PSC Is Right to Refuse Rate Increase

Hilton Head Plantation Utilities (HHPU) sought approval from South Carolina's Public Service Commission (PSC) for increases in water and sewer rates. At a public hearing, the president of the Property Owner's Association of Hilton Head Plantation, representing many consumer ratepayers, called the PSC's attention to the fact that much of HHPU's budget was paid to its corporate parent. The president submitted that the expenses were questionable unexplained payments; in effect it invited the PSC to consider that certain transactions may not have been conducted at arm's length. The PSC denied the rate increase. The trial court affirmed.