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Facilities from the Heath Springssprings )) Light &6 Power Company to I.Ynchesiynches )) River Electric Cooperative, Inc.Inc

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Facilities from the Heath Springssprings )) Light &6 Power Company to I.Ynchesiynches )) River Electric Cooperative, Inc.Inc BEFOREBEFORE THETHE PUBLICPUBLIC SERVICESERVICE COMMISSIONCOMMISSION OFOF SOUTHSOUTH CAROLINACAROLINA DOCKETDOCKET NO.NO. 86-600-E86-600-E -—ORDERORDER NO.NO. 86-130286-1302 DecemberDecember 23,23, 19861986 ININ RE:RE: PetitionPetition ofof LynchesLynches RiverRiver ElectricElectric )) Cooperative,Cooperative, Inc.Inc. andand HeathHeath SpringsSprings )) LightLight. &6 PowerPower CompanyCompany forfor authorityauthority )) toto permitpermi. t LynchesLynches RiverRiver ElectricElectric )) Cooperative,Cooperative, Inc.Inc. toto purchasepurcha. se thethe )) electricelectric distributiondistribution facilities,facilities, )) ORDERORDER APPROVINGAPPROVING andand assetsassets ofof thethe HeathHeath SpringsSprings Light)Light. ) SALESALE OFOF SYSTEMSYSTEM andand PowerPower Company; and forfor thethe HeathHeath )) ANDAND REASSIGNMENTREASSIGNMENT SpringsSpr.ings LightLight. andand PowerPower CompanyCompany toto )) OFOF SERVICESERVICE AREAAREA sellsell such.uch assets,assets, and for thethe re-asre-as )) signmentsignment. ofof, the area served byby thesethese )) facilities from the Heath SpringsSprings )) Light &6 Power Company to I.ynchesIynches )) River Electric Cooperative, Inc.Inc. )) This matter comes before the Public Service CommissionCommi. ssion of South Carolina (the Commission) by way of a Petition jointly filed by Lynches River FlectricElectric Cooperative, Inc. (Lynches River) and HeathHeath Spr,Springsngs Light.Light and PowerPower Company (Heath Springs) (collectively(collectively referred tot.o asas "Pet."Petitioners").itioners") for authority to permit.permit LynchesLynches RiverRiver ElectricElectric Cooperative, Inc.Inc. to purchase the electricelectric distribution faci.facilitieslit. ies andand assets of the HeathHeath SpringsSprings Li.Lightght. andand PowerPower CompanyCompany andand forfor HeathHeath SpringsSprings LightLight andand PowerPower CompanyCompany toto sellsell suchsuch assets,assets, andand forfor thethe re-assignmentre-assignment ofof thethe areaarea .servederved byby thesethese facilitiesfacilities fromfrom HeathHeath SpringsSprings LightLight andand PowerPower CompanyCompany toto LynchesLynches RiverRiver E'ectricElectric Cooperative,Cooperative, Inc.Inc. TheThe Petit.Petitionion waswas filedfiled pursuantpursuant toto S.S.C.C. CodeCode Ann.Ann. SectionsSections 58-27-650(A)58-27-650(A) (1976),(1976), asas amendedamended andand 58-27-1.58-27-1300300 (1976)(1976). DOCKETNO. 86-600-E -— ORDERNO. 86-1302 December 23, 1986 PagePae 2 Upon receipt of thethe Petition, thethe Commission'sCommi. ssion's Executive DirectorDirector:instructedinstructed thethe Petitioners to publish a Notice of Filing and Hearing once a week for two consecutive weeks in.in a publication of general coverage in the affected area. The Petitioners were also required to file, in writing, a publisher'spubl. isher's affidavit. The NoticeNoti. ce provided the public hearing to be commence Wednesday, December 17, 1986 at 2:30 p.m.p. m. inin the Offices of the Commission, IIi111 Doctor's Circle, Columbia, South Carolina. The Notice was also published in the State Register. Subsequently, the CommissionCommiss. ion rescheduled the hearing on the Petition to commence Monday,IIonday, December 22, 1986.1986 at 2:30 p.m.p. m. in the Offices of the Commission. A copy of the Notice rescheduling the hearing was sent to each customer of Heath Springs.Spri. ngs. Petitions to Intervene were filed by the following parties: Duke Power Company (Duke Power), C. David Small of Sma!l'sSmall's FoodFood. Center.Center, , and Stanley T. Marshall,Narshall, General Manager of Triangle Machine Co. Thereafter, the hearing was duly held on December 22, ]9861986 at 2:30 p.m.,p. m. , the Honorable Cecil A. Bowers_Bowers, presiding. Robert J. Sheheen, Esquire, representedrepresented. Heath Springs; E. Crosby Lewis, Esquire, represented Lynches River; Wm. Larry Porter, Esquire,Fsquire, represented Duke Power; Mr.Yir. Smalls appeared propra se; Mr.Nr. Marshall appeared pro se; and MarshaNarsha A. Ward, Staff Counsel, represented the Commission Staff.Sta f. DOCKETDOCKET NO.NO. 86-600-E86-600-E -—ORDERORDER NO.NO. 86-130286-1302 DecemberDecember 23,23, !9861986 Page3~~acaa 3 TheThe PetitionersPeti. tioners presentedpresented thethe testimonytestimony ofof WilliamWilliam H.H. Bridges,Bridges, PresidentPresident. andand majoritymajority shareholdershareholder ofof HeathHeath SpringsSprings andand LynnLynn M.N. Lanier,Lanier, GeneralGeneral ManagerNanager ofof LynchesLynches RiverRiver toto supportsupport. thethe purchasepurchase ofof thethe HeathHeath SpringsSprings electricelectric system..ystem andand reassignmentreassignment. ofof thethe HeathHeath SpringsSprings serviceservice areaarea toto LynchesLynches River.River. Mr.Nr. BridgesBridge. testifiedtest. .ified thatthat. HeathHeath SpringsSprings LightLight. andand PowerPower Company isis anan electricalelectrical utilityutility doingdoing businessbusiness inin LancasterLancaster County, SouthSouth CarolinaCarolina withwith itsit.s principalprincipal. placeplace ofof businessbusiness located in thethe TownTown of Heath Springs.Springs. TheThe utilityutility servesserves approximately 970970 customers, all o:fof whom are locatedlocated inin or nearnear the Town of Heath Springs. Approximately 14%14% of the customers are commercial users. Mr.Nr. Bridges stated that the complexity of providing service by a small utility has increased during the past years. His company's capitalization would not allow for rapid expansion nor had thethe utility appl.appliedied forfor a general rate increase in more than 20 years. Nr.Mr. Bridges furtherfurther statedstated that.that the transfer ofof thethe assets andand reassignmentreassignment ofof the territory served.served by HeathHeath Springs toto LynchesLynches RiverRiver willwill provideprovide good,good, efficient,efficient, andand effect"veeffective electrica1electrical utilityutility serviceservice toto thosethose customerscustomers at.at anan efficientefficient andand reasonablereasonable raterate andand givegive thethe HeathHeath SpringsSprings customerscustomer's accessaccess toto aa larger.larger repairrepair andand serviceservice organization.organization. TheThe transfertransfer andand sale,sale, accordingaccording toto Nr.Mr.. Bridges,Bridges, isis inin thethe best.best interestinterest ofof thethe servi.servicece areaarea andand thethe HeathHeath SpringsSprings customers.customers. DOCKETDOCKET NO.NO. 86-600-E86-600-E -—ORDERORDER NO.NO. 86-130286-1302 DecemberDecember 23,23, 19861986 PagePage 44 Locally,Locally, Mr.Nr. BridgesBridges testifiedtestified thatthat thethe TownTown ofof HeathHeath SpringsSprings TownTown CouncilCouncil hashas beenbeen amenableamenable toto thethe transfertransfer andand thethe executionexecution ofof thethe municipalmunicipal franchisefranchise agreementagreement andand thethe supplysupply serviceservice contractcontract withwith thethe Town.Town. Also,Also, thethe twotwo fullfull timetime employeesemployees ofof thethe utilityutility havehave beenbeen informedinformed ofof thethe proposedproposed transfertransfer andand salesale andand thethe utilityutility hashas mademade arrangementsarrangements forfor otherother employment. TheThe customerscustomers securitysecurity deposits onon filefi. .le withwith HeathHeath Springs will be transferredtransferred toto Lynches RiverRiver andand willwill bebe refundedrefunded or applied againstagainst. thethe customer's utilityutility billbill atat. thethe appropriate time.time. Lastly, Mr.Nr. Bridges testified that thethe proposed transfer will take place December 30, 1986 and willwi. ll include. operating equipment, physical plant.plant, , inventory of electrical supplies and accounts receivable of Heath Springs LightLight. and PowerPower. Company. Nr.Mr. Lanier.Lanier testified concerning Lynches River's operations, its service area, the purchase agreement between Lynches River and Heath Springs,Springs, events leading up to thethe agreement, Lynches River'sRiver's abil.abilityity toto adequatelyadequately serve the HeathHeath Springs service area,area, andand thethe benefits toto bebe derivedderived fromfrom thethe purchase.purchase. AsAs statedstated byby Nr.Mr. I.Lanier,anier, L~~nchesLynches RiverRiver isis aa member ownedowned electricelectric cooperativecooperative organizedorganized underunder thethe lawslaws ofof the StateState ofof SouthSouth CarolinaCarolina engagedengaged in.in thethe businessbusiness ofof di.distributing.tributing andand sellingselling electricelectric currentcurrent forfor lighti.lighting,ng, heatingheating andand powerpower toto thethe residentialresidential andand commercialcommercial public.public. ItsIts serviceservice areasareas areare withinwithin thethe countiescounties ofof Chesterfield,Chesterfield, Lancaster,Lancaster, andand Kershaw.Kershaw. LynchesLynches DOCKETNO. 86-600-E -— ORDERNO. 86-1302 December 23, 1986 Page 5 River also serves within thethe corporate limitslimits of several municipalities.municipaliti. es. The serviceserv'ce area was outlined in Hearing Exhibit No. I.1. Lynches River has over 10,10,000000 members and services 12,80012, 800 meters within its three-county area. In describing the agreementagreement. between Heath Springs and Lynches River, Mr.Nr. Lanier testified that Lynches RiverPiver has agreed to purchase all of thethe operating and electric distributiondistributi. on assets owned by Heath Springs_Springs, including any interest Heath Springs Light and Power Company may have to operate within the corporate limitslimit. ofof.
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