BEFORE THE PUBLIC SERVICE COMMISSION OF

[Greenville, South Carolina]

HEARING # 13-11348 JUNE 24, 2013 6:00 P.M. DOCKET NO. 2013-59-E: Duke Energy Carolinas, LLC - Application for Authority to Adjust and Increase Electric Rates and Charges

TRANSCRIPT OF TESTIMONY AND PROCEEDINGS VOLUME 2

HEARING BEFORE: Randy MITCHELL , CHAIRMAN , , G. O’Neal HAMILTON , VICE CHAIRMAN ; and COMMISSIONERS John E. ‘Butch’ HOWARD , Elizabeth B. 'Lib' FLEMING , Swain E. WHITFIELD , and Nikiya ‘Nikki’ HALL ADVISOR TO COMMISSION : B. Randall Dong, Esq.

STAFF: Jocelyn Boyd, Chief Clerk/Administrator; James Spearman, Ph.D., Executive Assistant to Commissioners; David Stark, Esq., Legal Staff; William O. Richardson and Phil Riley, Advisory Staff; Jo Elizabeth M. Wheat, CVR-CM/M-GNSC, Court Reporter; and Calvin Woods, Hearing Room Assistant

APPEARANCES:

HEATHER S. SMITH, ESQUIRE, TIMIKA SHAFEEK- HORTON, ESQUIRE, and FRANK R. ELLERBE III, ESQUIRE, representing DUKE ENERGY CAROLINAS, LLC, APPLICANT

COURTNEY DARE EDWARDS, ESQUIRE, representing the SOUTH CAROLINA OFFICE OF REGULATORY STAFF

PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA

101 EXECUTIVE CENTER DRIVE POST OFFICE BOX 11649 COLUMBIA , SC 29210 COLUMBIA , SC 29211 WWW .PSC .SC .GOV Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 100

I N D E X

PAGE

REMARKS BY Rep. P. Mike Burns ...... 104 Sen. Karl B. Allen ...... 104 Ann Wilson [for Sen. Michael L. 'Mike' Fair] ...... 105 Rep. Leola Robinson-Simpson ...... 112

PRELIMINARY MATTERS ...... 103-113

24. TESTIMONY of LES GARDNER ...... 113

25. TESTIMONY of REV. PHILIP A. PARIS, SR...... 116

26. TESTIMONY of REX O'STEEN ...... 119

27. TESTIMONY of RUBY ROSADO ...... 122 Examination by Ms. C. Edwards ...... 123

28. TESTIMONY of SELDON PEDEN ...... 124 Examination by Commissioner Whitfield ...... 127

29. TESTIMONY of DONALD F. CUDDIHEE, SR...... 129

30. TESTIMONY of ROBERT G. 'BUTCH' TAYLOR ...... 131

31. TESTIMONY of ANNETTE CHRISTY ...... 134

32. TESTIMONY of BO DAVIS ...... 136

33. TESTIMONY of CYNTHIA B. HYATT ...... 141

34. TESTIMONY of JOHN WIEBEL ...... 145

35. TESTIMONY of ANTONE JONES ...... 150 Examination by Commissioner Fleming ...... 153

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PAGE

36. TESTIMONY of THEO W. MITCHELL ...... 154

37. TESTIMONY of SETH POWELL ...... 157 Hearing Exhibit No. 2 marked/received [Petition(s) and other submitted materials] .... 161

38. TESTIMONY of TRACI FANT ...... 161 Examination by Ms. C. Edwards ...... 163

39. TESTIMONY of BEN HASKEW ...... 166

40. TESTIMONY of KENNETH SERCY ...... 168 Examination by Commissioner Fleming ...... 171

41. TESTIMONY of BARBARA KEETON ...... 172

42. TESTIMONY of JEFF STEWART ...... 175

43. TESTIMONY of EFIA NWANGAZA ...... 178

44. TESTIMONY of JAN WILLIAMS ...... 180 Examination by Commissioner Whitfield ...... 183 Hearing Exhibit No. 3 marked/received [Bill data] ...... 184

45. TESTIMONY of LEN GUTHRIE ...... 186

46. TESTIMONY of JOHN UNKEFER ...... 190 Examination by Commissioner Fleming ...... 195 Hearing Exhibit No. 4 marked/received [Submitted materials] ...... 198

47. TESTIMONY of DAVID HAYES ...... 199 Examination by Chairman Mitchell ...... 202

48. TESTIMONY of SYLVIA MERCADO ...... 204 Examination by Ms. C. Edwards ...... 207

49. TESTIMONY of PATRICIA TAYLOR ...... 208

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PAGE

50. TESTIMONY of NANCY HALVERSON ...... 210

51. TESTIMONY of HAL JOHNSON ...... 212 Examination by Commissioner Whitfield ...... 215 Examination by Chairman Mitchell ...... 217 Examination by Commissioner Fleming ...... 217 Examination by Chairman Mitchell ...... 218

52. TESTIMONY of J.M. FLEMMING ...... 220 Hearing Exhibit No. 5 marked/received [Petition(s)] ...... 222

53. TESTIMONY of DENNIS J. TULLY ...... 222 Examination by Chairman Mitchell ...... 225

54. TESTIMONY of CARLA ENGLE ...... 226

55. TESTIMONY of MARY ELLEN FAIRCLOTH ...... 230

56. TESTIMONY of JUNE ANDERSON ...... 233

57. TESTIMONY of GENE HAWKINS ...... 241

58. TESTIMONY of CLARENCE THORNTON ...... 246

59. TESTIMONY of LOTTIE B. GIBSON ...... 250

60. TESTIMONY of PRINCELLA LEE-BRIDGES ...... 251 Examination by Ms. C. Edwards ...... 254

61. TESTIMONY of SANDRA JONES ...... 255

62. TESTIMONY of STEVEN BRYANT ...... 259

63. TESTIMONY of CARRIE MINGO ...... 262

Hearing Exhibit No. 6 marked/received [6/24/13 Sign-In Sheets] ...... 265

REPORTER’S CERTIFICATE ...... 266

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1 P R O C E E D I N G S

2 CHAIRMAN MITCHELL: Okay. I would like to

3 call this hearing to order tonight. We certainly

4 thank each and every one of you for being in

5 attendance tonight, and we are the Public Service

6 Commission and we're so happy to be able to come to

7 Greenville, to travel up here so that you don't

8 have to travel to Columbia to speak to us. And

9 we're just so happy for this crowd. We're

10 certainly here and want to hear every word that is

11 said, so we would ask you, if you could, please

12 refrain from clapping, so that we can get

13 everything on the recorder, so we can get every

14 word recorded. And we're just so thankful to be

15 here.

16 Before we get started, I'd like to introduce

17 the Commissioners. First, to my far right, we have

18 Commissioner Hall. Immediately by me is

19 Commissioner Whitfield. And we have, to my far

20 left, Commissioner Howard; and next to him,

21 Commissioner Fleming; and then Commissioner

22 Hamilton. We make up six of the seven members of

23 the Public Service Commission. We have -- our

24 Chairman has left; he has taken another job, and so

25 we just have six of the seven. That would have

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1 been former Chairman Wright.

2 So we're happy to be here with you tonight. I

3 would ask at this time -- I believe we have

4 Representative Mike Burns here? Representative

5 Burns? Yes, sir, would you like to say anything?

6 REP. BURNS: I came tonight to understand what

7 the people's feelings are. I've made up my mind

8 with some of the facts, and I would like to glean

9 from citizens what they think. I'm happy that we

10 have this good turn-out tonight so that we all can

11 hear what our citizenry thinks about this issue.

12 Thank you, very much.

13 CHAIRMAN MITCHELL: Thank you, sir, for being

14 here. Yes, sir.

15 [Applause from audience]

16 We also have Senator Karl Allen. Senator

17 Allen? Yes, sir.

18 SEN. ALLEN: Mr. Chairman, to the Commission,

19 we want to thank you for coming to Greenville to

20 hear from the people regarding their position as it

21 relates to this issue, being able to take those

22 facts back and make an informed decision. And we

23 ask you to not forget about the people, balance

24 that with Duke Energy, and come up with a decision

25 that makes and represents their ideology. So,

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1 again, we extend the hospitality of Greenville,

2 South Carolina, to the Public Service Commission of

3 South Carolina. Thank you.

4 CHAIRMAN MITCHELL: Thank you Senator Allen.

5 [Applause from audience]

6 And we also have a representative of Senator

7 Mike Fair? Could you come forward, please, at this

8 time? Just introduce yourself. We're so happy to

9 have you representing Senator Fair.

10 MS. ANN WALLACE [SEN. FAIR]: Thank you, Mr.

11 Chairman. My name is Ann Wallace and I'm here on

12 behalf of Senator Mike Fair. Unfortunately, he's

13 out of town, so he sent me in his place.

14 I wanted to -- Senator Fair wanted to be here,

15 but he also desired to express his respectful

16 opposition to the proposed rate increase.

17 While Senator Fair is the chairman of the

18 Greenville Legislative Delegation, he wanted to

19 make sure that the Commission understood that the

20 following comments simply represent his individual

21 opinion.

22 Our office has received numerous e-mails from

23 concerned citizens regarding this rate increase.

24 They state that the proposed increase would be

25 harmful to them, their neighbors, and our

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1 struggling economy. Section 58-27-810 of the South

2 Carolina Code of Laws states that every rate made,

3 demanded, or received by any electrical utility

4 shall be just and reasonable. Further, it is the

5 mandate of the Public Service Commission to

6 determine whether or not the proposed rate

7 increases meet the specification that rates are

8 just and reasonable. This directive is made doubly

9 important as electric consumers are unable to look

10 to other electric utility providers in an effort to

11 find competitive rates, due to state law, and

12 therefore are subject to pay whatever rates are

13 determined just and reasonable by your Commission.

14 The average residential bill for 1,000

15 kilowatt-hours has increased $17.23 from October 1,

16 2008, to January 1, 2013. While $17.23 may seem

17 like an insignificant amount, this equates to a

18 $206.76 increase per year for Duke Energy

19 consumers. That is also almost $207 less per year

20 for other necessities for our neighbors that are on

21 a fixed income.

22 The proposed 16.3 percent rate increase would

23 mean the average bill would increase $16.37 to an

24 average bill of $116.82 per 1,000 kilowatt-hours,

25 from the most recent electric residential rate

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 107

1 increase, which occurred on January 1st. This

2 further equates to an additional cost to Duke

3 Energy residential consumers of $196.48 per year.

4 That figure represents 95 percent of the total rate

5 increases experienced by Duke Energy residential

6 consumers from October 1, 2008, until January 1,

7 2013, a period of four years and three months,

8 whereas the current proposed increase occurs only

9 months after the most recent change.

10 I come before the Commission to speak on

11 behalf of Senator Fair and of the numerous

12 constituents that have expressed concern over the

13 problems they're having with their high utility

14 bills. I urge you to take into consideration the

15 undue stress this will place on households

16 throughout Greenville County and other surrounding

17 areas, specifically homes that are on a fixed

18 income. In this period of economic recovery, any

19 undue burden placed on our neighbors will have far-

20 reaching consequences. Thank you.

21 CHAIRMAN MITCHELL: Thank you so much for

22 being here.

23 [Applause from audience]

24 At this time, I would call on our attorney,

25 Randall Dong, if he would, to give us the ground

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1 rules for tonight, and also to bring them up to

2 date on the docket and maybe when the large hearing

3 will be. Thank you.

4 MR. DONG: Good evening. This is the public

5 night hearing for the Duke Energy rate case, Docket

6 No. 2013-59-E. This is the second of four

7 opportunities the public will have to speak about

8 this rate case. There is another hearing on

9 Thursday, June 27th, at the Anderson Civic Center;

10 then there will be another opportunity on Thursday,

11 August 1st, at the Public Service Commission

12 offices in Columbia. And that's when we will have

13 the hearing in chief.

14 I would ask that each of you, when I call you

15 to speak -- I'm going to try to call a couple of

16 names at a time. We're going to try to make this

17 -- try to hear from as many people as we can.

18 We've got a time clock over here that is set for

19 three minutes. We would respectfully ask that you

20 try to observe the time allotted, so that we can

21 hear from as many people as want to speak.

22 If you have cell phones, if you could please

23 silence them.

24 Also, the testimony you're giving here is

25 going to be given the same weight as if it were

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1 given in Columbia on the day of the hearing, the

2 merits hearing. So we're here for you; we are here

3 for your convenience. If you'd like to speak here

4 -- you are only given one opportunity to speak, so

5 if you speak here, you won't be permitted to speak

6 in Columbia. But, either way, we have a court

7 reporter who is transcribing the testimony word-

8 for-word, and it will be entered into the record

9 and treated the same way as though it were given in

10 Columbia.

11 And with that said, unless there is anything

12 else, I think I'll go ahead and call our first

13 witnesses?

14 CHAIRMAN MITCHELL: Yes. And as you stated

15 earlier, we certainly want two names. We'd like

16 one person to come forward, and then the other

17 person be close by.

18 MR. DONG: I'm sorry, I'd like to take

19 appearances. From the Applicant, please?

20 MS. SHAFFIK-HORTON: Good evening. I'm Timika

21 Shafeek-Horton, for Duke Energy. Along with me are

22 Frank Ellerbe and Heather Shirley Smith.

23 MR. DONG: And from Office of Regulatory

24 Staff?

25 MS. C. EDWARDS: Courtney Edwards, on behalf

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1 of ORS.

2 MR. DONG: Okay.

3 CHAIRMAN MITCHELL: And the only thing I would

4 like to add -- I'm sure the ORS would like for me

5 to relay this to you. They are here tonight -- and

6 I'm certain you still have your representatives,

7 Ms. Edwards?

8 MS. C. EDWARDS: We do, Mr. Chairman.

9 CHAIRMAN MITCHELL: Yeah, could you introduce

10 those very quickly, so that the audience will know?

11 MS. C. EDWARDS: I would be happy to. Mr.

12 Chairman, we have Allyn Powell -- if you look to

13 the left, she's got the polka-dot dress on -- and

14 she is in our Electric Department. We also have

15 Brad Kirby, who is in our Consumer Services

16 Department. If you have any questions throughout

17 the hearing or you need to leave early and want to

18 talk to them -- I can't answer any questions during

19 the hearing -- they would be happy to help you. If

20 you have any further questions that extend past

21 tonight, we also have an 800 number -- Consumer

22 Services' 800 number. They can also -- Mr. Kirby

23 and Ms. Powell will be glad to give you that

24 number, as well. Thank you.

25 CHAIRMAN MITCHELL: And I believe -- would

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1 Duke have a representative that anyone would like

2 to talk to during the hearing?

3 MS. SHAFFIK-HORTON: [Nodding Head.] If you

4 all have questions during this evening, we have a

5 number of representatives. Barbara Yarbrough is

6 here. She can handle customer and billing issues.

7 Carlton Furr is here, in the back; he can talk to

8 you about any reliability issues or questions you

9 have. Terry Smith is here and can answer questions

10 about vegetation management.

11 CHAIRMAN MITCHELL: So we certainly want you

12 all to take advantage of that. If you have any

13 question when you come up, I'm sorry that tonight

14 we can't answer questions, but these

15 representatives will be more than happy to answer

16 questions during the hearing and after we've

17 already finished the hearing. They'd be happy to

18 be here, if you would.

19 MR. DONG: And just to clarify what Chairman

20 Mitchell has just said, by statute, the Commission

21 is a quasijudicial body and cannot speak to

22 individuals about an ongoing case. So we are

23 restricted by law from speaking to you about that.

24 So the Office of Regulatory Staff can

25 certainly answer questions, as can the utility, but

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1 the Commission is here to hear testimony from you,

2 and we're here to make sure that testimony gets in

3 the record. So I just wanted to be clear about

4 that.

5 CHAIRMAN MITCHELL: And one other thing before

6 we -- Representative Leola Robinson-Simpson has

7 just -- Representative Simpson, anything you'd like

8 to say at this time? Glad to have you with us.

9 REP. ROBINSON-SIMPSON: Good evening.

10 CHAIRMAN MITCHELL: Good evening.

11 REP. ROBINSON-SIMPSON: I'd just like to take

12 this opportunity to thank all of you for taking the

13 time to schedule hearings across the Upstate and,

14 actually, throughout the regions that you cover.

15 This is a serious matter. We've talked about

16 it on many occasions. In fact, as you all know, I

17 submitted the request to the Public Service

18 Commission for this very hearing, because I think

19 it's important that you hear, you know, how these

20 rate increases will impact the lives of people in

21 this area, especially low-income, our senior

22 citizens, others on fixed incomes.

23 So we do appreciate your being here. I

24 submitted a written -- a piece of testimony to you.

25 But, again, thank you.

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1 CHAIRMAN MITCHELL: Thank you. At this time,

2 if you would, Mr. Dong --

3 MR. DONG: Okay.

4 CHAIRMAN MITCHELL: -- if you would move

5 forward and call two names.

6 MR. DONG: The first two witnesses I have on

7 the list are Les Gardner and Rev. Philip Paris.

8 [Witness sworn]

9 THEREUPON came,

10 L E S G A R D N E R ,

11 who, having been first duly sworn, testified as follows:

12 WITNESS: My name is Les Gardner. I live at

13 350 Mountain Creek Church Road #1, Greenville,

14 29609.

15 Commissioners, I thank you for your service

16 and thank you for this opportunity. I'm the

17 director of Development at the Greenville Tech

18 Foundation. I've been asked to speak on behalf of

19 the leadership of Greenville Technical College.

20 Duke Energy has supported what is known as

21 AdvanceSC since its creation in 2004. AdvanceSC

22 has awarded over $52 million in grants to benefit

23 residents and employers in the Upstate of South

24 Carolina. It has granted over $14 million for

25 higher education. Those dollars are at work today

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1 in the Upstate, improving the lives of South

2 Carolina citizens and helping us improve the

3 competitiveness of business and industry through

4 workforce development.

5 Through AdvanceSC, our institution alone --

6 Greenville Technical College -- has received $4.3

7 million. These grants have enabled us to expand

8 our welding program, introduce a manufacturing

9 readiness program, implement a registered

10 electrician apprenticeship program, and develop and

11 deliver a program in hands-on manufacturing for

12 wind engineers.

13 Of the more than $4 million received by

14 Greenville Tech, $2.7 million was for projects done

15 in collaboration with sister technical colleges in

16 the Upstate. Working together, these five colleges

17 have developed a world-class mechatronics

18 curriculum, upfitted labs at all five colleges,

19 provided professional development for our cadre of

20 mechatronics instructors at the colleges, and in

21 the past year the five-college collaboration

22 launched a campaign called Dream It, Do It aimed at

23 interesting young people in careers in

24 manufacturing. The Upstate is blessed with strong

25 manufacturing assets that allow us to compete in

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 115

1 the global marketplace, and it's critical that we

2 continue to attract qualified young people into the

3 careers needed to support manufacturing here in

4 South Carolina.

5 The ability for the Upstate to continue to

6 attract new industry to our area and to support

7 expansion of current business is highly dependent

8 on how well we develop a skilled workforce. Duke

9 Energy, through AdvanceSC, has been an important

10 partner for the technical colleges in this effort.

11 Additionally, early this year, Duke Energy donated

12 $4.1 million to the Center for Workforce

13 Development at Clemson University. That fund will

14 be shared by a number of higher-educations across

15 the Duke South Carolina service area, including

16 Greenville Technical College, to make more readily

17 available degree and certificate programs that will

18 help expand South Carolina's manufacturing

19 workforce. Plans for specific activities are being

20 finalized.

21 Duke Energy has shown its support of higher

22 education that leads directly to a stronger economy

23 in South Carolina.

24 I thank you for your time. I have copies, if

25 the Commissioners would like it.

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1 CHAIRMAN MITCHELL: Thank you. Yes, sir, if

2 you'd present any information to the court

3 reporter? Thank you, sir.

4 [WHEREUPON, the witness was excused.]

5 [Witness sworn]

6 THEREUPON came,

7 R E V . P H I L I P A . P A R I S , S R . ,

8 who, having been first duly sworn, testified as follows:

9 WITNESS: Phil Paris from the upper state up

10 here, blue ridge.

11 Duke Power or Duke Energy -- I'm just going to

12 say "Duke" -- has a lot of mismanagement failures.

13 They bought Nantahala in , Carolina

14 Power & Light, also Cincinnati Power & Light, and

15 failed. Lost a lot. Lost their goose, when they

16 done it. We are not supposed to pay for their

17 losses.

18 They've done away with all of our facilities

19 where you could pay your bill. All over

20 Greenville, they got the buildings rented out.

21 They've done away with that. I thought that -- I

22 know that Greenville Tech is well respected, but

23 our lottery is supposed to be taking care of a lot

24 of stuff.

25 VOICES: Yeah.

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1 WITNESS: Maybe it's not.

2 VOICES: Yeah.

3 WITNESS: Anyway, we've got a lot of people, a

4 lot of older folk that's going to die because of

5 the heat on account of this weather.

6 VOICE: Amen.

7 WITNESS: A lot of people cannot feed their

8 grandkids, or whatever, a pan of cornbread because

9 they can't afford to cook it. It's too high. It's

10 got out of hand.

11 Anyway, we've been around for a long time.

12 Maybe we should charge Duke for all their posts

13 that they've got thousands all over our property

14 and our community. How would that suit them, at 16

15 percent? We cannot follow this trail. I don't

16 care what we do or whatever, but they cannot go up

17 on this anymore.

18 I deal with a lot of people and I know what

19 I'm talking about. This power bill right here

20 [indicating] is the least power bill in my place.

21 It's for $11 for a one-month power bill for a well

22 pump. If anybody wants to try to pay this bill on

23 the phone to Duke Power directly, you pay a $12

24 service charge extra. Everybody paying a bill pays

25 a dollar and a half [$1.50] June 1st, it went into

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1 effect at some of these little 7-11 stores, or

2 whatever; you have to pay that or you can't pay

3 your bill. Any business -- a little place up here

4 that I've got for the older folks; my power bills

5 runs $2,400 a year for five days a week. I can't

6 keep paying it. How can I pay it? Most people are

7 having to borrow money, cash checks, check their --

8 get their borrowed money, get title on their

9 things, just to pay it through the months. Got a

10 lady that lives close to me; she's 82 years old.

11 Draws very little. Two-room mobile home. Her

12 power bill in the cooler weather, or cold weather,

13 was $135, plus their famous late charge. People

14 cannot keep paying all of this stuff that they're

15 sticking to you, and we have got to stand up and do

16 something about it, because it's gone far enough.

17 I can't help -- and they was able to send hundreds

18 of thousands over to the Philippines -- and I won't

19 call any name -- from the Duke Foundation, or

20 whatever. Now, I might be misrepresented there

21 because I don't want to call any names, but that

22 was done to the de Marco family several years ago.

23 So there are some things. We had some

24 literature from Mr. [name indiscernible] that was passed out

25 tonight. He's pretty sharp on --

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 119

1 [3-minute alarm]

2 -- this mismanagement. And I want to thank

3 you for your time. Thank you for coming to

4 Greenville.

5 CHAIRMAN MITCHELL: Thank you, sir. Thank you

6 for being here.

7 [Applause from audience]

8 [WHEREUPON, the witness was excused.]

9 MR. DONG: Rex O'Steen and Ruby Rosado?

10 Rex O'Steen?

11 MR. O'STEEN: Right here.

12 MR. DONG: And Ruby Rosado?

13 CHAIRMAN MITCHELL: She's coming.

14 [Witness sworn]

15 THEREUPON came,

16 R E X O ' S T E E N ,

17 who, having been first duly sworn, testified as follows:

18 WITNESS: My name is Rex O'Steen. I live at

19 441 Henderson Road, Greenville, South Carolina.

20 The first thing I did, because I've got stock

21 in Duke Energy, I wanted to look at it from the

22 standpoint of a financial analyst. I took my bill,

23 my power bill from May 2000, and I compared it with

24 the rate of increase in my power bill in May 2013.

25 So from 2000 to 2013, my power bill went up at a

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1 compound annual rate of 4.7 percent. But this rate

2 increase to me just seems unreasonable. Because

3 Duke spent $3.3 billion for capital improvements

4 doesn't mean the expenditures were either efficient

5 or effective. I think Duke has done a poor public-

6 relations job of trying to sell their rate

7 increase. I look at that as hubris.

8 Depreciation -- if they've already spent that

9 money, depreciation is supposed to already be

10 hitting their books, so they should be having to

11 see the -- be paying the effects of that spending

12 right now. So what I did, I said, "If I've got a

13 business and I get $1 of money to invest in my

14 business, how much more profits am I going to

15 make?" From 2008 to 2010, I did a model to see how

16 much money in new debt is adding to Duke's

17 stockholder equity. $1 of new debt in 2008

18 increased stockholder equity 12 percent. After the

19 merger where Duke's assets doubled, just about, the

20 recent merger, their 2012 financial statement, $1

21 of new debt increased stockholder equity 50

22 percent. So Duke has gotten much more profitable

23 after the merger. So, my -- and another thing

24 that's happened after the merger is Duke's debt has

25 gone up. So Duke is not only getting bigger but

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 121

1 the debt-equity ratio has gone up.

2 So I'm opposed to it from the standpoint of

3 those two numbers: the rate of increase, 4.7

4 percent, is what that -- from 2000 to 2013, and now

5 they want to go up on it.

6 The other thing I've heard them talk about is

7 that South Carolina's rates are lower than the

8 nation. Well, that's like comparing America's per

9 capita medical expenses with Mexico. The average

10 person in American spends $8,200 a year for medical

11 bills; in Mexico, its $962. The life expectancy in

12 America's only one year greater for men and women

13 than in Mexico. So to say our rates are lower than

14 the national average is like saying we should --

15 that Mexico should go up on their health-care

16 costs.

17 South Carolina is a poor state. Greenville

18 County's rate of growth is only ½ percent a year --

19 excuse me -- yeah, Greenville County's only

20 ½ percent a year. We're a poor state.

21 CHAIRMAN MITCHELL: Yes, sir. The Applicant

22 -- does the company have any questions?

23 MS. SHAFFIK-HORTON: No, sir.

24 CHAIRMAN MITCHELL: ORS, any questions?

25 MS. C. EDWARDS: No, Mr. Chairman. Thank you.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 122

1 CHAIRMAN MITCHELL: Thank you. Commissioners,

2 any questions?

3 [No response]

4 Thank you, sir, for being here.

5 [Applause from audience]

6 [WHEREUPON, the witness was excused.]

7 [Witness sworn]

8 THEREUPON came,

9 R U B Y R O S A D O ,

10 who, having been first duly sworn, testified as follows:

11 WITNESS: My name is Ruby Rosado, and

12 Crestfield Road, Greenville, South Carolina.

13 I'm a taxpayer, a recently retired senior

14 citizen, and right now I'm having to choose between

15 buying nutritional food and paying the electric

16 bill. And it is difficult with the rates being

17 what they are right now. I choose to eat healthy.

18 Okay. I'm against this 16 percent bill

19 increase for many reasons. There are older

20 individuals in Greenville County that are members

21 of my church, and friends, who are staying in one

22 room in the wintertime, using a space heater to

23 keep warm -- and sometimes fires break out from

24 defective heaters. They spend lots of money trying

25 to get a heater that works well, just to keep them

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 123

1 warm in one room in a whole mobile home or in their

2 house.

3 Some members of my church are saying that if

4 these rate increases continue, they're going to

5 burn candles and just not use electricity. And I

6 believe some of them are really serious about that.

7 Please seek somewhere else to trim some

8 expenses rather than put this on the backs of

9 already suffering consumers. And that's really all

10 I have to say.

11 CHAIRMAN MITCHELL: Thank you, ma'am.

12 [Applause from audience]

13 Ma'am? Ma'am? If you'll wait, we might have

14 some questions.

15 Company, any questions?

16 MS. SHAFFIK-HORTON: No questions.

17 CHAIRMAN MITCHELL: ORS, any questions?

18 MS. C. EDWARDS: Just one.

19 CHAIRMAN MITCHELL: Certainly.

20 CROSS EXAMINATION

21 BY MS. C. EDWARDS:

22 Q Could you repeat your address?

23 A 733 Crestfield Road, Greenville, South Carolina 29605.

24 MS. C. EDWARDS: Thank you.

25 CHAIRMAN MITCHELL: Commissioners, any

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 124

1 questions?

2 [No response]

3 Thank you, ma'am, for being here.

4 [WHEREUPON, the witness was excused.]

5 MR. DONG: Seldon Peden and John Arnold?

6 [Witness sworn]

7 THEREUPON came,

8 S E L D O N P E D E N ,

9 who, having been first duly sworn, testified as follows:

10 WITNESS: My name's Seldon Peden. I live at

11 10 Knox -- K-n-o-x -- Street, Greenville, South

12 Carolina 29605.

13 My name is Seldon Peden, and I am the board

14 chairman for SHARE, which is our local community

15 action agency, which serves Greenville, Anderson,

16 Pickens, and Oconee Counties. As part of our

17 mission, we provide assistance for utility bill

18 payment to our customers, the vast majority of

19 which, those bill payments, goes to Duke Energy.

20 Last year we served over 25,000 individuals;

21 80 percent of those were children, the elderly, and

22 the disabled.

23 So I stand here to speak on behalf of them and

24 ask this Commission not to approve this request for

25 a rate increase. In addition to heat and air, when

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 125

1 it comes to utilities for those we serve, we also

2 have to talk about asthma treatment for children,

3 oxygen machines for the elderly, about having to

4 choose between medication and food or this bill

5 payment. So we're asking, on their behalf: Please

6 deny it.

7 The reason for the rate increase, as marketed

8 to the public by Duke Energy, is simply, "We've

9 invested in infrastructure and power plants, and

10 now it's time for us to recoup that money that we

11 previously invested." The reason reported to their

12 investors is, after the merger, the cost per share

13 was diluted. So at the end of the merger, there

14 were 258 million shares of stock, when they merged

15 with Progress Energy. That had a dilutive impact of

16 41 cents per share. So as a way to make up those

17 losses, they seek to pass the cost on to us. They

18 state that this quarterly -- earnings for this

19 year: In addition to the earnings from Progress

20 Energy, favorable weather, and revised customer

21 rates for Duke Energy of South Carolina, these

22 drivers help mitigate the impact of share dilution

23 from the merger and less favorable results from the

24 company's commercial power and international energy

25 sales.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 126

1 So where the two business units aren't doing

2 well and the merger diluted the share, they now

3 seek to pass those costs on to us.

4 And that's fine if you're selling watches.

5 But when there is no competition and when your

6 product is a necessity, we ask that you consider

7 lives and livelihood in that equation. So not only

8 where the shares were diluted and not only where

9 you had business units doing bad, even where they

10 had US franchise electric and gas, had a $656

11 million segment of the income this year, compared

12 to last year, they still chose as a driver

13 increased pricing and riders principally related to

14 Duke Energy Carolinas in February 2012. So whether

15 they're doing good or whether they're doing bad,

16 the public is asking not to have to pay the price

17 for their business decisions, whether good or bad.

18 Thank you, very much.

19 [Applause from audience]

20 CHAIRMAN MITCHELL: Sir. Sir? We might have

21 questions. Company, any questions?

22 MS. SHAFFIK-HORTON: [Shaking head.]

23 CHAIRMAN MITCHELL: ORS?

24 MS. C. EDWARDS: No.

25 CHAIRMAN MITCHELL: Commissioners?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 127

1 COMMISSIONER WHITFIELD: Mr. Chairman?

2 CHAIRMAN MITCHELL: Commissioner Whitfield.

3 COMMISSIONER WHITFIELD: Thank you, Mr.

4 Chairman.

5 EXAMINATION

6 BY COMMISSIONER WHITFIELD:

7 Q Thank you, Mr. Peden, for being with us tonight.

8 A Yes, sir.

9 Q And thank you for your testimony. Could you give us any

10 insight into the demand for assistance for some of your

11 clients, during -- I know we've, of course, been in

12 recession years --

13 A Yes, sir.

14 Q -- but could you give us any recent or -- data on that?

15 A Absolutely. [Indicating.] Here we go. As of 2012,

16 when we put out the actual report, again, we had 25,000

17 families and individuals who are qualified for service

18 by meeting the poverty income level. So they're already

19 low-income. And of that 25,000, 80 percent, again, are

20 children, the elderly, and the disabled. So, those who

21 are in most need. So even after they qualify, we still

22 have federal and state restrictions which allow us to

23 help them one time per year. They have to provide

24 income; it has to be on an emergency basis. And when we

25 define "emergency," it again has to meet those statutes.

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1 So in order to receive our services, you have to

2 jump through many hoops. Then, after you jump through

3 the hoops, you only do it one time before coming back.

4 And so many times we see those who face that dilemma of,

5 "Do I pay for my medication now? Do I feed my children

6 now? Or how do I get through these cold winter months?"

7 Even when they can't afford the heat, our agency

8 provides fans, but we still need the power to help run

9 the fans.

10 So even when our customers are doing their best to

11 mitigate these costs and damages, it's still a big

12 burden. And we're just asking that the public and the

13 least of these not have to pay for what seems to be

14 almost a completely free -- free-market situation. So,

15 we certainly want you to consider those situations as

16 you make your decision.

17 COMMISSIONER WHITFIELD: Thank you, sir.

18 Thank you, Mr. Chairman.

19 CHAIRMAN MITCHELL: Thank you. Thank you,

20 very much, sir.

21 WITNESS: Yes, sir. Thank you.

22 [WHEREUPON, the witness was excused.]

23 MR. DONG: John Arnold? And Donald Cuddihee?

24 [Witness sworn]

25 <

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1 THEREUPON came,

2 D O N A L D F . C U D D I H E E , S R . ,

3 who, having been first duly sworn, testified as follows:

4 WITNESS: My name is Donald F. Cuddihee, Sr.

5 My address is 305 Middlebrook Court, Greer, 29650.

6 I was here last November 29, 2011, and the

7 result was a 7 percent increase. And I assume that

8 we're going to be back again. Unfortunately, I

9 have more questions than answers. And the

10 questions aren't -- I don't expect they'll be

11 answered tonight, but they are simply food for

12 thought. They cast a shadow over this rate

13 increase.

14 What's happened to Duke Power since the last

15 rate increase? Well, it became the largest

16 provider of energy in the , with 7.1

17 million customers after a merger with Progress

18 Energy on July 2, 2012, for $13.7 billion.

19 Now, was this a successful merger? There were

20 murky details and resignations that clouded that

21 picture.

22 Did we finance, with our rate increase, that

23 merger? How does the Commission evaluate the

24 success of this merger? And what is the status of

25 the transmission upgrades ordered in order for the

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 130

1 merger to take place?

2 Another question hanging out there is Brazil

3 power sales. How does this affect our rates?

4 There's proposed construction of three nuclear

5 power plants: one near Gaffney, Raleigh, and in

6 the State of Florida. Presently there are six in

7 the Carolinas and one in Florida.

8 South Carolina ratepayers finance upfront

9 costs of nuclear power plants, by law. Not in

10 North Carolina, however. How does this affect

11 their rates? This is a complete wonderment to me,

12 because nuclear power plants can't get rid of the

13 waste that they produce, and by their nature they

14 are dangerous. And you can almost count on an

15 overrun in their construction.

16 There is a power merger program, of which I am

17 a member, that started in June of '83 at $15,

18 approximately, per HVAC unit. That changed in '96

19 and was lowered to $8 flat, no matter whether you

20 have one unit or two.

21 [3-minute alarm]

22 My goodness, time did fly.

23 [Laughter]

24 I want to say, though, that this summer I ran

25 my thermostat at 78 degrees, this winter at 63

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 131

1 degrees, and I can't make any more changes.

2 CHAIRMAN MITCHELL: Sir? Sir.

3 [Applause from audience]

4 We might have some questions. Company?

5 MS. SHAFFIK-HORTON: No.

6 CHAIRMAN MITCHELL: ORS?

7 MS. C. EDWARDS: No, no questions.

8 CHAIRMAN MITCHELL: Any questions from

9 Commissioners?

10 [No response]

11 Thank you, sir, for being here.

12 [Applause from audience]

13 [WHEREUPON, the witness was excused.]

14 MR. DONG: Bruce[sic] Taylor, Annette Christy,

15 and Bob Davis?

16 [Witness sworn]

17 THEREUPON came,

18 R O B E R T G . ' B U T C H ' T A Y L O R ,

19 who, having been first duly sworn, testified as follows:

20 WITNESS: Ladies and gentlemen of the Public

21 Service Commission, my name is Robert G. 'Butch'

22 Taylor. I reside at 1 Millbrooke Court,

23 Greenville, SC 29609.

24 I rise tonight to speak in opposition to the

25 proposed rate increase for Duke Energy. It would

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 132

1 be interesting tonight to see how many proponents

2 will rise to speak in favor of this rate increase.

3 I suspect very few.

4 In the current economic situation, I think

5 this rate increase is the most crass thing that

6 Duke Energy could do. It bespeaks of corporate

7 irresponsibility. An old gangly service-station

8 dealer friend of mine, at a national meeting years

9 ago, told me that a recession is when your

10 neighbor's out of work, and a depression is when

11 you are out of work. Many, many folks today are

12 suffering the throes of a depression.

13 Mind you, I'm not destitute and I'm not on the

14 street, but I'm working very hard to keep my head

15 above water. You can't go to the grocery store and

16 buy bread and milk with assets; you need money.

17 The more money I have to put in the pockets of Duke

18 Energy is the less money I can put into my pockets

19 for the basic essentials of such things as food and

20 shelter.

21 My little personal story: I'm very cognizant

22 of money and how necessary it is for survival.

23 When I was six years old, my dad died, and my

24 mother remarried two years later. We moved from a

25 little farm in Simpsonville to a little house above

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1 Wildcat -- above Marietta, behind Wildcat Grocery,

2 which is next to Mountain Lake Colony. Store's

3 gone now, but the little house is still there. If

4 you brought a sandwich for school lunch, you could

5 buy a pint of milk for a penny a day, and we

6 couldn't afford a nickel for milk for my school

7 lunch. We were so poor, we could not afford it.

8 So anyhow, we did not starve. We had shelter. But

9 it brought home to me the value of money.

10 Therefore, I object to most of the unnecessary

11 corporate spending by Duke [word(s) indiscernible] in the

12 areas, and the organizations that Duke Power

13 supports. And I think some of the current problems

14 that the Duke Energy operational capabilities has

15 to do is with onerous regulations imposed by the

16 federal EPA. In my opinion, I think Congress

17 should not reauthorize the funding for the EPA.

18 Then maybe Duke Energy could be lowering rates

19 instead of continually requesting rate increases.

20 I thank you for your attention and this

21 concludes my remarks, and I stand ready for any

22 questions.

23 CHAIRMAN MITCHELL: Thank you, sir. Company?

24 MS. SHAFFIK-HORTON: No questions.

25 CHAIRMAN MITCHELL: ORS?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 134

1 MS. C. EDWARDS: I would just emphasize that

2 we also have our Consumer Services Department

3 available, if you would like to talk with them.

4 Mr. Brad Kirby.

5 WITNESS: Thank you.

6 MS. C. EDWARDS: Thank you.

7 CHAIRMAN MITCHELL: Commissioners?

8 [No response]

9 Thank you, very much, sir, for being here.

10 [Applause from audience]

11 [WHEREUPON, the witness was excused.]

12 [Witness sworn]

13 THEREUPON came,

14 A N N E T T E C H R I S T Y ,

15 who, having been first duly sworn, testified as follows:

16 WITNESS: My name is Annette Christy. I

17 reside at 15 Country Lakes Road in Powdersville,

18 South Carolina 29642.

19 I have been studying the Duke website. And I

20 always find it very interesting to look at people's

21 mission statements. It's always been my experience

22 that, once a mission statement has been written, no

23 one looks at it again. And I would like to read to

24 you what Duke has said -- and this is under the tab

25 "Sustainability."

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 135

1 "Now, more than ever, we have a responsibility

2 to produce and deliver energy to our customers

3 that's reliable, affordable, and increasingly

4 clean. That's where sustainability comes in. It's

5 more than a word at Duke Energy -- it's the key to

6 our success in the 21st century."

7 Now let's think about affordability here.

8 Well, first of all, I'm going to speak to the

9 senior citizens, because there are thousands in the

10 Upstate that have to depend on oxygen-producing

11 machines. A senior citizen also has very specific

12 out-of-pocket costs. Vision, dental, hearing --

13 none of that is covered on Part A, Part D, Part B,

14 Part C. It's all out of pocket. So these are

15 costs that they must endure, and then they have,

16 facing them, the additional cost of a rate

17 increase.

18 Let me continue with the mission statement.

19 "The decisions we make today that affect our

20 'triple bottom line' -- people, the planet, and

21 profits.." well, quite honestly, nobody has looked

22 at that mission statement, because we know Duke

23 Power has rearranged that to be profits, people,

24 the planet "-- will determine our long-term

25 prospects as a company. We see promising signs in

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 136

1 our performance, but a lot of work remains."

2 We, as John Q. Public, are really tired of

3 taking it in the chops and having to support major

4 corporations. We think it's time that corporations

5 should step up and help us. who have suffered so

6 much --

7 [Applause from audience]

8 -- in this great recession.

9 CHAIRMAN MITCHELL: Does the company have any

10 questions?

11 MS. SHAFFIK-HORTON: No.

12 CHAIRMAN MITCHELL: ORS?

13 MS. C. EDWARDS: No, sir.

14 CHAIRMAN MITCHELL: Commissioners?

15 [No response]

16 Thank you, ma'am, so much for being here.

17 [Applause from audience]

18 [WHEREUPON, the witness was excused.]

19 [Witness sworn]

20 THEREUPON came,

21 B O B D A V I S ,

22 who, having been first duly sworn, testified as follows:

23 WITNESS: I'm Bob Davis. I live at 6 Setinel

24 Court, in Greer, South Carolina. And I do quite a

25 bit of research on issues. I feel, though, that

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 137

1 the Bible is the basis for our government, which

2 articles I've found states that the purpose of the

3 government is to promote Christianity. Today

4 that's a word that's banned from everywhere. And

5 you know the Bible says when the righteous are in

6 authority, the people rejoice, but when the wicked

7 beareth rule, the people mourn.

8 You know, wickedness comes in every human

9 heart until me meet the Lord. But we've got people

10 running Washington now -- Obama says that there are

11 many paths to heaven, and that's calling God and

12 Jesus a liar.

13 And I want to go to you and tell you some

14 things about Duke Energy. I found an article today

15 that says, "In early 2008, Duke Energy announced a"

16 new plan -- or, "a plan" rather "to build the new

17 800 megawatt Cliffside Unit 6 coal plant 50 [sic]

18 miles west of Charlotte, North Carolina. The plan

19 has been strongly opposed by environmental groups"

20 -- that's my point here -- "such as Rising Tide

21 North America, Rainforest Action Network" -- that

22 is a weather underground terrorist network. And

23 these people change their names all around.

24 Upstate Forever -- which we fought a battle in this

25 county for a few years now, to try to keep them

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 138

1 from doing what they want to do. But I want to go

2 further. "..the community-based Canary Coalition,

3 as well as Southern Environmental Law Center, which

4 has threatened to sue Duke if it does not halt

5 construction plans. On April 1st, activists locked

6 themselves to machinery at the Cliffside

7 construction area as part of Fossil" -- or, excuse

8 me -- "Fossil Fools Day." I can't even say it.

9 And then this article that I found deals with

10 the amount of money that a lot of the people at

11 Duke Energy have put into their coffers. For

12 example, here it talks about one man who -- let me

13 find the page, if I can [indicating] Well, anyway,

14 there was this one man who was a CEO for 20

15 minutes, and he got over $40-some million for that

16 20 minutes.

17 That's what we're facing, folks. It's

18 terrible, the amount of waste. But there's greed

19 in the human heart from both the left and the

20 right. And the left is duty-bound to bring about

21 Agenda 21. That's what I want to get to.

22 What's wrong with Agenda 21? There's a lady

23 out in California -- a Democrat, if you can believe

24 that, or not, who's got a website "Democrats

25 against the United Nations Agenda 21." And so this

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 139

1 one article says, "Why is everyone talking about UN

2 Agenda 21?" Another one says, "What's wrong with

3 sustainable development?" I'm going to read you

4 just a couple of little things here -- and I'm

5 having to really condense this. But it says,

6 "Considered unsustainable under a plan of the

7 sustainable development crowd," that's your liberal

8 left-wing people. Under this plan, middle-class

9 lifestyle, single-family homes, private vehicles,

10 meat eating, air conditioning, appliances, dams,

11 farming, you, and me -- that's the Agenda 21

12 crowd --

13 [3-minute alarm]

14 -- and they are honor- -- duty-bound through

15 Obama and his communist affiliates, and I --

16 VOICE: Aww.

17 WITNESS: I will not deny that he is a

18 communist.

19 VOICES: Lies. Lies.

20 WITNESS: And most people know it.

21 VOICES: Lies.

22 WITNESS: God help us. We need to get to the

23 word of God and have all these duty-bound people --

24 CHAIRMAN MITCHELL: Sir. Sir, if you would --

25 if you would, just state your main concern.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 140

1 Please.

2 WITNESS: No, I'd like to say more.

3 CHAIRMAN MITCHELL: Well, no, sir.

4 WITNESS: I'd like to read --

5 CHAIRMAN MITCHELL: Sir. Sir.

6 WITNESS: This can make revolution --

7 CHAIRMAN MITCHELL: Sir.

8 VOICES: Time.

9 WITNESS: In this dramatic revolution --

10 CHAIRMAN MITCHELL: Sir.

11 VOICES: Time.

12 WITNESS: -- private property rights extends

13 to every facet of our lives.

14 VOICES: Time.

15 WITNESS: Education --

16 VOICES: Time.

17 WITNESS: -- energy --

18 VOICES: Time.

19 WITNESS: -- food --

20 VOICES: Time.

21 WITNESS: -- housing --

22 VOICES: Time.

23 WITNESS: -- and transportation.

24 VOICES: Time. Time. Time.

25 VOICE: Security.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 141

1 WITNESS: Okay. Do you have any questions for

2 me?

3 CHAIRMAN MITCHELL: Do you have any questions?

4 MS. SHAFFIK-HORTON: [Shaking head.]

5 MS. C. EDWARDS: [Shaking head.]

6 CHAIRMAN MITCHELL: No questions, sir.

7 [WHEREUPON, the witness was excused.]

8 MR. DONG: Cynthia Hyatt, John Wiebel, and

9 Antone Jones?

10 [Witness sworn]

11 THEREUPON came,

12 C Y N T H I A B . H Y A T T ,

13 who, having been first duly sworn, testified as follows:

14 WITNESS: My name is Cynthia Hyatt. I live

15 at --

16 CHAIRMAN MITCHELL: [Indicating.] Could we

17 give attention? We want to hear everything that

18 everybody's saying.

19 So, if you would go ahead, please? Thank you.

20 If you'd -- that's it -- speak into the microphone.

21 Thank you.

22 WITNESS: My name is Cynthia Hyatt. I live at

23 26 Bear Grass Court, Greenville, 29605. I'm

24 president of Bear Grass Homeowners' Association,

25 which is representative of 27 residents that live

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 142

1 at Bear Grass Townhomes. We're a senior citizens'

2 community. We're solely managed, in that we take

3 care of all of our expenses, including our

4 services, insurance, landscaping. You name it, we

5 have to pay for it.

6 The residential rate increases Duke Energy

7 proposes are much like throwing pebbles into a

8 pond. The rippling effects of the increases hinder

9 all residents' ability to pay for other services

10 they need. Those who have opportunities to earn

11 incomes with pay raises and bonuses tolerate the

12 rate increases more easily. Those of us who live

13 on fixed incomes find it more and more difficult to

14 pay for these increases, regardless of how small or

15 great they are.

16 The current 16 percent rate increase Duke

17 Energy is proposing for the residents of Bear Grass

18 Townhome Community is comparable to a tsunami.

19 Each of our senior citizens will have to pay more

20 for their own electricity usage, plus the rate

21 increase will cost their homeowners' association

22 fees to have to absorb the cost of paying for the

23 increase in charges for the seven electric lights

24 used for our safety on our property. The globes on

25 those lights are obsolete. Recently, one globe had

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 143

1 to be replaced at an added cost of $7.45 each

2 month. When all seven are replaced, that comes to

3 $52.15 monthly. The total would be $625.80 for one

4 year. With a 16 percent rate increase of $100.13,

5 we would pay annually $725.93 just for the

6 replacement globes.

7 Now, add to that the 12 months of electricity

8 usage charges, then multiply that by the 16 percent

9 rate increase -- or whatever rate is approved.

10 Long story short, when we have to replace those

11 globes, our association has to pay for those

12 charges and electricity usage charges, as well as

13 any rate increases Duke Energy is granted. Then

14 the association has to raise our homeowners'

15 association fees. The tsunami of electricity cost

16 denies our senior citizens from using what money

17 they have to purchase other services and goods, and

18 those services and goods continue to have increases

19 in costs.

20 Is it any wonder why our residents can only

21 afford to live in homes which range in price from

22 $33,000 to $65,000? How many Duke Energy

23 executives or South Carolina Public Service

24 Commissioners would like to trade places with us?

25 Duke Energy has already received several rate

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 144

1 increases since the year 2000. It is suggested

2 that Duke stop spending so much on advertising and

3 stop sending the My Energy Home Report reminders

4 each month on how to save energy. Also, remember

5 the lesson of Aesop's fable, The Fox and the

6 Grapes. Be careful of what you want.

7 [3-minute alarm]

8 It may not be what you needed, after all. In

9 other words, does Duke Energy need another

10 residential increase? Residents living on fixed

11 incomes do not need this burden. We are doing the

12 best we can with what we have. Duke Energy needs

13 to follow suit with doing the best they can with

14 what they have, and not with what they think they

15 want.

16 [Applause from audience]

17 CHAIRMAN MITCHELL: Do you have any questions?

18 MS. SHAFFIK-HORTON: No, sir.

19 CHAIRMAN MITCHELL: Any questions from ORS?

20 MS. C. EDWARDS: No questions.

21 CHAIRMAN MITCHELL: Commissioners?

22 [No response]

23 Thank you, very much, for being here, ma'am.

24 [WHEREUPON, the witness was excused.]

25 <

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 145

1 [Witness sworn]

2 THEREUPON came,

3 J O H N W I E B E L ,

4 who, having been first duly sworn, testified as follows:

5 WITNESS: My name is John Wiebel. I live at

6 105 Mansion Circle, down in Piedmont, South

7 Carolina, and the ZIP Code is 29673.

8 Now, this is the third time I've come before

9 y'all. Ms. Lib, you've been chairman. Sir, you

10 were very nice last year. And I wonder who is it

11 going to be next year?

12 But I heard a little preaching from Greenville

13 Tech -- they sent a preacher in here -- and my

14 friend right here. But I think y'all got to

15 understand that you got to give Caesar his before

16 you can get yours. That's what we're talking

17 about.

18 Now, if Duke Power would have been given

19 everything they've been asking for, just from 2010,

20 without an increase in 2011, it would have amounted

21 to a 73 percent increase. This little fuzzy math

22 by Senator Fair's representative in here is nowhere

23 near the truth.

24 Now, they are the most irresponsible for

25 corporate spending. They dream up ways. They've

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 146

1 elected them a governor in North Carolina. But

2 their attorney general is going to fight for them

3 when they try and raise their rates. And then

4 their Supreme Court overturned the rate that they

5 gave them last year.

6 Now, in South Carolina, what we've got here is

7 we've got Duke Power using the northern border of

8 Catawba, Wateree, Broad River basin to generate

9 free electricity. They own Keowee, Jocassee, and

10 Bad Creek on the other side of our state.

11 I want to know who sold my rivers and my lakes

12 to Duke Power.

13 VOICE: Right.

14 WITNESS: Has anybody got a bill of sale in

15 here?

16 Now, I am in the American Legion and a

17 disabled veteran. And I want y'all to just bear

18 with me for one second. We lost a South Carolinian

19 from Beech Island in Afghanistan last week. And if

20 y'all would kindly give one moment of silence for

21 that soldier, I would appreciate it.

22 [Brief pause]

23 I thank y'all for that.

24 Now, Duke Power has a plant in Indiana that's

25 three times over [word indiscernible]. That ain't

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 147

1 generating power for us. They got their name

2 inside the Cincinnati Reds Baseball Stadium. That

3 ain't generating no power. Changing their logo on

4 every letterhead and every truck, on every car, and

5 the pins I see Larry Boyd wearing in here -- it's

6 our money.

7 VOICE: Right.

8 WITNESS: Millions. The man who did the

9 Progress Energy deal walked away with tens of

10 millions of dollars, and they're talking about they

11 want $220 million. $207 a year, for us. I'm on

12 fixed income. I only got a 1.7 percent increase

13 last year. Ain't that what they should be held to?

14 VOICES: Yeah.

15 VOICES: That's right.

16 WITNESS: Now, what'd your all's Medicare

17 premiums do? Where'd they go? They went out of

18 sight. Did you get a $207 increase last year? No,

19 you did not. Neither did I. Neither did my

20 brothers-in-arms -- and I see many of you out here.

21 Now, this is the deal.

22 [3-minute alarm]

23 Before this thing is over with -- and you can

24 see that thing there -- I want legislator time,

25 because no legislator in here is any better than I

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 148

1 am. So I'm going to ask for one more minute.

2 Y'all bear with me one more minute. The problem

3 with Duke Power is -- and I'm glad some of our

4 money went back to Greenville Tech. And Clemson.

5 Sounds good, looks good on paper, but it does not

6 have anything to do with generating electricity.

7 You saw them on TV, and we've got a

8 shareholder in here. I appreciate you running all

9 those commercials on how your company has come

10 forward in time, and using all this technology.

11 VOICE: Halleluiah.

12 WITNESS: But up at Cliffside, you just built

13 the largest coal-fired plant in the United States.

14 Now why we have to put up with -- y'all want to

15 come out here with me? You hear this right here

16 [indicating] That's their coal dust in my throat,

17 in the shape of ozone pollution.

18 Now, I'm not a tree-hugger, as such. But I

19 didn't defend this country and give up my health to

20 have Duke Power pick me like a chicken and pack us

21 all up, put us in a box, hope we go away. But I

22 just want to know: Will they be back next year?

23 VOICES: Yes.

24 WITNESS: Do you feel like they'll be back

25 next year?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 149

1 VOICE: Yes.

2 WITNESS: Now they didn't come in 2011, but

3 they were here last year, they're here this year.

4 So I want y'all to agree with me, and please let

5 the Commission know that they should not get 1

6 percent more than any of us on fixed incomes or

7 veterans' benefits, and the working poor. The man

8 with SHARE back there, he forgot to mention it.

9 We've got working poor. We've got people working

10 for a living that still need assistance. Don't we?

11 VOICES: Yes.

12 VOICES: That's right.

13 WITNESS: So don't we think that Duke should

14 be withheld to 1.7 percent?

15 VOICES: Yes.

16 WITNESS: Then that's what they should get.

17 Thank you, Commissioners.

18 [Applause from audience]

19 CHAIRMAN MITCHELL: Thank you. Any questions?

20 MS. SHAFFIK-HORTON: No.

21 CHAIRMAN MITCHELL: ORS?

22 MS. C. EDWARDS: No.

23 WITNESS: I thank you for letting me take an

24 extra minute of your time.

25 CHAIRMAN MITCHELL: Any questions from the

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 150

1 Commission?

2 [No response]

3 Thank you, sir, for being here with us.

4 WITNESS: I appreciate it very much, sir.

5 [Applause from audience]

6 [WHEREUPON, the witness was excused.]

7 [Witness sworn]

8 THEREUPON came,

9 A N T O N E J O N E S ,

10 who, having been first duly sworn, testified as follows:

11 WITNESS: My name is Antone Jones. I live at

12 155 Ridge Road, Apartment 406, Greenville, South

13 Carolina 29607. How you doing, Mr. Commissioner?

14 The things I'm having a problem with, I'm two

15 months late on my rent, and Duke Power told me I

16 have to pay a $200 deposit. I don't think that

17 this is fair; I think that it's wrong. I make

18 $19,000-and-change. I've got two kids. I'm a

19 single father. And I believe Duke Power make all

20 this money, and like this man who came first said

21 Duke Power gave Greenville Tech all this money. I

22 understand. Greenville Tech is a good school.

23 What's Duke Power doing for us? They ain't doing

24 nothing for us. I've got a little boy right there;

25 he's nine years old. I've got to pay rent, light

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 151

1 bill, daycare or after-school program, and my

2 insurance is going up.

3 I'm a bound man. I'm living paycheck to

4 paycheck. You have kids -- all y'all have kids.

5 Just think about if you were in my shoes. How will

6 you feel when Duke Power say, "Okay, let's go up

7 16.3"? I can't afford it. How will you feel if

8 you were in my shoes?

9 Duke Power -- who works for Duke Power? They

10 make $25-$30 an hour. They don't care. They got

11 plenty of money to pay their bills. I think it's

12 wrong. All these people right here 65 and up --

13 65 percent living on one check. Got to pay for

14 their medicine, their food, their insurance. What

15 you want them to do? What, get the lights out?

16 They've got to pay for their medicine. Medicine's

17 going up high. Insurance going up high.

18 We cannot allow Duke Power go back up 16.3.

19 If you allow that, it'll be a lot of people dead.

20 And guess what, Duke Power don't care. They really

21 don't care. They think -- you know who it'll be

22 on? The people who allowed Duke Power to do it.

23 When I called them people about they went up

24 $200 -- I have to pay a $200 deposit, they said

25 something about a past bill. I'm a single parent.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 152

1 It's a lot of people don't have jobs. Why Duke

2 Power allowing them to do? They don't care. They

3 don't care about you, anybody out there. If you're

4 standing here, if you want to wear our shoes, if

5 you're 65 and up and you live off one income, I

6 guarantee you'll feel how we feel.

7 Please don't let Duke Power go up. That's all

8 I'm asking. I got two kids. I can't afford them.

9 What you want me to do? Don't have no lights?

10 Then DSS take my kids. That's the only thing I

11 have. I make $19-and-change. Please don't let

12 Duke Power go up. I have nothing else to say.

13 CHAIRMAN MITCHELL: Thank you.

14 [Applause from audience]

15 Any questions?

16 MS. SHAFFIK-HORTON: [Shaking head.]

17 CHAIRMAN MITCHELL: ORS, any questions?

18 MS. C. EDWARDS: Mr. Chairman. Mr. Jones, if

19 you have a few minutes, I'd like for you to talk to

20 Mr. Brad Kirby about the deposit.

21 WITNESS: Okay.

22 MS. C. EDWARDS: If you have a few minutes,

23 he's right there --

24 WITNESS: Which one?

25 MS. C. EDWARDS: -- [indicating]

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 153

1 CHAIRMAN MITCHELL: Yes, sir, would you wait

2 one second? Commissioners, any questions?

3 Commissioner Fleming.

4 EXAMINATION

5 BY COMMISSIONER FLEMING:

6 Q Thank you for being here tonight. When you made the

7 call about your bill, do you remember who you contacted?

8 A I called the people -- about the bill, the 1-800 number.

9 I asked them why the $200 deposit on my bill. They told

10 me I'm two -- two -- I'm two months late. Okay? Two

11 times your bill, you have to pay a $200 deposit. I

12 think that's wrong. Dead wrong. They said somebody in

13 Columbia passed the bill saying Duke Power got the right

14 to do that.

15 And another thing I forgot to tell you. They're

16 very disrespect. They don't care about nobody. Because

17 when I asked -- I told them to give me a time to come up

18 with the money, they said they had the 24th. I got two

19 kids. They didn't care.

20 VOICE: That's right.

21 WITNESS: I had to borrow it from my brother

22 in Houston, Texas. I hate to ask people for money,

23 because -- what else I'm supposed to do. When you

24 call them and tell them give you more time, they

25 will not.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 154

1 BY COMMISSIONER FLEMING:

2 Q And was this Duke -- did you call Duke Energy --

3 A Yes, ma'am.

4 Q -- or Columbia?

5 A No, I called Duke Energy.

6 Q Okay.

7 COMMISSIONER FLEMING: Okay. Thank you.

8 CHAIRMAN MITCHELL: Any other questions?

9 [No response]

10 Thank you, sir. Thank you for being here.

11 [Applause from audience]

12 [WHEREUPON, the witness was excused.]

13 MR. DONG: Theo Mitchell, Seth Powell, Traci

14 Fant?

15

16 [Witness sworn]

17 THEREUPON came,

18 T H E O W. M I T C H E L L ,

19 who, having been first duly sworn, testified as follows:

20 WITNESS: My name is Theo Walker Mitchell. I

21 reside at 522 Woodland Way, Greenville, South

22 Carolina 29607.

23 I want to thank this Honorable Commission for

24 taking the time to come and visit us, be with us,

25 and listen to us, in regards to those of us who are

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 155

1 irate, at least up until this moment, at the

2 arrogance of Duke Energy seizing 16 percent rate

3 increase.

4 I'm a former member of the Legislature, and I

5 spent a number of years down there. And I'm trying

6 to think back over when did I ever find the PSC

7 denying at least a partial rate increase from Duke?

8 My memory is dim, because as always it's something

9 they've always asked for astronomical because they

10 know they can get geological.

11 VOICE: That's right.

12 WITNESS: They know they're going to get

13 something.

14 VOICE: Right.

15 VOICE: No.

16 WITNESS: This is the most greedy, arrogant,

17 nasty, energy monopoly that we have ever had.

18 [Applause from audience]

19 And they take advantage of us because they are

20 a monopoly, and that we are dependent upon them.

21 It's most unconscionable, most -- in my opinion --

22 unjust, and certainly unrealistic. When is enough

23 going to be enough for this crowd?

24 VOICE: Never.

25 WITNESS: Never, seemingly. You all are

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 156

1 basically new Commissioners. I never had the

2 opportunity to appear before any of you before.

3 And maybe it's because I've sat back and let

4 matters go on without having challenged some of

5 this nonsense. But we are not in a position to pay

6 for the negligence, the lack of maintenance of the

7 nuclear facilities out there in Oconee County, the

8 penalties that Duke has basically had imposed and

9 will have imposed. And all due respect for

10 Greenville Tech, all due respect for the

11 stockholders, Duke does not need the kind of money

12 that it continues throwing and lavishing in regards

13 to public education. And I certainly don't think

14 that -- and thanks to Mr. O'Steen --

15 [3-minute alarm]

16 -- that Duke can afford to continue the kind

17 of stock pay and options that it's paying in

18 regards to stockholders.

19 Thank you, very much.

20 [Applause from audience]

21 CHAIRMAN MITCHELL: Company, questions?

22 MS. SHAFFIK-HORTON: No questions.

23 CHAIRMAN MITCHELL: ORS, any questions?

24 MS. C. EDWARDS: No questions. Thank you, Mr.

25 Chairman.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 157

1 CHAIRMAN MITCHELL: Sir? Any Commissioner

2 questions?

3 [No response]

4 Thank you, very much, for being with us

5 tonight.

6 WITNESS: Thank you, gentlemen and ladies.

7 CHAIRMAN MITCHELL: Yes, sir.

8 [WHEREUPON, the witness was excused.]

9 [Witness sworn]

10 THEREUPON came,

11 S E T H P O W E L L ,

12 who, having been first duly sworn, testified as follows:

13 WITNESS: Ladies and gentlemen of the

14 Commission and of Greenville County, I am Seth

15 Powell. I live at 108 Andrews Street, and I'm

16 president of Greenville County Tax Association.

17 I have something to present to the Commission

18 tonight, the bulk of which is a petition containing

19 hundreds and hundreds of signatures of all the

20 fellow citizens who couldn't be here tonight, but

21 who also oppose this motion. Included is also a

22 chart and a graph. which illustrates that kilowatt-

23 per-hour rate as reflected on an actual consumer's

24 bill over the last five and a half years. Please

25 consider both.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 158

1 When I was here last, less than two years ago,

2 I asked you to please imagine all those people who

3 would like to be here tonight but couldn't be. And

4 tonight, I'll make that same request. But I would

5 also like to describe those people to you, because

6 I've met them now and know who they are. Through

7 our petition drives and my going into neighborhoods

8 and on their doorstep, I've met people from all

9 walks of life and at all stages of life. I've met

10 people with the wind at their backs; I've met

11 people who are down and out; I met rich, poor,

12 middle class, from all ages and from all races.

13 I've met these people [indicating] essentially, and

14 people like them. And despite their differences,

15 they had things in common.

16 They've all said, "No. Please, no," to this

17 rate request. They say, "It's tough enough

18 already." "They just got one." "16 percent?"

19 Those are the things I've heard time and time

20 again. They didn't just want to say no; they all

21 asked why. Why does this have to happen now? The

22 small businessman asking why do things have to get

23 more expensive. A single mom asking why do things

24 have to get harder for me when I'm making ends

25 meet? And we're supposed to believe that all these

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 159

1 things happen because of an invisible hand or

2 invisible process. But that's not the case here.

3 We can see your hands. What will you do with them?

4 Could you not, with your hands, dismiss or delay

5 this case?

6 Commissioner Fleming, do you not have ears for

7 community need over corporate interest? I think

8 you do. We all hope that you do.

9 Commissioner Hall, give voice for what is

10 right. I promise that they can survive another

11 year or two without a rate increase.

12 All of you, please use your influence to put

13 the public first, as I know you've tried to do

14 before.

15 And one last thought, because I know I'm

16 running out of time. When I was in a neighborhood

17 over next to Monaghan Mill, in the shadow of the

18 mill, I met an old man, who, after expressing anger

19 about this rate increase request and being asked to

20 sign a petition, confessed that he couldn't write,

21 that he'd worked in the old days in the mill until

22 he was injured, and he received disability and now

23 Social Security. He couldn't write. But you know

24 he pays his power bill every month. And so that

25 man could not use his hands to voice his opposition

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 160

1 to this.

2 What we ask is that you use your voice and

3 your influence to do that for him. We ask the

4 Public Service Commission to put the public first.

5 I know there have probably been dozens and dozens

6 of people to serve on this Commission. And to be

7 honest, I couldn't name a single one. But I

8 promise if you'll stand with us this time, we will

9 remember you forever. And if you stand with us,

10 we'll stand with you. Please do what's right.

11 Thank you for your time.

12 [Applause from audience]

13 CHAIRMAN MITCHELL: Any questions?

14 MS. SHAFFIK-HORTON: No.

15 CHAIRMAN MITCHELL: Any questions from ORS?

16 MS. C. EDWARDS: No, Mr. Chairman.

17 CHAIRMAN MITCHELL: Any questions from

18 Commissioners?

19 [No response]

20 Thank you very much for being with us tonight.

21 And, yes, we'll make that part of the record, sir.

22 Thank you.

23 WITNESS: I have copies. I appreciate it.

24 CHAIRMAN MITCHELL: Sir, that will be marked

25 as Hearing Exhibit 2 and entered into the record

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 161

1 tonight. Thank you, sir.

2 [WHEREUPON, Hearing Exhibit No. 2 was

3 marked and received in evidence.]

4 [Witness sworn]

5 THEREUPON came,

6 T R A C I F A N T ,

7 who, having been first duly sworn, testified as follows:.

8 WITNESS: My name is Traci Fant. I reside at

9 211 Creektop Court, Greenville, South Carolina

10 29605.

11 And I first want to thank you all for coming

12 to hear our voices. To us, it's very important,

13 especially the leaders in the community, that we're

14 able to voice our opinions in front of an audience

15 such as you that can make a change for us, and make

16 a difference.

17 I'm married. I have four children. My

18 husband and I are gainfully employed. We make a

19 decent income together. Recently we did receive a

20 bill from Duke Power and it was $500 in addition to

21 our regular bill because of some late charges that

22 we had a couple of years ago. We didn't understand

23 this rate increase. My husband called about it,

24 and luckily, thankfully, we were able to pay it.

25 We all know that Duke Power is a monopoly. We

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 162

1 all know that if we don't pay our light bills in

2 time, we will be without power. I don't stand here

3 to speak for myself and my situation. I stand here

4 to speak for the countless numbers of single

5 parents, the countless numbers of college students

6 who are struggling to buy books and do different

7 things for their day-to-day process, the countless

8 numbers of elderly people such as my own mother who

9 lives on a fixed income, who has to not only rely

10 on the government's help but also me and my brother

11 and my sister who have to help her from time to

12 time pay her bills. I stand here for the

13 community, basically to ask, because I visit a lot

14 of homes in the community. I know a lot of people

15 who go without power throughout the wintertime, who

16 do heat their house with a kerosene heater, who do

17 live by candlelight. I know a lot of people who,

18 in the summertime, don't have AC. They don't even

19 have fans. They open a window and everybody tries

20 to catch a breeze. This is our reality.

21 I don't really know what you go home to. And

22 this is not even what I go home to, thankfully.

23 However, I know that many people, including a lot

24 of my friends and a lot of people that I know, a

25 lot of relatives, have to depend on the fact that

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 163

1 people like me will stand before people like you

2 that can make a decision that can make a difference

3 in our lives.

4 So I ask that you do not increase the rates,

5 because it will not only affect me but it will

6 affect the entire community. Thank you.

7 CHAIRMAN MITCHELL: Thank you, ma'am.

8 [Applause from audience]

9 Ma'am? Any questions?

10 MS. SHAFFIK-HORTON: No questions.

11 CHAIRMAN MITCHELL: Any questions of ORS?

12 MS. C. EDWARDS: Yes, Mr. Chairman.

13 CROSS EXAMINATION

14 BY MS. C. EDWARDS:

15 Q Ms. Fant, when did the $500 late charge occur?

16 A It was 30 days ago.

17 Q Thirty [30] days ago?

18 A Last month.

19 Q Would you mind talking, if you have a few minutes, to

20 Mr. Brad Kirby?

21 A Okay.

22 MS. C. EDWARDS: Thank you.

23 CHAIRMAN MITCHELL: Commissioners, any

24 questions? Commissioner Fleming.

25 COMMISSIONER FLEMING: I don't have a question

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 164

1 right now, but, Mr. Chairman. I just wish we could

2 give the information out, as to the number to call

3 when complaints occur?

4 CHAIRMAN MITCHELL: Absolutely. Could ORS

5 give us your 800 number again, please?

6 MS. C. EDWARDS: Sure.

7 CHAIRMAN MITCHELL: To the entire public here?

8 MS. C. EDWARDS: Okay. Sure. The 800

9 number --

10 CHAIRMAN MITCHELL: This is the 800 number you

11 call at ORS. And for all of you in the audience,

12 ORS intervenes in our hearings. They will be

13 intervening for the public's behalf in the hearing

14 in Columbia. That's their job. And she's going to

15 relay you now a 1-800 number that you can call and

16 express any problems that you have. If you would.

17 MS. C. EDWARDS: Sure. 1-800-922-1531. And

18 I'll repeat that one more time. 1-800-922-1531.

19 Our staff works, typically, 8:30 to 5. If you

20 don't have anyone -- if you don't reach anyone,

21 please leave a message and our Consumer Services

22 Department will call you back as soon as possible.

23 And again, if you have any questions, one of our

24 Consumer Services representatives is in the back:

25 Brad Kirby.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 165

1 CHAIRMAN MITCHELL: Thank you, Ms. Edwards.

2 And the company, I believe y'all have an 800

3 number, too, that people can call?

4 VOICE: Would she repeat that one more time?

5 CHAIRMAN MITCHELL: Sure. Would you repeat it

6 one time, Ms. Edwards?

7 MS. C. EDWARDS: Sure, be glad to. 1-800-922-

8 1531.

9 MS. SHAFFIK-HORTON: Duke Energy's customer

10 service number is 1-800-777-9898. 800-777-9898.

11 CHAIRMAN MITCHELL: Did everyone get those?

12 VOICE: Could you do it one more time?

13 CHAIRMAN MITCHELL: Yes. The last number?

14 Yes, would you repeat it one more time for us?

15 MS. SHAFFIK-HORTON: It's 800-777-9898.

16 CHAIRMAN MITCHELL: Okay.

17 MR. DONG: The next three names are Ben

18 Haskew, Kenneth Sercy, and Barbara Keeton.

19 [Witness sworn]

20 THEREUPON came,

21 B E N H A S K E W ,

22 who, having been first duly sworn, testified as follows:

23 WITNESS: My name is Ben Haskew. I reside at

24 102 Rapid River Trail, Greenville, 29615.

25 I'm with the Greenville Chamber of Commerce,

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 166

1 and I wanted to talk just a minute about economic

2 development in our region. I want to make it

3 clear, though, our organization is not taking a

4 position on the rate case. But as an economic

5 development professional, there are some things

6 that I think it's important that we state about

7 Duke's importance in the region, working with local

8 governments, organizations like the Chamber, and

9 others that are trying to bring high-quality jobs

10 to our region.

11 I do want to say thank you to the Commission

12 for coming tonight and listening to our citizens.

13 I think it's very important. These kinds of rate

14 cases, I know, are very complex, and obviously

15 you've got a period of time to look and listen to

16 all the information that will come from many,

17 before you make your final decision.

18 The impact of economic development in our

19 region is important in all of our work, and that's

20 not just in Greenville; it's across the whole

21 region. We are in what's described as one of the

22 high-growth areas on the I-85 corridor between

23 and Charlotte. And Duke and their team

24 certainly have been partners with us through the

25 years, to work on projects that bring major job

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 167

1 creation to our region. And today we are actually

2 working together on some high-impact

3 entrepreneurship projects that I think are going to

4 bring good-quality jobs to our area, as well.

5 Just as we need good roads, good air service,

6 good water and sewer infrastructure, we need,

7 certainly, reliable and sustainable energy as we

8 are doing our jobs to recruit new businesses to the

9 community. We just ask that you take all that into

10 consideration as you consider this case, going

11 forward.

12 We appreciate, again, you being here, and

13 thank you for the opportunity to speak.

14 CHAIRMAN MITCHELL: Thank you. Company, any

15 questions?

16 MS. SHAFFIK-HORTON: [Shaking head.]

17 CHAIRMAN MITCHELL: ORS?

18 MS. C. EDWARDS: No, Mr. Chairman.

19 CHAIRMAN MITCHELL: Commissioners?

20 [No response]

21 Thank you so much for being with us. Thank

22 you, sir.

23 [WHEREUPON, the witness was excused.]

24 [Witness sworn]

25 <

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 168

1 THEREUPON came,

2 K E N N E T H S E R C Y ,

3 who, having been first duly sworn, testified as follows:

4 WITNESS: Good evening, Commissioners. My

5 name is Kenneth Sercy. I am speaking on behalf of

6 the South Carolina Coastal Conservation League.

7 The address is 1001 Washington Street, Columbia,

8 South Carolina 29201.

9 We are speaking tonight to draw a connection

10 between rate increases, like Duke's current

11 request, and the fundamental drivers of those rate

12 increases. So, in general, that's utility capital

13 investments, and mainly power plants, transmission

14 distribution lines.

15 We have a process in South Carolina whereby

16 the Commission reviews utility applications for

17 capital investments and makes a determination as to

18 whether each particular investment is a prudent

19 one. And I'll refer to those reviews as

20 "certification proceedings."

21 The Conservation League sees a great

22 opportunity for South Carolina to complement these

23 certification proceedings with an expanded emphasis

24 on something called integrated resource planning.

25 And I'll call that "IRP," for short. IRP is

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1 related to certification but is broader in scope.

2 In a nutshell, IRP takes a longer-term portfolio-

3 level look at capital investment needs. So you're

4 not just looking at one isolated facility, like in

5 the certification proceeding; instead, you're

6 creating a high-level roadmap that then guides

7 those individual facility certifications.

8 Right now, we don't have much process related

9 to IRP in South Carolina. So our utilities file

10 their IRPs with the Commission each year, but there

11 isn't really any follow-up on that. And, in recent

12 years, as far as I'm aware, the only additional

13 action in these dockets is the Conservation League

14 -- along with some of our partners -- have actually

15 filed fairly lengthy, detailed, technical

16 commentary and recommendations on these utility

17 IRPs. But, again, there's no independent review;

18 there's no real concluding action in these dockets.

19 So, as I mentioned, there's an opportunity

20 there to beef up that process in South Carolina.

21 And I want to give one example -- and I'm wrapping

22 up. I want to give one example to help flesh out

23 why this is important. So, Duke's economic

24 modeling in its 2012 IRP estimated that boosting

25 energy efficiency programs would save customers

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1 about $5 billion in the coming decades. That's

2 "billion" with a "b." But Duke didn't choose that

3 resource plan; they chose a different resource plan

4 that they estimated was going to cost more money.

5 We don't think that Duke adequately justified that

6 decision, and we commented on that in our filings.

7 But, again, there's no follow-up there or

8 resolution to, you know, different perspectives on

9 these plans.

10 So, you know, there are probably different

11 ways to strengthen the IRP review in South

12 Carolina. We'd love to engage with Commission

13 staff, ORS, the utilities, other stakeholders on

14 how to strengthen this process. Bottom line is, we

15 think that complementing these certification

16 proceedings with a more robust IRP process will be

17 beneficial to both households and businesses in

18 South Carolina and will give them greater

19 confidence that, when a utility has to ask for a

20 rate increase, at least the increase has been

21 minimized to the greatest extent possible.

22 Thank y'all for the opportunity to speak, and

23 I'll be happy to take any questions.

24 CHAIRMAN MITCHELL: Thank you, sir. Company,

25 any questions?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 171

1 MS. SHAFFIK-HORTON: No.

2 CHAIRMAN MITCHELL: ORS, any questions?

3 MS. C. EDWARDS: No.

4 CHAIRMAN MITCHELL: Commissioners?

5 COMMISSIONER FLEMING: Yes.

6 CHAIRMAN MITCHELL: Commissioner Fleming.

7 EXAMINATION

8 BY COMMISSIONER FLEMING:

9 Q Thank you for coming tonight. Can you give an example

10 of a state that -- of a program for the IRPs that you

11 think is a productive process, that achieves what you’re

12 talking about?

13 A Well, I'll give an example. Our immediate neighbors,

14 and North Carolina, they both actually hold

15 full-fledged evidentiary hearings on IRPs. So what will

16 happen for the rate increase here for Duke -- where you

17 have witnesses, evidence, testimony, and then

18 potentially a determination by the Commission -- they do

19 all of that for IRP in Georgia and North Carolina. So,

20 I mean, they take it that seriously.

21 Q So do you think that that has resulted in better rates,

22 more efficient use of the energy facilities, or types

23 of?

24 A We think that, in general, with more transparent IRP

25 processes, you are going to see better resource

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 172

1 decisions and better investment decisions that are good

2 not just for Duke shareholders but for their customers

3 and for the environment, as well.

4 Q Okay. But, now, Duke is both in South Carolina and

5 North Carolina, and we both have approximately the same

6 rates and programs -- except for a renewable portfolio.

7 Right?

8 A Correct. But -- and so our IRP process applies to Duke,

9 Progress, and SCE&G.

10 Q So you are saying that you just like the transparency

11 and the buy-in by the Commission on the process; is that

12 correct?

13 A Yes, that's correct.

14 COMMISSIONER FLEMING: Thank you.

15 CHAIRMAN MITCHELL: Any further questions?

16 [No response]

17 Thank you, sir, very much, for being with us.

18 [WHEREUPON, the witness was excused.]

19 [Witness sworn]

20 THEREUPON came,

21 B A R B A R A K E E T O N ,

22 who, having been first duly sworn, testified as follows:

23 WITNESS: My name is Barbara Keeton. I live

24 at 9 Ardmore Drive, in Taylors, 21867.

25 I have with me here a jar. And in that jar

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 173

1 are a few coins. Once those coins are gone,

2 there's nothing left. That's what life is like for

3 senior citizens, for people who live on a fixed

4 income, or for the working poor. When it's gone,

5 it's gone. And for Duke to come forward and ask

6 for such a huge rate increase -- and let me say,

7 Duke asks for huge rate increases knowing they're

8 going to get smaller ones, but I think it's time

9 that the Public Service Commission says no. This

10 is a bad time, recession, and people are hurting.

11 I know of people who are working and are

12 getting their hours cut because Obamacare is fixing

13 to get kicked in, and businesses don't have the

14 money to pay for their health care. So now here

15 you've got people who are losing their money, jobs,

16 because of Obamacare, and then we have Duke Energy

17 who has screwed up their monies -- and it's not our

18 fault -- coming in and wanted us to cover their

19 butts. That's wrong.

20 Also I noticed -- I deliver Meals on Wheels,

21 through Prayer United Ministries. The food banks

22 are drying up, because people don't have money to

23 help their neighbors. They don't have any extra

24 money whatsoever. Children are going hungry during

25 the summer months because they get school lunches

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1 and school breakfasts during school terms, because

2 their parents don't have money.

3 People -- I've got a niece who works 40 hours

4 a week. She's known as the working poor. She has

5 diabetes. She's got one child. She's a single

6 parent. And she can't make ends meet. Her mother

7 and I have to help her out to make ends meet, just

8 for bare necessities. That's wrong. Cost of gas,

9 cost of food, taxes, Obamacare, all draining the

10 wallets of hard-working people, and yet Duke wants

11 another rate increase -- the third in four years.

12 I challenge Duke to be the bigger company and,

13 instead of increasing rates, show your

14 responsibility, your compassion, and your humanity,

15 and cut your rates. Hopefully, other companies

16 will --

17 [Applause from audience]

18 -- follow suit. It's time companies and, I'm

19 sorry, but public service commissions need to look

20 at the struggles that every hard-working person

21 here and in this State of South Carolina are going

22 through. They can't make ends meet. The bottom

23 line is, Duke wants more money, they have bonuses,

24 they get raises. When was the last time these

25 people got bonuses and raises? We are not getting

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1 money increases; we're getting money decreases. We

2 can't afford food, gas, insurance, healthcare.

3 When Obamacare --

4 [3-minute alarm]

5 -- kicks in, we all might as well just throw

6 in the towel.

7 VOICES: Amen.

8 WITNESS: And when Duke wants more money on

9 top of all this, when the jar is empty, there's

10 nothing left. Nothing. Thank you.

11 CHAIRMAN MITCHELL: Yes, ma'am. Company, any

12 questions?

13 MS. SHAFFIK-HORTON: No.

14 CHAIRMAN MITCHELL: ORS?

15 MS. C. EDWARDS: No, Mr. Chairman.

16 CHAIRMAN MITCHELL: Commissioners?

17 [No response]

18 Thank you, so much, for being with us.

19 [Applause from audience]

20 [WHEREUPON, the witness was excused.]

21 MR. DONG: Robert Glenn, Jeff Stewart, Efia

22 Nwangaza? [Witness sworn]

23 THEREUPON came,

24 J E F F S T E W A R T ,

25 who, having been first duly sworn, testified as follows:

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 176

1 WITNESS: My name's Jeff Stewart. I live at

2 310 Syracuse Road, Easley, South Carolina.

3 I am the president of LMS Holdings, and for

4 the last five years I've had the great opportunity

5 to work in Washington, DC, and help build the new

6 Capitol Visitor Center.

7 I guess my reasoning for speaking with you

8 today is I heard all these testimonies, and I'd

9 like to know why South Carolina isn't deregulated

10 for energy. There are six states currently today

11 -- excuse me, eight, with New York City, that just

12 came on-line, where we, the public, have to choose

13 energy or electric bills. We can outsource it. We

14 don't have to be stuck with Duke Power.

15 I'm pretty fortunate. I can pay my light

16 bill. I've had the opportunity to help other

17 people pay. But enough is enough. And I'd like to

18 know, if the District of Columbia can be

19 deregulated, why can't South Carolina? New York

20 City just came deregulated this past Friday. And

21 here we are, South Carolina, where people are

22 struggling. It's one of the unfortunately worst

23 states for employment, health. I love my state, so

24 I'm asking why can't South Carolina be deregulated?

25 Or if it is already in process, I would like to

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1 know.

2 That's the end of my questions.

3 CHAIRMAN MITCHELL: Thank you, sir. Company,

4 any questions?

5 MS. SHAFFIK-HORTON: No.

6 CHAIRMAN MITCHELL: ORS, any questions?

7 MS. C. EDWARDS: No, Mr. Chairman.

8 CHAIRMAN MITCHELL: And questions from

9 Commissioners?

10 [No response]

11 We do have some people in the room, with ORS

12 -- if they'd like to raise their hands again --

13 that can at least answer your questions.

14 WITNESS: Okay.

15 CHAIRMAN MITCHELL: And I think one is in the

16 back, there.

17 WITNESS: Thank you.

18 CHAIRMAN MITCHELL: Yes, sir.

19 WITNESS: Okay.

20 CHAIRMAN MITCHELL: Thank you. Thank you for

21 being with us.

22 [WHEREUPON, the witness was excused.]

23 [Witness sworn]

24 <

25 <

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 178

1 THEREUPON came,

2 E F I A N W A N G A Z A ,

3 who, having been first duly sworn, testified as follows:.

4 WITNESS: My name is Efia Nwangaza. I'm a

5 senior citizen living on a sorely inadequate fixed

6 income, here in Greenville, South Carolina. I'm

7 also the director of the Malcolm X Center for Self-

8 Determination, an unfunded, voluntary, grassroots

9 community organization serving low-income

10 communities.

11 Any Duke Power increase will strain my already

12 insufficient personal budget, but, more

13 importantly, it will deter donations from and

14 undercut efforts by those attempting to practice

15 the oft-demanded personal responsibility --

16 personal responsibility efforts through grassroots-

17 funded institution building and community service.

18 Further, any rate increase drives up the cost

19 of maintenance of private- and public-funded

20 community spaces -- Greenville Tech

21 notwithstanding, which serves less than 15,000

22 students and corporations which displace workers

23 with machines and technology, and supports others

24 that carry jobs abroad.

25 Further, it is time that the Commission put

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 179

1 back "public" into Public Service Commission, and

2 that the burden of the Commission's repeated

3 awards, borne by and lived by the public, be set

4 aside, and that we be allowed to live with dignity

5 if not with comfort. As former First Lady Nancy

6 Reagan would say, it's time for the Commission to

7 just say no.

8 CHAIRMAN MITCHELL: Ma'am? Ma'am, ma'am, we

9 might have some questions.

10 [Applause from audience]

11 Company, any questions?

12 MS. SHAFFIK-HORTON: [Shaking head.]

13 CHAIRMAN MITCHELL: Any questions from ORS?

14 MS. C. EDWARDS: No, sir.

15 CHAIRMAN MITCHELL: Commissioners, any

16 questions?

17 [No response]

18 Thank you, ma'am, for being with us.

19 [Applause from audience]

20 [WHEREUPON, the witness was excused.]

21 CHAIRMAN MITCHELL: at this time, we're going

22 to take a 20-minute break for our court reporter

23 and others.

24 [WHEREUPON, a recess was taken from 7:42

25 to 7:58 p.m.]

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 180

1 CHAIRMAN MITCHELL: Let me ask you to --

2 please, let's resume.

3 MR. DONG: Okay. Are we all back from our

4 break? If you could take your seats. I'm going to

5 call the next three names. Jan Williams, Malcolm

6 Helms, and Len Guthrie.

7 [Witness sworn]

8 THEREUPON came,

9 J A N W I L L I A M S ,

10 who, having been first duly sworn, testified as follows:

11 WITNESS: I'm Jan Williams. 6 Crabapple

12 Court, Greenville, South Carolina 29605. And I'm a

13 retired engineer from Milliken & Company, so I kind

14 of always deal in facts.

15 So, since January 2008, I've had a 28 percent

16 increase in my billing -- so that you all know the

17 facts. Also, you know, I checked things out and

18 found out that, you know, Duke has given way like

19 $45 million to different groups, charities, and et

20 cetera, you know, during the year. And, you know,

21 it seems like, wow. So, checking some of the

22 things out, Upstate Forever, you know, they give

23 like $2,500 and, you know, it's on their list.

24 Now, why would you give money to Upstate Forever

25 when they're pushing for carbon tax and trade which

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1 is going to increase my taxes, your taxes. It

2 doesn't make sense to me.

3 And, of course, the GADC Board of Directors,

4 which is the Greenville Area Development Corp., you

5 know, got $10,000 from Duke. Wow, that's pretty

6 good stuff.

7 And then, you know, checking other things, you

8 know, just going online, this was in 2011:

9 Matching gifts, leadership grant, and foundation

10 grants. You know, that was only $16 million. Wow,

11 that adds up. Ought to be able to do something

12 with that.

13 And, then, you know, in March of 2013, the

14 Huffington Post showed $10 million of a loan

15 forgiven to the Democratic National Committee, and

16 also an in-kind donation of $1.5 million to their

17 convention. Wow, the Democrats really like them.

18 January 2013, $4.1 million was given to

19 Clemson for workforce development. Another person

20 mentioned that earlier. You know, twice as much as

21 Greenville Tech.

22 I'm paying taxes to support that stuff. Why

23 should I be paying Duke Power also to do that

24 stuff? It doesn't make sense to me, because, you

25 know, being a choice supplier by government,

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 182

1 monopoly -- anybody heard of "monopoly" before?

2 Yeah? -- you know, it should not be using money for

3 these kind of purposes. And so, our government

4 ought to say, "Hey, let's not do these things.

5 Let's not spend money wasting with those, because

6 you're trying to get some something," and I don't

7 know what that is. But, you know, businesses have

8 to work hard. There's no question about that. But

9 not only the money they're giving away, but, you

10 know, that doesn't include, probably, the

11 employees' money that they have to pay in medical

12 and all the other stuff that they have to pay for

13 those people doing those kind of things. That's a

14 lot of money.

15 So if there's any way that South Carolina

16 policy -- Service Commission can review that kind

17 of thing, then maybe make that as some sort of

18 thing, hey, $45 million? You know, that might help

19 reduce rates.

20 VOICE: That's right.

21 [Applause from audience]

22 Thanks for letting me share that.

23 CHAIRMAN MITCHELL: Thank you, sir. Company,

24 any questions?

25 MS. SHAFFIK-HORTON: No, sir.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 183

1 CHAIRMAN MITCHELL: ORS?

2 MS. C. EDWARDS: No, Mr. Chairman.

3 CHAIRMAN MITCHELL: Commissioners.

4 Commissioner Whitfield.

5 COMMISSIONER WHITFIELD: Thank you, Mr.

6 Chairman.

7 EXAMINATION

8 BY COMMISSIONER WHITFIELD:

9 Q Mr. Williams, it's good to have you with us tonight.

10 Thank you for your testimony. One comment you made, you

11 mentioned your bill had gone up 28 percent since 2011.

12 Would you mind sharing what your bill is now with us?

13 Would you be willing to do that, what your current bill

14 is, or average?

15 A The form that I have here isn't the actual average on

16 those things, but it shows -- let me find that sheet

17 [indicating] -- that the kilowatt-hours on here --

18 let's see -- okay, the service as of 6/13, I paid for

19 the service only. That didn't include city fee and

20 stuff. $120.12.

21 Q And do you know what your average bill was in 2011?

22 A I don't have that on here, what that is -- you know,

23 what that happened to be at that time. They're all

24 individual numbers.

25 Q Okay. Would you like to leave that with the court

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 184

1 reporter, that information, and let it go into the

2 testimony, or --

3 A Sure. If you can use information from that, that's

4 fine.

5 COMMISSIONER WHITFIELD: You want to --

6 CHAIRMAN MITCHELL: Yeah, we'll do that. Yes,

7 sir, we'll put it as part of the record. That'll

8 be -- we'll list it --

9 WITNESS: And, you know, what you're asking

10 for, though, is where I have down Duke Energy fees,

11 for me, what I'm paying, right?

12 COMMISSIONER WHITFIELD: Yes, sir.

13 WITNESS: Okay.

14 CHAIRMAN MITCHELL: That will be listed as

15 Exhibit 3, and it will go in the file.

16 [WHEREUPON, Hearing Exhibit No. 3 was

17 marked and received in evidence.]

18 MS. C. EDWARDS: Mr. Chairman?

19 CHAIRMAN MITCHELL: Please.

20 MS. C. EDWARDS: Is there any confidential

21 information -- that is, consumer information --

22 that you want redacted from that?

23 BY COMMISSIONER WHITFIELD:

24 Q Your account number information, you want redacted?

25 A No, that -- no, I don't have any of that information on

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 185

1 there. You know, I just used a spreadsheet, put all the

2 information in there that I got off the bills, and just

3 kept it up.

4 Q Also, if I could, Mr. Williams, would you like to share

5 how your service has been the last couple of years with

6 Duke? Have you experienced any outages? How has your

7 service been?

8 A Overall, you know, Duke Power I think has been a good

9 company, okay? The only thing I've got a problem with

10 is spending all that extra money out there for different

11 things and then having to increase rates for people.

12 You know, like I said, to me, that's a fact that

13 probably doesn't need to be done, especially since they

14 are a monopoly. If they were an independent company and

15 not a monopoly, then I wouldn't, you know, make a

16 comment like that, because that's their total choice.

17 COMMISSIONER WHITFIELD: Yes, sir. Thank you

18 sir. Thank you, Mr. Chairman.

19 CHAIRMAN MITCHELL: Thank you. Any other

20 questions?

21 [No response]

22 Thank you, sir, for being with us.

23 [WHEREUPON, the witness was excused.]

24 CHAIRMAN MITCHELL: Next?

25 MS. C. EDWARDS: Mr. Chairman, I apologize.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 186

1 Just for clarification, what hearing exhibit was

2 that?

3 CHAIRMAN MITCHELL: That was Hearing Exhibit

4 3.

5 MS. C. EDWARDS: Thank you.

6 MR. DONG: Malcolm Helms?

7 [No response]

8 Len Guthrie? And John Bakerfer[sic]

9 [Witness sworn]

10 THEREUPON came,

11 L E N G U T H R I E ,

12 who, having been first duly sworn, testified as follows:

13 WITNESS: My name is Len Guthrie. I live at 2

14 Webb Street, Greenville, South Carolina 29605.

15 I live in the Dunning community, which is the

16 old Dunning Mill. We just turned 100 years old.

17 But my problem, you know, just two years ago, and

18 guess what, we're right back here again with the

19 same scandal of Duke Power wanting more and more

20 and more.

21 You know, they provide our services. We ain't

22 got a choice; we've got to pay that bill. And they

23 never take into account for these people that can't

24 afford to pay power bills. You know, like during

25 the summertime, children are out of school. No

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 187

1 food, because they can't get it from school, so

2 their mom and dad can't get it in the community

3 because of the power bill.

4 Duke will not work with you on a power bill.

5 They're just like corporate greed. They don't give

6 you any opportunities. They tell you, "Go down to

7 SHARE." Go stand in line at SHARE with the other

8 couple of hundred people to try to get a power bill

9 paid.

10 So, you know, it's time to get real with Duke

11 Power and say, "No, you're not getting any more."

12 Today we came in the parking lot, pulled up

13 beside one of the Duke Power vehicles, and guess

14 what? Loaded out with a CD player, leather, fully

15 equipped, nice truck. They don't need nice

16 equipment like that. Let them do the way we have

17 to do -- drive old vehicles to get back and forth.

18 We have two vehicles in my family. One of them

19 almost 200,000 miles, the other one 160,000 miles.

20 We can't afford to go get a new vehicle because of

21 Duke Power, every time you turn around, y'all are

22 giving them more money. It's time to stop Duke

23 Power.

24 VOICE: Amen.

25 WITNESS: And I have a question -- and I hope

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 188

1 someone could answer this question. Last year, did

2 Duke Power give $10 million to the Democratic

3 Committee to go up to Charlotte, North Carolina?

4 VOICE: Yes.

5 VOICE: It was on the radio today.

6 WITNESS: I mean, get real now, people. What

7 in the world are y'all doing by giving Duke Power

8 more and more and more? Duke Power don't care

9 nothing about their customers except all they want

10 is more and more and more.

11 How many of their executives could they cut

12 out, and save that much money? I'm glad they give

13 money to Greenville Tech for the young people. Us

14 disabled vets, do we have any benefits? No,

15 because we're getting too old, according to

16 Greenville Tech. So why don't Duke Power give some

17 money to the food pantries, to the harvest section,

18 to help people that don't have food, that's living

19 on the streets, instead of y'all giving them more

20 money? It's time to rein Duke Power in and tell

21 them, "No more money." No more. No more. They've

22 had enough.

23 And thank you for letting me speak, and thank

24 y'all for coming to Greenville, and --

25 [3-minute alarm]

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 189

1 -- I welcome you all.

2 CHAIRMAN MITCHELL: Thank you, sir. Wait --

3 wait a moment. Company, any questions?

4 MS. SHAFFIK-HORTON: No.

5 CHAIRMAN MITCHELL: Any questions of ORS?

6 MS. C. EDWARDS: No. Thank you, Mr. Guthrie,

7 for speaking. And I know that you had already been

8 in contact with Allyn Powell in the back.

9 WITNESS: Yes.

10 MS. C. EDWARDS: Appreciate it.

11 WITNESS: Thank you, very much.

12 CHAIRMAN MITCHELL: And are there any

13 questions from Commissioners?

14 [No response]

15 And I believe the company also has people

16 here. Raise your hands again, the ones that can --

17 so if you have any questions, you know, you can

18 feel free to ask these individuals. Thank you for

19 being with us.

20 WITNESS: Thank you.

21 CHAIRMAN MITCHELL: Yes, sir.

22 [Applause from audience]

23 [WHEREUPON, the witness was excused.]

24 [Witness sworn]

25 <

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 190

1 THEREUPON came,

2 J O H N U N K E F E R ,

3 who, having been first duly sworn, testified as follows:

4 WITNESS: My name is John Unkefer. 300

5 Redspire Drive, Greenville, 29617.

6 I'll probably run a little over the three

7 minutes, because what I've got tonight is financial

8 information regarding using their 10K, the

9 financial annual report for 2012. What I would

10 like to call Duke Energy Carolinas is the cash cow

11 of Duke Energy. Let me explain what I mean by

12 that.

13 Just so people are aware, Duke Energy spent

14 $2.1 billion this year to pay their dividends to

15 their stockholders. At the beginning of the year,

16 they had $2.3 billion in cash because of the

17 purchase or the merger of Progress Energy. They

18 got to spend about $700 million just on the fees

19 and the costs of getting that merger done. By the

20 end of the year, they ended up with $1.8 billion

21 left in their coffers. The good news, or the bad

22 news about that is $1.1 million -- or, billion of

23 that 1.8 is overseas or foreign money that is not

24 here in the United States. So what that means is

25 that Duke Energy only has $700 million left in

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 191

1 their cash account here in the United States.

2 With the merger with Progress, their debt went

3 from $20 billion up to $39 billion, which means

4 they more than doubled what their yearly interest

5 payments and current short-term debt payments will

6 be. They definitely need more cash. The problem

7 is they keep coming back to both Carolinas to get

8 the cash.

9 Energy Carolinas serves 2.4 million of the 7.2

10 million Duke electric retail customers, or 33

11 percent of their total customer base, but it

12 represents about 43 percent of the regulated

13 electric revenues, even though we only have 33

14 percent of the customers.

15 The problem, as I see it, after going through

16 their 10K and their financials, is that the

17 operating costs in the other Duke operations are

18 significantly, significantly higher than those of

19 Energy Carolina. Duke Energy Carolina represents

20 34 percent of Duke Energy total consolidated

21 revenue from 2012, but generated 49 percent of its

22 net income. It also generated about 41 percent of

23 the company's cash flow from operations.

24 Progress Energy, that they just bought,

25 actually had revenues of $2.7 billion more --

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 192

1 [3-minute alarm]

2 -- than Duke Carolina, but their revenues --

3 or, their income was $468 million less than what

4 Duke Carolinas' were. Duke Carolina was $868

5 million where Progress was only $400 million. And

6 the reason for that is, when you get to the

7 financials and you look at it, their operating

8 expenses, as a percentage of their operating

9 revenue, is 10 percent higher than the Duke

10 Carolinas. Duke Carolinas' percentage of operating

11 expenses to operating revenue has been consistent

12 over the last three years at 77 percent. The

13 consolidated Duke overall is at 84 percent in 2012,

14 81 percent in '11, and 84 percent in '10.

15 Progress' consolidated last year, 2012, is 88

16 percent compared to the 77 percent of Duke Energy.

17 If they would have had their costs down at the 77

18 percent, like Duke Carolinas, they would have

19 generated another $825 million in cash.

20 The net income as a percent of operating

21 revenue, Duke Carolinas has consistently over the

22 last three years been at 13 percent net income --

23 that's after taxes, net income -- as a percent of

24 their revenues. Consolidated, Duke Energy is 9

25 percent for 2012, 12 percent for '11, and 9 percent

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 193

1 for '10. Progress' consolidated was 4.2 percent in

2 2012, 6.4 percent in '11, and 8.4 percent in 2010.

3 Cash flows for Duke Carolina have been

4 consistent -- right around $2 billion a year in

5 cash flow, even though their revenue is $3 billion

6 less than Progress. Progress' consolidated cash

7 revenue was only $1.8 billion last year, 1.6 the

8 year before, and in 2010, $2.5 billion.

9 Duke says they need the increase due to

10 capital expenditures' increases, but in reviewing

11 their 10K, capital spending has been pretty

12 constant over the last five years -- both

13 consolidated and Duke Energy Carolina. Capital

14 expenditures for Duke Carolina going backwards from

15 2012 and going back: $1.9 billion, $2.2 billion,

16 $2.2 billion, $2.2 billion, and in 2008, $2.4

17 billion. Total consolidated was $5.5 in 2012, but

18 that included six months' worth of capital spending

19 for Progress that they had just bought. Year

20 before that, 4.4, then 4.8, 4.3, 4.4. Also in

21 their 10K it states that their planned expenditures

22 for next year, or for the next few years is,

23 overall, $5.3 billion -- now this is for regulated

24 electric, not their total. It's $5.3 billion that

25 now includes Progress. 2014, $5 billion; 2015,

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 194

1 5.4.

2 So with them saying that they're having all of

3 these extended or additional expenditures, half of

4 it doesn't show up in either what they've spent in

5 the past or what they say they're going to spend in

6 the next three years. So I don't see how they can

7 say that they need more money from the Carolinas.

8 We are the cash cow because -- just another example

9 is that Duke Indiana, this year, actually had a

10 loss. So you can guess how much they generated for

11 cash flow for Duke Energy. Both Ohio and Florida,

12 instead of the 13 percent that the Carolinas' net

13 income was, was about 5 percent.

14 So what happens and what Duke is doing is,

15 because the Carolinas are their cash cow and they

16 have been for years, they keep coming back to you

17 and to North Carolina, asking for these increases,

18 because they can't get increases from the other

19 states or the other businesses.

20 It's time to say enough is enough. The

21 customers of Duke Energy of the Carolinas have paid

22 their fair share and more than their fair share,

23 just by their own numbers and their own 10K. Tell

24 them, "No more from the Carolinas. Go to the other

25 businesses that you operate. Get their operating

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 195

1 expenses down where they're supposed to be -- at 77

2 percent, not 88 percent -- and ask the other states

3 to get their rates up to where ours are, and then

4 we'll be willing to speak and talk about the rate

5 for the Carolinas."

6 Thank you, very much.

7 CHAIRMAN MITCHELL: Thank you, sir.

8 [Applause from audience]

9 Any questions?

10 MS. SHAFFIK-HORTON: No, sir.

11 MS. C. EDWARDS: No questions.

12 CHAIRMAN MITCHELL: Any questions,

13 Commissioners? Commissioner Fleming.

14 EXAMINATION

15 BY COMMISSIONER FLEMING:

16 Q You threw out a lot of numbers there. And I really

17 appreciate your effort in doing that?

18 A It took me two days' worth of accumulating and going

19 through their 10Ks to do it.

20 Q Only two days. That's impressive. I just wanted to ask

21 you, just an observation. On the operating expenses --

22 A Yes.

23 Q -- the difference between Duke and Progress Energy? If

24 the merger -- if the merger entails bringing down those

25 operating expenses to get in line with what Duke's has

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 196

1 been, what will that mean -- in your viewpoint -- for

2 the future of Duke Energy Carolinas?

3 A From what their 10K says, over the next five years

4 they're only going to generate $687 million worth of

5 savings, which comes out to about $137 million dollars a

6 year in cost savings, which is peanuts to when you're

7 talking that if Progress would get their operating costs

8 down 10 percent to be equivalent to what's going on in

9 the Duke Carolinas numbers, could generate $825 million

10 just by correcting their costs in just that one profit

11 center.

12 Q You're saying if they got to the same level of

13 efficiency with their operating expenses, they could

14 generate over $800 million in savings?

15 A In one year.

16 Q In one year?

17 A In one year.

18 Q Okay.

19 A And like I said, Indiana lost money. So -- and I could

20 not find anything in their 10K that they have any rate

21 change going on in Indiana, but yet they have one going

22 on in North Carolina, they have one going on in South

23 Carolina, and there are still two going back and forth

24 between North and South Carolina that haven't been

25 finalized yet. But yet I could not find anything for

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 197

1 Indiana utilities. In Ohio, I think, they just got a

2 small one, and they only generated 5 percent profit. I

3 think they got 4½ percent last year, their first one in

4 a long time. Progress, from the North Carolina side of

5 Progress, they got one approved for 4.5 percent, even

6 though, again, they're only making a 4 percent profit.

7 And they come to us for the Duke Carolinas side and want

8 16 percent from residents and overall 15, and they just

9 got one on the Progress side -- that is now owned by

10 Duke -- and only got 4½ percent.

11 So it's very questionable that they keep coming

12 back to the cash cows who evidently keep saying yes to

13 them, versus us saying, "No, go to your other -- go to

14 Florida, go to Ohio, go to Indiana. And (A) get your

15 operating costs down, but (B) ask their places for rate

16 increases and quit taking it out of the two states,

17 North and South Carolina."

18 And just as a reminder, we got this notice

19 [indicating] that we're saving 6.46 cents for one year,

20 because of the lower fuel cost. That expires September

21 30th of this year. So that 6.46 is going to come back

22 onto our utility bill as of October 1st. So they're

23 already going to get another increase from us, even if

24 we don't do anything else. Not that it's a lot, but

25 it's still something.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 198

1 Any other questions?

2 [Applause from audience]

3 CHAIRMAN MITCHELL: Commissioners, any other

4 questions?

5 WITNESS: If you want my copies --

6 CHAIRMAN MITCHELL: Yes, sir, we'll take that

7 into the record.

8 WITNESS: On the 10K stuff there, I've

9 highlighted quite a bit of it.

10 CHAIRMAN MITCHELL: If you'd like to put that

11 in the record, we certainly will. That'll be

12 Exhibit 4.

13 [WHEREUPON, Hearing Exhibit No. 4 was

14 marked and received in evidence.]

15 And Commissioner Whitfield has a question.

16 WITNESS: Thank you, very much.

17 CHAIRMAN MITCHELL: Yes, sir -- would you

18 wait? We have another question.

19 WITNESS: Oh, I'm sorry. Thank you.

20 EXAMINATION

21 BY COMMISSIONER WHITFIELD:

22 Q Yes, sir, Mr. Unkefer, the figure you quoted to

23 Commissioner Fleming in getting the expenses down, or

24 the figure you quoted to her, was that 800-and-

25 something?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 199

1 A $825 million.

2 Q And that's in your estimation, and that's not counting

3 the $687 million from the savings in the joint dispatch

4 agreement and the fuel -- combined fuel-purchasing on

5 the JDA?

6 A No. All I did was take the 2012 revenue that they had

7 at Progress and calculated it back that, instead of the

8 4 percent, if they would have reduced the cost by 10

9 percent, how much more would have flowed down to the net

10 income line, and that came out to $825 million.

11 COMMISSIONER WHITFIELD: All right, sir.

12 Thank you. Thank you, Mr. Chairman.

13 CHAIRMAN MITCHELL: Thank you.

14 WITNESS: Thank you, very much.

15 CHAIRMAN MITCHELL: Thank you for being with

16 us. Yes, sir. Thank you.

17 Next?

18 MR. DONG: David Hayes, Sylvia Alexado[sic]

19 , and Pat Taylor?

20 [Witness sworn]

21 THEREUPON came,

22 D A V I D H A Y E S ,

23 who, having been first duly sworn, testified as follows:

24 WITNESS: My name is David Hayes. I live at

25 506 Old Liberty Road in Easley.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 200

1 And I come to you guys with a little bit of a

2 different bend today. I've owned and operated

3 businesses in the past 25 to 30 years, 10 to 15

4 people. We're the guys that are the job creators.

5 Let me tell you, that's a tough environment right

6 now.

7 Any small increase in expenses means, one,

8 your business may or may not survive. And I know a

9 lot that have. People that you will lay off that

10 have families -- I had people that had worked for

11 me for 15 years I had to let go. And that was

12 after I took the complete and total cut to my

13 paycheck. And what we don't hear about this is the

14 increase in the rates for business. Where's that

15 going to go? That's going to get passed along.

16 It's going to end up on the consumer. So it's not

17 16 percent you're talking about; it's 30 percent.

18 Because business cannot afford to eat it -- if it

19 doesn't drive them out of business altogether.

20 The other thing you hate as a businessman is

21 uncertainty. I mean, here we are 15 percent one

22 year, 16 percent the other, and a business flat-out

23 cannot function without electricity.

24 I understand Duke Power is a business. You

25 need to make money. But part of the price you pay

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 201

1 for being a monopoly is a lower return because of

2 the lower risk. I can't go and vote with my feet

3 somewhere else and buy electricity, because you're

4 the only game in town.

5 The other thing that concerns me is I see a

6 lot of waste. We've talked about some of the stuff

7 Duke Power has done. Greenville Tech's a wonderful

8 organization. I graduated from Clemson University.

9 But why should they tax my 81-year-old mother to

10 give money to these good organizations -- and, by

11 the way, the fact that no one's mentioned, too, is

12 they get the tax break instead of the people that

13 they're taking it from who have to have this

14 electricity to survive.

15 We've heard about a lot of things. We haven't

16 mentioned Progress Energy's CEO, who will get $44

17 million if he doesn't talk badly about Duke Power

18 in the next three years. They laid him off the

19 first day, despite the fact he was supposed to take

20 over the company.

21 We've heard many, many figures of money that

22 could be cut back if Duke were in financial

23 straits, which they are not; their shareholders

24 have done very well. And by that token, being who

25 they are in this day and age, raising the

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 202

1 percentage that their shareholders can take home is

2 absolutely criminal. But what you end up with is

3 people without jobs, money that does not get spent

4 in this community -- and for every dollar spent it

5 creates ten more.

6 So instead of sending it to Duke Power, who

7 obviously has other things to do with it -- that's

8 people that don't buy groceries, cars, or boats.

9 And I think that's gotten way, way understated,

10 because it's a tough business environment now; it

11 has been four or five years. I think we need the

12 money a lot more than they do. Thank you.

13 CHAIRMAN MITCHELL: Thank you, sir.

14 [Applause from audience]

15 Does the company have questions?

16 MS. SHAFFIK-HORTON: [Shaking head.]

17 CHAIRMAN MITCHELL: Any questions from ORS?

18 MS. C. EDWARDS: No, Mr. Chairman.

19 CHAIRMAN MITCHELL: Any questions from

20 Commissioners?

21 [No response]

22 Sir, could you wait one moment?

23 EXAMINATION

24 BY CHAIRMAN MITCHELL:

25 Q Could you just tell me -- I mean, you mentioned about

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 203

1 the increases. Could you just give me a summarization

2 maybe of your bill as a small businessman, and how it's

3 changed over the last three years?

4 A My bill -- I was in business -- actually, my business is

5 closed. I was in business for 17 years in my last

6 business. I had a boat dealership. My initial -- after

7 a substantial deposit they made me put down, at first --

8 that's fine; I understand -- I would say that my

9 electrical bill quadrupled in the 17 years I was there.

10 There were one or two times -- I was in a luxury

11 seasonal business. There were one or two times that I

12 got behind a month. No more than, say. And I will

13 promise you, those 800 numbers for Duke Power are

14 neither courteous nor helpful. Their only -- and I

15 talked to them time and time and time again, and it's,

16 "Pay us in full, with the penalty, or we will cut you

17 off." I don't remember exact times and dates, but I

18 will put my hand back on that Bible and tell you that.

19 Q But you feel -- so you went out of business, when, a

20 year or two ago?

21 A About two years ago.

22 Q I was just looking at your -- maybe your last three

23 years in business, did you see sizable increases there

24 in the last --

25 A They were -- they weren't enormous but, yeah, they were

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 204

1 enough. In the economic climate that we're in today, 1

2 or 2 percent is the difference between life and death

3 for a small business. You know, we don't have

4 multimillion lines of credit. My house -- the mortgage

5 on my house -- a second mortgage was how I paid for my

6 business, and that's how most small businessmen do. It

7 doesn't take 10 or 15 percent. And this is going to

8 hurt.

9 CHAIRMAN MITCHELL: Yes, sir. Any other

10 questions?

11 [No response]

12 Thank you so much for being with us.

13 WITNESS: Thank you.

14 [Applause from audience]

15 [Witness sworn]

16 THEREUPON came,

17 S Y L V I A M E R C A D O ,

18 who, having been first duly sworn, testified as follows:

19 WITNESS: Good afternoon, and thank you very

20 much for coming, and thank you very much for

21 listening. I am Sylvia Mercado. I reside at 8

22 Camelot Lane, Greenville, South Carolina 29611.

23 And number one, I'd like to speak on the

24 attitudes of the people that work in the Customer

25 Service Department for Duke Energy. Number one,

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 205

1 they are hateful, they are arrogant, and they're

2 very nasty with the customers when you call them

3 and you try to explain the problems that you have.

4 Last year I had a medical emergency, and I

5 called Duke Energy and tried to speak with somebody

6 about what was happening. I had to be hospitalized

7 because I had bleeding on the inside, so I had to

8 have emergency surgery. So on the day before I

9 went in for my surgery, I called to talk to someone

10 at Duke Energy, and the lady was so hateful and so

11 nasty. She going to give me "x" amount of days to

12 get my bill paid -- and how can I get a bill paid

13 when I'm going to be in the hospital? I mean, how

14 would you feel if somebody treated your family that

15 way? You know what I'm saying? I'm not an animal;

16 I'm a human being. I have feelings, just like

17 everybody else. I have to eat, and I need clothes.

18 I need food. I have to have nine different

19 medications. That's not an excuse; it's a fact. I

20 mean, you put yourself in other people's position

21 and see how you feel if somebody treats you that

22 way. This lady give me approximately two days to

23 have my power bill paid, or else I would be

24 disconnected.

25 And then another thing I want to understand is

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 206

1 why is it that during the months between September

2 and December through January, why does your bill go

3 up so much? One bill for one month, $224. That's

4 two people's bill, okay? I don't live in

5 Chanticleer. I don't live in a mansion. I have a

6 four-room house. I shouldn't have to pay that kind

7 of bill. That's unfair to anybody.

8 I am a single woman. I'm raising two

9 grandchildren. Nobody works, in my home, but me.

10 I have to feed them kids, clothe them, and

11 everything else.

12 Now I appreciate y'all listening and it makes

13 me feel much better to get some of this stuff off

14 my chest.

15 And one more thing: I am tired of paying for

16 these people's Mercedes-Benz and their holiday

17 homes, when I can't even half buy food to go in my

18 refrigerator. Enough is enough, simple as that.

19 And thank you for listening.

20 CHAIRMAN MITCHELL: Yes, ma'am. Thank you.

21 [Applause from audience]

22 Questions from the company?

23 MS. SHAFFIK-HORTON: No questions.

24 CHAIRMAN MITCHELL: ORS?

25 MS. C. EDWARDS: Yes, just one question, Mr.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 207

1 Chairman.

2 CROSS EXAMINATION

3 BY MS. C. EDWARDS:

4 Q When did you call Duke Energy about the extension for

5 the two days?

6 A This was in March of last year, because I had my surgery

7 March 23rd.

8 Q If you don't mind, would you mind talking to Mr. Kirby?

9 A I most certainly will.

10 Q Okay, thank you. He's in our Consumer Services

11 Department, with ORS?

12 A All right. Thank you, very much.

13 CHAIRMAN MITCHELL: Mr. Kirby, would you hold

14 your hand up?

15 MR. KIRBY: [Indicating.]

16 CHAIRMAN MITCHELL: Ma'am, let's see if we

17 have any -- Commissioners, any questions?

18 [No response]

19 Mr. Kirby is there. Thank you. Thank you for

20 being with us.

21 WITNESS: Thank you for listening.

22 CHAIRMAN MITCHELL: Yes, ma'am.

23 [Witness sworn]

24 <

25 <

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 208

1 THEREUPON came,

2 P A T R I C I A T A Y L O R ,

3 who, having been first duly sworn, testified as follows:

4 WITNESS: My name is Patricia Taylor. I live

5 at 311 Poplar Lane, Mauldin, South Carolina 29662.

6 A lot of what I'm going to say has already

7 been said. Today I heard on the radio about the

8 $92 million or -- not $92 million. $10 million

9 that was given to the Democrats for their

10 convention. And then over the weekend there was

11 something in the news about $57 million that Duke

12 Power had given, and it's given to different ones,

13 such as Furman university, South Carolina

14 University, Greenville Health System. Just

15 different big ones. And I'm at the point I'm just

16 like some of these other people; I feel like if I

17 have to budget, then Duke Power ought to be able to

18 have somebody in their business to be able to take

19 care of their financial situation so that they --

20 if they're going to give money -- I'm not against

21 them giving money to people. I want them to be

22 able to give their money in the right manner so

23 that we don't have to pay that extra, whenever

24 they've already spent their money and then we've

25 got to go fill their basket again once they've

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 209

1 filled it up.

2 Also, I'm with the black lady there that was

3 talking, and she was talking about Christmas. I've

4 always noticed that, from -- December and January

5 is always the biggest bill. And I always attribute

6 it to the Christmas trees, but my husband -- and

7 I'm telling you the truth -- we're getting to the

8 age that we can't decorate and do all the things

9 that we used to do. And we still get a bill like

10 that in December. December and -- it doesn't

11 matter. They're going to charge you that, just

12 because it's Christmas. And that's the very time

13 when you need your money is those months. You

14 really don't have it after you've spent so much

15 money for Christmas.

16 But I really think it's time for Duke to start

17 -- for Duke Power to start checking their money and

18 getting them somebody in their financial position

19 -- they probably have so many people, they've got

20 too many. They're getting like a government. You

21 know, everybody's falling over each other, there's

22 so many. They probably need to cut down on people

23 and get them a new financial person. They'd know

24 how to spend -- somebody who would know how to

25 spend their money. Thank you.

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1 CHAIRMAN MITCHELL: Yes, ma'am. Company, do

2 you have any? Duke Power?

3 MS. SHAFFIK-HORTON: No questions.

4 CHAIRMAN MITCHELL: ORS?

5 MS. C. EDWARDS: No, Mr. Chairman.

6 CHAIRMAN MITCHELL: Commissioners?

7 [No response]

8 Thank you, ma'am, so much for being with us.

9 [Applause from audience]

10 [WHEREUPON, the witness was excused.]

11 MR. DONG: Edward Robinson, Mignon Davis, and

12 Jaye Massey? Nancy Harverson[sic] Irene Campbell and

13 Hal Johnson?

14 [Witness sworn]

15 THEREUPON came,

16 N A N C Y H A L V E R S O N ,

17 who, having been first duly sworn, testified as follows:

18 WITNESS: My name is Nancy Halverson. I live

19 at 7 Bridgeton Court, Greenville, 29615.

20 I'm here today because I'm the president and

21 CEO of the Children's Museum of the Upstate, and I

22 want to take a minute and talk about some of the

23 great things that Duke Energy has done for our

24 community. They continue to be a good partner

25 here.

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1 In the last few weeks, we have been able to

2 have summer camp at the Children's Museum, and they

3 have been made available to children free of charge

4 because of Duke Energy. I also just spent the last

5 week at [name indiscernible], again, leading a summer camp

6 for children who wouldn't have that opportunity

7 otherwise.

8 We've talked a lot with Duke Energy about

9 their mission statement, and I do believe that they

10 are putting people and education at the forefront

11 of their philanthropic activity. We are grateful

12 for the support they've given us, for the way that

13 they've helped us to engage teachers so that we can

14 educate the very youngest in our community.

15 There's 200,000 children and families that

16 come through the doors of the Children's Museum

17 every year. At the Children's Museum we do a lot

18 of programming around the ideas of science,

19 technology, engineering, and mathematics. Duke

20 Energy believes in those topics and they are

21 helping us to educate our children. And for that

22 we are grateful. Thank you for your time.

23 CHAIRMAN MITCHELL: Thank you, ma'am. Duke?

24 MS. SHAFFIK-HORTON: No questions.

25 CHAIRMAN MITCHELL: ORS?

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1 MS. C. EDWARDS: No.

2 CHAIRMAN MITCHELL: Ma'am? Ma'am.

3 Commissioners?

4 [No response]

5 Thank you very much for being with us.

6 WITNESS: Thank you.

7 [WHEREUPON, the witness was excused.]

8 MR. DONG: Are you Mr. Johnson?

9 MR. JOHNSON: Yes, I am.

10 MR. DONG: Okay, great. Before we start,

11 Essie Logan and Richard Bennett?

12 CHAIRMAN MITCHELL: Are they present?

13 VOICE: I'm present, but I think -- I just put

14 my name down because --

15 MR. DONG: Okay.

16 CHAIRMAN MITCHELL: Yes, sir.

17 MR. DONG: Go ahead.

18 CHAIRMAN MITCHELL: Thank you.

19 [Witness sworn]

20 THEREUPON came,

21 H A L J O H N S O N ,

22 who, having been first duly sworn, testified as follows:

23 WITNESS: Hey, good evening.

24 CHAIRMAN MITCHELL: Good evening.

25 WITNESS: Thank you, on behalf of the Upstate,

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 213

1 for being here and traveling here, so our citizens

2 don't have to drive to Columbia to give their

3 voice.

4 My name is Hal Johnson. I live at 33

5 Southland Avenue, Greenville, South Carolina 29601.

6 I represent the Alliance.

7 Duke Energy has played a crucial role in the

8 success of the Upstate Region, in economic

9 development, and the Upstate Alliance for more than

10 a decade.

11 Since 2007, the Upstate Region and Duke

12 Energy's territory has experienced more than $7

13 billion in capital investment of new companies

14 locating their facilities here and creating more

15 than 15,000 new jobs. This is more than any other

16 region in our state. Duke Energy understands that

17 access to a high-quality workforce is the number-

18 one deciding factor cited by most projects looking

19 to relocate or expand in the Upstate. Duke's

20 support of workforce development and other critical

21 components of economic development have been

22 invaluable. The Alliance's ongoing partnership

23 with Duke Energy and other regional organizations

24 is key to giving this region a competitive edge for

25 continued success in economic development.

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1 When a company is deciding where to locate or

2 to expand, one of the first things they look at is

3 electricity, both cost and reliability. Because of

4 their competitive rates and their proven track

5 record of keeping lights on, Duke Energy provides a

6 climate that fosters economic development and

7 continued growth in communities they serve.

8 An example of this is the Upstate Region was

9 named in the top ten of all economic development

10 organizations in the country just this past year,

11 by Site Selection Magazine.

12 If this rate does increase and is approved,

13 Duke Energy's electric rates will still be below

14 the national average and among the lowest in the

15 Southeast.

16 You know, I've just gotten back from China.

17 And we recruit companies from all over the world.

18 And one of the things that we learned with the

19 companies that we're recruiting is the rates for

20 electricity in China are so much more expensive

21 there than they are here. In addition, we are

22 blessed, because our power doesn't go out. The

23 fact is that it's 24/7/365, and for the most part

24 it's the cleanest energy of anywhere. I can tell

25 you that those companies want to come here and

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1 employ our citizens. I've just gotten back from

2 talking to more than 30 companies, and all 30 of

3 those companies are interested in the fact that our

4 electric rates are more than half of what theirs

5 are.

6 Thank you, very much, for your time.

7 CHAIRMAN MITCHELL: Thank you, sir.

8 Duke Power?

9 MS. SHAFFIK-HORTON: [Shaking head.]

10 CHAIRMAN MITCHELL: ORS?

11 MS. C. EDWARDS: No, Mr. Chairman.

12 CHAIRMAN MITCHELL: Commissioners?

13 COMMISSIONER WHITFIELD: Mr. Chairman?

14 CHAIRMAN MITCHELL: Commissioner Whitfield.

15 COMMISSIONER WHITFIELD: Mr. Chairman, thank

16 you.

17 EXAMINATION

18 BY COMMISSIONER WHITFIELD:

19 Q Mr. Johnson, thank you for your testimony. Earlier this

20 evening, we had a Mr. Haskew, I believe, from the

21 Greenville Chamber, and I didn't take an opportunity to

22 ask him, but we've heard from some other communities

23 here in the Upstate that are still struggling, and I

24 guess my question to you is are you seeing the rebound,

25 with your economic development efforts? I know jobs are

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1 still hard to come by. And could you share any

2 information as to where you think the economy is and

3 where it's going right now in the Upstate?

4 A Yes, sir. You know, the economy is still suffering, and

5 it's suffering everywhere. But I would say that the

6 Upstate is coming out of what we saw as a huge job loss,

7 more created by automation than from global affairs.

8 The fact is, companies have to stay profitable and they

9 have created new equipment to make them more successful

10 and more competitive. But the fact is that the Upstate

11 has concentrated on its effort in workforce development

12 and has partners like Duke Energy that help us in the

13 economic development efforts. And because of those

14 partnerships, we've been able to recruit and retain --

15 most importantly, retain -- companies from going

16 elsewhere.

17 So I would say that, from the manufacturing

18 standpoint and the corporate standpoint, we've certainly

19 seen a great increase. We have a lot of work to do in

20 the entrepreneurial sector and growing our own

21 businesses here. The great thing is that we have

22 segments of economic development done -- where the

23 Chamber focuses on the growing of businesses, we're

24 focused on the improvement and the retention of

25 businesses.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 217

1 COMMISSIONER WHITFIELD: Thank you, sir.

2 EXAMINATION

3 BY CHAIRMAN MITCHELL:

4 Q And as a follow-up, would you say, the last three years,

5 you're seeing a steady increase, as far as the

6 development of new industries?

7 A Yes, sir, I would -- in 2012, the Upstate had a record

8 year of new companies coming in. On the average, we

9 typically have between 46 and 70 companies announcing

10 projects in the region. Of that, about 50 percent of

11 those are existing companies expanding. So we've seen

12 both new companies coming in and more companies

13 expanding, and that's a good thing.

14 Q And how does the Upstate compare with the state as a

15 whole, as far as the comparison on the growth of the

16 last three years?

17 A In a comparison, all but the year that Boeing was

18 announced, we are typically anywhere between 35 and 50

19 percent of the state's total activity in capital

20 investment and job creation.

21 CHAIRMAN MITCHELL: Thank you, very much. Any

22 other -- Commissioner Fleming.

23 EXAMINATION

24 BY COMMISSIONER FLEMING:

25 Q You may not know the answer to this, but I'm just

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1 curious. We've heard people speak about deregulated

2 utilities as compared to regulated, like we have in our

3 state.

4 A Yes, ma'am.

5 Q And you talked about the difference -- that our rates

6 are so much lower than most of the country.

7 A Yes, ma'am.

8 Q Do you know how the rates of those who live in

9 deregulated states compare to our state?

10 A No, ma'am. When we do a comparison of rates, we take a

11 look at rates overall. And we take a look at,

12 typically, in the investment area in which we are

13 focused on, and that's industry rates. So we take a

14 look at those overall rates and compare them state by

15 state, no matter if they're regulated or deregulated; we

16 just look at what the rate number is.

17 And then, when we compare it on a local basis,

18 we're comparing that between our state, and mainly our

19 region, and other countries in which we're trying to

20 recruit those companies into.

21 Q Okay, thank you.

22 A Yes, ma'am.

23 EXAMINATION

24 BY CHAIRMAN MITCHELL:

25 Q One other question. Would you tell us how the

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1 Southeast, now -- the southeastern part of the United

2 States -- is related to the other sections of the

3 country, as far as growth?

4 A Yes, sir. As far as growth is concerned, the corridor

5 in what we call the Piedmont Atlantic Megaregion -- or

6 some people call it Charlanta -- is the fastest growing

7 region inside the US. So even in comparison to regions

8 such as New York and New Jersey, Chicago and Detroit,

9 which are really seeing a decline in their population,

10 we are seeing a tremendous amount of growth. Most of

11 our counties in the Upstate have seen double-digit

12 growth in population. So that means we have to work

13 extra-hard in attracting new jobs to fill not only the

14 jobs for the people that are here, but for those that

15 are moving in.

16 Q Thank you so much.

17 A Yes, sir.

18 Q Thank you, very much.

19 A Thank you.

20 Q Thank you for being here.

21 A Yes, sir.

22 [WHEREUPON, the witness was excused.]

23 CHAIRMAN MITCHELL: Next?

24 MR. DONG: Richard Bennett? J.M. Flemming,

25 Melvin Younts, Dennis Tully?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 220

1 [Witness sworn]

2 THEREUPON came,

3 J . M . F L E M M I N G ,

4 who, having been first duly sworn, testified as follows:

5 WITNESS: I'm J.M. Flemming. I live at 398

6 Oscar Street, in the City of Greenville.

7 Due to the lateness of the hour, I'm going to

8 turn in some petitions to you, and the others.

9 It's in writing. So that way, you'll have that,

10 and I'll make a statement as I'm standing here. I

11 want to thank you for being here, number one.

12 Thank you for taking time out to hear our concerns.

13 And one of my concerns is, in 2009, they asked for

14 a rate increase and got 5 percent. 2011, they

15 didn't ask, but 2012, they asked for another rate

16 increase and got 6 percent. And now they're asking

17 for a 16.3 percent rate increase. That is a total

18 of 27.3 percent -- 27.3 percent -- if they get

19 this.

20 Looking at the graphs from the government, in

21 the State of South Carolina there's no increase.

22 Looking at the seniors' pay, there are no

23 increases. Looking at the military pay, we're

24 facing no increase. But, yet, in five years, we

25 keep giving to Duke Energy whatever they ask.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 221

1 I'm a project manager for Brockwood Senior

2 Housing -- nothing but seniors. I have folk that

3 live there who are getting $12 a month, food

4 stamps. Twelve dollars [$12] a month, food stamps.

5 You are asking for an increase to give Duke Power

6 more money than they have money for food.

7 There's something wrong with this scenario.

8 There's something wrong with the picture.

9 And I'm concerned. We write for grants from

10 Duke Power, then you start talking about giving $45

11 million away someplace else. We can't even get $1

12 in our neighborhood. Maybe I'm living on the wrong

13 side of town or I'm writing the wrong grant, or

14 maybe I'm writing to the wrong company. But

15 there's something wrong when everybody else can

16 get, but on the southern side in the poor black

17 community, when we write for it, we can't get a

18 penny.

19 And I'm saying to you -- these petitions are

20 signed "No to Duke Energy." I'm saying no to Duke

21 Energy. Thank you.

22 CHAIRMAN MITCHELL: Sir, you'd like that to be

23 included in the record?

24 WITNESS: Yes, sir.

25 CHAIRMAN MITCHELL: We'll list that as Exhibit

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 222

1 5 of this record.

2 Company, any questions?

3 MS. SHAFFIK-HORTON: No, Mr. Chairman.

4 CHAIRMAN MITCHELL: ORS?

5 MS. C. EDWARDS: No, sir.

6 CHAIRMAN MITCHELL: Commissioners?

7 [No response]

8 Thank you so much for being with us.

9 [Applause from audience]

10 [WHEREUPON, Hearing Exhibit No. 5 was

11 marked and received in evidence.]

12 [WHEREUPON, the witness was excused.]

13 [Witness sworn]

14 THEREUPON came,

15 D E N N I S J . T U L L Y ,

16 who, having been first duly sworn, testified as follows:

17 WITNESS: Dennis J. Tully. 132 Bellamere

18 Place, Piedmont, South Carolina 29673. Tulco,

19 Incorporated, 37-A Osage Drive, Greenville, South

20 Carolina 29605.

21 I'm going to talk a little bit different than

22 everybody else, I think, except one other person

23 who was a small businessman who is out of business.

24 I am not out of business. I moved my business here

25 from Georgia about six years ago. It's been very

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 223

1 good for me. I now own the industrial building

2 that I manufacture in. I own a nice home in

3 Piedmont -- I should say, the south part of the

4 county.

5 And I just got this thing from them, Home

6 Energy Report. Average home, $129 for electricity.

7 Efficient home, $96. My home? $255. And the

8 reason that is, I'm on heat pumps. Okay? And the

9 reason I'm on heat pumps is because I wouldn't have

10 a gas heater in my house if you paid me, and I

11 wouldn't have a gas water heater, because several

12 years ago they just about wiped out my family by

13 giving off the wrong kind of gasses.

14 Now, getting back to my business. Let's see,

15 in 2009, we started a recession -- at least that's

16 when it hit me. And we've lost business of about a

17 third, okay? It has a started to come back.

18 We're up to -- maybe we're still behind by about a

19 sixth of where we were in 2009.

20 Now, I don't know about Duke Energy. Of

21 course, I'm a very unusual individual. I'm also a

22 stockholder in Duke Energy, all right? And I

23 figured it was a very good investment. I figure if

24 they're going to keep getting increases, why

25 shouldn't I get a little back from them? Quite

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 224

1 frankly, if I have some kind of inclination that

2 you people are going to give them what they want,

3 or even half of it, I've got $35,000 sitting in

4 Fidelity that I will jump on Duke Energy and buy

5 more stock. But, I'm sorry, you can't -- I mean,

6 I've heard people talk here, you know, of poor

7 people and everything, and they're the ones that

8 get hurt. I'm not hurting financially, okay? I'm

9 a lot older than I look; I'm retired, at least --

10 [3-minute alarm]

11 -- as far as money goes, so -- I'm 75 years

12 old. And I've been running this business for 40

13 years. And, quite frankly, this has been the

14 roughest time I've ever had, except when I first

15 started the thing. All right? I've had no help

16 from anybody. I started it out and just built it.

17 And I'll tell you another thing. There was

18 another company called AT&T that was also like Duke

19 Power, had the power. And that's what -- when they

20 broke AT&T up, that's what gave me the ability to

21 build my nationwide distributorship, because my

22 long distance phone bill wasn't $300 a month.

23 Okay? So I quite think you should do what Georgia

24 did and what a few other states did, and put

25 yourselves out of a job. Okay? Because I

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 225

1 understand Georgia is doing pretty well.

2 Any questions?

3 CHAIRMAN MITCHELL: Any questions of the

4 company?

5 MS. SHAFFIK-HORTON: No, Mr. Chairman.

6 CHAIRMAN MITCHELL: ORS?

7 MS. C. EDWARDS: No, Mr. Chairman.

8 CHAIRMAN MITCHELL: Commissioners?

9 [No response]

10 EXAMINATION

11 BY CHAIRMAN MITCHELL:

12 Q I am just a little curious over the last statement. Put

13 who out of a job?

14 A If you go with the -- how Georgia does it, you know, I

15 would be able to go out and get electricity from anybody

16 I want to, okay? And if somebody wants to give me a

17 lower rate for my business -- or for my house, for that

18 matter -- I can go to negotiate. Okay? And that's

19 how it works in Georgia, I understand. And they don't

20 have --

21 Q If you'd like to go ask ORS, maybe they could answer

22 your questions on that. I think you might hear a little

23 different points of view on that. I believe they have

24 some people in the --

25 A Maybe.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 226

1 Q -- back. Yes, sir.

2 A But I still say that breaking up AT&T is what made it

3 possible for me to succeed. I'm serious, okay? And I

4 don't know -- they have the same type of thing. They

5 are in control. I can't go somewhere else and

6 negotiate. I don't use AT&T. I wouldn't use that phone

7 company if you paid me. All right? I've been there.

8 CHAIRMAN MITCHELL: Thank you very much. And

9 I will say you're doing a lot of things right,

10 because you certainly don't look like you're 75

11 years old. Thank you for being with us.

12 WITNESS: All right. I'll be here again.

13 [Applause from audience]

14 MR. DONG: Carla Engle? Mary Ellen Faircloth?

15 Reta Shervin?

16 CHAIRMAN MITCHELL: Is Ms. Shervin here?

17 [No response]

18 Give us another one.

19 MR. DONG: June Anderson?

20 [Witness sworn]

21 THEREUPON came,

22 C A R L A E N G L E ,

23 who, having been first duly sworn, testified as follows:

24 WITNESS: I'm Carla Engle. I reside at 12

25 Rolling River Way, Taylors, South Carolina 29687.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 227

1 I'm a stay-at-home mother of four children.

2 My husband is the only one that works, because we

3 can't afford daycare if I return to work.

4 Right now, our power bill averages around

5 $100-$120 a month. We've been living in a place

6 with Duke Energy for three years. When we started,

7 it was $70 a month.

8 I'm asking that you all not take anything else

9 from our pockets. Right now we're living on a

10 paycheck-to-paycheck income. We're on a very

11 strict budget. My children don't have the luxury

12 of having all these afterschool programs and extra

13 classes. My daughter would love to take piano, but

14 I don't have it.

15 Right now, I'm hearing all these people saying

16 how our jobs are going up and how everything is

17 getting better? My husband was just told this past

18 week that he is no longer to get overtime hours,

19 and he has to clock in about two hours after he

20 starts work. He is working off the clock for two

21 hours, because he cannot afford to not have this

22 job completed, and lose his job with four children

23 at home.

24 Last year my husband was laid off from a job,

25 and we were not able to make bills as on time as we

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 228

1 had paid them before. My daughter, we learned, had

2 epilepsy. We have to keep power in our home. We

3 have to have air conditioning in my home. My

4 daughter will have seizures. Around the time that

5 we learned she had epilepsy, she was sent to the

6 hospital for a 72-hour EEG. Around that time, I

7 had gotten -- lost track of my bills. The day

8 after we came home, I got a knock at the door.

9 Before I could answer it, my power was shut off. I

10 had forgotten to pay my bill. And when I went

11 outside to find out what was going on, the lady

12 laughed at me. Said, "Well, not my problem. It's

13 yours," and got in her air-conditioned car and

14 drove away. Luckily, at the time, we did have

15 enough money for me to go up to the place and pay

16 my fees and fines and penalties and all that, and

17 got it turned back on.

18 Not long after that, our power was shut off --

19 well, not shut off. Excuse me. The power went

20 out, because they were working on power -- however

21 they were doing things, they were working on it,

22 and it was shut off for two days. I'd just had

23 $300 worth of groceries put into my refrigerator

24 that went bad, and I did not have -- that is four

25 mouths to feed, that I did not have the ability to

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 229

1 feed, because my groceries had gone bad. What did

2 Duke Energy tell me? "Nothing we can do for you.

3 Sorry." When I told them that I wish I could go to

4 somebody else because they're a monopoly, what did

5 they tell me? "We're not a monopoly. You can go

6 to whoever you want to. Just move."

7 [3-minute alarm]

8 All I'm asking is that you all do the right

9 thing. I just have one thing to leave you with.

10 Last night I had a dream that I was being robbed.

11 Only thing was, there was nothing I could do about

12 it. I'm a stay-at-home mom. I obviously have

13 protection for my children, but there was nothing I

14 could do about it. It just so happened today I

15 wake up to find on the news that this was going on.

16 We are living in a country where every day we

17 are being robbed. The only thing is, we're not

18 looking at the people who are robbing us the most.

19 VOICE: That's right.

20 [Applause from audience]

21 CHAIRMAN MITCHELL: Thank you, ma'am, for

22 coming.

23 ORS?

24 MS. C. EDWARDS: Yes, Mr. Chairman.

25 CHAIRMAN MITCHELL: Yes, fine.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 230

1 MS. C. EDWARDS: Would you mind speaking to

2 Mr. Brad Kirby and Allyn Powell, with ORS? They're

3 in the back. I'd like for them to talk to you

4 about the bills and the outages.

5 WITNESS: Okay.

6 MS. C. EDWARDS: Thank you

7 CHAIRMAN MITCHELL: Any questions from

8 Commissioners?

9 [No response]

10 Thank you so much for being with us.

11 [Applause from audience]

12 [WHEREUPON, the witness was excused.]

13 [Witness sworn]

14 THEREUPON came,

15 M A R Y E L L E N F A I R C L O T H ,

16 who, having been first duly sworn, testified as follows:

17 WITNESS: My name is Mary Ellen Faircloth, and

18 my home here in the Upstate is at 309 Bayswater

19 Lane, in Greer, South Carolina 29651.

20 I'm not used to speaking in front of large

21 crowds and so I was a little bit nervous of coming

22 here. And so I'm a little less nervous now that

23 half of the room has gone. But a little

24 disappointed, too, because the full room is not

25 here to hear me.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 231

1 I work here in Greenville with the American

2 Heart Association, and I've listened to everyone

3 speak tonight, and completely understand that no

4 one wants to see any rate or any bill go up, no

5 matter what we're paying. But I would be remiss if

6 I did not talk about the support of Duke Energy for

7 the American Heart Association, and that's why I'm

8 here tonight being nervous.

9 I think everyone in the room can think about

10 someone that has been touched by heart disease or

11 stroke. Heart disease takes more lives in our

12 community than any other form of -- or, any other

13 cause of death. Stroke is actually the leading

14 cause of disability. I know y'all have been

15 affected. I know my family has been affected. And

16 recently I had a best friend that had her first

17 little girl and at two days old she had a stroke.

18 So we are out in the community fighting heart

19 disease and stroke, and Duke Energy is a supporter

20 and helping with our efforts. I feel like they're

21 a good neighbor, participating in local events,

22 including ours, and supporting local projects,

23 responding to the issues and challenges of the

24 community. And for our community, the largest

25 health challenge is heart disease and stroke.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 232

1 The shareholder-funded Duke Energy Foundation

2 is an active supporter of the American Heart

3 Association. Just recently, for example, they

4 partnered with us to promote heart health education

5 information to families in the Upstate. So what we

6 found is, a lot of heart disease is actually

7 preventable through education. And yes, we fund

8 research, and yes, we make sure doctors have

9 professional education, so when we need them they

10 are there and can treat what's going on. But like

11 I said, what we found is a lot of heart disease is

12 preventable, so education is really important.

13 The program was actually called My Life Check

14 and Life's Simple 7. And the educational packet

15 that was distributed describes to families how they

16 can get their own personal heart score and an

17 action plan that is customized to their lifestyle

18 and health outlook. And with Duke Energy's help,

19 these packets are being distributed right now

20 throughout the Upstate. We could not have provided

21 these services without their support, and I've seen

22 firsthand how important it is for Duke Energy to

23 support efforts like this, and many others, in our

24 community, to build stronger and healthier lives.

25 So I've heard several people here mention that

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 233

1 some of the donations --

2 [3-minute alarm]

3 -- may have been a waste. I hope you don't

4 feel that, especially if you've been affected by

5 heart disease or stroke, because we are grateful

6 for their support and our organization wouldn't

7 exist without supporters and volunteers from Duke

8 Energy.

9 So, thank you.

10 CHAIRMAN MITCHELL: Thank you ma'am. Any --

11 MS. SHAFFIK-HORTON: [Shaking head.]

12 CHAIRMAN MITCHELL: No questions? ORS?

13 MS. C. EDWARDS: No questions.

14 CHAIRMAN MITCHELL: No questions?

15 Commissioners, any questions?

16 [No response]

17 Thank you so much for being with us tonight.

18 WITNESS: Thank you.

19 [WHEREUPON, the witness was excused.]

20 [Witness sworn]

21 THEREUPON came,

22 J U N E A N D E R S O N ,

23 who, having been first duly sworn, testified as follows:

24 WITNESS: Good evening. I think it is getting

25 to be evening now. I know y'all are tired, but

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 234

1 thank you so much for coming. And like one of the

2 other gentlemen said earlier, I'm glad y'all are

3 here in Greenville so we didn't have to come to

4 Columbia -- because it's hot there, and I know Duke

5 Power is really pumping down there.

6 Thank you for coming, and I want to thank the

7 Duke Energy reps for being here, as well, because

8 you really need to hear us and take it in, okay?

9 And thank you for being here today.

10 Okay. You've heard these people speak

11 tonight. They're speaking from their hearts. They

12 are speaking from experience. How many of you have

13 gone without heat? Without air conditioning?

14 Without lights? Probably none of you. But a lot

15 of our fellow men and women out here -- and mothers

16 and fathers -- have.

17 It just grieves my heart to think that there

18 would be a utility company that had no compassion

19 or care for fellow man that worked hard. Like this

20 gentleman who has the two children; he's a single

21 father. And he gets up and he works, and he works

22 hard, I know. And he took time to come tonight to

23 air his problem. He needs help. But you know

24 what? he's just one of many, many, many.

25 Do you know -- and I don't know if y'all know

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 235

1 this, because you're not from Greenville -- two

2 years ago a woman died because she didn't have any

3 air conditioning. No fans. She did not -- could

4 not pay her bill. I'm not sure how old she was,

5 but her death was because of no air. Finally, when

6 some family member went to check on her, then they

7 realized she'd died because of overheat. I'm sure

8 there have been people who have died because

9 they've frozen to death because they didn't have

10 heat.

11 These are real issues. Are we not supposed to

12 look out for one another? Are we not?

13 And I know Duke Energy is a fine company, and

14 they pay their employees -- and especially their

15 executives and board members -- very well, because

16 I know one of them in Charlotte, and he lives very

17 fine. But you know, we've got to think about our

18 fellow man, too.

19 You were talking -- and I thank you graciously

20 for giving a 1-800 number, but it's just not

21 working. You call these numbers and you have all

22 these teleprompts. You can't get to a human voice

23 or a human ear. So what good is that doing? And

24 then, like these people have honestly said, they

25 are rude to them. And I know; I've been a

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 236

1 recipient of that, as well. Listen. We are

2 telling you, listen.

3 Duke Power doesn't deserve any increase

4 whatsoever. What have they done to deserve it?

5 Treating our -- mankind like this? That's not

6 right. That's not what God made us on this earth

7 to do.

8 [3-minute alarm]

9 I'm sorry, but I do have a few more good

10 points I need to make.

11 So, you know, I want to keep my air on, but I

12 want it for my fellow man out here, as well, and

13 these elderly who are losing their lives, and then

14 the single parents that are working hard and

15 getting behind on their bill and then they pay a

16 service charge. And whoever heard of having to go

17 pay a service fee to pay your bill on time? They

18 said you can go to a convenience store or somewhere

19 like that, and pay your bill, but you have to pay

20 -- did somebody say $1.25? -- to do it. Is that

21 not ridiculous? That is not human mankind,

22 friends, I'm telling you. And I certainly don't

23 appreciate that.

24 There are some utility companies,

25 Commissioners, that will let you call and make a

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 237

1 phone by check. If you have a checking account, or

2 maybe a credit card. I don't have a credit card.

3 But you can call, and it doesn't cost one penny.

4 Okay, another thing. Duke Energy obviously

5 has plenty of money because they're giving it out

6 to all of these businesses and different

7 organizations. Why can't they have an office here

8 in Greenville, South Carolina -- a couple of

9 offices -- for customer service --

10 VOICE: Yes.

11 WITNESS: -- to let these people go and meet

12 face-to-face?

13 [Applause from audience]

14 Thank you. When I have a concern, I want to

15 see somebody face-to-face.

16 I was not going to speak tonight, but this

17 precious gentleman right here with his hand up next

18 to his face, he said, "Please speak." And thank

19 you for that. I appreciate it.

20 I feel like you're very concerned. I think

21 all of y'all are concerned. You look like good,

22 honest, compassionate people. You've heard tonight

23 these pleas and desperate means these people are

24 living in. You know what, if I had your job, I'd

25 know how I was going to vote tonight, because I

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 238

1 couldn't sleep if I voted yes.

2 VOICE: That's right.

3 WITNESS: I really couldn't. And these people

4 have done their homework, too, a lot better than I

5 have. They spent -- one man said -- what, Ms.

6 Fleming -- two days? You know, he's got the facts.

7 And it just really upsets me about that. It really

8 does. So I want y'all to listen to us. I'm sure

9 you have, and you've heard us. Now you have work

10 to do. Are you going to say no to Duke Energy?

11 "No increase"? You've had increases how many years

12 now, it's been, up 27 percent since 2008? Okay,

13 we're not going to do it anymore. We're going to

14 stand up for South Carolina. We are not a

15 redheaded stepchild, and --

16 VOICE: You said it.

17 WITNESS: -- we're not going to treat our

18 citizens that way. We have hardworking people

19 that, you know, because of certain circumstances

20 now, their jobs are being cut back; they're not

21 able to make money. And elderly people that go

22 without their medicine? Do any of you have older

23 people, or anybody, in your family -- health care

24 has gone up quite high. And insurance is not

25 covering medicines now. Would you hate to see your

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 239

1 loved one die because they had to pay the Duke

2 Power bill and couldn't pay for their medicine?

3 No, I don't think you would. Y'all just don't look

4 like those kind of people to me.

5 So I want you to say no to Duke Power -- I

6 mean, Duke Energy. Excuse me. No. Zero increase,

7 period. I want to see more coming from you. I

8 want to see more compassion, more customer service.

9 And you've been so sweet to tell people to go talk

10 to certain people, and I hope they'll help them

11 with this -- truly help them erase the debt.

12 So, the ball's in your court. And I'm praying

13 for y'all. This is a hard decision. Anytime you

14 work for a commission and you're serving the

15 public, it's not easy. You get a lot of people

16 that are nice to you and a lot of people who

17 aren't. But guys and women, we have a serious

18 issue here tonight: the whole State of South

19 Carolina. And I just really pray that you'll just

20 really realize that this has to be a "no" to Duke

21 Energy.

22 And thank y'all for coming. I'm glad y'all

23 have good jobs, and I appreciate you coming. But

24 you need to hear this. And I want you to go back

25 and tell your board of directors this. And we'd

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 240

1 like for them to come sometime, also.

2 [Applause from audience]

3 COURT REPORTER: Ma'am, could you give me your

4 name and address, please?

5 WITNESS: Okay. My name is June -- like the

6 month -- Anderson. 1 Chanticleer Drive,

7 Greenville, 29605. And I apologize for not giving

8 you that.

9 CHAIRMAN MITCHELL: Okay. Any questions?

10 MS. SHAFFIK-HORTON: No, sir.

11 CHAIRMAN MITCHELL: ORS? Excuse me.

12 WITNESS: Oh, I'm sorry.

13 CHAIRMAN MITCHELL: ORS, any questions?

14 MS. C. EDWARDS: No questions.

15 CHAIRMAN MITCHELL: Okay. Commissioners?

16 [No response]

17 Thank you, ma'am. Thank you for being with

18 us.

19 [Applause from audience]

20 [WHEREUPON, the witness was excused.]

21 MR. DONG: Gene Hawkins, W.E. Guthrie, Sue

22 Ellen Senate?

23 CHAIRMAN MITCHELL: Is Mr. Guthrie here?

24 [No response]

25 MR. DONG: Clarence Thornton?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 241

1 [Witness sworn]

2 THEREUPON came,

3 G E N E H A W K I N S ,

4 who, having been first duly sworn, testified as follows:

5 WITNESS: Gene Hawkins. 3 Manley Drive,

6 29609.

7 I'm glad you called me. I thought I was going

8 to be the one to turn the lights off -- no pun

9 intended. Been here three hours for practice on

10 what I was going to say.

11 But I go a long way back with Duke Power. My

12 dad worked for Duke -- not Duke Power, but James

13 Duke that started Duke Power. He kept a generator

14 running at James Duke's mansion in Durham, where he

15 could throw lavish parties and all. He was the

16 only person in Durham that had power. They also

17 took money out of my dad's paycheck every week to

18 build the Duke University Hospital, and said he

19 would have free medical care for the rest of his

20 life. My dad died in Greenville General; we never

21 had free medical care. But I've got a few things

22 to say about Duke.

23 I appreciate you being here. I like the

24 power. I like to go home at night and turn a

25 switch on. But there are some things that they

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 242

1 just -- and I'm a small business owner. My son and

2 myself are in business. Five years ago, we had two

3 companies and 12 people. Today we've got one

4 company and three people. And I work free. So

5 we've got a warehouse that's got power coming to

6 it, got two meters on the outside. It's got two

7 giant fans in the back that we'd really like to

8 use. But Duke took one of the meters off because

9 the power was being paid for by another company.

10 So I called up to have it put back on, and the

11 woman said, "Well, we'll be glad to come out and do

12 it." It was "x" amount of money to come out and do

13 it. And then she says -- I said, "Well, we don't

14 use it year round, because we don't like to have

15 breezes coming through our warehouse when it's 30

16 degrees outside, so she said -- and this is where I

17 get into the inefficiency of big companies. Big is

18 not always better, but big has got bigger, and so

19 they're not going to be near as better. But they

20 want to charge you $35 a month for a meter that

21 sits there and does nothing for seven months out of

22 the year. We don't use that power. It's only two

23 fans on that circuit that's coming off of their

24 pole; it's 480 volts. The 480 volts and -- I'm

25 not an electrician but the others are 240 or

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 243

1 whatever, we use the 240 side and the 408 volts.

2 So they want me to pay for not using power, which

3 is ridiculous. They have to read the meter that's

4 right beside the meter that they want me to pay $35

5 for, for not using. And the girl told me, she said

6 -- I said, "That's ridiculous." And she said,

7 "Well, I think so, too." And she did work for your

8 800 number. But we talked about it a little bit

9 and she said, "I tell you what you could do, Mr.

10 Hawkins." She said, "You call me up and we'll send

11 somebody out there to cut it off when you don't

12 want to use it." Well, I turn the water off and on

13 every day that way, but they -- if I go out of my

14 warehouse a week, they don't come out and cut the

15 water off to save me money. I don't --

16 [3-minute alarm]

17 -- pay for it because I don't use it.

18 I haven't been here three minutes, have I?

19 That thing can't be right. I got two more.

20 But anyway, to make a long story short, they

21 need to be more efficient. We've had, at our house

22 -- and I'll get this ended -- three times in the

23 last ten years, we've been without power for a

24 week. The last time was three or four years ago

25 when we had the big ice storm, and we'd been out of

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 244

1 power for five days. And I see some trucks come up

2 the road. And I ran down there to kiss those guys,

3 but they were from Mississippi. And so I got to

4 talking to them, and I said, "Man, what can I do

5 for you?" I said, "We've been up here a week

6 without power." And all he says, "Well, we're

7 going to get your power back on." I said, "Well,

8 let me bring you coffee and all." He said "No."

9 And he said, "But it'll be the last dern time we

10 come up here." And I said, "Why?" He said,

11 "Because of Duke Power." He said, "We came up

12 here," and this is back to the inefficiency thing

13 that y'all need to look at. He said, "Duke wants

14 us to come out, put a new pole up, put new cross-

15 arms up, put a new transformer up. Then they'll

16 want us to clean up everything and take it back to

17 their place." He said, "We're up here to keep you

18 people from freezing. We're not up here to clean

19 up for Duke Power." He said, "They can do that

20 next year when it's 100 degrees; they can come

21 around and pick all that stuff up."

22 So those guys did what they said. They just

23 threw it over in the horse pasture next to my

24 property and it laid there for about nine months.

25 I don't know who got up, but it wasn't Duke.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 245

1 But there's just some things that they need to

2 think about. We're going to pay $400-and-some a

3 year for power that we're not going to use. And

4 that's not right. We're a small company. And I

5 don't understand. And I think they need to start

6 doing some of this stuff. They'd save a lot of

7 money for everyone. Why send someone out there to

8 read the power if you cut the power on and off

9 every other month? I said, "Are you serious?" She

10 said, "Oh, yeah. We'll come out there and send the

11 guy out to turn it back on, and next Monday if you

12 don't want it, call us and we'll cut it back off."

13 But I just wanted to throw that out to you,

14 because you're wasting a lot of money in a lot of

15 places.

16 [Applause from audience]

17 CHAIRMAN MITCHELL: Sir? Sir. ORS, any

18 questions?

19 MS. C. EDWARDS: Mr. Hawkins, I would

20 encourage you to talk with our Consumer Service

21 Department and our Electric Department -- Ms.

22 Powell and Mr. Kirby -- about that.

23 WITNESS: Okay, thank you.

24 CHAIRMAN MITCHELL: Commissioners, any

25 questions?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 246

1 [No response]

2 Thank you so much.

3 [Applause from audience]

4 [WHEREUPON, the witness was excused.]

5 [Witness sworn]

6 THEREUPON came,

7 C L A R E N C E T H O R N T O N ,

8 who, having been first duly sworn, testified as follows:

9 WITNESS: My name is Clarence Thornton. I

10 reside at 114 Douth Street, Greenville, South

11 Carolina 29601.

12 If I had a way of saying it, I'd say you can't

13 beg for mercy. You can beg God for mercy, but you

14 can't beg evil or mankind for mercy.

15 Duke Energy have become a monopoly. A big

16 dictatorship with no remorse for the poor, and it's

17 time for us to stop it. We can no longer afford to

18 come to this building, this edifice, every year

19 begging for equality and justice. It's time to

20 stop. The pleas of the people are falling on deaf

21 ears. We seem to have a public commission that

22 can't say no to Duke Energy. For whatever reason,

23 corporate greed have taken over this Commission.

24 They're not listening to the voice of the people.

25 Our children are economically educated and have now

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 247

1 fallen to 45th in this nation. Our children are

2 failing economically.

3 We must now take some kind of form of action,

4 because it's sad to see senior citizens beg. Duke

5 do not deserve an increase. The minimum wage is

6 $7.25. When have the people had an increase? And

7 if they can't increase together, then why should

8 anyone increase?

9 I say to you we must take action the same way

10 Martin Luther took action. We must take action

11 same way Jesus Christ took action in protest. We

12 must have the same action where the Boston Tea

13 Party protested tax without representation.

14 I say these things because it's true. It's

15 time for us to take action. And here's out

16 something needs to take action. You hear this kind

17 of stuff, you need to take action. If the public

18 commission vote yes on this, then they not serving

19 the interest of the people. If they vote yes, then

20 they not serving the interest of the people. And

21 didn't I say I'm tired of seeing people beg?

22 The public commission do not need to no longer

23 be voted by legislators. They give campaign money

24 to these senators and legislators. They need to be

25 voted on by the people every two years. And that

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 248

1 way, the people have control of their destiny.

2 Like I say, you can beg God for mercy, but you

3 can't beg evil for mercy. Duke is greed. And to

4 make a personal story, I know a young lady who had

5 to pay a $130 bill. She didn't have the money and

6 she asked Duke Power can she just pay the $130.

7 Well, they disconnected --

8 [3-minute alarm]

9 -- her power, and she asked, "Well can I pay

10 the $15 later -- the disconnect fee later?" Duke

11 Power told her, "No. If you don't pay the $145,

12 you will not have no power." She raised money,

13 $130, but just for $15, Duke Power said that. She

14 said, "But I need gas money to go to work." Duke

15 Power still said, "No. If you don't have the $145,

16 you will not have no power." Said, "What about my

17 children?" Duke Power still said no.

18 The Marines have a saying, "No man left

19 behind." If we can't be there for everybody, if we

20 can't come out as together, then nobody comes out.

21 That's what the Marine says: No man left behind.

22 And to vote an increase will leave all these senior

23 citizens behind. And they was here before us; now

24 we need to be there for them, and leave no man, no

25 woman, no child left behind, because the facts are

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 249

1 here. We're 45th in this nation, economically. No

2 man, no woman, no child left behind.

3 Duke, you have a lot of nasty attitudes.

4 Everybody can't get an increase with minimum wage,

5 you don't deserve one either. Thank you.

6 [Applause from audience]

7 CHAIRMAN MITCHELL: Duke?

8 MS. SHAFFIK-HORTON: No questions.

9 CHAIRMAN MITCHELL: ORS, any questions?

10 MS. C. EDWARDS: [Shaking head.]

11 CHAIRMAN MITCHELL: Commissioners, any

12 questions?

13 [No response]

14 Thank you so much for being with us.

15 WITNESS: Thank you.

16 [Applause from audience]

17 [WHEREUPON, the witness was excused.]

18 MR. DONG: The last two names I have on the

19 list are Lottie Gibson and Milton James.

20 CHAIRMAN MITCHELL: Mr. James present?

21 [No response]

22 VOICE: [Words inaudible].

23 MR. DONG: I'm sorry? Who did I forget? Your

24 name, ma'am?

25 MS. BRIDGES: Princella Bridges.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 250

1 MR. DONG: Okay. I haven't seen your name on

2 the list, but please come forward.

3 CHAIRMAN MITCHELL: Yes, ma'am, if you'd like

4 to come on up, we'll get you next.

5 [Witness sworn]

6 THEREUPON came,

7 L O T T I E B . G I B S O N ,

8 who, having been first duly sworn, testified as follows:

9 WITNESS: Lottie Gibson. I live at 104

10 Gettysburg Drive, Greenville, South Carolina 29605.

11 I represent District 25 on the Greenville

12 County Council. I want to welcome you to these

13 chambers, and I hope that your stay will not be in

14 vain. In fact, I hope that you will vote

15 favorably, that you will not be giving this raise.

16 I represent a group of people, the poorest in

17 the county. The oppressed, the unemployed, the

18 single mothers, the single fathers. Prisoners who

19 cannot get jobs because of their records. So I

20 come tonight to say that I hear a lot about how

21 they cannot afford this raise in their power

22 company, and they hope that you all will not grant

23 it.

24 I want to thank you for accepting the position

25 of serving on the Commission. And, of course, I

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 251

1 feel your pain. But I hope that you've heard the

2 voices of the people, since I'm the last speaker,

3 and I appreciate you coming. Thank you from the

4 citizens of Greenville. But I do hope that you

5 will not vote to give a 16 percent raise.

6 Thank you so much, and I'll entertain any

7 questions.

8 CHAIRMAN MITCHELL: Any questions?

9 MS. SHAFFIK-HORTON: No.

10 [Applause from audience]

11 CHAIRMAN MITCHELL: Questions from ORS?

12 MS. C. EDWARDS: No questions.

13 CHAIRMAN MITCHELL: Commissioners?

14 [No response]

15 Thank you, ma'am. Thank you for being here.

16 [Applause from audience]

17 [WHEREUPON, the witness was excused.]

18 [Witness sworn]

19 THEREUPON came,

20 P R I N C E L L A L E E - B R I D G E S ,

21 who, having been first duly sworn, testified as follows:

22 WITNESS: Good evening. My name is Princella

23 Lee-Bridges. I live at 116 Deoyley Avenue,

24 Greenville, South Carolina 29605.

25 And I, too, would like to thank you for coming

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 252

1 to hear the voices of the people. I will be

2 speaking from a totally different perspective. I'm

3 speaking from a burn-prevention perspective.

4 Any raise in any amount will encourage people

5 to use alternative sources of heating. South

6 Carolina is the fifth largest in burns, in the

7 country. Our state is the fifth largest of people

8 who get burned by fire. I'd like for you to think

9 about what will happen for those who will get

10 injured by fire as a result of them heating with

11 whatever chimneys that don't get cleaned out

12 properly, defective kerosene heaters, whatever they

13 can create -- you know, stuff in a barrel.

14 Whatever. We just don't want that to happen as a

15 result of not being able to pay the energy bill.

16 And also as a side note, I do help with

17 families who have lost property to fire and been

18 injured by fire, and when I go to try to assist

19 them in getting their power turned on, there's an

20 exorbitant fee of reconnect from the place they

21 left. They've already been behind in their bills,

22 they've already used their share of a one-time

23 deal, they've already used their miracle bill one-

24 time deal, so these people are without power and

25 nowhere to go. So please consider, when you're

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 253

1 making your decisions, that population of people

2 who will be affected by you raising that rate of

3 increase.

4 Another thing, I'm the president of the

5 Greater Pleasant Valley Neighborhood organization.

6 There is a large number of senior citizens in the

7 homeowners. They have not been afforded a raise,

8 so any increase would be a hardship. One of the

9 other things that's a real concern of mine is, my

10 father died; the power bill had to be taken out of

11 my mother's name -- out of my dad's name, into my

12 mother's name. They made my mother pay a $200

13 deposit to take the light bill out of my dad's name

14 into her name. And we asked why, and they said

15 because we're changing the name.

16 So I'm concerned that there's some things in

17 place that are inefficient, as far as the consumer.

18 And at the end of the day, I really don't care who

19 Duke Power give their money to. I just don't want

20 them to stick us. I really don't. I don't care

21 who you give your money to. All these other

22 entities need your assistance. But as consumers,

23 we need you a little bit more because we need the

24 power. You're the only game in town. So please

25 give us an opportunity to survive while we're

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 254

1 having --

2 [3-minute alarm]

3 -- these hard times.

4 [Applause from audience]

5 CHAIRMAN MITCHELL: Any questions?

6 MS. SHAFFIK-HORTON: [Shaking head.]

7 CHAIRMAN MITCHELL: ORS?

8 MS. C. EDWARDS: Yes.

9 CROSS EXAMINATION

10 BY MS. C. EDWARDS:

11 Q Ms. Bridges, when was the $200 deposit issue?

12 A This year.

13 Q This year?

14 A Uh-huh.

15 Q Would you -- if you have a few minutes, do you mind

16 talking to our Consumer Services, Mr. Kirby?

17 A Sure. Sure. Especially since my mama give them $200.

18 CHAIRMAN MITCHELL: Commissioners, any

19 questions?

20 [No response]

21 Thank you, ma'am, for being with us.

22 WITNESS: Thank you.

23 [WHEREUPON, the witness was excused.]

24 CHAIRMAN MITCHELL: Do we have -- these are

25 all the ones that we have listed. Do we have

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1 anyone else who would like to speak? Come forward.

2 [Witness sworn]

3 THEREUPON came,

4 S A N D R A J O N E S ,

5 who, having been first duly sworn, testified as follows:

6 WITNESS: My name is Sandra Jones. My address

7 is 6 Cavendish Circle, Taylors, South Carolina

8 29687.

9 I'm here today because I'm a witness and I

10 have a testimony. My lights were just disconnected

11 on the 20th, and I had to get them reconnected on

12 the 21st, because I didn't have the money at the

13 time. I called and tried to make an arrangement,

14 but they wouldn't make it with me. So we were out

15 of power from about 5 o'clock that afternoon on the

16 20th, until about 4:30 to the 21st. Now, I have a

17 ten-year-old son, and nine-year-old daughter, and a

18 13-week-old baby. I called about six or seven

19 times and asked them, "Could you please come out?

20 I've paid the money to reconnect the lights, and

21 it's hot. I have a newborn baby." They said,

22 "Ma'am, we'll get to you when we can." So they

23 didn't come until about 4:30.

24 Another thing is, when my kids came in, they

25 asked, "Mom, why do we have to use the bathroom in

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 256

1 the dark? Why do we have candles?" And I just

2 broke down in tears because it was embarrassing to

3 tell them that we couldn't pay the light bill

4 today, so we have to use candles to use the

5 bathroom. Like, they're nine and ten; they don't

6 understand why we don't have the money to pay the

7 light bill, why they can't participate in

8 enrichment programs this summer or go to summer

9 camp because we don't have the money to pay these

10 expensive light bills. My light bill was $164.

11 That's more than my phone bill, my car insurance,

12 my gas bill, my water bill. That's the highest

13 bill that I have.

14 We are afraid to put up lights during the

15 holiday season because we think that our bill will

16 get jacked up about $100 more. So we only put up

17 like paper things on the window. We can't put up

18 Christmas lights anymore. And when I come home at

19 night, we'll only have like one light on in the

20 house, because if you leave on all the lights, then

21 that's a really high increase in your bill. So if

22 I'm coming home with three children at 9 o'clock at

23 night, it's really scary if you can't have any

24 lights on.

25 Another thing is my grandmother, she's 73

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 257

1 years old, and we go over there about three or four

2 times a week, and it's hot in there. And we say,

3 "Grandma, why isn't your air on?" She'll say,

4 "Well, you know, babe, I don't want to cut the air

5 on because, you know, the light bill will be high."

6 That doesn't make sense. She's on oxygen, her

7 cartilage is gone in her knee. She doesn't have

8 the luxury of going outside and getting cool air.

9 She's confined to a chair, and she has to have her

10 air conditioner, but she can't afford to turn it on

11 -- only about three days a week.

12 And when they were talking about how much they

13 give to all these other programs and organizations,

14 where is an organization for the parents -- single

15 moms, single fathers, as they said -- who don't

16 have money to pay the light bill? Where could we

17 go to get extra money or help for the light bill?

18 We have SHARE, but they can only help a certain

19 amount of people, or once a year. They have

20 churches, but the churches are running out of

21 money. If you don't have money to pay tithes, the

22 church doesn't have money to give you for your

23 power bill. So where's the money coming from?

24 [3-minute alarm]

25 I don't want to run over, but just a little

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 258

1 bit more. I'm educated; I'm a full student. I

2 have my Associate's Degree and I'm working on my

3 Bachelor's. It's hard to find gainful employment

4 right now, because you can't afford to pay daycare

5 for three children when you have these high

6 expenses. So all I'm asking is, don't give us an

7 increase, at least not until we get an increase,

8 because it's not fair. And that's all I ask. No

9 increase for Duke Energy.

10 [Applause from audience]

11 CHAIRMAN MITCHELL: Any questions?

12 MS. SHAFFIK-HORTON: No questions.

13 CHAIRMAN MITCHELL: Any questions of ORS?

14 MS. C. EDWARDS: I would just encourage Ms.

15 Jones -- thank you for speaking, first of all, and

16 I encourage you to talk to Mr. Kirby in the back,

17 and Ms. Powell.

18 WITNESS: Okay.

19 MS. C. EDWARDS: Thank you.

20 CHAIRMAN MITCHELL: Commissioners?

21 [No response]

22 Thank you, ma'am.

23 [WHEREUPON, the witness was excused.]

24 CHAIRMAN MITCHELL: Yes, sir.

25 [Witness sworn]

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 259

1 THEREUPON came,

2 S T E V E N B R Y A N T ,

3 who, having been first duly sworn, testified as follows:

4 WITNESS: Steven Bryant -- Steven with a "v."

5 107 Hickory Hill Lane, Greenville, 29609.

6 I really wouldn't have gotten up if I didn't

7 feel like I had something to add to this, and I

8 didn't sign up because I thought somebody else

9 would cover this. If you boil this down to a pure

10 business decision, I do think that we've all been

11 spoiled by electricity, and I can't imagine living

12 without it, but don't think it's my inherent right

13 to have it. I think that you have to make tough

14 decisions, and I would really be in a pickle if I

15 had to make some of the decisions people in the

16 room are describing. So I sympathize, but I don't

17 think Duke owes me anything.

18 I'm a small business owner. I spend about

19 $36,000 a year on electricity. And it's very

20 important, obviously, to businesses. My

21 understanding of the Commission is it's your

22 responsibility to ensure that Duke has a fair

23 return on their equity. And so, it takes a lot of

24 money to build power plants; I understand that.

25 Your responsibility, as I understand it, is to make

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 260

1 sure they have the ability to do that and get a

2 decent return on their investment.

3 And so, we're in an economic reality right now

4 where the accepted rate-of-returns all across the

5 US is dropping, so companies like Duke, their

6 ability to make a return is dropping and that's due

7 to several reasons -- interest rates are

8 historically low, so companies like Duke can

9 renegotiate the interest they're paying on their

10 business loans, and that's one source of raising

11 their own revenue. So they're benefiting from low

12 interest rates. That's one reason that the reality

13 is companies like Duke are making a lower rate of

14 return right now. And so it's entirely acceptable

15 for them to be seeing a lower rate of return, like

16 other utilities are seeing right now.

17 Natural gas prices are at historic lows, if

18 you look over the past ten years. And a gentleman

19 in the room pointed to low energy prices. It's

20 probably going to drive a huge return of

21 manufacturing to our country. It hasn't happened

22 yet, but with all the resources they're

23 discovering, the forecasts for energy prices is to

24 go low. And so, if we agree to have an increase

25 right now, with the prospect of their input costs

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 261

1 -- natural gas -- going to historic even-lower

2 numbers, I think history will judge us fools,

3 because they're about to see -- they've already

4 seen lower input costs, and that trend is going to

5 continue.

6 And so currently, I believe they're at a 10.5

7 percent return on equity in South Carolina. North

8 Carolina has kept them to a 10.2 percent, so North

9 Carolina has been a better negotiator for their

10 people. I understand that, if this rate were to

11 pass, their rate of return would go from 10.5

12 currently to 11.5. And so, economically, it

13 doesn't make sense for them, as a monopoly -- as

14 has already been said -- to continue enjoying a

15 high rate of return --

16 [3-minute alarm]

17 -- in an overall environment of declining

18 rates of return for the business they're engaged

19 in. Thank you.

20 CHAIRMAN MITCHELL: Thank you sir.

21 [Applause from audience]

22 Any questions?

23 MS. SHAFFIK-HORTON: [Shaking head.]

24 MS. C. EDWARDS: No questions.

25 CHAIRMAN MITCHELL: Commissioners?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 262

1 [No response]

2 Thank you, sir. Thanks for being with us.

3 [WHEREUPON, the witness was excused.]

4 [Witness sworn]

5 THEREUPON came,

6 C A R R I E M I N G O ,

7 who, having been first duly sworn, testified as follows:

8 WITNESS: I'm Carrie Mingo, and I live 246

9 Alameda Street, here in Greenville. My ZIP Code is

10 29607.

11 I'm thankful for this opportunity. I did put

12 my name down, but after hearing testimony from

13 other people about the cases where no leniency was

14 shown on residents who were in need -- I have a

15 friend who was paralyzed. She had a son who was

16 paralyzed. Her son has since died. But anyway,

17 back in December, she called me to ask me if I

18 could be a guarantor for her utility, for Duke

19 Power. And I didn't understand what she meant, you

20 know, that they had added the deposits because of

21 some lateness in her payments. She lives on fixed

22 income. When I called them, I was told that they

23 were on their way to turn off her lights and that

24 -- I asked if there was anything that we could do.

25 You know, "I'll be glad to be a guarantor." "No,

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 263

1 there's nothing that you can do. It will take

2 awhile, a few days, before this process can be

3 completed." I said, "Well, can we expedite it? I

4 have a fax. Could you fax the paperwork and we can

5 do it that way?" I was told, "No, we cannot do

6 it." The only way this could be done was that it

7 had to be paid, because they were going to turn it

8 off; they were on the way to do it. And there was

9 nothing that we could do, except the only thing I

10 could do was I put $814 on my credit card to

11 prevent her power from being turned off. She

12 sleeps in a bed that -- she has to have electricity

13 because of the bedsores that it will cause if she's

14 not on there.

15 So I just think about the sensitivity, and

16 after hearing all this stuff, I just wanted you to

17 hear this. I've already talked to representatives

18 for ORS and the other regulatory for the Public

19 Service Commission. I just wanted to share that

20 with you, and I hope that whenever they decide to

21 do this, make this, that they will look into the

22 actual problems before they decide to make that

23 decision to terminate the power. Thank you.

24 CHAIRMAN MITCHELL: Any questions of the

25 company?

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 264

1 MS. SHAFFIK-HORTON: No.

2 CHAIRMAN MITCHELL: Any questions?

3 MS. C. EDWARDS: No, Mr. Chairman.

4 CHAIRMAN MITCHELL: Commissioners?

5 [No response]

6 Thank you, ma'am, for being here.

7 [Applause from audience]

8 [WHEREUPON, the witness was excused.]

9 Do we have anyone else who would like to speak

10 before we close?

11 [No response]

12 If not, Mr. Dong, would you again remind

13 everyone of the hearing in Columbia, and the date?

14 MR. DONG: The hearing in Columbia will be

15 Thursday, August 1st, 2013, and I believe it will

16 probably start at 10:30 that morning.

17 CHAIRMAN MITCHELL: I think that's the usual.

18 MR. DONG: Oh, the 31st. Okay. Wednesday,

19 July 31st.

20 CHAIRMAN MITCHELL: 10:30.

21 MR. DONG: 10:30.

22 CHAIRMAN MITCHELL: July 31st, 10:30, will be

23 the full hearing in Columbia, for anyone who would

24 like to come.

25 SEN. REESE: Mr. Chairman

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 265

1 CHAIRMAN MITCHELL: Yes, sir, Senator.

2 SEN. REESE: If I could -- is there a hearing,

3 as well, in Anderson?

4 CHAIRMAN MITCHELL: Yes, sir, there will be a

5 hearing in Anderson, Thursday night at 6 o'clock in

6 the Civic Center.

7 SEN. REESE: Of this week, correct?

8 CHAIRMAN MITCHELL: Yes, sir, that's correct.

9 And you're welcome to attend that. Anything else?

10 MS. C. EDWARDS: Mr. Chairman?

11 CHAIRMAN MITCHELL: Yes.

12 MS. C. EDWARDS: ORS would ask that the

13 witness list be entered into the record -- marked

14 for identification and entered into the record.

15 CHAIRMAN MITCHELL: We will do that, Ms.

16 Edwards, and that will be Exhibit 6 and entered

17 into the record of this case.

18 Thank all of you for being here, and we

19 appreciate it so much for your attentiveness.

20 Thank you, and this meeting is now closed.

21 [WHEREUPON, at 9:40 p.m., the hearing in

22 the above-entitled matter was adjourned.]

23 ______

24 [WHEREUPON, Hearing Exhibit No. 6 was

25 marked and received in evidence.]

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA Docket No. 2013-59-E Duke Energy Carolinas/ Rates & Charges 266

C E R T I F I C A T E

I, Jo Elizabeth M. Wheat, CVR-CM-GNSC, Notary Public in and for the State of South Carolina, do hereby certify that the foregoing is, to the best of my skill and ability, a true and correct transcript of all the proceedings had and testimony adduced in a hearing held in the above- captioned matter before the PUBLIC SERVICE COMMISSION OF

SOUTH CAROLINA. IN WITNESS WHEREOF, I have hereunto set my hand and seal, on this the ___30th____ day of __ July___, 2013.

Heerfngs Reporter, PSC/SC Ny Commission Expires: Jau.uarg 27; 202t.

NIGHT HEARING/GREENVILLE - VOLUME 2 6/24/13 PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA