H 5328

South Carolina General Assembly
126th Session, 2025-2026
Bill 5328
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING ARTICLE
12 TO CHAPTER 5, TITLE 58 SO AS TO REQUIRE A PUBLIC UTILITY PROVIDING NATURAL
GAS DISTRIBUTION SERVICES TO RESIDENTIAL CUSTOMERS TO ESTABLISH AND MAINTAIN
NATURAL GAS PRICE RESERVES, AND TO PROVIDE FOR FUNDING USAGE AND COST RECOVERY;
AND TO REQUIRE AN ANNUAL REPORT TO THE PUBLIC SERVICE COMMISSION.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  Chapter 5, Title 58 of the S.C. Code is amended by
adding:
Article 12
Natural Gas Price Reserve
    Section
58-5-1210. For purposes of this article:
    (1) "Extraordinary
gas costs" means wholesale gas costs that exceed historical seasonal averages
by a threshold established by regulation, including costs arising from spot
market or daily index pricing.
    (2)
"Natural gas price reserve" means a restricted fund established for the sole
purpose of mitigating the rate impact of extraordinary natural gas costs for
residential customers.
    (3)
"Public utility" has the same meaning as provided in Section 58-5-10.
    Section
58-5-1220. (A) Notwithstanding any
other provision of law, a public utility providing natural gas distribution
service to residential customers must establish and maintain a natural gas
price reserve. This natural gas price reserve shall be funded by modest
per-therm surcharges during nonemergency periods, excess margins realized
during favorable pricing years, and revenues derived from natural gas capacity
releases. Funds in a natural gas price reserve may only be used to offset
extraordinary natural gas costs, and may be utilized over multiple billing
cycles, in order to reduce immediate rate shock to residential customers.
    (B)
Costs for a natural gas price reserve must not be recovered from residential
customers in a single billing cycle unless funds in the natural gas price
reserve are insufficient and the Public Service Commission makes written
findings explaining the necessity of immediate recovery of costs.
    Section
58-5-1230. A public utility providing natural gas
distribution must submit an annual report to the Public Service Commission that
details the natural gas price reserve's:
    (1) amount
of funds utilized and reasons regarding the usage of those funds;
    (2)
fund balance; and
    (3)
impact on residential customer rates.
SECTION 2.  This act takes effect upon approval
by the Governor.
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This web page was last updated on March 05, 2026 at 12:04 PM