S.C. electric co-ops adopt new data center rate to protect customers

South Carolina's electric cooperatives, led by the Columbia-based Central Electric Power Cooperative, have unanimously approved a new rate structure targeting data centers and other major power users. The policy, formalized by the Central board on Wednesday, requires new and expanding customers demanding 20 megawatts or more to bear the costs of necessary infrastructure upgrades, such as new substations and transmission lines. Berl Davis, Central board chairman and CEO of Palmetto Electric Cooperative, stated that the measure is designed to prevent South Carolina families and businesses from subsidizing the energy costs of large corporations. The new rate standardizes contract and payment requirements previously applied on a case-by-case basis. Central CEO Rob Hochstetler explained that while data centers can contribute positively to the grid by paying for system costs, cooperatives must also mitigate the risk of major customers leaving after significant investments are made. The cooperative currently serves one data center and has three more under development, with existing contracts already incorporating similar protections now being standardized. The policy reflects industry best practices and ensures accurate planning and solid commitments from large consumers for future grid projects. The practical impact for customers in the Central Savannah River Area and surrounding counties will depend on whether large-load projects, like data centers or industrial expansions, seek service in their specific areas.