SC's electric cooperatives adopt new rate for data centers, other major power users

South Carolina's electric cooperatives have implemented a new rate structure aimed at protecting families and businesses from the energy costs associated with data centers and other large power consumers. On March 18, the Central Electric Power Cooperative Board unanimously voted to formalize these consumer protections, which previously had been applied on a case-by-case basis by the Columbia-based cooperative and its 19 member cooperatives. The new rate applies to major consumers requiring 20 megawatts or more of electricity and includes provisions such as 15-year minimum-term contracts with early termination penalties, prepayment requirements for necessary electric infrastructure upgrades, provisions for ramping down electricity use during potential shortages, cash deposits, and monthly energy demand minimums. According to Central CEO Rob Hochstetler, the policy aims to maximize benefits from data centers while minimizing risks and costs for co-op members, ensuring reliable electricity at the best price for 2 million South Carolinians. Berl Davis, chairman of Central's board and CEO of Palmetto Electric Cooperative, emphasized that the decision is about fairness, preventing South Carolina families and businesses from subsidizing major corporations' energy costs. The board adopted the rate following a months-long study of industry best practices. Currently, South Carolina's electric cooperatives serve one data center that began operations in 2007, and three additional data centers are under development. Contracts for these upcoming projects already incorporate the consumer protections outlined in the new rate, which requires long-term commitments from major energy users to provide the certainty needed for capital-intensive investments in the electric grid.