South Carolina’s New Energy Law Sparks Debate Over Potential Rate Hikes
HORRY COUNTY, S.C. – South Carolina’s newly signed Energy Security Act is drawing sharp debate across the state, with lawmakers and energy advocates warning that the law could significantly increase electricity costs for residents.
The law, signed by Governor Henry McMaster, is designed to support long-term energy planning and growth. However, critics say its structure gives utility companies more power to raise rates quickly — with less input from the public.
Concerns Over Fast-Tracked Rate Hikes
During debate in the South Carolina Senate, Majority Leader Shane Massey didn’t mince words:
“Your constituents are going to be paying more for energy,” he warned.
While some lawmakers, like Senator Tom Davis of Beaufort, praised the bill’s collaborative outcome, consumer advocates see it differently. According to ABC News 4, attorneys from the Southern Environmental Law Center argued the new process lacks transparency and favors utilities.
Katie Mixson, senior attorney for the organization, said:
“Under this new law, utilities can raise rates through a faster process that has, frankly, less oversight.”
Who Pays for Growth?
Utility providers like Santee Cooper and Dominion Energy stand to gain from the bill’s new provisions. Santee Cooper plans to build a new power plant in partnership with Dominion, which the company claims will save customers money. However, some experts warn those savings may be short-term.
“Utilities don’t pay for the gas they burn — customers do,” Mixson emphasized in the WPDE analysis.
The bill does not mandate that customers be allowed to weigh in before new rate hikes take effect — a red flag for many advocates.
Duke Energy Prepares Rate Increases
Adding to the concern, Duke Energy Carolinas and Duke Progress announced plans to file for residential rate increases — with a projected 13% rise for homeowners and a 3% increase for industrial users.
Though Duke stated the proposed hikes are not directly tied to the Energy Security Act, the timing raises eyebrows. In their press release, the company acknowledged the law aligns with their long-term investment goals.
Public Involvement Promised — But Delayed
The Public Service Commission says public hearings will be held, with the first scheduled for late September in Florence. Meanwhile, Santee Cooper assured that any future rate increase proposals will undergo a public approval process.
The bill also promotes greater energy diversity and encourages new nuclear energy efforts. As part of this, Santee Cooper issued a request for private partners to take over the dormant VC Summer nuclear plant, though a selection has yet to be announced.
Looking Ahead
The Energy Security Act includes promising language on cost-efficiency and demand forecasting. Yet many South Carolinians remain uneasy. The possibility of fewer guardrails, coupled with increasing electricity demand from data centers and industrial growth, leaves residents questioning who truly benefits from the legislation.
What do you think? Should South Carolina’s utilities have more power to raise rates quickly — or should customers get a bigger say? Share your thoughts now on SaludaStandard-Sentinel.com.
