South Carolina Electricity Rates to Rise by 6.6 Percent
The proposed rate hike will affect commercial operators in the state through a two-phase increase starting in early 2027.
Updated on Oct. 29, 2026 in Utilities
Live Poll
Do you support your local utility increasing rates to fund system maintenance and reliability?
The Santee Cooper board meets October 30, 2026, to vote on a proposed rate hike plan that would increase electricity prices by an average of 6.6 percent over two years. The utility reports that increasing customer demand and inflationary pressure on materials necessitate the move to support infrastructure investments.
Why it matters
The proposed adjustments reflect broader industry challenges as utilities contend with rising material costs and significant capital expenditure requirements to modernize power systems. For operators in South Carolina, this indicates an upcoming shift in overhead costs as the utility seeks to align its revenue with current system expansion needs.
The utility reported $538 million in revenue for 2025 and added 17,000 retail customers over the last three years. The proposed 6.6 percent average rate increase follows a national trend where utilities requested $18.6 billion in rate hikes during 2026.
The players
Santee Cooper
A state-owned electric and water utility that provides power to residential and commercial customers across South Carolina.
Jimmy Staton
The CEO of Santee Cooper who oversees the utility's long-term capital investment and operational strategy.
The details
The rate plan functions as a two-phase rollout with increases taking effect in February 2027 and February 2028. To mitigate costs, the utility is pursuing investments in battery storage and natural gas station expansion in Anderson County. These system upgrades are intended to manage capacity for a customer base that has grown by 17,000 retail users in the last three years.
Timeline
October 30, 2026: Board vote on rate hike plan in Conway, South Carolina.
February 1, 2027: First round of rate increases takes effect.
February 1, 2028: Second round of rate increases takes effect.
Market Landscape
The utility's request aligns with the broader $18.6 billion in total rate hikes requested by U.S. utility providers in 2026. This move reflects a wider industry pivot as firms project $1.4 trillion in total capital expenditures by 2030 to upgrade energy infrastructure.
Operators in South Carolina should budget for a two-phase utility expense increase starting February 2027. Review existing energy efficiency contracts and evaluate whether current operational hours can be optimized to mitigate the impact of the planned 6.6 percent average rate hike.
The takeaway
The proposed rate hike underscores the necessity of factoring rising utility costs into multi-year operational budgets. Business owners should review the 300 written comments provided during the public hearing process to identify specific local concerns regarding service reliability and cost pass-throughs.
Further reading
For broader trends in utility management, explore our Utilities section.
Source note: This article includes information reported by Post and Courier.
Live Poll
Do you support your local utility increasing rates to fund system maintenance and reliability?
