A proposal that its’ backers hope will ensure South Carolinians and businesses have a reliable supply of gas and electricity in the future is moving through the state Legislature.
Dramatic population and industrial growth, coupled with the lack of natural gas capacity that is available to the state, has prompted lawmakers to develop a wide-ranging bill known as the “Ten Year Energy Transformation Act” (H.5118).
House Speaker Murrell Smith, R-Sumter, says the state is at a “crisis point” when it comes to having a reliable supply of energy.
“We’re a growing state with a growing economy, and we’re dangerously close to running out of the ability to service the needs of our population, and our economic development projects here in South Carolina if we don’t make a change,” Smith said.
That change, Smith and others want to make, includes clear direction to state regulators and utility executives for the utilities to increase their electric generating capacity.
The bill also urges the utilities to take a renewed look at nuclear as a future power source, and it would restructure the S.C. Public Service Commission to include streamlining the permitting process so utilities can generate new power faster.
Duke Energy Carolinas recently reported growth in its service area is now eight times what it projected two years ago. To meet demand the utilities are proposing to increase their use of natural gas plants, as well as more solar and battery storage sources.
The soaring increase in the demand for power comes at the same time utilities are closing old coal plants. Jeff Penland of state-owned utility Santee Cooper recently told the House Economic and Utility Modernization Ad Hoc Committee the utility is facing a two-fold problem.
“We are having to replace older generation with new generation, and we’re having to build new generation to meet the growth we’re seeing in this state along with a need to have the available capacity for economic development,” Penland testified.
An example of the economic development challenge state leaders are facing is Century Aluminum in Berkeley County, one of the largest users of electricity in the state.
Century’s Matt Aboud said the company now operates at 75% capacity, and would like to restart a fourth smelter which would create hundreds of additional jobs.
“We are a very, very large consumer of power, so of course for us to feel comfortable to restart we have to know that that power is available,” Aboud said.
“The consistency and availability of power is key for us,” he added.
Aboud also said Century is working with its’ supplier, Santee Cooper to meet its’ energy needs.
The proposed bill specifically blesses Dominion Energy and Santee Cooper’s hopes to partner in a new, large combined gas-cycle plant in Colleton County.
It also encourages Duke to evaluate the need for more gas generation in its’ service areas, and to evaluate the possibility of adding a second powerhouse at its’ Bad Creek pumped storage facility in Oconee County.
The bill has the support of the utilities. Conservation groups however are warning, if enacted, the new law could give a green light to utility leaders to undertake big, expensive projects like new natural gas plants, and not give enough consideration to cleaner and cheaper energy alternatives.
They also liken the proposed bill to the infamous Base Load Review Act of 2007, which allowed too little oversight of the failed V.C. Summer Nuclear project. The 2017 joint project was between Santee Cooper and SCANA Corp., now Dominion Energy.
“We’ve been here before,” John Brooker with the League of Conservation Voters told lawmakers recently.
“Utilities are selling a joint gas mega-project as a silver bullet to our energy problems. But it is not. This same song was sung in proposals for V.C. Summer that lost $9 Billion of ratepayer funds,” Brooker said.
The Legislature repealed the Base Load Review Act following the V.C. Summer debacle.
The energy bill contains a sunset provision after ten years, and enhances the S.C. Office of Regulatory Staff, which acts as a third-party advisor to the state and public on proposed rate increases, and it would authorize the state to become the first state in the country to financially back future natural gas allocations for potential large industrial projects.
