H 5439

South Carolina General Assembly
126th Session, 2025-2026
Bill 5439
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 SO AS TO ENACT THE "SOUTH CAROLINA ELECTRIC RETAIL CHOICE
ACT" BY ADDING CHAPTER 46 TO TITLE 58 SO AS TO PERMIT RESIDENTIAL AND SMALL
COMMERCIAL CUSTOMERS TO CHOOSE THEIR ELECTRIC GENERATION SUPPLIER; TO PROHIBIT COMPETITIVE
ELECTRIC GENERATION SERVICE WITHOUT A PERMIT FROM THE PUBLIC SERVICE COMMISSION
AND REQUIRE SUPPLIERS TO PROVIDE CLEAR AND ACCURATE INFORMATION REGARDING ITS
RATES, TERMS, AND ENVIRONMENTAL ATTRIBUTES; TO REQUIRE THE PUBLIC SERVICE
COMMISSION TO ADOPT RULES AND REGULATIONS FOR ELECTRIC SUPPLIERS AND FOR THE
IMPLEMENTATION OF THIS CHAPTER, AND TO ESTABLISH A CUSTOMER COMPLAINT PROCESS;
TO ESTABLISH REQUIREMENTS FOR ELECTRIC DISTRIBUTION COMPANIES AND ELECTRICAL
UTILITIES; TO PERMIT THE PUBLIC SERVICE COMMISSION TO APPROVE NONBYPASSABLE
CHARGES TO RECOVER STRANDED COSTS AND PUBLIC POLICY PROGRAM EXPENSES, AND TO
ENSURE FUNDING FOR AND SUPPLIER PARTICIPATION IN CERTAIN PROGRAMS.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  This act may be cited as the "South Carolina Electric Retail Choice
Act."
SECTION 2.  The General Assembly finds that:
    (1)   Retail
electric competition can provide consumers with lower costs, innovative
products, and renewable energy options.
    (2)   Opening the electricity
market for residential and small commercial customers must be executed in a
manner to preserve reliability, universal service, and consumer protections.
SECTION 3.  Title 58 of the S.C. Code is amended by adding:
CHAPTER 46
Electric Retail Choice
    Section
58-46-10.  For purposes of this chapter:
    (1)
"Commission" means the South Carolina Public Service Commission.
    (2)
"Electric distribution company" means an investor-owned electrical utility
providing wires service within South Carolina.
    (3)
"Eligible customer" means any residential or small commercial customer as
defined by commission rule.
    (4)
"Retail choice" means the ability of an eligible customer to purchase electric
generation service from a supplier other than the incumbent electrical utility.
    (5)
"Supplier" means a person or entity licensed by the commission to provide
competitive electric generation service.
    Section
58-46-20.  Beginning on January 1, 2028, all residential and small commercial
customers shall have the right to choose their electric generation supplier. Incumbent
electrical utilities shall continue to provide regulated distribution service
and default generation service for customers who do not select a supplier.
    Section
58-46-30.  (A) No person shall
provide competitive electric generation service without a license granted by
the commission.
    (B)
The commission shall adopt rules for licensing, financial security, consumer
protection, and disclosure requirements for suppliers.
    Section
58-46-40.  (A) Suppliers shall
provide clear and accurate information regarding its rates, terms, and
environmental attributes.
    (B) Any
customer shall have the right to rescind a retail choice contract within seven
business days of enrollment without penalty.
    (C)
The commission shall establish a customer complaint resolution process and
shall enforce marketing standards for suppliers.
    Section
58-46-50.  (A) Electric distribution
companies shall provide nondiscriminatory access to their wires for all
suppliers.
    (B) Electrical
utilities shall offer consolidated billing and maintain reliability and safety
of the distribution system.
    (C)
The commission may approve nonbypassable charges to recover stranded costs and
public policy program expenses.
    Section
58-46-60.  The commission shall ensure continued funding for low-income
assistance and energy efficiency programs and suppliers shall participate in
such programs as directed by the commission.
    Section
58-46-70.  The commission shall promulgate regulations in accordance with the
terms of this chapter.
SECTION 4.  Within eighteen months from the effective date of this
act, the commission must promulgate its initial regulations to implement the
provisions of this act. These regulations must include:
    (1) supplier
licensing standards;
    (2) consumer
protection rules;
    (3) tariff and
billing protocols; and
    (4) stranded costs
recovery mechanisms.
SECTION 5.  This act takes effect upon approval
by the Governor.
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This web page was last updated on March 26, 2026 at 12:01 PM