BLOODY POINT PROPERTY OWNERS ASSOCIATION
Fellow property owners, February 25, 2016
In December the South Carolina Public Service Commission rejected the Daufuskie Island Utility Company (DIUC) proposed 108% rate increase by approving a 43% overall rate increase. Rather than putting the rate increase into effect, DIUC asked the commission to reconsider its decision. The Commission rejected DIUC’s request last month.
DIUC then said they would appeal the Commission’s decision to the South Carolina Supreme Court. The appeal process typically takes two years. DIUC claims that the approved 43% rate increase is not adequate and could lead to bankruptcy. State law allows regulated utilities to put proposed rates into effect subject to a refund if the utility secures a Commission approved bond.
DIUC has filed a proposed bond application and the Commission recently approved a bond amount that is sufficient to protect DIUC’s customers in the event that DIUC’s appeal is rejected by the court. Any refunds are subject to a 12% annual interest rate.
We have been told that courts rarely overturn state Public Service Commission decisions.
In the meantime we understand that DIUC is actively trying to sell its water and waste water system.
If all goes as indicated the new rates will be put into effect on July 1, 2016.
President, Bloody Point Property Owners Association