19 electric cooperatives in SC join forces to require long-term contracts as data centers move in

South Carolina's electric cooperatives have unanimously approved a new regulatory framework for data center development, implementing five mandatory consumer protections for large-scale projects demanding 20 megawatts or more. This decision, made by the Central Electric Power Cooperative Board representing 19 members, includes provisions for 15-year minimum-term contracts with early termination penalties, prepayment for necessary electric infrastructure upgrades, and requirements for ramping down electricity use during potential energy shortages. These policies, announced on March 18, aim to standardize what were previously considered best practices. The cooperatives' preemptive action comes as South Carolina lawmakers, including Senators Luke Rankin and Tom Davis, are considering similar legislation to manage the impact of large energy consumers on the state's electric grid. Currently, utilities negotiate terms on a case-by-case basis. Rob Hochstetler, CEO of the cooperatives board, stated that these new policies will ensure accurate plans and solid commitments from large consumers, helping to build the right facilities at the right time and price while protecting members from unnecessary costs. Major utilities, such as Dominion Energy, also provided testimony before the South Carolina Senate Judiciary Committee on March 17, outlining their existing negotiation practices which often include long-term agreements and upfront payments for major power consumers. While these practices are standard in some agreements, the cooperatives' new regime makes them mandatory across their membership, cementing a uniform approach to data center contracts within the state.