South Carolina S 93: Natural Gas Rate Stabilization Act

Bill Text

2025-2026 Bill 93 Text of Previous Version (Dec. 11, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 93

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 58-5-410, RELATING TO AN ELECTION TO COME UNDER THE NATURAL GAS RATE 
STABILIZATION ACT, SO AS TO REMOVE THE PROVISION THAT AN ELECTION SHALL REMAIN 
IN EFFECT UNTIL THE NEXT GENERAL RATE PROCEEDING; BY AMENDING SECTION 58-5-415, 
RELATING TO THE DURATION OF AN ELECTION AND THE WITHDRAWAL OF A REQUEST TO COME 
UNDER THE NATURAL GAS RATE STABILIZATION ACT, SO AS TO PROVIDE THAT ELECTION BY 
A UTILITY UNDER THE NATURAL GAS RATE STABILIZATION ACT SHALL REMAIN IN EFFECT 
FOR FIVE YEARS AND THAT THE UTILITY MAY OPT OUT; BY AMENDING SECTION 58-5-420, 
RELATING TO THE CONTENTS OF AN ORDER, SO AS TO REMOVE CERTAIN REQUIREMENTS FOR 
FIGURES; BY AMENDING SECTION 58-5-450, RELATING TO THE REVIEW OF REPORTS AND 
PROPOSED TARIFF RATE ADJUSTMENTS, SO AS TO PROVIDE THAT THE OFFICE OF 
REGULATORY STAFF SHALL PROPOSE CHANGES TO RATE DESIGN; BY AMENDING SECTION 
58-5-470, RELATING TO THE REVIEW OF INITIAL ORDERS, SCOPE, AND RULE TO SHOW 
CAUSE FOR WHY A FULL RATE PROCEEDING SHOULD NOT BE INITIATED, SO AS TO PROVIDE 
THAT THE RIGHT OF REGULATORY STAFF TO FILE CERTAIN ACTIONS IS NOT LIMITED; AND 
BY ADDING SECTION 58-5-416 SO AS TO PROVIDE A LIMITATION ON THE DURATION OF 
ELECTION.

Whereas, the Natural 
Gas Rate Stabilization Act (RSA) was ratified in 2005 for the purposes of 
increasing the stability and predictability of natural gas rates charged to 
retail customers; providing an efficient rate-setting mechanism for smaller, 
periodic rate adjustments; and encouraging investment in new, updated, and 
expanded natural gas infrastructure, reducing the 
cost of proceedings for consumers and the public; and

Whereas, after a return 
on equity, cost of service, revenue allocation, capital structure, or rate 
design is elected by an investor-owned natural gas utility, the RSA provides no 
opportunity for the Public Service Commission to review and make appropriate 
changes; and

Whereas, it is 
reasonable that the Public Service Commission should be permitted to review and 
make changes to the return on equity, cost of service, revenue allocation, 
capital structure, and rate design every five years. Now, therefore,

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 58-5-410 of the S.C. Code is amended to read:

 Section 
58-5-410. A public utility providing natural gas distribution service, in its 
discretion and at anytime, may elect to have the terms of this article apply to 
its rates and charges for gas distribution service, on a prospective basis, by 
filing a notice of the election with the commission and on the same day and by 
the same means serving a copy on the Office of Regulatory Staff. Upon receipt 
of notice of the election, the commission shall proceed to make the findings 
and establish the ongoing procedures required for adjustments in base rates to 
be made under this article. In carrying out the procedures established by this 
article with respect to such an election, the commission shall rely upon and 
utilize the approved rates, charges, revenues, expenses, capital structure, 
returns, and other matters established in the public utility's most recent 
general rate proceeding pursuant to Section 58-5-240; provided, however, that 
the most recent order must have been issued no more than five years prior to 
the initial election to come under the terms of this article. A public utility 
may combine an election under this article with the filing of a rate proceeding 
pursuant to Section 58-5-240 and the commission shall include the findings 
required by this article in its rate orders issued in the Section 58-5-240 
proceedings, and the election shall remain in effect until 
the next general rate proceeding.

SECTION 2. Section 58-5-415 of the S.C. Code is amended to read:

 Section 
58-5-415. The election by a utility to have the terms of this article apply to 
its rates and charges for gas distribution service once made shall remain in 
effect for five years. until 
the next Section 58-5-240 general rate proceeding for the public utility at 
which time the public utility may then elect to continue the applicability of 
this article to its rates and charges or The 
utility may elect to opt out of the provisions of this article. The 
applicant may withdraw its request to come under the terms of this article at 
any time before the entry of a final order of the commission on the merits of 
the proceeding in which the election is made or on a petition for rehearing in 
the proceeding.

SECTION 3. Section 58-5-420(2) of the S.C. Code is amended to 
read:

 (2) the commission separately shall 
state