an assistant supervisor for the Naval Hospital in Beaufort. Mr. Brown served in the United States Navy for twenty years including service in the Vietnam War. After retiring from the Navy, he returned to school and received a degree in Management and Health Care from Park College. Mr. Brown is a member of the NAACP and BIG (Black in Government). He is also involved in the King Solomon Lodge #10 in Beaufort and the Beaufort Multicultural Association.

David Gibson

SCORE ON WRITTEN EVALUATION:77/100

Mr. Gibson was CEO of the Coalition for Trucking Deregulation from 1993-1998. His educational background includes a B.A. from San Jose State University, a M.A. from Washington State University, as well some post graduate study at Washington State University. His past employment history includes working with the New York State Department of Transportation and the Illinois Commerce Commission (Public Utilities Commission). He is a member of numerous professional organizations including the National Association of Regulatory Utility Commissioners, the Southeastern Association of Regulatory Utility Commissioners, and the American Management Association. Mr. Gibson's involvement with community activities includes the Young Men's Christian Association and the American Heart Association.

John A. McAllister

SCORE ON WRITTEN EVALUATION:72.5/100

Mr. McAllister is currently the owner and Broker-in-Charge of Valley Properties, a real estate consulting and brokerage firm. He is also a consultant with the Strategic Development Center of the South Carolina National Guard and Reserve. Mr. McAllister's educational background includes a B.S. in Business Administration from the Citadel and some post-graduate study at the University of North Carolina and the Harvard University John F. Kennedy School of Government. His past work experience includes serving as the Southeast Power Administrator for the U.S. Department of Energy and as an Engineer Officer in the South Carolina National Guard. Mr. McAllister has been involved in a variety of community and church activities including the Citadel Board of Visitors, County Chairman of the Friends of Scouting, and a member of the Employer Support Committee for the Guard and Reserve.

Kaye H. O'Neil

SCORE ON WRITTEN EVALUATION:60/100

Ms. O'Neil is currently the account manager for Hilton Head Vacation Rentals and serves on the Board of Directors for the Home Owners Association of Forest Beach Villas in Hilton Head. She graduated from high school in Candor, North Carolina, and attended one year of college at Charlotte College (North Carolina) before accepting a position with Southern Bell. In 1992, Ms. O'Neil retired from BellSouth Communications where she was an administrator of customer sales and service. Ms. O'Neil is a member of the Daybreak Homeowners Association and the Southern Bell Pioneers.

Sidney F. Thomas

SCORE ON WRITTEN EVALUATION:70/100

Mr. Thomas is currently the President of Sid Thomas and Associates, Inc. which is a city planning management consulting firm. His educational background includes a B.F.A. degree from the University of Georgia and a M.D. in City Planning from Georgia Tech. Mr. Thomas served in the United States Army for two years. His employment background includes working as the Executive Director of the Central Midlands Regional Planning Council (now the Central Midlands Council of Government). Mr. Thomas has received several honors and awards including The Order of the Palmetto by Governor Campbell and the Public Manager of the Year by the S.C. Chapter of the American Society of Public Administration. Mr. Thomas is involved in several community and church activities including the Advisory Board of the Columbia Salvation Army and the Board of Directors of the Columbia YMCA. He is also a member of the American Legion Post 182 and the Veterans of Foreign Wars.

Jo Anne C. Wessinger

SCORE ON WRITTEN EVALUATION:84.5/100

Ms. Wessinger is currently an associate attorney with Richardson, Plowden, Carpenter, Robinson, P.A. in Columbia, South Carolina. Her educational background includes a B.S. in Business Administration from the University of South Carolina and a J.D. from the University of South Carolina School of Law. Her past employment includes working as Staff Counsel and Research Director for the South Carolina House of Representatives Labor, Commerce, and Industry Committee and as Assistant Legal Counsel to Governor and Deputy Director for Division of Ombudsman and Citizen Services. Ms. Wessinger is a member of a variety of professional organizations including the South Carolina Bar Association and the South Carolina Women's Lawyers Association. She has also been involved in church and community organizations including the Zonta International Club and a staff member of the Legislative Committee to Review the Consumer Finance Industry.

Respectfully submitted,

SENATE MEMBERS:

/s/The Honorable Donald H. Holland, Chairman

/s/The Honorable C. Tyrone Courtney

/s/The Honorable Darrell Jackson

SENATE PUBLIC MEMBERS:

/s/Mr. J. Stephen Bilton

/s/Mr. Richard H. Darby

HOUSE MEMBERS:

/s/The Honorable Timothy C. Wilkes, Vice-Chairman

/s/The Honorable Kenneth Kennedy

The Honorable Richard M. Quinn, Jr.

HOUSE PUBLIC MEMBERS:

/s/The Honorable Dave C. Waldrop

/s/Mr. Henry Swink

TRANSCRIPT OF PROCEEDINGS

Monday, November 15, 1999

10:00 a.m.

Gressette Building, Room 105

Columbia, South Carolina

COMMISSION MEMBERS IN ATTENDANCE:

THE HONORABLE DONALD H. HOLLAND, Chairman

THE HONORABLE TIMOTHY C. WILKES

THE HONORABLE C. TYRONE COURTNEY

THE HONORABLE DARRELL JACKSON

J. STEVEN BILTON

RICHARD H. DARBY, SR.

THE HONORABLE KENNETH KENNEDY

HENRY SWINK

THE HONORABLE DAVE C. WALDROP

ALSO PRESENT:

MICHAEL N. COUICK, Attorney to the Committee

DEBRA D. HAMMOND, Administrative Assistant

CHAIRMAN HOLLAND: I'm going to call the meeting to order. This is the committee to review candidates for the South Carolina Public Service Commission. This committee screens those candidates who have applied for consideration by the General Assembly in election of the seven commissioners for the Public Service Commission.

Our basic duties are set out by statute. Not only are we to inquire as to the legal qualifications of the candidates, but we are also required to determine their fitness to serve based upon their experience, knowledge of utility regulation, and personal character. Today, we are screening candidates for the Second Public Service Commission District to fill the vacancy that was created by Commissioner Dukes Scott's resignation of June 7, 1999.

This hearing will basically be conducted by the Chief Counsel for the Judiciary Committee, Mike Couick, and later the members of the committee will ask any questions they have of the candidates.

I understand from Mr. Couick that there are certain questions that we must discuss in executive session before we start this meeting; is that right?