A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "UTILITY BILLING ACCOUNTABILITY AND CONSUMER PROTECTION ACT OF 2026" BY ADDING CHAPTER 44 TO TITLE 58 SO AS TO PROHIBIT A UTILITY FROM CHANGING BILLING OR PAYMENT PRACTICES WITHOUT APPROVAL FROM THE PUBLIC SERVICE COMMISSION; TO ESTABLISH A PROCESS FOR THE PUBLIC SERVICE COMMISSION; TO PERMIT TEMPORARY APPROVAL PROCESSES IN THE EVENT OF AN EMERGENCY; TO REQUIRE UTILITIES TO SUBMIT QUARTERLY REPORTS TO THE PUBLIC SERVICE COMMISSION AND OFFICE OF REGULATORY STAFF; TO REQUIRE THE PUBLIC SERVICE COMMISSION, IN COORDINATION WITH THE OFFICE OF REGULATORY STAFF, TO ENGAGE AN AUDITOR TO EXAMINE PRESCRIBED BILLING ISSUES; TO REQUIRE A UTILITY TO PROVIDE WRITTEN NOTICE TO CUSTOMERS FOR BILLING OR PAYMENT CHANGES; TO ESTABLISH CONDITIONS AND PROHIBITIONS IN CERTAIN RENTAL CIRCUMSTANCES; TO REQUIRE ELECTRIC, GAS, AND WATER UTILITIES TO IMPLEMENT CONSUMER PROTECTIONS FOR RURAL ENERGY-BURDENED HOUSEHOLDS, REQUIRE THE PUBLIC SERVICE COMMISSION TO PUBLISH A RURAL ENERGY BURDEN REPORT, AND TO CONSIDER METRICS IN ALL RATE PROCEEDINGS; TO PERMIT THE PUBLIC SERVICE COMMISSION TO IMPOSE ADMINISTRATIVE FINES FOR VIOLATIONS, FOR A CUSTOMER TO FILE A COMPLAINT WITH THE COMMISSION, AND TO REQUIRE THE PUBLIC SERVICE COMMISSION TO PROMULGATE RELATED REGULATIONS.

 

Whereas, utility billing, arrearage, and payment-plan practices directly affect customer access to essential electric and gas services; and

 

Whereas, sudden or unannounced changes to such billing, arrearage, or payment plans can cause financial hardship, particularly for low- and moderate-income ratepayers; and

 

Whereas, recent reports indicate that a major regulated utility in South Carolina unilaterally modified its customer balance-carrying and payment policies without prior notice, resulting in confusion and increased risk of disconnection; and

 

Whereas, transparency and regulatory oversight of these practices are essential to maintaining affordability, fairness, and consumer protection; and

 

Whereas, ratepayers have reported significant, unexplained bill increases following the enactment of recent energy legislation, necessitating a system audit and data transparency to ensure accountability; and

 

Whereas, residents of rural South Carolina experience disproportionately high energy burdens, with household energy costs exceeding six percent of their income due to lower median incomes, aging housing stock, limited energy efficiency investments, and fewer utility choices; and

 

Whereas, all ratepayers would benefit from transparent utility billing practices, affordability standards, and disconnection procedures, as well as independent audits regarding billing and rate systems to ensure that utility rates are fair, accurate, and properly authorized. Now, therefore,

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  This act may be cited as the "Utility Billing Accountability and Consumer Protection Act of 2026."

 

SECTION 2.  Title 58 of the S.C. Code is amended by adding:

 

CHAPTER 44

 

Utility Billing Accountability and Consumer Protection

 

    Section 58-44-10.  For purposes of this chapter:

    (1) "Affordability metrics" means data regarding customer arrears, late payments, disconnections, reconnections, and payment-plan participation.

    (2) "Billing or payment practice" means any rule, policy, or internal standard governing:

       (a) due dates, billing cycles, or statement frequency;

       (b) payment plans, deferred payment arrangements, or arrearage agreements;

       (c) thresholds for permissible past-due balances before disconnection;

       (d) late payment charges or penalties;

       (e) minimum or partial payment requirements to maintain service; or

       (f) customer eligibility for installment or budget billing programs.

    (3) "Consumer advocate" means the South Carolina Department of Consumer Affairs.

    (4) "Commission" means the South Carolina Public Service Commission.

    (5) "Utility" means any investor-owned electric or gas utility regulated by the commission pursuant to Title 58.

 

    Section 58-44-20.  (A) A utility may not alter, revise, or discontinue any billing or payment practice, including changes to the amount of balance customers may carry, without prior approval from the commission. Any proposed change to a billing or payment practice shall be submitted to the commission as a formal application, which must include:

       (1) a detailed description of the proposed change;

       (2) analysis of customer impacts, with a focus on low- and moderate-income households;

       (3) estimated changes in arrears, disconnections, and average bills; and

       (4) proposed mitigation measures or customer outreach plans.

    (B) Following receipt of an application as described in subsection (A), the commission shall:

       (1) provide at least thirty days' notice of the filing to the public;

       (2) hold a public hearing allowing testimony from ratepayers and consumer advocates; and

       (3) issue a written decision approving, denying, or modifying the proposed change in the application.

    (C) Any change implemented by a utility that has not received commission approval shall be void and unenforceable, and the commission may order refunds, bill credits, or other corrective action.

 

    Section 58-44-30.  In the event of an emergency, a utility may petition the commission for temporary approval of changes to billing or payment practices, but only to the extent required to prevent imminent financial harm or system disruption. Such temporary approval shall not exceed ninety days. If circumstances warrant an extension beyond ninety days, the commission must first hold a public hearing before issuing a decision on the extension.

 

    Section 58-44-40.  (A) Each utility shall file quarterly reports with the commission and the Office of Regulatory Staff, which must include the:

       (1) number of residential disconnections for nonpayment;

       (2) number of reconnections and average reconnection time;

       (3) number and value of customer accounts in arrears, categorized by income tier, if available;

       (4) number of customers on payment plans or deferred payment arrangements;

       (5) average residential bill and late payment incidence; and

       (6) total number of customer complaints regarding billing accuracy or payment arrangements.

    (B) The commission shall publish aggregated data from these reports on its website and include a summary in its annual report to the General Assembly.

    (C) Utilities shall maintain this data for at least five years and shall make it available upon request for regulatory or academic research on energy affordability.

 

    Section 58-44-50.  (A) Within one hundred eighty days of the effective date of this act, the commission shall, in coordination with the Office of Regulatory Staff, engage an independent, third-party auditor to examine:

       (1) utility billing and accounting systems;

       (2) implementation of recent rate changes and cost pass-throughs; and

       (3) consistency between approved tariffs and amounts actually billed to customers.

    (B) The audit described in subsection (A) shall also:

       (1) identify unexplained increases or anomalies in average residential utility bills since 2024;

       (2) evaluate utility compliance with commission-approved rate structures; and

       (3) recommend corrective measures where inconsistencies or errors are found.

    (C) The audit must be completed within twelve months from the initiation of the audit and the findings shall be published as a public report and submitted to the General Assembly, Office of Regulatory Staff, and the Consumer Advocate.

    (D) Utilities shall fully cooperate with the audit and provide access to relevant billing data, subject to confidentiality protections.

 

    Section 58-44-60.  No utility shall implement any approved billing or payment change without providing written notice to affected customers at least ninety days prior to the effective date. This notice must be clear, in plain language, and provided by mail and electronic means if available. All information shall be available in multiple languages, and with outreach to rental and multifamily housing communities. Utilities shall also notify consumer assistance agencies and community partners of such changes.

 

    Section 58-44-70.  (A) No public housing authority, subsidized housing provider, or landlord receiving federal, state, or local housing assistance shall condition tenancy, lease renewal, housing assistance, or continued occupancy on uninterrupted utility service when such service interruption results from inability to pay.

    (B) A tenant shall not be evicted, penalized, or deemed in violation of a lease solely due to utility disconnection for nonpayment, provided such disconnection is not the result of tenant fraud or intentional damage.

    (C) Utilities shall not terminate service to a rental dwelling for nonpayment attributable to a landlord, property owner, or housing authority when the tenant is current on rent or otherwise compliant with lease terms.

    (D) Before a utility may terminate service to a rental property or public housing unit, the utility and the landlord or housing provider shall:

       (1) provide written notice to tenants no fewer than thirty days in advance;

       (2) coordinate with state and federal energy assistance programs; and

       (3) offer reasonable payment plans or mitigation options prioritizing housing stability.

    (E) Utility disconnection shall not be used as a constructive eviction tool. Loss of essential energy or water services shall not negate a tenant's right to habitable housing under state or federal law.

    (F) Utilities and public housing authorities shall report anonymized data on disconnections impacting rental and subsidized housing units to the commission for monitoring, enforcement, and equity review.

 

    Section 58-44-80.  (A) For purposes of this section, a "rural energy-burdened household" means a household located in a county or census tract designated as rural by the U.S. Census Bureau or the South Carolina Office of Rural Health with an energy burden above the statewide average.

    (B) Electric, gas, and water utilities shall implement enhanced consumer protections for rural energy-burdened households, including:

       (1) extended payment plans and arrearage management options;

       (2) prohibition on utility disconnections during extreme weather events;

       (3) mandatory referrals to energy assistance, weatherization, and bill support programs prior to disconnection; and

       (4) clear, plain-language billing disclosures addressing usage, rate changes, and available assistance.

    (C) Utilities shall account for rural infrastructure limitations, including long service distances, older housing stock, and shared or master-metered systems, and shall not penalize customers for inefficiencies outside their control. Utility service termination shall not be used in a manner that disproportionately causes displacement, housing instability, or forced migration from rural communities.

    (D) Utilities must provide an annual report to the commission that includes the cumulative impact of rates, fees, riders, and surcharges on rural customers, and disaggregated data on rural disconnections, arrears, and reconnections. The commission shall publish a rural energy burden report utilizing this data.

    (E) The commission shall consider rural energy burden metrics in all rate proceedings in the commission's jurisdiction.

 

    Section 58-44-90.  (A) The commission may impose administrative fines of up to fifty thousand dollars per day for each violation of this chapter. Repeated or wilful violations may result in additional penalties, including disallowance of cost recovery in future rate proceedings.

    (B) Any customer adversely affected by an unapproved change may file a complaint with the commission, and the commission may order restitution or bill credits as appropriate.

 

    Section 58-44-100. The provisions of this chapter are in addition to, and do not replace or limit, the authority of the Office of Regulatory Staff or Consumer Advocate to investigate utility practices or represent ratepayer interests.

 

    Section 58-44-110. The commission shall promulgate regulations necessary to implement this chapter, including standardized data-reporting formats and public-notification requirements.

 

SECTION 3.  This act takes effect upon approval by the Governor..

----XX----