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Current State of Power Generation in South Carolina
When it comes to electricity and power generation, we all expect things to turn on at the flip of a switch or plug in. As the population and industry increase, so does the need for electric power. Fortunately, South Carolina has competitive rates that are often lower than other states.
So how does South Carolina meet demands while keeping competitive rates?
Types of Power Ownership
The Palmetto State has a power grid of mixed ownership with defined service territories, assigned by the state to maximize community needs. There are three types of ownerships:
- Investor-Owned Utilities (IOUs)
This is the most common type of utility ownership. IOUs are companies, such as Duke Energy or Dominion Energy, that have stock and share/stakeholders. They traditionally serve large municipalities and major metropolitan areas (ex: Charleston, Greenville, Spartanburg, etc.) where the population is dense. By being for profit, IOUs control the market. They set prices, but are regulated through state laws or public utility commissions.
- Public Power Utilities
Public power utilities are community-owned and operated. These can be federal-, state-, and municipal-run utilities. Those in smaller towns may prefer this option as it is a transparent, not-for-profit entity reflecting the local community’s values. As a nonprofit, costs can stay low. An example of this type is Santee Cooper, which provides power for Berkeley, Georgetown, and Horry Counties.
- Electric Cooperatives (Co-Ops)
Electric co-ops are member-owned, serving rural areas in the state. There are 19 co-ops to keep up with the booming residential and industrial growth in these areas.
This mixture of providers helps South Carolina meet customers’ specific needs. Along with this variety of utility providers, the state has a mix of power generation resources.
South Carolina’s Diverse Power Generation Resources
Richard Kizer, a Davis & Floyd business development team member who previously spent 28 years at Santee Cooper, shares, “South Carolina has always been able to have a diverse supply of generation resources, with the majority of our energy coming from coal, natural gas, and nuclear.”
Natural gas has recently overtaken coal-fired power with only 14% of electricity being coal power generated in 2022. Renewable resources are growing with hydroelectric, solar, and biomass power generating 7% of South Carolina’s electricity.
Nuclear energy comprises 55% of the state’s power (eia.gov), and provides the appeal as a resource with no greenhouse emissions. However, nuclear power is capital-intensive when built, and permitting is fairly challenging and takes time. Time is something already working against utility companies.
“When utility companies plan for the future, it’s a multiyear process,” Richard says. “Permitting and construction can easily be an 8-10-year process. They have to build enough generation for the hottest and coldest days of the year. That’s the challenge they face in ensuring the power turns on at the flip of a switch.”