SC lawmakers voted to lower your SCE&G power bill. But there's a catch

State regulators responsible for setting S.C. electric rates plan to meet Monday, four days after the Legislature passed a law to cut temporarily SCE&G power's rates by 15 percent.

The state Public Service Commission will meet Monday to consider the new law, which explicitly directs the commission to cut SCE&G's rates. It is not clear yet if the seven-member commission, appointed by the Legislature, will act on that directive Monday. The law requires regulators to approve the rate cuts within five days.

The Legislature acted after the July 2017 abandonment of two partially built nuclear reactors in Fairfield County, with legislators feeling pressure from SCE&G's 700,000-plus customers who already have paid $2 billion for the project in the form of higher power bills.

The typical SCE&G-served household pays about 18 percent of its power bill — $27 a month — for the failed V.C. Summer nuclear expansion project, which SCE&G and state-owned Santee Cooper abandoned last summer after $9 billion was spent on the project.

If it acts, the PSC's decision likely will result in a lawsuit. (The meeting will be livestreamed.)

Cayce-based SCANA, SCE&G's parent company, has said the rate cut is unconstitutional, adding the utility is exploring its legal options. However, beyond acknowledging the law's passage, SCANA has refused to comment further.

SCE&G raised its rates nine times to bankroll the nuclear project. Meanwhile, Santee Cooper's 2 million customers — those it services directly and indirectly, the customers of 20 electric co-ops — have paid more than $530 million in higher bills and face more rate hikes.

SCE&G's customers or shareholders or both could have to pay billions of dollars more to pay off the project's remaining debt, depending on how the Public Service Commission rules on that issue in another hearing set for December.

If the Legislature's temporary rate cut survives a court challenge from SCANA, it would remain in effect until that December ruling, saving customers some $260 million on their power bills.

This story was originally published June 29, 2018 at 3:53 PM.