South Carolina electric cooperatives announce new rate for data centers

All 19 electric cooperatives in South Carolina have unanimously approved new, standardized electricity rates specifically for data centers and other major energy consumers. The Central Electric Cooperative Board, representing all state co-ops, formalized this rate structure for facilities requiring 20 megawatts or more, covering both existing and under-construction data centers. Rob Hochstetler, CEO of Central Electric Cooperative, stated that the initiative aims to maximize benefits for the power grid, create efficiencies, and ensure major users contribute adequately to system costs, preventing them from being borne by residential members. The policy also includes protections for other consumers and requires long-term commitments from large energy users to ensure grid stability and fund necessary infrastructure upgrades like transmission lines and substations. Berl Davis, chairman of Central's board and CEO of Palmetto Electric Cooperative, emphasized that the new rates reinforce a commitment to fairness, ensuring that South Carolina families and businesses do not subsidize the energy costs of major corporations. Currently, one data center operates under the co-ops' power, with three additional facilities under construction already integrating these new rates into their contracts.