What's in South Carolina's sweeping new energy law?

South Carolina now has a new regulatory landscape that will shape how electric utilities generate, distribute, and charge customers for energy. The SC Energy Security Act (H.3309, Act 41) — passed in the final hours of the 2025 Legislative Session — is the result of more than three years of discussion and hard-earned negotiation among advocates, utilities, legislators, and communities. 

Right up against the clock, changes to the bill flew between chambers, unfortunately including the removal of new protections for landowners (championed by Spartanburg Senator Shane Martin), the weakening of proposed energy efficiency standards, and the elimination of key guard rails on data center development. Still, as we’ll explore below, the bill has come a long way from its original, broad-sweeping rollbacks.

How we got here

Initially framed by utilities as a necessary overhaul of the process for approving and funding energy infrastructure, the bill used the authorization of a massive natural gas plant in Canadys, SC — to be built by Dominion and Santee Cooper — as a vehicle for dozens of changes to how utility plans are reviewed, challenged, and commented on by the public. Throughout legislative committee hearings, stakeholder meetings, and countless conversations, we remained fully engaged, raising red flags about the unintended consequences of many proposed changes and sharing real-world examples of how Upstate landowners and communities could be affected. 

Thanks to unwavering support from citizens, community groups, and our partners, excessive rollbacks to permitting and oversight were removed. With compromises to streamline the permitting and appeals process for energy projects, a mix of progressive measures were also secured to support clean energy and energy efficiency programs. 

Scroll down for a comprehensive look at the wins. It’s a long list for good reason, reflecting the bill’s far-reaching impacts and the tireless work from residents, advocates, and experts to hold the line on public interest, accountability, and fair access in a rapidly shifting energy landscape. 

While significant improvements were secured, several concerning provisions still made it in. Those concerns are also enumerated below.

This legislation is now law, but its true impact will be shaped in the months and years ahead as utilities, regulators, and communities navigate its implementation. New rate cases to adjust monthly electric bills are already underway, coming on the heels of an announcement by Duke Energy Carolinas to build a 1,400 MW combined cycle natural gas plant in Anderson County. Upstate Forever will continue to champion transparency, protect the public interest, and push for energy decisions that reflect the values and needs of all South Carolinians.

Some big wins

Below is a comprehensive look at the hard-earned wins secured by a broad coalition of advocates:

Maintained Integrity at the SC Public Service Commission (PSC) 

• Removed the provision that would have reduced the number of Public Service Commissioners from seven to three. 
• Preserved the Consumer Advocate’s independence to represent the public’s best interests in PSC proceedings.
• Preserved independence at the PSC and Office of Regulatory Staff (ORS) by removing language prioritizing the financial health of electric utilities within the agencies’ missions. 
• Removed language declaring many energy projects, including 9,000 megawatts (MW) of natural gas between Duke, Dominion, and Santee Cooper, to be in the “public interest,” essentially pre-determining approval by the PSC.

Risk and Oversight

• Removed the “Anchor Subscriber” provision, which would have authorized Santee Cooper — and by extension, the state — to take on excessive financial risk and skyrocketing costs for natural gas pipeline projects, something no other state has done. 
• Added oversight of large energy project construction costs and quarterly reporting requirements.

Defending Low-cost Clean energy

• Removed a proposal that would have forced solar projects over 125 acres—regardless of generation capacity—to undergo PSC certification, using a state-level process to address local land use concerns better handled by communities.
• Preserved 10-year contract terms for solar projects under PURPA, the federal law that guarantees independent producers fair access to the energy market.
• Removed a provision that would have shifted discretion from the PSC to utilities to develop programs for the Competitive Procurement of Renewable Energy (CPRE), a best practice in the utility industry for lowering costs to customers.
• Raised the solar net metering cap for nonresidential customers to 5 MW (up from 1 MW, or about enough solar to power 112 homes for a year in SC), promoting more on-site solar generation by large businesses and industrial customers. 
• Strengthened CPRE requirements to meet near-term energy demand:
  • Utilities must now procure renewable energy, co-located energy storage, and eligible stand-alone storage consistent with the amount stated in their Integrated Resource Plan (IRP), which are plans submitted to the PSC by utilities every three years detailing how they will meet energy needs over the next 15 years.
  • Stand-alone energy storage projects under 20 MW intended for local reliability will be streamlined.
• Encouraged utilities to explore bulk power solutions for non-residential customers with electric loads exceeding 25 MW.
• Established solar design standards for counties that have not adopted rural zoning or solar design and development ordinances. 

Permitting Reforms

• Protected citizens’ standing to appeal permit decisions on energy projects. 
• Significantly narrowed language allowing utilities to begin clearing, grading, and construction of broad swaths of energy projects before receiving PSC approval.
• Closed a loophole letting utilities stall the new six-month permit review timeline by submitting incomplete applications.
• Eliminated a dangerous provision allowing utilities to bypass PSC review for infrastructure built in new rights-of-way — essentially, anywhere. 

Transmission Planning

Added requirements for utilities to include, as part of their proposed IRPs, a report addressing updates to the utility’s transmission network over 15-years, describing local stakeholder participation, how they evaluated a range of solutions to reduce costs - including joint projects with other utilities, upgrades, and modern grid-enhancing technologies - and considerations where specific sites have been identified.

Energy Efficiency 

• Added requirements for utilities to invest in all reasonable, prudent, and cost-effective Energy Efficiency (EE) and demand-side resources.
• Directed ORS to evaluate utility EE program administration models (e.g., utility-led, third-party, hybrid) and authorized the PSC to appoint third-party administrators for low-income EE programs if utilities fail to meet requirements set by the PSC.
• Required utilities to annually report on EE efforts and undergo triennial PSC review.
• Clarified PSC authority to approve utility-proposed programs that expand access to EE and demand-side management.

Several concerns remain. The bill: 

• Authorized Santee Cooper and Dominion to work together to build a massive natural gas plant in the former Canadys coal plant in Colleton County. 
• Limited intervenors’ ability to “correct the record” through surrebuttal testimony at the PSC, potentially hamstringing the PSC and the public from understanding the full scope of each party’s argument.
• Exempted transmission lines from needing a CPCN from the PSC if Santee Cooper and ORS deem it necessary for economic development. 
• Increased financial burdens on intervening parties for accessing IRP software, though the fi-nal cost is lower than originally proposed.
• Authorized annual, streamlined rate increases through what utilities called “electric rate stabilization.” Utilities now can file mini rate cases every year, rather than every five years, to re-cover costs on capital expenditures like those necessary to build Canadys. After five years, a thorough review of the new process will be required by ORS with assistance from an inde-pendent third party.

The path ahead

Now that the SC Energy Security Act is law, its true effects will be shaped by how it’s implemented in the  years to come. Upstate Forever will remain a steadfast advocate for transparency, accountability, and energy decisions that serve the public good.

Questions? Contact Megan Chase-Muller, Upstate Forever’s State Policy Director, at mchase@upstateforever.org.