SC Public Service Commission dismisses challenge to Spartanburg County data center project
The South Carolina Public Service Commission dismissed a legal challenge against a natural gas power plant associated with the Valara data center in Spartanburg County, SC. The commission ruled it lacks jurisdiction over private companies generating power for their own use, exempting Valara from certain state utility rules and environmental oversight. Residents expressed profound disappointment, warning of a dangerous precedent for environmental protections.
The South Carolina Public Service Commission (PSC) has dismissed a challenge related to a natural gas-fired power plant intended to serve the Valara data center currently under construction in Spartanburg County. The South Carolina Environmental Law Center, on behalf of local residents, argued that Valara was building the power plant without complying with state requirements, specifically the Utility Facility Siting and Environmental Protection Act, which mandates a Certificate of Environmental Compatibility and Public Convenience and Necessity for large power generation facilities.
Valara contended that as a private company generating power for its own use, it does not require PSC approval. The commission ultimately sided with Valara, ruling unanimously that it lacks jurisdiction over private businesses generating power for self-use and that only the ORS (Office of Regulatory Staff), not third parties, can initiate enforcement actions under the Act.
Residents, represented by the "No Data Centers in Spartanburg" group, expressed profound disappointment, stating the ruling removes residents' voices from impacting community development and sets a dangerous precedent. They emphasized that this decision eliminates a state-level environmental protection, as the PSC will no longer consider environmental impacts for self-produced power generation, regardless of its size. Residents urged local counties, cities, and municipalities to immediately create strict zoning laws, building permits, noise ordinances, and land-use restrictions to protect their communities from potential unchecked large-scale utility-scale power generation.