General Assembly Passes Energy Bill with Few Safeguards

By: Jessica Holdman/S.C. Daily Gazette

COLUMBIA — A sweeping energy package billed as necessary to meeting South Carolina’s power needs amid rapid industrial and population growth is headed to the governor’s desk.

The legislation faced more pushback in the Senate on Wednesday, a week after the House removed — with little discussion — measures meant to safeguard consumers and landowners. The bill ultimately passed, however, after senators spent roughly four hours venting their frustrations over the changes.

By a 35-11 vote, the Senate agreed to let the legislation go forward without provisions requiring energy-intensive data centers to cover their share of costs for new power plants built to power them or disclose how much water they plan to use.

The vote means data centers also will continue receiving sales tax credits for the computer equipment they purchase.

Utilities’ efficiency programs won’t be held to a set standard in terms of energy savings.

And power companies won’t be required to give landowners an earlier notice when construction of power plants, power lines, substations and pipelines impact their property.

The vote was not along party lines. The “no” votes came from three Democrats and eight Republicans.

“I just want everybody to understand what the consequence is going to be of not having some of those things in there,” said Senate Majority Leader Shane Massey, who authored the data center provisions in the version the Senate passed last month.

“Your constituents are going to be paying more for energy. They’re going to be paying more for energy because of the cost of generation, and that generation requirement is born largely because of data centers.”

“I’m going to tell you this: You’re going to regret this,” the Edgefield Republican added.

At the heart of the bill, sponsored by GOP House Speaker Murrell Smith of Sumter, is permission for Dominion Energy and state-owned utility Santee Cooper to partner on a possible 2,000-megawatt natural gas plant on the site of a former coal-fired power plant along the Edisto River in Colleton County.

Furthermore, utility executives told legislators they needed guarantees that state regulators would review power-related permits in a timely manner as they seek to make updates to the state’s power grid.

They asked for measures to prevent years-long delays of new pipelines and power plants in the court system. And they sought a section to make it easier to raise power bills on an annual basis, arguing smaller but more frequent increases would be easier for those on a fixed income to adjust to.

“South Carolina is growing, and with that growth comes additional demand for accessible, affordable and reliable energy. We thank the General Assembly for recognizing this and passing critical energy reform legislation,” the South Carolina Manufacturers Association wrote in support of the bill passed after two years of hearings and debate.

Dominion Energy, in a statement, also applauded passage of the bill it said would result in “the ability to provide critically needed electricity and natural gas to power homes and businesses in the Palmetto State efficiently and cost effectively.”

Massey said he’s not opposed to a new natural gas plant-fired power plant.

“What I’m opposed to is making people pay for more than they should have to pay for, and we’re sanctioning it,” he said. “There is nothing in this bill that the utilities don’t like. They’re getting everything they want.”

In its original form, the legislation saw significant pushback on its sweeping regulatory changes and rollback of consumer protections passed in the wake of South Carolina’s failed nuclear expansion. The final legislation ultimately left those existing protections in place.

Sen. Tom Davis, the author of efforts to increase energy efficiency and reduce power use in the state, lamented the removal of the other Senate-added safeguards.

“But what I have to weigh is taking what I think is a substantial step forward and accepting it or rejecting it,” the Beaufort Republican said in explaining his “yes” vote. “The bottom line for me is I don’t want to take that risk.”

Davis also reminded legislators that artificial intelligence, powered by data centers, is on track to impact all aspects of the global economy, from energy to health care.

“That’s the way industry is moving. The good jobs, the high paying jobs, the jobs we want in the future, are going to be added to those components,” he said. “It would be a very big mistake, in my opinion, to send a message that we don’t want data centers.”

On the other hand, Davis expressed confidence that data center developers and utility companies now understand their deals are going to be more heavily scrutinized.

The South Carolina Daily Gazette is a nonprofit news site providing nonpartisan reporting and thoughtful commentary. We strive to shine a light on state government and how political decisions affect people across the Palmetto State.