Advocates push for retail choice among SC’s energy providers

COLUMBIA, SC (WOLO) — Should it pass in the General Assembly, a local watchdog organization says a new bill to be introduced would help increase competition across South Carolina’s energy sector.

A group known as the “Palmetto Industrial Energy Association” as well as Senators Wes Climer of Rock Hill and Tom Fernandez of Summerville are advocating for what’s known as “Limited Retail Choice” through a new report prepared by “Daymark Energy Advisors.”

Currently, PIEA is made up of  eight large manufacturers and employers including Alpek Polyester, Amick Farms, Cooper River, Fitesa, Domtar, Century Aluminum, DSM, and Swiss Krono.

“Right now large manufacturers, companies that employ thousands of hard working South Carolinians are forced to buy power from single providers,” says Fernandez.

Currently, corporations are restricted to using the energy provider closest to them — such as Dominion Energy or Santee Cooper.

The report finds that LRC would open up more cost saving possibilities for large industrial customers whose average monthly usage of electricity is five megawatts or higher.

“Limited Retail Choice will change that by giving businesses the ability to shop for competitive rates, drive down costs, and reinvest in their workers and in our communities,” says Fernandez.

Current versions of retail choice already exist in 19 other states including Georgia, Virginia, and Texas.

However, a current energy supplier believes changing the law would not be in the best interest of the state.

In a statement to ABC Columbia’s Lee Williams, Rhonda O’Banion with Dominion Energy says, “Dominion Energy does not believe deregulating the energy industry in South Carolina – in any form – is in the best interest of the state or our customers. The integrated, regulated energy market in South Carolina provides extensive accountability and rigorous third-party oversight from state and federal regulators. This is critical to our ability to provide the reliable, affordable and increasingly clean energy that powers our customers every day. In doing so, Dominion Energy has an obligation to serve all customers in our service area – not just those who are profitable to serve. Unlike in a deregulated market, the rates we charge customers, including the company’s rate of return, are set by regulators after considering input from stakeholders. While deregulation makes many promises, several states have learned lessons when those promises have failed to materialize. Our focus is on further securing South Carolina’s energy grid by increasing generation capacity and modernizing our current generation fleet to meet all our customers’ needs.”

Climer pushed back on that idea at Tuesday’s press conference, saying, “Furthermore, it’s worth noting that all of the utilities who are fighting so vigorously against Limited Retail Choice participate in a measure of choice themselves. They are all a part of something called SEAM, the Southeastern Energy Market.”

Stan Faryniarz and Melissa Whitten with Daymark Energy Advisors say LRC will also help South Carolina face its ever growing need for more energy.

“There will be more players out there, it will attract other power suppliers, developers, and others, so it’ll be a win-win over time for all of South Carolina’s economy,” says Faryniarz.

Senators will introduce a bill on LRC at the Statehouse in the coming weeks.