COLUMBIA, S.C. — South Carolina’s electric cooperatives have adopted a new rate that makes permanent their existing practices that protect Palmetto State families and businesses from energy costs created by data centers and other major energy users.
Today, the Central Electric Power Cooperative Board voted unanimously to formalize a set of consumer protections the Columbia-based generation and transmission cooperative and its 19 member cooperatives previously have employed on a case-by-case basis.
“Data centers can bring significant benefits to the power grid, creating efficiencies and paying for system costs that otherwise would have been borne by South Carolina co-op members. Our job is to maximize those benefits while minimizing risks and costs to our co-ops and the South Carolinians they serve,” said Central CEO Rob Hochstetler. “Our responsibility is to secure reliable electricity at the best price for the 2 million South Carolinians who rely on electric cooperatives for power. This new policy helps accomplish that goal.”
The new rate, which applies to large consumers that need 20 megawatts of electricity or more, includes the following protections, all of which have been endorsed by third-party advocates as pro-consumer:
- 15-year minimum-term contracts with early termination penalties
- Prepayment for necessary electric infrastructure upgrades
- Provisions for ramping down electricity use during potential energy shortages
- Cash deposits and other financial security requirements
- Monthly energy demand minimums, which ensure sufficient revenues are generated to cover system costs.
Central’s board, which consists of representatives from South Carolina’s 19 electric cooperatives, adopted the rate after a months-long study process that examined industry best practices.
“All of our ratemaking decisions are about fairness,” said Berl Davis, chairman of Central’s board and CEO of Palmetto Electric Cooperative. “South Carolina families and businesses shouldn’t subsidize the energy costs of major corporations. We have always recognized and ensured our rates were consistent with that ideal, and this rate reinforces that approach.”
Electric cooperatives currently serve one data center in South Carolina, which established operations in 2007. Three others are under development, and the contracts that govern those relationships already include the consumer protections outlined in the new rate.
Central’s new rate requires long-term commitments from major energy users that will provide the certainty Central and its member cooperatives need to make capital-intensive investments to the electric grid, including adding power generation resources, transmission lines and substations.
“We need accurate plans and solid commitments from large consumers so the right facilities are built at the right time and for the right price,” Hochstetler said. “This will help us keep South Carolina open for business and protect our members from unnecessary costs while we invest in the reliability of our power grid.”
About Central Electric Power Cooperative
Central is a Columbia-based not-for-profit generation and transmission cooperative that secures reliable, affordable power for South Carolina’s 19 electric distribution cooperatives and the 2 million South Carolinians they serve. Formed in 1948, Central helps its member cooperatives compete in a complex and capital-intensive industry by negotiating and managing long-term power supply contracts, coordinating transmission access, facilitating demand-response programs and managing fuel and market risk. Central and its member cooperatives together serve more than 70% of the state’s land mass, including consumer-members in all 46 counties.
Contact: Avery Wilks, 803-374-3115, avery.wilks@ecsc.org
