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Senate Amendment 20B
H 3309 - Session 126 (2025-2026)
Electrical Utilities
Senator Massey proposes the following amendment (LC-3309.HA0099S):
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
SECTION X. T.itle 58 of the S.C. Code is amended by adding:CHAPTER 32
Retail Electric Customer Choice
Section 58-32-10. For purposes of this chapter:
(1) "Commission" means the Public Service Commission.
(2) "Customer-sited generation" means an electric generation facility, or combination of electric generation facilities, located on an eligible customer's premises and on the eligible customer's side of the delivery point with a nameplate capacity that does not exceed the eligible customer's estimated maximum demand for electric service and that is solely for the use of the eligible customer. For purposes of this chapter, an owner of customer-sited generation shall not be considered an electrical utility as defined in Section 58-27-10(7) or Section 58-31-310.
(3) "Customer-supplied power" means electric power and energy produced by customer-sited generation or delivered to an eligible customer's delivery point from a third-party electric supplier, or both.
(4) "Delivery point" means the point where the facilities of the incumbent electric supplier make physical contact with the facilities of the eligible customer.
(5) "Distribution services" means electric distributions services, along with any other services required to safely and reliability deliver electric energy.
(6) "Distribution tariff" means the tariff filed with the commission or the rules otherwise governing electric distribution services provided by an incumbent electric supplier.
(7) "Electric generation facility" means a facility for generating electric power, including renewable electric generation facilities and generation facilities qualifying under the Public Utility Regulatory Policies Act of 1978 ("PURPA"), Public Law 95-617, as amended.
(8) "Electric power" means electric energy, electric capacity or generation-related ancillary services or any combination thereof.
(9) "Electric supplier" shall have the same meaning as in Section 58-27-10(7) and shall include the South Carolina Public Service Authority.
(10) "Eligible customer" means a new or existing individual nonresidential retail electric customer that has an estimated maximum demand for electric service of at least one hundred kilowatts at a single delivery point.
(11) "Incumbent electric supplier" means an electric supplier or other person or corporation that, pursuant to Title 58, Chapter 27, Article 5, generates or has the right to generate and furnish electric service to the eligible customer's premises. Incumbent electric supplier shall also include the South Carolina Public Service Authority.
(12) "Premises" means the building, structure or facility to which electricity is being or is to be furnished; provided that two or more buildings, structures, or facilities which are located on one tract or contiguous tracts of land and are utilized by one electric consumer for farming, business, commercial, industrial, institutional or governmental purposes, shall together constitute one "premises," except that any such building, structure or facility shall not, together with any other building, structure or facility, constitute one "premises" if the electric service to it is separately metered and the charges for such service are calculated independently of charges for service to any other building, structure, or facility.
(13) "Renewable electric generation facility" means a facility generating electric power from solar photovoltaic resources, wind resources, hydroelectric resources, geothermal resources, tidal and wave energy resources, hydrogen fuel derived from renewable resources, combined heat and power derived from renewable resources, or biomass resources, or any combination thereof. Renewable electric generation facility also includes an electrical energy storage system, if the energy so stored is generated from one of the resources enumerated above.
(14) "Standby electric service rate" means a rate offered by the incumbent electric supplier to provide replacement energy to an eligible customer when the power supply to such customer purchased under a customer choice option is not available.
(15) "Third-party electric supplier" means: (a) an electric supplier that is not the incumbent electric supplier; or (b) a person or corporation that is not an electric supplier but provides electricity generated by an electric generation facility. A third-party electric supplier may be located within or outside this State. For purposes of this chapter, a third-party electric supplier shall not be considered an electrical utility as defined in Section 58-27-10(7) or Section 58-31-310.
(16) "Transmission services" means electric transmission services, along with any other services required to safely and reliably deliver electric energy.
(17) "Transmission services provider" means any person or corporation owning or operating electric transmission facilities in the State for transmitting, delivering, or furnishing electricity.
(18) "Transmission tariff" means an open access transmission tariff, reciprocity tariff, or other tariff to provide transmission services unbundled from other services.
Section 58-32-20. (A) An eligible customer shall be permitted to purchase all or part of its electricity demand from a third-party electric supplier in accordance with the terms of this chapter and federal laws and regulations. An eligible customer shall also be permitted to obtain all or part of its electricity demand from customer-sited generation.
(B) In the event an eligible customer either chooses to obtain: (1) all or part of its electric demand from a third-party electric supplier; or (2) at least half of its electric demand as customer-sited generation, the eligible customer and the incumbent electric supplier must enter into a contract. This contract must provide, at a minimum:
(1) the amount of electricity the eligible customer will receive from the third-party electric supplier and detailed arrangements for its energy needs to be provided by the third-party electric supplier;
(2) if the eligible customer chooses to receive part of its electricity from the incumbent electric supplier, a firm electricity demand that the eligible customer will receive from the incumbent electric supplier and the term of the eligible customer's commitment to purchase that amount from the incumbent electric supplier;
(3) conditions for which the incumbent electric supplier may curtail or suspend service to the eligible customer;
(4) rates and terms for transmission service provided by the incumbent electric supplier, including, but not limited to, necessary transmission and ancillary services; and
(5) terms requiring the eligible customer to relieve the incumbent electric supplier from its obligation to provide electricity for the amount to be provided by a third-party electric supplier, including the incumbent electric supplier's obligation to maintain reserves for the customer.
(C) In the event an eligible customer chooses to meet at least half of its peak electric demand through customer-supplied power, the eligible customer and the incumbent electric supplier must enter into a contract. This contract must provide, at a minimum:
(1) details regarding the electricity to be provided by the customer-supplied power, including the amount of electricity to be generated by the eligible customer;
(2) if the eligible customer chooses to receive part of its electricity from the incumbent electric supplier, a firm electricity demand that the eligible customer will receive from the incumbent electric supplier and the term of the eligible customer's commitment to purchase that amount from the incumbent electric supplier;
(3) conditions for which the incumbent electric supplier may curtail or suspend service to the eligible customer;
(4) rates, terms, and conditions for services provided by the incumbent electric supplier; and
(5) terms requiring the eligible customer to relieve the incumbent electric supplier from its obligation to provide electricity for the amount to be provided by the customer-supplied power, including the incumbent electric supplier's obligation to maintain reserves for the customer.
(D) In the event an eligible customer chooses to obtain all or part of its electric demand from a third-party electric supplier or customer-supplied power, the eligible customer shall be responsible for ensuring that portion of its energy needs are met. The incumbent electric supplier shall be relieved of its obligation to provide energy to the eligible customer in accordance with the terms of the contract described in subsection (B) or (C). However, the eligible customer and the incumbent electric supplier may agree to contractual terms in which the incumbent electric supplier may supply energy to the eligible customer if the third-party electric supplier or customer-supplied power is unable to meet the eligible customer's electricity demands.
Section 58-32-30. An eligible customer that utilizes a third-party electric supplier must provide arrangements for firm transmission from the third-party electric supplier in order to have its electricity delivered from the third-party electric supplier's sources to the incumbent electric supplier's transmission system. The incumbent electric supplier shall cooperate with the third-party electric supplier to provide reasonable terms of transmission service, consistent with industry standards, the Open Access Transmission Tariff, and applicable business practices.
Section 58-32-40. The incumbent electric supplier shall not be liable for any costs associated with the eligible customer's service of electricity from a third-party electric supplier, including transmission service from the third-party electric supplier. The incumbent electric supplier shall be responsible for transmission to the eligible customer for electricity on the incumbent electric supplier's transmission system.
Section 58-32-50. The incumbent electric supplier must place an eligible customer who chooses to obtain electricity from a third-party electric supplier on a separate circuit so that the incumbent electric supplier can curtail or shut down its electric supply to the eligible customer in accordance with the terms of the agreement. The eligible customer shall pay all costs associated with its circuit.
Section 58-32-60. In the event an eligible customer requires transmission upgrades, that eligible customer must pay the initial costs for the upgrade. A determination must be made, in accordance with federal laws and regulations, as to whether the transmission upgrade solely benefits the eligible customer or if the upgrade benefits others who the incumbent electric supplier serves. If the transmission upgrade benefits more customers than solely the eligible customer, in terms of electric service, the incumbent electric supplier and the eligible customer may agree for the incumbent electric supplier to reimburse the eligible customer for a period of not more than twenty years.
Section 58-32-70. In the event the incumbent electric supplier factored an eligible customer's energy demand into its planning for electric generation or transmission and that eligible customer leaves the incumbent electric supplier's territory, the eligible customer must continue to pay for capital construction costs until the amount the eligible customer would have been responsible for is paid in full or another customer assumes the amount. The commission must determine the eligible customer's financial obligation to the incumbent electric supplier in a manner ensures that there is no adverse effect or increase in residential or other commercial or industrial electric rates.
Section 58-32-80. The commission must review any proposed contract pursuant to this chapter to ensure it meets the requirements of state and federal laws, rules and regulations.
Renumber sections to conform.
Amend title to conform.