December 17, 2024
In accordance with S.C. Code Ann. § 33‐49‐150(A), the South Carolina Office of Regulatory Staff (“ORS”) has
conducted its examination of Newberry Electric Cooperative, Inc., pursuant to the provisions of Act 56 which was
enacted in 2019, relating to compliance with the provisions of the Act.
ORS conducted its examination in accordance with S.C. Code Ann. § 58‐4‐50, as amended by Act 56. Section 33‐
49‐150(A) vests ORS with authority and jurisdiction to conduct examinations of electric cooperatives regarding
compliance with certain enumerated statutes. Certain statutes covered by our examination are as follows:
33‐49‐255 ‐ Restrictions on Interruption of Electric Service to Residential Customers for
Nonpayment of Bill; Exceptions
33‐49‐280 ‐ Bylaws
33‐49‐420 ‐ Meetings
33‐49‐430 ‐ Quorum
33‐49‐440 ‐ Voting
33‐49‐450 ‐ Disposition of Propositions Presented by Not Less Than Ten Percent of Members
33‐49‐610 ‐ Trustees
33‐49‐615 ‐ Disclosure of Compensation and Benefits
33‐49‐620 ‐ Voting Districts for Trustees and For Delegates
33‐49‐625 ‐ Notice, Votes, and Minutes
33‐49‐630 ‐ Compensation or Employment of Trustee; Actions and Conduct Prohibited
33‐49‐640 ‐ Annual Election and Term of Trustees
33‐49‐645 ‐ Conduct of Elections
33‐49‐1420 ‐ Termination Procedures; Contents
Accordingly, the timing and extent of our tests were conducted as follows:
1401 Main Street, Suite 900
Columbia, SC 29201
Phone: (803) 737-0800
Letter – Newberry Electric Cooperative, Inc.
Page 2 of 3
December 17, 2024
(1) The examination involved testing compliance with the statutes listed above, for the period from July 1, 2021
to December 31, 2023.
(2) ORS’s examination procedures included the following: questionnaires, inquiries, review of the Electric
Cooperative’s bylaws, review of board meeting notices, review of minutes of meetings, review of Trustee
compensation and benefits related to board meeting attendance, and other analytical analysis.
Based upon the examination procedures performed and the results obtained from the examination and the
affirmations provided, Newberry Electric Cooperative, Inc. is in compliance with the statutes referenced above.
For future reviews of the Electric Cooperatives and the Association, ORS is planning the following examination
schedule:
1. For calendar year 2024 and each year thereafter, the ORS will:
a) Review each Cooperative’s and the Association’s disclosure of compensation and benefits
as required by S.C. Code Ann.§§ 33‐49‐615 and 33‐49‐160(B), respectively, which require
disclosing the compensation or benefits by category paid to or provided for board of
trustee members during the previous calendar year. These disclosures are required to be
made by a Cooperative no later than May 15 and disclose amounts paid for the previous
calendar year.
b) Review each Cooperative’s and the Association’s compliance with S.C. Code Ann. §§ 33‐
49‐630(A) and 33‐49‐160(D)(1), respectively, which provide that compensation shall not
be paid except for actual attendance upon activities authorized by the board. The review
period will be the same as covered in the compensation and benefits review.
Regarding comprehensive examinations (beyond examining Compensation and Benefits disclosures), the ORS
continues to conduct a three (3) year rotation examining one‐third of entities eligible to be examined per year.
The rotation schedule for comprehensive examinations will continue in 2025 as follows:
1. 2025 Comprehensive Examinations:
Conduct 8 comprehensive examinations covering a test period July 1, 2021, to December 31,
2024 (Test period is 3.5 years).
This next selection of 8 will be randomly selected from the remaining entities for which a
comprehensive examination was not performed in 2024.
2. 2026 Comprehensive Examinations:
Conduct comprehensive examinations covering a test period July 1, 2021, to December 31,
2025. (Test period is 4.5 years).
The remaining entities for which a comprehensive examination was not performed during
the previous two years will be included in this rotation.
3. In 2027 the rotation will start over.
Letter – Newberry Electric Cooperative, Inc.
Page 3 of 3
December 17, 2024
Sincerely,
David Herpel
David Herpel, CPA
ORS Audit Manager
cc: Christopher R. Koon, Esquire (via email)