South Carolina H 5525: SC Electric Cooperative Consumer Protection & Wholesale Market Access Act

Bill Text

South Carolina General Assembly

126th Session, 2025-2026



H. 5525



STATUS INFORMATION



General Bill

Sponsors: Reps. C. Mitchell, Williams, Brewer, Atkinson, Luck and Hayes

Document Path: LC-0372HA26.docx



Introduced in the House on April 14, 2026

Currently residing in the House Committee on Labor, Commerce and Industry



Summary: SC Electric Cooperative Consumer Protection & Wholesale Market Access Act





HISTORY OF LEGISLATIVE ACTIONS



	Date	Body	Action Description with journal page number	

	4/14/2026	House	Introduced and read first time (House Journal‑page 17)

	4/14/2026	House	Referred to Committee on Labor, Commerce and Industry (House Journal‑page 17)



View the latest  legislative information  at the website





VERSIONS OF THIS BILL



04/14/2026

























A bill



TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE “SOUTH CAROLINA ELECTRIC COOPERATIVE CONSUMER PROTECTION AND WHOLESALE MARKET ACCESS ACT” BY ADDING ARTICLE 29 TO CHAPTER 27, TITLE 58 SO AS TO PROVIDE DEFINITIONS, ESTABLISH REQUIREMENTS FOR GENERATION AND TRANSMISSION COOPERATIVES FOR MAJOR CAPITAL EXPENDITURE CONTRACTS OR AGREEMENTS, AND ESTABLISH AN OVERSIGHT AND APPROVAL PROCESS BY THE PUBLIC SERVICE COMMISSION; TO REQUIRE GENERATION AND TRANSMISSION COOPERATIVES TO FILE PROPOSED RATES AND TERMS OF SERVICE TO DISTRIBUTION COOPERATIVES FOR APPROVAL BY THE PUBLIC SERVICE COMMISSION AND TO REQUIRE TRIENNIAL WHOLESALE RATE REVIEWS BY THE PUBLIC SERVICE COMMISSION; TO ESTABLISH THAT DISTRIBUTION COOPERATIVES HAVE A RIGHT TO PETITION THE PUBLIC SERVICE COMMISSION FOR EXIT SETTLEMENTS FROM WHOLESALE POWER CONTRACTS WITH A GENERATION AND TRANSMISSION COOPERATIVE AND TO PROVIDE PROCESSES AND STANDARDS FOR EXIT SETTLEMENTS; TO PROHIBIT GENERATION AND TRANSMISSION COOPERATIVES FROM TAKING CERTAIN UNILATERAL ACTIONS WITHOUT THE PUBLIC SERVICE COMMISSION’S APPROVAL; TO REQUIRE THE OFFICE OF REGULATORY STAFF TO REPRESENT DISTRIBUTION COOPERATIVES’ INTERESTS BEFORE THE PUBLIC SERVICE COMMISSION IN PROCEEDINGS DESCRIBED IN THIS ARTICLE; TO REQUIRE GENERATION AND TRANSMISSION COOPERATIVES TO FILE AN ANNUAL FINANCIAL REPORT WITH THE PUBLIC SERVICE COMMISSION; TO AUTHORIZE THE PUBLIC SERVICE COMMISSION TO PROMULGATE RELATED RULES AND REGULATIONS; TO ADDRESS HOW THE ARTICLE MAY NOT BE CONSTRUED; AND TO REQUIRE SANTEE COOPER’S COOPERATION IN CERTAIN CIRCUMSTANCES.



Whereas, the electric distribution cooperatives in the State of South Carolina purchase electric power and energy, transmission service, and certain related energy services from Central Electric Power Cooperative, Inc. (Central), pursuant to wholesale power contracts that extend through December 31, 2058; and



Whereas, distribution cooperatives are currently parties to wholesale power contracts that do not contain exit provisions or exceptions to the distribution cooperative’s all requirements purchase obligation; and



Whereas, the terms of prior wholesale power contracts between the distribution cooperatives and Central were extended in 2013 to December 31, 2030, and again extended to the current term of December 31, 2058, to permit Central and the Public Service Authority, also known as Santee Cooper, to recover the costs of the investment in the construction of Units 2 and 3 at the V.C. Summer nuclear generating station in Jenkinsville; and



Whereas, under the terms of loan agreements and other security agreements, the Rural Utilities Service of the United States Department of Agriculture, a lender to Central, has oversight and approval rights for reviewing the operations, compliance with financial covenants, and the rates set by generation and transmission cooperatives, but lacks sufficient staffing and resources to provide effective oversight; and



Whereas, Central has previously provided exit cost calculations for distribution cooperatives pursuant to an internally adopted policy that produced exit payments based on lost revenues which were substantially inflated, including calculations based on lost revenues that produced, in the aggregate, exit payments to Central that far exceeded the book value of its assets and liabilities, and were not based upon the distribution cooperative’s existing obligations to the generation and transmission cooperative; and



Whereas, the Federal Energy Regulatory Commission (FERC) has determined that the use of lost revenues to calculate exit payments from distribution cooperatives is not in the public interest and FERC’s findings have been confirmed by a recent appellate decision rendered by the Tenth Circuit Court of Appeals; and



Whereas, Central’s utilization of the lost revenues methodology to calculate exit payments from distribution cooperatives is not in the public interest; and



Whereas, Central has informed the distribution cooperatives that it does not have sufficient electric capacity and energy to meet its obligations under the wholesale power contracts and will not have sufficient firm e