South Carolina H 5438: SC Community Choice Aggregation Act

Bill Text

2025-2026 Bill 5438 Text of Previous Version (Jun. 04, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 5438

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 ENACTING THE "SOUTH CAROLINA COMMUNITY CHOICE 
AGGREGATION ACT" BY ADDING CHAPTER 45 TO TITLE 58 SO AS TO PROVIDE THE 
REQUIREMENTS FOR ESTABLISHING A COMMUNITY CHOICE AGGREGATION; TO PROVIDE FOR 
THE RELATED DUTIES OF THE PUBLIC SERVICE COMMISSION AND THE OFFICE OF 
REGULATORY STAFF; TO PROVIDE FOR THE RESPONSIBILITIES OF THE ELECTRICAL 
UTILITIES; TO PROVIDE THAT PARTICIPATION IN COMMUNITY CHOICE AGGREGATIONS ARE 
VOLUNTARY AND REQUIRE NOTICE AND OPT-OUT PROVISIONS; TO ESTABLISH STANDARDS FOR 
COMMUNITY CHOICE AGGREGATION RATES; TO PROVIDE REQUIREMENTS FOR COMMUNITY 
CHOICE AGGREGATIONS RELATED TO ITS RESOURCES, PLANNING, MARKETING, BILLING, 
ANNUAL REPORTS, AND FINANCIAL SECURITY; TO REQUIRE THE OFFICE OF REGULATORY 
STAFF TO ESTABLISH A COMPLAINT AND DISPUTE RESOLUTION PROCESS FOR CUSTOMERS; TO 
PROHIBIT CUSTOMER DATA BEING USED FOR PURPOSES OTHER THAN PROVIDING SERVICES 
AND TO SAFEGUARD CUSTOMER DATA; TO PERMIT TERMINATION OF SERVICE PURSUANT TO 
TERMS APPROVED BY THE PUBLIC SERVICE COMMISSION; TO PERMIT THE OFFICE OF 
REGULATORY STAFF TO AUDIT COMMUNITY CHOICE AGGREGATIONS AND THEIR VENDORS; TO 
PERMIT AN ELECTRIC COOPERATIVE OR MUNICIPAL UTILITY TO EITHER OFFER OR 
PARTICIPATE IN A COMMUNITY CHOICE AGGREGATION; AND TO REQUIRE THE PUBLIC 
SERVICE COMMISSION TO PROMULGATE REGULATIONS.

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

SECTION 1. This act may be cited as the "South Carolina Community Choice 
Aggregation Act."

SECTION 2. The General Assembly finds that:

 (1) Enabling 
local governments to aggregate electric load can provide retail customers with 
access to competitive electric supply, renewable energy options, and energy 
efficiency at potentially lower costs.

 (2) Community 
choice aggregation can be implemented while maintaining system reliability, 
universal service, and consumer protections.

 (3) Coordination 
among community choice aggregations, electrical utilities, the Public Service 
Commission, and the Office of Regulatory Staff is necessary to ensure 
transparent markets and just and reasonable rates.

SECTION 3. Title 58 of the S.C. Code is amended by adding:

CHAPTER 45

Community Choice Aggregation

 Section 
58-45-10. For purposes of this chapter:

 (1) 
"Aggregation" or "community choice aggregation" means the combining of retail 
electric customers within a jurisdiction for the purpose of procuring electric 
generation and related services on their behalf.

 (2) 
"Commission" means the South Carolina Public Service Commission.

 (3) 
"Default service" means electric generation service provided by the incumbent 
electric utility to customers who do not take service from a community choice 
aggregation or another competitive supplier.

 (4) 
"Electric utility" means an investor-owned utility, electric cooperative, or 
municipal electric utility providing distribution service within South 
Carolina.

 (5) 
"Eligible customer" means any retail electric customer within the geographic 
boundaries of a participating jurisdiction, excluding customers taking service 
under special contracts or tariffs expressly exempted by the commission.

 (6) 
"Governing body" means the legislative body of a county or municipality. 
"Governing body" also means a joint powers entity formed pursuant to Section 
58-45-20(B).

 (7) 
"Load serving entity" means an entity responsible for supplying electric energy 
and capacity to retail customers.

 (8) "ORS" 
means the South Carolina Office of Regulatory Staff.

 (9) 
"Opt out" means a customer's right to decline participation in a community 
choice aggregation and remain on default service.

 Section 
58-45-20. (A) A county or 
municipality, by ordinance or resolution after notice and public hearing, may 
establish a community choice aggregation to procure electric supply and related 
services for eligible customers within its jurisdiction.

 (B) 
Two or more municipalities, counties, or a combination of municipalities and counties, 
may form a joint powers entity to operate a multi-jurisdictional community 
choice aggregation. A joint powers entity may be established by an intergovernmental 
agreement that is approved by each participating governing body.

 (C) A 
governing body may contract with a third-party administrator or load serving 
entity for procurement, scheduling, and related services for its community 
choice aggregation.

 Section 
58-45-30. (A) A community choice 
aggregation must register with the commission and the ORS and shall obtain a 
certificate of authority before commencing service.

 (B) The 
ORS shall monitor community choice aggregat