New polls shows majority of South Carolinians want a more competitive energy sector

COLUMBIA, S.C. (WCBD) – A majority of South Carolinians support having more choice when it comes to their energy providers, according to a new poll.

The poll, commissioned by the Clean Energy Buyers Association (CEBA), found that nearly 81% of people surveyed said that the state should change its laws to encourage competition in the energy sector and allow multiple providers to sell electricity.

CEBA favors moving toward a model adopted by 19 other states in which power companies are required to participate in a wholesale energy market, an idea backed by more than three-fourths of South Carolinians, per the poll.

Such policy changes were central to a Senate hearing last week as lawmakers look for ways to meet the state’s growing energy demand.

Currently, utility providers – Santee Cooper, Dominion Energy, and Duke Energy – operate as a monopoly meaning that customers within that company’s service area have no choice in who they buy power from.

Leaders from those companies have previously expressed that they need extra power for growing data centers and manufacturing, which could mean building additional power plants.

Representatives from large power users in the state believe that switching to a retail choice model could help alleviate the energy crisis in the meantime.

“At least in the case of Dominion and Santee Cooper, they don’t have a whole lot of extra generation capacity and they desperately, I think, need those plants or a new plant,” Scott Elliott of the S.C. Energy Users Committee told lawmakers during the hearing. “If their capacity is thin, this would be the time to at least open up the largest users of electricity to some alternative source of electricity.”

Others suggested it could lead to an overall reduction in energy prices by generating more competition in the marketplace that would drive down costs.  

A 2023 Brattle Group study determined that open market participation could save ratepayers some $360 million a year.  

John Dezee, executive vice president and general counsel for Century Aluminum, said utility companies “always want to build more generation” because it helps their profits, but the cost of doing so would likely fall to customers.

“The other alternative when you’re short is to allow people to go out and buy that power and wheel it in such a that you don’t have to build as much generation, which means less cost will be shared by the rest of the ratepayers,” he told legislators.

Executives from two of the three major utility providers later offered their perspective, cautioning lawmakers against “unintended consequences” that may arise if adjustments are made.

“I want to caution you: making adjustments to what is an incredibly complex electric market to benefit a single set of customers need to be exceptionally thought out and has huge potential for unintended consequences,” Santee Cooper CEO Jim Staton said.

Assessing the state’s energy future has been a key issue at the Statehouse over the past year.

A comprehensive energy bill passed the House last session but stalled in the Senate over concerns that the process was rushed.

This year, many lawmakers and the governor, want to see energy policy cross the finish line so the state can continue to attract large businesses.  

“Our electric generation, distribution, and transmission capacity and capabilities must be able to handle enhanced future economic development, anticipated technological advances, and population growth,” Gov. Henry McMaster said during his annual State of the State address.

He advocated for restarting the construction of two abandoned nuclear reactors at the site of the failed V.C. Summer nuclear plant, a possibility currently being examined by Santee Cooper.

“I believe that restarting these two reactors will not only help fuel our state’s future power needs but will also usher in a nuclear power renaissance across the country, one that will spur nationwide investment and construction of new nuclear power generation,” McMaster said.