A coalition of South Carolina energy providers hopes to boost job growth in the state by cutting electric rates for new and expanding industries during their “peak” production times.
The reduced rates will be a tool for economic development organizations throughout the state, said Lonnie Carter, president and chief executive of Santee Cooper. The state-owned utility is pairing with the Electric Cooperatives of South Carolina to offer the new rates to eligible customers in all 46 S.C. counties.
“Recruiters will be able to use this to keep South Carolina competitive,” Carter said. “And that’s certainly what it’s all about today.”
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Under the plan, industries would save 45 percent on the power they use during their “peak” periods – when they are using the most electricity – during the first year of the program. The savings would be 30 percent in the second year, 20 percent in the third year and 10 percent in the fourth and final year.
To be eligible, industries served by Santee Cooper or one of the state’s 20 co-ops would have to create 35 new jobs or make a $500,000 investment for every 1,000 kilowatts of their peak demand. For example, a distribution center’s typical peak demand is 10,000 kilowatts. So a new distribution center would have to create 350 new jobs or make a $5 million investment to be eligible for the lower rates, according to Ronald Calcaterra, president and CEO of the Central Electric Power Cooperative.
Existing S.C. industries would be eligible only if they expanded, meeting the same requirements. So aluminum giant Alcoa, for example, which has said it is considering closing its doors if it cannot get a reduced rate from Santee Cooper, would not qualify unless it made a significant expansion.
Negotiations with the Lowcountry smelter are ongoing, Santee Cooper spokeswoman Laura Varn said Wednesday. No deadline has been set for a decision, but the plant must notify the utility by June if it plans to terminate its contract ending in 2015, according to reports.
Industries have until the end of 2014 to sign an agreement for the new rates.
The new program will help make South Carolina more competitive and improve its economy by creating jobs, touching the lives of South Carolinians, said Mike Couick, president and chief executive of the Electric Cooperatives of South Carolina.
The program will give opportunities to many who are struggling through the economic downturn, particularly in rural parts of the state, he said.
“Gov. Nikki Haley has emphasized employment growth, new jobs, as being key to a healthy state economy,” Couick said in a statement. “I’ve told the governor’s staff that there’s nothing that would help the 1.5 million South Carolinians we serve more than an improved economy.
“So we’re pleased to be working toward the same goal. We’re glad to do our part.”
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