Daufuskie v. SC Office of Regulatory Staff
Annotate this CaseDaufuskie Island Utility Company (DIUC) again appealed decisions by the Public Service Commission (PSC) regarding DIUC's 2015 application for ratemaking. In the PSC's first two decisions, it granted only part of the 109% rate increase requested by DIUC. DIUC appealed both decisions, and both times, the South Carolina Supreme Court reversed and remanded to the PSC for further consideration. On the final remand, the parties entered a settlement agreement allowing DIUC to recover rates equivalent to the 109% rate increase it initially requested in 2015. However, the parties continued to disagree over the propriety of DIUC's additional request to retroactively recover the 109% rate increase from the date of the PSC's first order, rather than from the date of the PSC's acceptance of the settlement agreement. The PSC rejected DIUC's request for the "reparations surcharge," finding it would amount to impermissible retroactive ratemaking. The propriety of the reparations surcharge was the only matter at issue in this appeal. The Supreme Court found the General Assembly did not authorize the PSC to grant utilities relief via a reparations surcharge, and the PSC therefore correctly rejected DIUC's request. The Court found DIUC chose not to avail itself of South Carolina Code section 58-5-240(D)'s statutory remedy prior to this final appeal. Accordingly, the PSC's decision was affirmed and the Court "end[ed] this lengthy ratemaking process."
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