Electric Utility Affordability Crisis Brewing in South Carolina

COLUMBIA, S.C. - An executive orderissued by Donald Trump last week could block state guardrails around artificial intelligence and the infrastructure needed to run AI data centers, including popular state-level initiatives, known as large load tariffs, that help ensure tech companies have financial skin in the game for the costs of growing electricity demand.

On the December 3rd Small Business "Backbone" Podcasthosted by Frank Knapp, Sierra Club's managing attorney, Dori Jaffe, discussed the real-world impacts of data centers on utility customers around the country, and what "financial skin in the game" really means for tech companies.

The Sierra Club was party to settlements recently with Duke Energy Progressand Duke Energy Carolinas; both settlements required the Public Service Commission (PSC) to open a docket on large load tariffs, which could lead to consumer protections for residential and traditional businesses. Large load tariff consumer protections are threatened by the executive order.

Meanwhile, South Carolina utilities are increasing costs in several directions. Yesterday, Dominion and Santee Cooper filed an applicationfor the proposed Canadys gas plant, which has doubled in cost from the original estimate of $2.5 billion, and is now $5 billion, because of supply chain constraintsas well as the utility increasing the size of the plant. The proposed gas plant itself will likely serve new data centers, and the utilities requested an expedited process that could see a final decision from the PSC by June 2026. In addition to the proposed $5 billion gas plant, Dominion notified regulators of its intent for a rate increase in early 2026.

Statement from Paul Black, Sierra Club's Senior Campaign Organizer in South Carolina:

"Even if Donald Trump didn't try to take away tools that enable energy affordability for South Carolinians, our monopoly utility regulators at the PSC have an obligation to protect customers from excessive rate increases. The Canadys application must be closely scrutinized, and if the gas plant is approved, it must be coupled with the retirement of the outdated and expensive Winyah and Wateree coal plants. Utility bills are skyrocketing due to growing energy demand from data centers and utilities' reliance on expensive coal plants, and the PSC must do everything it can to lower these costs and prioritize affordability."

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.