Third-Party Electric Supplier

2025-2026 Bill 878: Third-Party Electric Supplier - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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S. 878
STATUS INFORMATION
General Bill
Sponsors: Senators Johnson, Climer and Adams
Document Path: SR-0107CEM26.docx
Introduced in the Senate on February 3, 2026
Currently residing in the Senate
Summary: Third-Party Electric Supplier
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

2/3/2026

Senate

Introduced and read first time (
Senate Journal-page 5
)

2/3/2026

Senate

Referred to Committee on
Judiciary
(
Senate Journal-page 5
)

2/4/2026

Scrivener's error corrected

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
02/03/2026
02/04/2026

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING CHAPTER
32 TO TITLE 58 SO AS TO DEFINE TERMS RELATED TO THIRD-PARTY ELECTRIC CHOICE; TO
ALLOW AN ELIGIBLE CUSTOMER TO PERMIT ITS ELECTRICITY DEMAND FROM A THIRD-PARTY
ELECTRIC SUPPLIER; TO REQUIRE THE ELIGIBLE CUSTOMER TO PROVIDE ARRANGEMENT FOR
FIRM TRANSMISSION SERVICE OF THIRD-PARTY ELECTRIC TO THE INCUMBENT ELECTRIC
SUPPLIER'S TRANSMISSION SYSTEM; TO NOT HOLD THE INCUMBENT ELECTRIC SUPPLIER
LIABLE FOR ANY COSTS ASSOCIATED WITH THIRD-PARTY ELECTRIC SUPPLY; TO REQUIRE
THE INCUMBENT ELECTRIC SUPPLIER TO HAVE REMOTE CUTOFF CAPABILITIES IN PLACE FOR
THIRD-PARTY ELECTRIC SUPPLY; TO ASSIGN THE COST OF REQUIRED TRANSMISSION
UPGRADES; TO REQUIRE A CUSTOMER TO CONTINUE TO PAY FOR CAPITAL COSTS IN CERTAIN
CIRCUMSTANCES; TO REQUIRE AN INCUMBENT ELECTRIC SUPPLIER TO PROVIDE
COST-OF-SERVICE SUPPLY TO CUSTOMERS OR CUSTOMER LOAD RETURNING FROM A PERIOD OF
RETAIL ACCESS SERVICE ON THE SAME TERMS, RATES, AND PRIORITY AS A NEW CUSTOMER
REQUESTING SERVICE; AND TO REQUIRE THE COMMISSION TO APPROVE A TARIFF
CONTAINING A PRO FORMA CONTRACT AND OTHER REQUIREMENTS.

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

S
ECTION 1.
T
itle 58 of the S.C. Code is amended by adding:

C
HAPTER 32

T
hird-Party Electric Suppliers

S
ection
58-32-10
.
F
or the 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).

(
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 reliably 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
58-27-610
(1) and shall
include the South Carolina Public Service Authority.

(
10) "Eligible
customer" means any retail electric customer located in the State of South
Carolina whose average monthly demand at a single point of delivery, or
aggregated multiple points of delivery that are owned, leased, or otherwise
controlled by such retail electric customer within that same utility territory,
for one month during of delivery during the most recent calendar year was equal
to or exceeded one hundred kilowatts (100kW), or the expansion of an existing
load by 100kW or more, or re-energizing an existing load or portion of a load
by 100kW or more that had been idled for at least twenty-four months, or the
interruptible portion of an existing load of 100kW or more, or in the event of
a new retail electric customer, whose average monthly demand at a single point
of delivery is anticipated to equal or exceed 100kW during the customer's first
year of electric service.

(
11) "Full-requirements
contract" is a contract whereby the eligible customer agrees to purchase from
an electric supplier all of their supply needs from or through the electric
supplier, regardless of quantity under contractual terms specific in this
contract.

(
12) "Incumbent
electric supplier" means an electric supplier or other person or corporation
that, pursuant to Title 58, Chapter 27, Article 5, furnishes or has the right
to furnish electric service to the eligible customer's premises.

(
13) "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.

(
14) "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 stored is generated from one of the resources enumerated above.

(
15) "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.

(
16) "Third-party
electric supplier" means an electric supplier that is not the incumbent
electric supplier or 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 without 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).

(
17) "Transmission
services" means electric transmission services, along with any other services
required to safely and reliably deliver electric energy.

(
18) "Transmission
services provider" means any person or corporation owning or operating electric
transmission facilities in the State for transmitting, delivering, or
furnishing electricity.

(
19) "Transmission
tariff" means an open access transmission tariff, reciprocity tariff, or other
tariff to provide transmission services unbundled from other services.

S
ection
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) If
an eligible customer chooses to obtain all or part of its electric demand from
a third-party electric supplier, then the customer and the incumbent electric
supplier must enter into a contract that, at a minimum, provides:

(
1)
the amount of electricity the eligible customer has elected or intends to elect
to receive from the third-party electric supplier and detailed arrangements for
its energy needs to be provided by the third-party electric supplier, up to and
including a full-requirements contract;

(
2)
if the customer chooses to receive part of its electricity from the incumbent
electric supplier, a firm electricity demand that the customer will receive
from the incumbent electric supplier and a 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 customer outside of energy emergency alert conditions
established by the North American Electric Reliability Corporation if the
customer is not on a Standby Rate from the incumbent electric supplier; and

(
4)
the customer must 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) If
an eligible customer chooses to obtain all or part of its electric demand from
a third-party electric supplier, then the customer shall be responsible for
ensuring 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). However,
the customer and the incumbent electric supplier may agree to contractual terms
subject to Commission review and approval for utilities with Commission
approved rates in which the incumbent electric supplier may supply energy to
the customer if the third-party electric supplier is unable to meet the
customer's demands.

S
ection
58-32-30
. The eligible customer must provide arrangements for firm
transmission service from the third-party electric supplier 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.

S
ection
58-32-40
. The incumbent electric supplier shall not be liable for any costs
associated with the eligible customer's electricity service 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 customer for electricity on the incumbent electric supplier's transmission
system.

S
ection
58-32-50
. The incumbent electric supplier must have remote cutoff capabilities
in place for an eligible customer who chooses to obtain electricity from a
third-party electric supplier so that the incumbent electric supplier can
curtail or shut down its electric supply to the customer in accordance with the
terms of the agreement. The customer shall elect its third-party electric
supplier and shall pay all costs associated with its election, if any.

S
ection
58-32-60
. If an eligible customer requires transmission upgrades, then a
determination must be made, in accordance with federal laws and regulations, regarding
whether the transmission upgrade solely benefits the eligible customer or the
upgrade benefits others whom the incumbent electric supplier serves. For
transmission upgrades that solely benefit the eligible customer, that eligible
customer must pay the costs for the upgrade. If the transmission upgrade
benefits more than solely the eligible customer, in terms of electric service, then
the incumbent electric supplier and the customer may agree for the eligible
customer to pay the incumbent electric supplier for a period of not more than
twenty years. If an eligible customer pays for the costs of the transmission
upgrade, then the eligible customer will be exempt from Section
58-32-70
.

S
ection
58-32-70
. In the event that the incumbent electric supplier factored an
eligible customer's energy demand into its planning for electric generation or
transmission, invested capital accordingly that has been reflected in its
rates, and that customer leaves the incumbent electric supplier's territory, then
the customer must continue to pay for capital costs until the amount the
customer would have been responsible for is paid in full or another customer
assumes the amount. If growth in the amount of supply being taken by customers
of the incumbent electric supplier exceeds the load of the departing eligible
customer, then this event shall constitute a rebuttable presumption that these
costs have been assumed consistent with this section. The Commission must
determine the customer's financial obligation to the incumbent electric
supplier in a manner that does not affect residential or other commercial or
industrial electric rates. The Commission must also determine allowable cost
shift methodologies to provide transparency around legacy contracts and
stranded assets.

S
ection
58-32-80
. Incumbent electric suppliers shall provide cost-of-service supply
to customers or customer load returning from a period of retail access service
on the same terms, rates, and priority as a new customer requesting service.

S
ection
58-32-90
.
(
A) The Commission shall
approve a tariff containing a pro forma contract that an eligible customer may
enter into consistent with this chapter and other state and federal law. Such
pro forma contract executed by an eligible customer shall be binding on the
incumbent electric supplier and the customer and shall fulfill the purposes of
Section
58-32-20
(B). Any exceptions to the pro forma contract may be approved
by the Commission only as follows:

(
1)
an incumbent electric supplier and an eligible customer file an executed
contract which the Commission shall approve unless contrary to the public
interest; or

(
2)
an eligible customer may represent to the Commission its binding commitment to
be party to an unexecuted contract consistent with its right to receive
third-party supply under this chapter which the Commission shall adopt if it
determines its provisions are just and reasonable.

(
B) The
Commission shall not regulate any contract entered between a third-party
electric supplier and a customer.

S
ECTION 2. No
later than January 1, 2027, the Commission shall approve a tariff containing a
pro forma contract pursuant to Section
58-32-90
.

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

----XX----

This web page was last updated on February 4, 2026 at 12:56 PM