A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING CHAPTER 45 TO TITLE 58 SO AS TO ESTABLISH THE SOUTH CAROLINA UTILITY CITIZENS COUNCIL TO SERVE AS AN INDEPENDENT ADVISORY BODY TO THE PUBLIC SERVICE COMMISSION; TO PROVIDE FOR THE UTILITY CITIZENS COUNCIL'S MEMBERSHIP, DUTIES, AND RESPONSIBILITIES; TO PERMIT THE UTILITY CITIZENS COUNCIL TO HAVE ACCESS TO CERTAIN INFORMATION SUBMITTED TO THE PUBLIC SERVICE COMMISSION; TO PROVIDE FUNDING FOR THE UTILITY CITIZENS COUNCIL FROM REGULATED UTILITIES, ESTABLISH COST RECOVERY REQUIREMENTS, AND PENALTIES FOR FAILURE TO PROVIDE FUNDING AND PROVIDE FOR ITS ADMINISTRATION; TO REQUIRE THE SOUTH CAROLINA ENERGY JUSTICE COALITION TO PROVIDE STAFFING AND OTHER DUTIES; TO REQUIRE THE PUBLIC SERVICE COMMISSION TO PROVIDE THE COUNCIL WITH RELEVANT DOCUMENTATION UPON NOTICE OF A UTILITY RATE CASE OR MAJOR FILING, TO PERMIT THE COUNCIL TO PARTICIPATE IN PUBLIC SERVICE COMMISSION PROCEEDINGS, AND TO REQUIRE THE COMMISSION TO INCLUDE A SUMMARY OF THE COUNCIL'S RECOMMENDATIONS AND COMMISSION'S RESPONSES IN COMMISSION ORDERS; AND TO REQUIRE THE COUNCIL, IN CONSULTATION WITH THE OFFICE OF REGULATORY STAFF, TO DEVELOP ENERGY AFFORDABILITY METRICS.

 

Whereas, many South Carolinians, especially low- and moderate-income households, experience high energy burdens, spending a significant share of household income on energy bills; and

 

Whereas, energy affordability, efficiency, and equitable access to utility programs are essential for maintaining public health, economic security, and environmental sustainability; and

 

Whereas, consumers currently have limited formal representation in utility planning, ratemaking, and program design before the South Carolina Public Service Commission; and

 

Whereas, creating an independent, utility-funded Utility Citizens Council will strengthen transparency, improve accountability, and ensure that the voices of South Carolina's residential and small business consumers are directly heard in energy decision-making; and

 

Whereas, it would be beneficial to all South Carolinians to establish a structured advisory body to assist the Public Service Commission regarding matters of energy affordability, efficiency, and consumer protection that could encourage fair, affordable, and accountable utility service statewide. Now, therefore,

 

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

 

SECTION 1.  Title 58 of the S.C. Code is amended by adding:

 

CHAPTER 45

 

South Carolina Utility Citizens Council

 

    Section 58-45-10.  For purposes of this chapter:

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

    (2) "Council" means the South Carolina Utility Citizens Council.

    (3) "Energy burden" means the percentage of household income spent annually on energy bills for electricity, natural gas, or any other regulated utility service that provides electricity.

    (4) "Energy efficiency program" means any electrical utility-funded or commission-approved program designed to reduce energy consumption.

    (5) "Low-income household" means a household with an income at or below two hundred percent of the federal poverty level, as defined by the U.S. Department of Health and Human Services.

    (6) "Moderate-income household" means a household with an income between two hundred and four hundred percent of the federal poverty level, as defined by the U.S. Department of Health and Human Services.

    (7) "Utility" means any investor-owned electrical or gas utility regulated by the commission pursuant to Title 58. It may also include an electric cooperative or municipal utility that elects to participate in the provisions of this chapter.

 

    Section 58-45-20.  (A) There is created the South Carolina Utility Citizens Council which shall operate as an independent advisory body to the commission. The council shall receive funding in accordance with the provisions of Section 58-45-70 and shall not be subject to the direction or control of any utility, the commission, or any political subdivision except as provided in this chapter.

    (B) The council shall:

       (1) advise the commission on consumer affordability, utility rate design, and energy efficiency programs;

       (2) serve as a public forum for community input and utility accountability; and

       (3) publish independent analyses and recommendations on energy affordability and service quality.

 

    Section 58-45-30.  (A) The council shall consist of fifteen members appointed as follows:

       (1) three representatives from low-income households or organizations serving low-income communities;

       (2) two representatives from moderate-income households;

       (3) one representative of senior or medically vulnerable consumers;

       (4) one representative of renters' or tenants' associations;

       (5) three representatives from community-based or environmental justice organizations focused on energy affordability or sustainability;

       (6) two small business representatives, representing businesses with fewer than twenty-five employees;

       (7) one academic or technical expert in energy efficiency, public health, or utility regulation;

       (8) one representative from a consumer protection or legal services organization; and

       (9) one non-voting liaison appointed by the commission staff.

    (B) Appointments shall be made by the council with the advice and consent of the full council and any vacancy shall be filled in the same manner as the appointment.

    (C)(1) Council members shall serve three-year terms, staggered so that one-third of the terms expire each year.

       (2) Notwithstanding the provision of item (1), terms for the initial membership of the council shall be as follows:

           (a) one representative from low-income households or organizations serving low-income communities, one representative from community-based or environmental justice organizations focused on energy affordability or sustainability, one small business representative, and one representative from a consumer protection or legal services organization shall serve an initial term of one year;

           (b) one representative from low-income households or organizations serving low-income communities, one representative from moderate-income households, one representative of renters' or tenants' associations, one representative from community-based or environmental justice organizations focused on energy affordability or sustainability, one small business representative, and one academic or technical expert in energy efficiency, public health, or utility regulation shall serve an initial term of two years; and

           (c) one representative from low-income households or organizations serving low-income communities, one representative from moderate-income households, one representative of senior or medically vulnerable consumers, and one representative from community-based or environmental justice organizations focused on energy affordability or sustainability shall serve a term of three years.

    (D) A quorum of the council shall consist of eight voting members.

    (E) The council shall elect a chairperson and a vice chairperson annually from among its voting members.

    (F) Council members shall serve with compensation and shall receive travel and per diem expenses as authorized by the commission.

 

    Section 58-45-40.  (A) The council shall:

       (1) review and provide written recommendations to the commission on:

           (a) utility rate filings and rate case proceedings;

           (b) energy efficiency, conservation, and demand-side management programs;

           (c) utility service disconnection, reconnection, and arrearage management policies; and

           (d) major infrastructure or grid modernization projects affecting consumer rates.

       (2) hold at least two public hearings per year to solicit consumer input on affordability, service quality, and energy efficiency;

       (3) prepare an annual energy affordability and accountability report to submit to the commission, the Office of Regulatory Staff, and the General Assembly by December thirty-first each year. This report shall include:

           (a) data on energy burden, disconnections, arrears, and affordability trends;

           (b) evaluation of utility performance regarding energy efficiency participation and customer service;

           (c) policy recommendations for improving affordability and accountability; and

           (d) a scorecard ranking utilities on affordability metrics;

       (4) consult with Office of Regulatory Staff, the Department of Consumer Affairs, and community groups to identify barriers to affordability and efficiency; and

       (5) recommend consumer education initiatives regarding available assistance and efficiency programs.

    (B) The commission shall respond in writing to the council's annual report within sixty days of receipt, indicating whether and how the commission will implement the council's recommendations.

 

    Section 58-45-50.  (A) The council shall have access to non-confidential filings, data, and reports submitted to the commission by utilities, as necessary to perform its duties.

    (B) The commission may grant the council access to confidential information under appropriate protective orders, consistent with the provisions of Section 58-45-55.

    (C) The council may contract with experts, economists, or analysts to assist in reviewing utility filings, provided funds are available pursuant to Section 58-45-70.

 

    Section 58-45-60.  The council shall maintain a publicly accessible website and shall post its meeting agendas, minutes, reports, and affordability metrics. All council meetings shall comply with the South Carolina Freedom of Information Act, Chapter 4, Title 30. The council may also conduct outreach in multiple languages and formats to ensure inclusive participation.

 

    Section 58-45-70.  (A) Each regulated utility subject to the jurisdiction of the commission shall annually remit to the council's fund an amount equal to 0.01 percent but no more than one million five hundred thousand dollars of its gross revenues derived from regulated operations in South Carolina for the preceding calendar year. The council's fund shall be administered by an agency such as the Office of Resilience or the Office of Regulatory Staff and shall be used exclusively for the council's operations, research, outreach, and reporting.

    (B) The South Carolina Energy Justice Coalition shall provide staffing, administrative, operational, management, engagement, strategy, and all other related duties for the council's fund using revenue from the council's fund.

    (C) Utilities may recover costs through base rates only upon express commission approval, provided that such recovery shall not exceed the actual remittance.

    (D) Failure to remit required funds within sixty days of billing by the agency that administers the council's fund shall result in a civil penalty of ten thousand dollars per month until paid. This subsection shall be enforceable by the commission.

 

    Section 58-45-80.  (A) Upon notice of a utility rate case or major filing, the commission shall provide the council with copies of relevant documents within ten days of filing.

    (B) The council may submit comments, testimony, or recommendations in commission proceedings and shall be granted intervenor status for the purpose of representing consumer interests.

    (C) The commission shall include a section in its final orders summarizing the council's recommendations and the commission's responses.

 

    Section 58-45-90.  The council, in consultation with the Office of Regulatory Staff, shall develop statewide energy affordability metrics including, but not limited to:

    (1) average energy burden by income tier;

    (2) number and rate of disconnections for nonpayment;

    (3) average arrearage balance per customer;

    (4) energy efficiency program participation rates by income level;

    (5) average residential bill for electricity and gas by utility; and

    (6) service quality indicators including, but not limited to, complaints regarding rates, reconnection times, and outage frequency.

The commission shall publish these metrics annually on its website.

 

SECTION 2.  This act takes effect on January 1, 2027, and the council shall make the initial appointments within one hundred eighty days of this date.

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