Data Center Utility Costs

2025-2026 Bill 5215: Data Center Utility Costs - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 5215
STATUS INFORMATION
General Bill
Sponsors: Rep. Jones
Document Path: LC-0242HA26.docx
Introduced in the House on February 19, 2026
Currently residing in the House
Summary: Data Center Utility Costs
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

2/19/2026

House

Introduced and read first time (
House Journal-page 14
)

2/19/2026

House

Referred to Committee on
Labor, Commerce and Industry
(
House Journal-page 14
)

2/24/2026

Scrivener's error corrected

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
02/19/2026
02/24/2026

A bill

TO AMEND THE SOUTH
CAROLINA CODE OF LAWS SO AS TO ENACT THE "SOUTH CAROLINA RATEPAYER PROTECTION
AND LARGE LOAD CUSTOMER INFRASTRUCTURE ACCOUNTABILITY ACT" BY ADDING CHAPTER 44
TO TITLE 58 SO AS TO PROVIDE DEFINITIONS, PROHIBIT INCREMENTAL COSTS RESULTING
FROM LARGE LOAD CUSTOMERS TO BE RECOVERED FROM CUSTOMERS IN ANOTHER CUSTOMER
CLASS; TO ESTABLISH CONTRACT REQUIREMENTS BETWEEN LARGE LOAD CUSTOMERS AND
ELECTRICAL UTILITIES; TO ESTABLISH REVIEW STANDARDS FOR THE PUBLIC SERVICE
COMMISSION; AND TO REQUIRE ANNUAL REPORTS FROM LARGE LOAD CUSTOMERS; BY ADDING
SECTION
13-1-80
SO AS TO ESTABLISH REQUIREMENTS REGARDING INCENTIVES THAT MAY
BE OFFERED TO POTENTIAL LARGE LOAD CUSTOMERS; BY ADDING SECTION
6-29-550
SO AS
TO ESTABLISH REQUIREMENTS REGARDING PUBLIC NOTICE, PUBLIC HEARINGS, AND LOCAL
GOVERNMENTAL CERTIFICATIONS CONCERNING PLANNING AND ZONING PRIOR TO THE RECEIPT
OF CERTAIN PERMITS OR INCENTIVES; AND BY ADDING SECTION
49-1-100
SO AS TO
REQUIRE POTENTIAL LARGE LOAD CUSTOMERS TO PROVIDE PLANS REGARDING WATER RESOURCES
AND ANNUAL REPORTING REQUIREMENTS TO THE DEPARTMENT OF ENVIRONMENTAL SERVICES,
AND TO REQUIRE THE DEPARTMENT OF ENVIRONMENTAL SERVICES TO VERIFY WATER USAGE
CONTINGENCY PLAN ADHERENCE IN THE EVENT OF A DROUGHT.

W
hereas, large electric
loads could require new generation, transmission, and distribution, creating
the risk of cost-shifting to an electrical utility's existing customers; and

W
hereas, the General
Assembly has a compelling interest to ensure rate payer neutrality and prevent
stranded costs; and

W
hereas, any governmental
incentive offered to entities with large electric loads must be transparent,
performance-based, and auditable; and

W
hereas, projects
should not impose disproportionate environmental burdens on already
overburdened communities; and

W
hereas, the State
welcomes investment but requires investment to be self-supporting and
accountable. Now, therefore,

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
This act may be cited as the "South Carolina Ratepayer Protection and Large
Load Customer Infrastructure Accountability Act."

S
ECTION 2.
T
itle 58 of the S.C. Code is amended by adding:

C
HAPTER 44

S
outh Carolina Ratepayer Protection and Large Load
Customer Infrastructure Accountability Act

S
ection
58-44-10
.
F
or purposes of this chapter:

(
1) "Commission"
means the Public Service Commission.

(
2) "Data
center" means any facility over five thousand square feet that houses computer
systems, servers, networking equipment, or storage systems, whether for
commercial, governmental, or private use, and includes colocation centers and
modular or containerized data units located on the same parcel.

(
3)
"Electrical utility" has the same meaning as provided in Section
58-27-10
(7) as
well as the South Carolina Public Service Authority.

(
4)
"Large load customer" means any electrical customer with a projected peak
demand of a minimum of 50MW or as otherwise established by a Public Service
Commission rule.

(
5)
"Qualifying utility infrastructure" means any infrastructure for the
generation, transmission, or distribution of electricity. This includes, but is
not limited to, substations, interconnection facilities, and network upgrades.

(
6) "Ratepayer
neutrality" means no incremental costs attributable to a large load customer's project
are borne by nonparticipating customer classes.

(
7)
"Stranded costs" means unrecovered investments made by the electrical utility
to serve the large load customer's project resulting from the project's termination
or reduction of the project's electrical demand.

S
ection
58-44-20
. An electrical utility shall not recover any incremental costs
incurred to serve a large load customer from customers in another customer
class.

S
ection
58-44-30
.
(
A) Prior to receiving
electrical service, a large load customer must enter into a contract with the
electrical utility that must be approved by the commission. The contract
provisions must include, but not be limited to:

(
1)
identification of all new facilities and all upgrades to its existing
facilities in order for the electrical utility to meet the large load
customer's electrical needs;

(
2)
an agreement that the large load customer will either:

(
a)
participate in the electrical utility's demand response program so that the large
load customer's electrical use may be curtailed during emergencies; or

(
b)
pay an increased amount for firm service to reflect additional reliability
costs;

(
3)
establishment of a minimum electric service threshold, for a period of no less
than twenty years, in an amount to allow the electrical utility to recover the
costs for all new electric facilities and related upgrades in order for the
electrical utility to meet the large load customer's electrical needs; and

(
4)
a requirement that in the event that the large load customer terminates its electric
service or reduces its anticipated electric demand before the electrical
utility recovers its costs associated with serving the large load customer, the
large load customer shall pay the remaining amount to the electrical utility.

(
B) An
electrical utility shall not offer or otherwise provide a discounted electric
rate to a large load customer in a manner that would shift costs related to the
large load customer to customers in other electric rate classes.

(
C)
The commission shall not approve any contract, interconnection agreement, or
electric rate that could permit customers of another class to pay for the costs
related to any large load customer. In addition, the commission shall not
approve any contract or rate unless it finds the proposed potential large load
customer's project will provide a public net benefit to the State including,
but not limited to, employment impact, infrastructure resilience, and community
burden mitigation.

(
D)
The commission shall require a financial security to be provided by the large
load customer, in an amount to be determined by the commission.

S
ection
58-44-40
.
(
A) In reviewing any
contract, rate, interconnection agreement, or service arrangement for a large
load customer pursuant to this chapter, the commission may apply tiered review
standards and conditions based on the characteristics and impacts of the large
load customer's proposed project.

(
B) In
determining whether to apply tiered standards or additional conditions, the
commission may consider factors including, but not limited to:

(
1)
the projected employment impact, including job quantity, job categories, and
average wages;

(
2)
the volatility or variability of the large load customer's projected electrical
demand;

(
3)
the duration and firmness of the large load customer's load commitment;

(
4)
the extent of on-site electric generation, backup generation, or reliance on
emergency power systems;

(
5)
the anticipated water usage, cooling methods, or other resource demands;

(
6)
the magnitude of new generation, transmission, or distribution infrastructure
required to serve the project;

(
7)
the project's location relative to overburdened or environmentally sensitive
communities; and

(
8)
any other factor the commission determines is necessary to protect ratepayer
neutrality, grid reliability, or the public interest.

(
C)
Based upon the commission's evaluation, the commission may impose reasonable
and nondiscriminatory conditions including, but not limited to:

(
1)
enhanced financial security requirements;

(
2)
modified minimum service thresholds or contract durations;

(
3)
additional reporting or audit requirements;

(
4)
participation in demand response or curtailment programs; or

(
5)
limitations on cost recovery mechanisms.

(
D)
Nothing in this section shall be construed to prohibit or discourage economic
development; however, no approval shall be granted unless the commission finds
that the proposed service arrangement protects existing ratepayers from
cost-shifting and stranded costs.

S
ection
58-44-50
.
(
A)No later than July first
of each year, each large load customer shall provide a report to the commission
which shall include the large load customer's:

(
1)
peak MW;

(
2)
annual MWh;

(
3)
number of demand response and curtailment events;

(
4)
on-site general run time, specifying emergency and testing events; and

(
5)
for data centers, the number of gallons of water withdrawn for cooling.

I
f the large load customer
received any incentive from state or local government, the report must also
include the number of employees, job categories, and wages.

(
B)
The commission must post each report on its website.

S
ECTION 3.
A
rticle 1, Chapter 1, Title 13 of the S.C. Code is
amended by adding:

S
ection
13-1-80
.
(
A)
(
1) The department shall not offer any incentive
to a potential large load customer, as defined in Section
58-44-10
, nor work
with any other entity to provide an incentive, unless the potential large load
customer provides proof of:

(
a)
compliance with Chapter 44, Title 58; and

(
b)
mitigation of community impacts, as determined by the Department of
Environmental Services.

(
2)
If the potential large load customer provides proof of the requirements in item
(1) and incentives are offered to the potential large load customer by any
entity based in whole or in part for future employment, wages, or training
commitments, those commitments must be made in writing and must be measurable
for future review of implementation.

(
B) A
potential large load customer may not receive, nor may any entity provide, an
incentive to a potential large load customer until the potential large load
customer has complied with its obligations pursuant to Section
49-1-100
and
Chapter 44, Title 58, as applicable. However, this subsection shall not prevent
a prospective incentive from being offered based upon a future condition or
requirement to be fulfilled by the potential large load customer as permitted
by law.

(
C) In
the event a large load customer receives an incentive from any entity based
upon future conditions or requirements and the large load customer fails to
adhere to those conditions or requirements, the large load customer shall
either reimburse or pay the monetary value of the incentive to the department.
The department must conduct audits to evaluate the large load customer's
fulfillment of conditions or requirements for incentives as needed but on no less
than a biennial basis.

S
ECTION 4.
A
rticle 3, Chapter 29, Title 6 of the S.C. Code is
amended by adding:

S
ection
6-29-550
.
(
A) A potential large
load customer, as defined in Section
58-44-10
, shall not receive any permits or
incentives from a local governing authority prior to a public hearing on the
potential project. There must be at least thirty days' notice of the time and
place of this public hearing, and notice must be given in a newspaper having
general circulation in the jurisdiction and on the local governing authority's
website. Notice must also be mailed to property owners within a one-mile radius
of the proposed site for the large load customer's project. If only one public
hearing is held, it must be held at a time and in a manner to encourage maximum
public participation. The following information regarding the potential large
load customer must be provided to the public prior to the public meeting
including, but not limited to, the large load customer's:

(
1)
anticipated electric load;

(
2)
back-up electric generation plan;

(
3)
anticipated water usage;

(
4)
traffic impacts; and

(
5)
construction plans.

(
B) In
addition to the provisions of subsection (A), a potential large load customer
shall not receive any permits or incentives without the local governing
authority first certifying that the project shall be compatible with the local
governing authority's comprehensive planning and zoning requirements.

S
ECTION 5.
C
hapter 1, Title 49 of the S.C. Code is amended by
adding:

S
ection
49-1-100
.
(
A) In addition to any
other permitting requirements, a potential large load customer, as defined in
Section
58-44-10
, shall submit to the Department of Environmental Services its
plans regarding water resources. This shall include, but not be limited to:

(
1)
the amount of water to be consumed per month;

(
2)
plans to mitigate water consumption;

(
3)
a list of all chemicals to be utilized for any water or wastewater treatment by
the potential large load customer; and

(
4)
a contingency plan for water usage in the event of a drought.

T
his information shall be
available to the public and the Department of Environmental Services shall hold
at least one public hearing regarding water usage plans by the potential large
load customer prior to issuing any permits.

(
B)
(
1) A large load customer must submit
an annual report regarding its water usage to the Department of Environmental
Services by January first. The Department of Environmental Services may confirm
that the large load customer's water usage is in accordance with its report at
any time, but shall conduct a confirmation at least once every three years.

(
2)
In the event that the county in which the large load customer is located is in
a drought status, the Department of Environmental Services must verify that the
large load customer is adhering to its contingency plan for water usage.

S
ECTION 6. This act takes effect upon approval
by the Governor and shall apply to all applications and requests by potential
large load customers regarding electric rates and any permits made on or after
that date.

----XX----

This web page was last updated on February 24, 2026 at 3:25 PM