SC-owned utility plans 4.7% residential rate hike in 2027. What is driving increase?

Santee Cooper, South Carolina’s state-owned utility, may raise residential rates by more than 9% over two years.

It’s driven by inflation and a need for new power generation, said Santee Cooper spokesperson Mollie Gore.

If approved, residential rates would go up 4.7% in 2027 and 4.6% in 2028. Commercial rates would go up 2.9% both years, and industrial rates would rise 2.6% in 2027 and 2.1% in 2028.

The average residential bill would go up $6.60 in 2027 under the proposed hike, Gore said.

The utility’s board, which ultimately approves rates, allowed Santee Cooper to begin the public comment process for a rate hike Friday morning.

The board likely won’t vote on new rates until October 2026, and they would go into effect in February 2027 and 2028, according to a news release.

The rate hike would impact customers in Santee Cooper’s service area, including Berkeley, Georgetown and Horry counties.

The current rates will not allow Santee Cooper to recover its costs beginning in 2027, according to a presentation to the board. Inflation and large generation and transmission projects contributed to the need for more revenue, Gore said.

The $5 billion natural gas plant at Canadys, which Santee Cooper will pay for half of, contributed to revenue demand, Gore said. Additionally, upgrades to the Rainey natural gas plant, new combustion turbines at the Winyah station and transmission projects contributed to the preliminary request for new rates.

Santee Cooper will seek public feedback in summer 2026. Customers can submit written feedback through July 30 and attend public meetings in Moncks Corner, Pawleys Island and Myrtle Beach on the proposed increase.