Utility Billing Accountability and Consumer Protection Act

2025-2026 Bill 5282: Utility Billing Accountability and Consumer Protection Act - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 5282
STATUS INFORMATION
General Bill
Sponsors: Reps. Reese, Dillard, Jones and Scott
Document Path: LC-0262HA26.docx
Introduced in the House on February 26, 2026
Currently residing in the House
Summary: Utility Billing Accountability and Consumer Protection Act
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

2/26/2026

House

Introduced and read first time (
House Journal-page 13
)

2/26/2026

House

Referred to Committee on
Labor, Commerce and Industry
(
House Journal-page 13
)

3/24/2026

House

Member(s) request name added as sponsor: Dillard,
Jones

4/2/2026

House

Member(s) request name added as sponsor: Scott

6/4/2026

Scrivener's error corrected

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
02/26/2026
06/04/2026

A bill

TO AMEND THE SOUTH
CAROLINA CODE OF LAWS BY ENACTING THE "UTILITY BILLING ACCOUNTABILITY AND
CONSUMER PROTECTION ACT OF 2026" BY ADDING CHAPTER 44 TO TITLE 58 SO AS TO
PROHIBIT A UTILITY FROM CHANGING BILLING OR PAYMENT PRACTICES WITHOUT APPROVAL
FROM THE PUBLIC SERVICE COMMISSION; TO ESTABLISH A PROCESS FOR THE PUBLIC
SERVICE COMMISSION; TO PERMIT TEMPORARY APPROVAL PROCESSES IN THE EVENT OF AN
EMERGENCY; TO REQUIRE UTILITIES TO SUBMIT QUARTERLY REPORTS TO THE PUBLIC
SERVICE COMMISSION AND OFFICE OF REGULATORY STAFF; TO REQUIRE THE PUBLIC
SERVICE COMMISSION, IN COORDINATION WITH THE OFFICE OF REGULATORY STAFF, TO
ENGAGE AN AUDITOR TO EXAMINE PRESCRIBED BILLING ISSUES; TO REQUIRE A UTILITY TO
PROVIDE WRITTEN NOTICE TO CUSTOMERS FOR BILLING OR PAYMENT CHANGES; TO
ESTABLISH CONDITIONS AND PROHIBITIONS IN CERTAIN RENTAL CIRCUMSTANCES; TO
REQUIRE ELECTRIC, GAS, AND WATER UTILITIES TO IMPLEMENT CONSUMER PROTECTIONS
FOR RURAL ENERGY-BURDENED HOUSEHOLDS, TO REQUIRE THE PUBLIC SERVICE COMMISSION
TO PUBLISH A RURAL ENERGY BURDEN REPORT, AND TO CONSIDER METRICS IN ALL RATE
PROCEEDINGS; TO PERMIT THE PUBLIC SERVICE COMMISSION TO IMPOSE ADMINISTRATIVE
FINES FOR VIOLATIONS, FOR A CUSTOMER TO FILE A COMPLAINT WITH THE COMMISSION,
AND TO REQUIRE THE PUBLIC SERVICE COMMISSION TO PROMULGATE RELATED REGULATIONS.

W
hereas, utility
billing, arrearage, and payment-plan practices directly affect customer access
to essential electric and gas services; and

W
hereas, sudden or
unannounced changes to such billing, arrearage, or payment plans can cause
financial hardship, particularly for low- and moderate-income ratepayers; and

W
hereas, recent reports
indicate that a major regulated utility in South Carolina unilaterally modified
its customer balance-carrying and payment policies without prior notice,
resulting in confusion and increased risk of disconnection; and

W
hereas, transparency
and regulatory oversight of these practices are essential to maintaining
affordability, fairness, and consumer protection; and

W
hereas, ratepayers
have reported significant, unexplained bill increases following the enactment
of recent energy legislation, necessitating a system audit and data
transparency to ensure accountability; and

W
hereas, residents of
rural South Carolina experience disproportionately high energy burdens, with household
energy costs exceeding six percent of their income due to lower median incomes,
aging housing stock, limited energy efficiency investments, and fewer utility
choices; and

W
hereas, all ratepayers
would benefit from transparent utility billing practices, affordability
standards, and disconnection procedures, as well as independent audits
regarding billing and rate systems to ensure that utility rates are fair,
accurate, and properly authorized. 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 "Utility Billing Accountability and
Consumer Protection Act of 2026."

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

C
HAPTER 44

U
tility Billing Accountability and Consumer Protection

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

(
1)
"Affordability metrics" means data regarding customer arrears, late payments,
disconnections, reconnections, and payment-plan participation.

(
2)
"Billing or payment practice" means any rule, policy, or internal standard
governing:

(
a)
due dates, billing cycles, or statement frequency;

(
b)
payment plans, deferred payment arrangements, or arrearage agreements;

(
c)
thresholds for permissible past-due balances before disconnection;

(
d)
late payment charges or penalties;

(
e)
minimum or partial payment requirements to maintain service; or

(
f)
customer eligibility for installment or budget billing programs.

(
3)
"Consumer advocate" means the South Carolina Department of Consumer Affairs.

(
4)
"Commission" means the South Carolina Public Service Commission.

(
5)
"Utility" means any investor-owned electric or gas utility regulated by the
commission pursuant to Title 58.

S
ection
58-44-20
.
(
A) A utility may not
alter, revise, or discontinue any billing or payment practice, including
changes to the amount of balance customers may carry, without prior approval
from the commission. Any proposed change to a billing or payment practice shall
be submitted to the commission as a formal application, which must include:

(
1)
a detailed description of the proposed change;

(
2)
analysis of customer impacts, with a focus on low- and moderate-income
households;

(
3)
estimated changes in arrears, disconnections, and average bills; and

(
4)
proposed mitigation measures or customer outreach plans.

(
B) Following
receipt of an application as described in subsection (A), the commission shall:

(
1)
provide at least thirty days' notice of the filing to the public;

(
2)
hold a public hearing allowing testimony from ratepayers and consumer
advocates; and

(
3)
issue a written decision approving, denying, or modifying the proposed change
in the application.

(
C)
Any change implemented by a utility that has not received commission approval shall
be void and unenforceable, and the commission may order refunds, bill credits,
or other corrective action.

S
ection
58-44-30
. In the event of an emergency, a utility may petition the commission
for temporary approval of changes to billing or payment practices, but only to
the extent required to prevent imminent financial harm or system disruption.
Such temporary approval shall not exceed ninety days. If circumstances warrant
an extension beyond ninety days, the commission must first hold a public
hearing before issuing a decision on the extension.

S
ection
58-44-40
.
(
A) Each utility shall
file quarterly reports with the commission and the Office of Regulatory Staff,
which must include the:

(
1)
number of residential disconnections for nonpayment;

(
2)
number of reconnections and average reconnection time;

(
3)
number and value of customer accounts in arrears, categorized by income tier,
if available;

(
4)
number of customers on payment plans or deferred payment arrangements;

(
5)
average residential bill and late payment incidence; and

(
6)
total number of customer complaints regarding billing accuracy or payment
arrangements.

(
B)
The commission shall publish aggregated data from these reports on its website
and include a summary in its annual report to the General Assembly.

(
C)
Utilities shall maintain this data for at least five years and shall make it
available upon request for regulatory or academic research on energy
affordability.

S
ection
58-44-50
.
(
A) Within one hundred
eighty days of the effective date of this act, the commission shall, in
coordination with the Office of Regulatory Staff, engage an independent,
third-party auditor to examine:

(
1)
utility billing and accounting systems;

(
2)
implementation of recent rate changes and cost pass-throughs; and

(
3)
consistency between approved tariffs and amounts actually billed to customers.

(
B)
The audit described in subsection (A) shall also:

(
1)
identify unexplained increases or anomalies in average residential utility bills
since 2024;

(
2)
evaluate utility compliance with commission-approved rate structures; and

(
3)
recommend corrective measures where inconsistencies or errors are found.

(
C) The
audit must be completed within twelve months from the initiation of the audit
and the findings shall be published as a public report and submitted to the
General Assembly, Office of Regulatory Staff, and the Consumer Advocate.

(
D)
Utilities shall fully cooperate with the audit and provide access to relevant
billing data, subject to confidentiality protections.

S
ection
58-44-60
. No utility shall implement any approved billing or payment change
without providing written notice to affected customers at least ninety days
prior to the effective date. This notice must be clear, in plain language, and
provided by mail and electronic means if available. All information shall be
available in multiple languages, and with outreach to rental and multifamily
housing communities. Utilities shall also notify consumer assistance agencies
and community partners of such changes.

S
ection
58-44-70
.
(
A) No public housing
authority, subsidized housing provider, or landlord receiving federal, state,
or local housing assistance shall condition tenancy, lease renewal, housing
assistance, or continued occupancy on uninterrupted utility service when such service
interruption results from inability to pay.

(
B) A
tenant shall not be evicted, penalized, or deemed in violation of a lease
solely due to utility disconnection for nonpayment, provided such disconnection
is not the result of tenant fraud or intentional damage.

(
C)
Utilities shall not terminate service to a rental dwelling for nonpayment
attributable to a landlord, property owner, or housing authority when the
tenant is current on rent or otherwise compliant with lease terms.

(
D)
Before a utility may terminate service to a rental property or public housing
unit, the utility and the landlord or housing provider shall:

(
1)
provide written notice to tenants no fewer than thirty days in advance;

(
2)
coordinate with state and federal energy assistance programs; and

(
3)
offer reasonable payment plans or mitigation options prioritizing housing
stability.

(
E)
Utility disconnection shall not be used as a constructive eviction tool. Loss
of essential energy or water services shall not negate a tenant's right to
habitable housing under state or federal law.

(
F)
Utilities and public housing authorities shall report anonymized data on
disconnections impacting rental and subsidized housing units to the commission
for monitoring, enforcement, and equity review.

S
ection
58-44-80
.
(
A) For purposes of this section,
a "rural energy-burdened household" means a household located in a county or
census tract designated as rural by the U.S. Census Bureau or the South
Carolina Office of Rural Health with an energy burden above the statewide
average.

(
B) Electric,
gas, and water utilities shall implement enhanced consumer protections for
rural energy-burdened households, including:

(
1)
extended payment plans and arrearage management options;

(
2)
prohibition on utility disconnections during extreme weather events;

(
3)
mandatory referrals to energy assistance, weatherization, and bill support
programs prior to disconnection; and

(
4)
clear, plain-language billing disclosures addressing usage, rate changes, and
available assistance.

(
C)
Utilities shall account for rural infrastructure limitations, including long
service distances, older housing stock, and shared or master-metered systems,
and shall not penalize customers for inefficiencies outside their control. Utility
service termination shall not be used in a manner that disproportionately
causes displacement, housing instability, or forced migration from rural
communities.

(
D) Utilities
must provide an annual report to the commission that includes the cumulative
impact of rates, fees, riders, and surcharges on rural customers, and disaggregated
data on rural disconnections, arrears, and reconnections. The commission shall
publish a rural energy burden report utilizing this data.

(
E)
The commission shall consider rural energy burden metrics in all rate
proceedings in the commission's jurisdiction.

S
ection
58-44-90
.
(
A) The commission may
impose administrative fines of up to fifty thousand dollars per day for each
violation of this chapter. Repeated or wilful violations may result in
additional penalties, including disallowance of cost recovery in future rate
proceedings.

(
B)
Any customer adversely affected by an unapproved change may file a complaint
with the commission, and the commission may order restitution or bill credits
as appropriate.

S
ection
58-44-10
0. The provisions of this chapter are in addition to, and do not
replace or limit, the authority of the Office of Regulatory Staff or Consumer
Advocate to investigate utility practices or represent ratepayer interests.

S
ection
58-44-110
. The commission shall promulgate regulations necessary to implement
this chapter, including standardized data-reporting formats and
public-notification requirements.

S
ECTION 3. This act takes effect upon approval
by the Governor..

----XX----

This web page was last updated on June 4, 2026 at 3:34 PM