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South Carolina · H.3309 / Act 41

SC Energy Security Act (H.3309): what the new utility law means for your power bill

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The short version

  • H.3309, the "South Carolina Energy Security Act," became law (Act No. 41) when the Governor signed it on May 12, 2025.
  • It lets Santee Cooper (the state-owned Public Service Authority) co-own one or more new natural gas power plants with Dominion Energy South Carolina at or near the former Canadys coal plant site in Colleton County.
  • It creates an optional "Electric Rate Stabilization" process: a utility can choose to have its rates checked against a set profit range every year, with rates adjusted up or down starting with August bills.
  • It says reasonable and prudent costs utilities incur to carry out the act can be recovered from customers if the Public Service Commission approves them.
Status
Law. Signed by the Governor May 12, 2025; ratified as R60, Act No. 41. Effective May 12, 2025.
Official source
SC Legislature, 2025-2026 Bill 3309 (Act No. 41)

What it does

The act is long (46 sections) and covers many parts of how electricity is planned, built and priced in South Carolina. Its title lists, among other things, these changes:

  • New gas plant. Santee Cooper (the Public Service Authority) may jointly own, with Dominion Energy South Carolina, one or more natural gas-fired generation facilities and related transmission lines on a site at or near Dominion's former Canadys coal-fired station in Colleton County. Santee Cooper's ownership share must equal the share of money or property it puts in. (Section 7, new S.C. Code § 58-31-205)
  • Yearly rate check (optional for utilities). A utility may elect to have a new “Electric Rate Stabilization” article apply to its rates. The Public Service Commission sets a profit range (a cost-of-equity band of 0.50 percentage points above and below the level rates were set on). If the utility earns above the range, it calculates a rate reduction; if below, a rate increase, in each case to bring earnings back to the middle of the range. (Section 10, §§ 58-27-2700 to 58-27-2740)
  • Customers can speak. Electric utility customers may address the Public Service Commission as public witnesses in contested cases. (Act title, describing Section 2, § 58-3-140)
  • State energy plan. The Office of Regulatory Staff must prepare a comprehensive state energy assessment and action plan. (Section 5, § 58-4-150)
  • Solar farm rules where counties have none. The act sets requirements for solar energy system plans when a county lacks rural zoning or ordinances for solar systems needing more than 13 acres of land. (Act title, Section 8)
  • Nuclear and other options. It encourages consideration of fusion and advanced nuclear facilities and permits evaluation of small modular nuclear facilities. (Sections 11 and 13; act title)
  • Wateree station study. Dominion Energy must evaluate converting its Wateree Generating Station from coal to biomass (such as wood pellets and chips) and report to the Public Service Commission and General Assembly by January 13, 2026. (Section 42)

Who it affects

  • Electric customers of the utilities named in the act, including Dominion Energy South Carolina, Santee Cooper, Duke Energy Carolinas and Duke Energy Progress. (Act title, describing Section 6, § 58-33-195)
  • Residents and landowners in Colleton County, where the jointly owned gas plant site is located. (Section 7)
  • Rural landowners and counties without solar zoning rules. (Section 8)

Cost and impact

The act does not set a dollar figure for what customers will pay. What it does say:

  • Under the yearly rate check, any rate adjustment applies to bills starting with the first billing cycle of August of that year. If the Commission does not issue its initial order by July 15, the utility’s proposed adjustment is considered granted as filed. (§ 58-27-2760(5)–(6))
  • If a later final order changes the numbers, customers get a credit for any overcollection, or pay a surcharge for any undercollection. (§ 58-27-2790)
  • Investments in any new generating plant over 250 megawatts cannot be added to rates through the yearly check; they must go through a general rate case or a specific contested case. (§ 58-27-2770)
  • “All reasonable and prudent costs” utilities incur to carry out the act, if not covered elsewhere, are deferred and may be recovered if the Commission finds them reasonable and prudent. (Section 34)

Current status

The bill passed the House 94–11 on February 12, 2025. The Senate agreed to the House’s final amendments on May 7, 2025, by a vote of 35–11. It was ratified May 8 and signed by the Governor on May 12, 2025, and took effect on approval (Act No. 41). (Bill history; Section 46)

Because it is now law, what happens next depends on the Public Service Commission and the utilities, for example whether a utility elects the yearly rate-check process.

Every statement above is drawn from the official source text linked here; section references are shown in grey. This is a plain-English summary, not legal advice. Spot an error? Tell us.