South Carolina H 3928: Electric Rate Stabilization Act

Bill Text

2025-2026 Bill 3928 Text of Previous Version (Feb. 06, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3928

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 ADDING ARTICLE 24 TO CHAPTER 27, TITLE 58 SO AS TO 
PROVIDE FOR A PROCEDURE FOR THE ADJUSTMENT OF RATES AND CHARGES OF A PUBLIC 
UTILITY PROVIDING RETAIL ELECTRIC SERVICES TO REFLECT CHANGES IN EXPENSES, 
REVENUES, INVESTMENTS, DEPRECIATION, AND OTHER CHANGES IN REVENUES AND 
EXPENSES; TO PROVIDE PROCEDURES FOR INTERESTED PARTIES TO CHALLENGE THESE 
ADJUSTMENTS; AND TO PROVIDE FOR RELATED PROCEDURAL MATTERS INCLUDING A 
PROVISION TO AUTHORIZE ADDITIONAL STAFFING FOR THE OFFICE OF REGULATORY STAFF 
TO PERFORM ITS DUTIES UNDER THIS ARTICLE TO BE FUNDED BY ASSESSMENTS ON EACH 
ELECTRIC UTILITY REGULATED UNDER THE ARTICLE.

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

SECTION 1. Chapter 27, Title 58 of the S.C. Code is amended by 
adding:

Article 24

Electric Rate Stabilization Act

 Section 
58-27-2700. This article may be cited as the "Electric Rate Stabilization Act."

 Section 
58-27-2710. A public utility providing retail electric service, in its 
discretion and at any time, may elect to have the terms of this article apply 
to its rates and charges for retail electric 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 58-27-860; 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 and 
the utility must file an application for a general rate proceeding every five 
years after such election. A public utility may combine an election under this 
article with the filing of a rate proceeding pursuant to Section 58-27-860 and 
the commission shall include the findings required by this article in its rate 
orders issued in the Section 58-27-860 proceedings, and the election shall 
remain in effect until the next general rate proceeding.

 Section 
58-27-2715. The election by a utility to have the terms of this article apply 
to its rates and charges for retail electric service once made shall remain in 
effect until the next general rate proceeding for the public utility pursuant 
to Section 58-27-860 at which time the public utility may then elect to 
continue the applicability of this article to its rates and charges or 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 
58-27-2720. In issuing its order pursuant to 
Section 58-27-2710 and in addition to the other requirements of Section 
58-27-2710, if a proceeding pursuant to that section is required:

 (1) 
the commission shall specify a range for the utility's cost of equity that 
includes a band of fifty basis points (0.50 percentage points) below and fifty 
basis points (0.50 percentage points) above the cost of equity on which rates 
have been set; and

 (2) 
the commission separately shall state the amount of the utility's net plant in 
service, construction work in progress, accumulated deferred income taxes, 
inventory, working capital, and other rate base components. It also shall state 
the utility's depreciation expense, operating and maintenance expense, income 
taxes, taxes other than income taxes, other components of income for return, 
revenues, capital structure, cost of debt, overall cost of capital, and earned 
return on common equity. The figures stated shall be those which the commission 
has determined to be the appropriate basis on which rates were set in the 
applicable orders.

 Section 
58-27-2730. The utility shall file with the 
commission monitoring reports for each twelve-month period ending on March 
thirty-first, June thirtieth, September thirtieth, and December thirty-first of 
each year, the filings to be made no later than the fifteenth day of the third 
month following the close of the period. The utility shall serve