Council OKs first reading of FILOT agreement with NEC

NEWBERRY COUNTY — Newberry County Council approved the first reading of a fee in lieu of tax and incentive agreement between the county and Newberry Electric Cooperative (NEC) during their March 3 meeting.

According to the annotated agenda, provided by County Administrator Wayne Adams, the cooperative is seeking FILOT treatment (6% assessment ratio vs. 10.5% assessment ratio) and a 20% special source revenue credit (SSRC) for certain investments.

These investments primarily concern the expansion of broadband service to certain areas of the county and the addition of a substation to serve the expanding Mid-Carolina Commerce Park (as necessary to serve new users), per the annotated agenda. The FILOT and SSRC treatment would be limited to 1) the items listed in the project description and 2) an amount not to exceed $14.5 million.

The Economic Development Committee has recommended first reading consideration by full council, according to the agenda.

The projects from Newberry Electric Cooperative include:

• Riley Road to Cannons Creek double circuit (Ckt 6), this project recommends building a second circuit from Riley Road to Cannons Creek using double circuit 336 ACSR construction where possible or a parallel single circuit 336 ACSR construction where double circuit is not possible. A section of this line will be underground 750 AL parallel to the existing underground on Ckt 6.

• Mid-Carolina Commerce Park Substation, this project has been carried over from the previous work plan and calls for the construction of the new Mid-Carolina Commerce Park Substation. This new substation will be used to supply distribution power to the new Mid-Carolina Commerce Park. The new substation will require a three-phase 333 kVA voltage regulators for the four feeders that will be initially constructed in addition, four SEL-651R recloser controls will be required for the four expected circuits. This substation will also be connected to the NEC SCADA system via a SEL-3530 Real-Time Automation Controller (RTAC) that will be installed as part of the project.

• Prosperity Power Transformer upgrade, this project recommends replacing the existing three single-phase 1,667 kW transformers with an existing system spare three-phase 10.5/12.5//14 MVA. This project is needed to provide additional online capacity in the event the existing 10.5 MVA transformer fails.

• New Hope Power Transformer upgrade, this project has been carried over and modified from the previous work plan and recommends replacing the three existing single phase 1,667 kVA transformers with one three-phase 10/12.5//14 MVA transformer from the system spares. The high-side fuses will be replacing with a circuit switcher, and the existing 167 kVA voltage regulators will be upgraded to 333 kVA units. In addition, install a new relay panel for transformer protection and replace the existing batteries and charger. Also upgrade the existing SCADA RTU.

The total cost estimate to the NEC for these projects is $14,476,583.

The first reading was approved after Councilperson Travis Reeder made a motion and seconded by Councilperson Les Hipp. Councilperson Nick Shealy recused himself due to being an employee of NEC.

Council also approved a resolution committing to negotiate an agreement between Newberry County and Newberry Electric Cooperative. S.C. Code of Laws requires that counties formally identify projects for which they are negotiating fee deals. This resolution identifies the Newberry Electric Cooperative project previously mentioned.

This was approved after Hipp made a motion and Reeder gave a second. Shealy recused himself from this vote.

Other business:

• Council approved a proclamation declaring March 2021 as Disabilities Awareness Month in Newberry County.

• Council was introduced to Abigail Fuller, the new Newberry County Library director, and Amy Perkins, the new Registration and Election Commission director.

• Council approved third reading and held a public hearing for an ordinance authoring the issuance and sale of a Newberry County Special Source Revenue Bond (industrial park project) in the principal amount of not exceeding $5,500,000 in one or more series. The application of the proceeds of said bonds to defray, for economic development purposes, the costs of certain infrastructure improvements and of acquiring certain property in Newberry County; to refund outstanding amounts of the County’s Series 2006 Special Source Revenue Bonds; and other matters relating thereto.

• Council approved an amended first reading of an ordinance permitting council members participation in council meetings remotely through virtual/electronic means as a permanent option. Hipp made an amendment to require members meeting virtually to state the reason, or for the chairman to do so.

• Council approved an amended first reading of an ordinance permitting the Newberry County Joint Planning Commission and the Newberry County Board of Zoning Appeals to conduct virtual/electronic meetings permanently. Hipp made an amendment to require members meeting virtually to state the reason, or for the chairman to do so.