A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING CHAPTER 32 TO TITLE 58 SO AS TO DEFINE TERMS RELATED TO THIRD-PARTY ELECTRIC CHOICE; TO ALLOW AN ELIGIBLE CUSTOMER TO PERMIT ITS ELECTRICITY DEMAND FROM A THIRD-PARTY ELECTRIC SUPPLIER; TO REQUIRE THE ELIGIBLE CUSTOMER TO PROVIDE ARRANGEMENT FOR FIRM TRANSMISSION SERVICE OF THIRD-PARTY ELECTRIC TO THE INCUMBENT ELECTRIC SUPPLIER'S TRANSMISSION SYSTEM; TO NOT HOLD THE INCUMBENT ELECTRIC SUPPLIER LIABLE FOR ANY COSTS ASSOCIATED WITH THIRD-PARTY ELECTRIC SUPPLY; TO REQUIRE THE INCUMBENT ELECTRIC SUPPLIER TO HAVE REMOTE CUTOFF CAPABILITIES IN PLACE FOR THIRD-PARTY ELECTRIC SUPPLY; TO ASSIGN THE COST OF REQUIRED TRANSMISSION UPGRADES; TO REQUIRE A CUSTOMER TO CONTINUE TO PAY FOR CAPITAL COSTS IN CERTAIN CIRCUMSTANCES; TO REQUIRE AN INCUMBENT ELECTRIC SUPPLIER TO PROVIDE COST-OF-SERVICE SUPPLY TO CUSTOMERS OR CUSTOMER LOAD RETURNING FROM A PERIOD OF RETAIL ACCESS SERVICE ON THE SAME TERMS, RATES, AND PRIORITY AS A NEW CUSTOMER REQUESTING SERVICE; AND TO REQUIRE THE COMMISSION TO APPROVE A TARIFF CONTAINING A PRO FORMA CONTRACT AND OTHER REQUIREMENTS.

 

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 32

 

Third-Party Electric Suppliers

 

    Section 58-32-10.  For the purposes of this chapter:

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

    (2) "Customer-sited generation" means an electric generation facility, or combination of electric generation facilities, located on an eligible customer's premises and on the eligible customer's side of the delivery point with a nameplate capacity that does not exceed the eligible customer's estimated maximum demand for electric service and that is solely for the use of the eligible customer. For purposes of this chapter, an owner of customer-sited generation shall not be considered an electrical utility as defined in Section 58-27-10(7).

    (3) "Customer-supplied power" means electric power and energy produced by customer-sited generation or delivered to an eligible customer's delivery point from a third-party electric supplier, or both.

    (4) "Delivery Point" means the point where the facilities of the incumbent electric supplier make physical contact with the facilities of the eligible customer.

    (5) "Distribution services" means electric distributions services, along with any other services required to safely and reliably deliver electric energy.

    (6) "Distribution tariff" means the tariff filed with the commission or the rules otherwise governing electric distribution services provided by an incumbent electric supplier.

    (7) "Electric generation facility" means a facility for generating electric power, including renewable electric generation facilities and generation facilities qualifying under the Public Utility Regulatory Policies Act of 1978 ("PURPA"), Public Law 95-617, as amended.

    (8) "Electric power" means electric energy, electric capacity, or generation-related ancillary services or any combination thereof.

    (9) "Electric supplier" shall have the same meaning as in Section 58-27-610(1) and shall include the South Carolina Public Service Authority.

    (10) "Eligible customer" means any retail electric customer located in the State of South Carolina whose average monthly demand at a single point of delivery, or aggregated multiple points of delivery that are owned, leased, or otherwise controlled by such retail electric customer within that same utility territory, for one month during of delivery during the most recent calendar year was equal to or exceeded one hundred kilowatts (100kW), or the expansion of an existing load by 100kW or more, or re-energizing an existing load or portion of a load by 100kW or more that had been idled for at least twenty-four months, or the interruptible portion of an existing load of 100kW or more, or in the event of a new retail electric customer, whose average monthly demand at a single point of delivery is anticipated to equal or exceed 100kW during the customer's first year of electric service.

    (11) "Full-requirements contract" is a contract whereby the eligible customer agrees to purchase from an electric supplier all of their supply needs from or through the electric supplier, regardless of quantity under contractual terms specific in this contract.

    (12) "Incumbent electric supplier" means an electric supplier or other person or corporation that, pursuant to Title 58, Chapter 27, Article 5, furnishes or has the right to furnish electric service to the eligible customer's premises.

    (13) "Premises" means the building, structure, or facility to which electricity is being or is to be furnished, provided that two or more buildings, structures, or facilities which are located on one tract or contiguous tracts of land and are utilized by one electric consumer for farming, business, commercial, industrial, institutional, or governmental purposes, shall together constitute one "premises," except that any such building, structure, or facility shall not, together with any other building, structure, or facility, constitute one "premises" if the electric service to it is separately metered and the charges for such service are calculated independently of charges for service to any other building, structure, or facility.

    (14) "Renewable electric generation facility" means a facility generating electric power from solar photovoltaic resources, wind resources, hydroelectric resources, geothermal resources, tidal and wave energy resources, hydrogen fuel derived from renewable resources, combined heat and power derived from renewable resources, or biomass resources, or any combination thereof. Renewable electric generation facility also includes an electrical energy storage system, if the energy stored is generated from one of the resources enumerated above.

    (15) "Standby electric service rate" means a rate offered by the incumbent electric supplier to provide replacement energy to an eligible customer when the power supply to such customer purchased under a customer choice option is not available.

    (16) "Third-party electric supplier" means an electric supplier that is not the incumbent electric supplier or a person or corporation that is not an electric supplier but provides electricity generated by an electric generation facility. A third-party electric supplier may be located within or without this State. For purposes of this chapter, a third-party electric supplier shall not be considered an electrical utility as defined in Section 58-27-10(7).

    (17) "Transmission services" means electric transmission services, along with any other services required to safely and reliably deliver electric energy.

    (18) "Transmission services provider" means any person or corporation owning or operating electric transmission facilities in the State for transmitting, delivering, or furnishing electricity.

    (19) "Transmission tariff" means an open access transmission tariff, reciprocity tariff, or other tariff to provide transmission services unbundled from other services.

 

    Section 58-32-20.  (A) An eligible customer shall be permitted to purchase all or part of its electricity demand from a third-party electric supplier in accordance with the terms of this chapter and federal laws and regulations. An eligible customer shall also be permitted to obtain all or part of its electricity demand from customer-sited generation.

    (B) If an eligible customer chooses to obtain all or part of its electric demand from a third-party electric supplier, then the customer and the incumbent electric supplier must enter into a contract that, at a minimum, provides:

       (1) the amount of electricity the eligible customer has elected or intends to elect to receive from the third-party electric supplier and detailed arrangements for its energy needs to be provided by the third-party electric supplier, up to and including a full-requirements contract;

       (2) if the customer chooses to receive part of its electricity from the incumbent electric supplier, a firm electricity demand that the customer will receive from the incumbent electric supplier and a commitment to purchase that amount from the incumbent electric supplier;

       (3) conditions for which the incumbent electric supplier may curtail or suspend service to the customer outside of energy emergency alert conditions established by the North American Electric Reliability Corporation if the customer is not on a Standby Rate from the incumbent electric supplier; and

       (4) the customer must relieve the incumbent electric supplier from its obligation to provide electricity for the amount to be provided by a third-party electric supplier, including the incumbent electric supplier's obligation to maintain reserves for the customer.

    (C) If an eligible customer chooses to obtain all or part of its electric demand from a third-party electric supplier, then the customer shall be responsible for ensuring its energy needs are met. The incumbent electric supplier shall be relieved of its obligation to provide energy to the eligible customer in accordance with the terms of the contract described in subsection (B). However, the customer and the incumbent electric supplier may agree to contractual terms subject to Commission review and approval for utilities with Commission approved rates in which the incumbent electric supplier may supply energy to the customer if the third-party electric supplier is unable to meet the customer's demands.

 

    Section 58-32-30.  The eligible customer must provide arrangements for firm transmission service from the third-party electric supplier to have its electricity delivered from the third-party electric supplier's sources to the incumbent electric supplier's transmission system. The incumbent electric supplier shall cooperate with the third-party electric supplier to provide reasonable terms of transmission service consistent with industry standards, the Open Access Transmission Tariff, and applicable business practices.

 

    Section 58-32-40.  The incumbent electric supplier shall not be liable for any costs associated with the eligible customer's electricity service from a third-party electric supplier, including transmission service from the third-party electric supplier. The incumbent electric supplier shall be responsible for transmission to the customer for electricity on the incumbent electric supplier's transmission system.

 

    Section 58-32-50.  The incumbent electric supplier must have remote cutoff capabilities in place for an eligible customer who chooses to obtain electricity from a third-party electric supplier so that the incumbent electric supplier can curtail or shut down its electric supply to the customer in accordance with the terms of the agreement. The customer shall elect its third-party electric supplier and shall pay all costs associated with its election, if any.

 

    Section 58-32-60.  If an eligible customer requires transmission upgrades, then a determination must be made, in accordance with federal laws and regulations, regarding whether the transmission upgrade solely benefits the eligible customer or the upgrade benefits others whom the incumbent electric supplier serves. For transmission upgrades that solely benefit the eligible customer, that eligible customer must pay the costs for the upgrade. If the transmission upgrade benefits more than solely the eligible customer, in terms of electric service, then the incumbent electric supplier and the customer may agree for the eligible customer to pay the incumbent electric supplier for a period of not more than twenty years. If an eligible customer pays for the costs of the transmission upgrade, then the eligible customer will be exempt from Section 58-32-70.

 

    Section 58-32-70.  In the event that the incumbent electric supplier factored an eligible customer's energy demand into its planning for electric generation or transmission, invested capital accordingly that has been reflected in its rates, and that customer leaves the incumbent electric supplier's territory, then the customer must continue to pay for capital costs until the amount the customer would have been responsible for is paid in full or another customer assumes the amount. If growth in the amount of supply being taken by customers of the incumbent electric supplier exceeds the load of the departing eligible customer, then this event shall constitute a rebuttable presumption that these costs have been assumed consistent with this section. The Commission must determine the customer's financial obligation to the incumbent electric supplier in a manner that does not affect residential or other commercial or industrial electric rates. The Commission must also determine allowable cost shift methodologies to provide transparency around legacy contracts and stranded assets.

 

    Section 58-32-80.  Incumbent electric suppliers shall provide cost-of-service supply to customers or customer load returning from a period of retail access service on the same terms, rates, and priority as a new customer requesting service.

 

    Section 58-32-90.  (A) The Commission shall approve a tariff containing a pro forma contract that an eligible customer may enter into consistent with this chapter and other state and federal law. Such pro forma contract executed by an eligible customer shall be binding on the incumbent electric supplier and the customer and shall fulfill the purposes of Section 58-32-20(B). Any exceptions to the pro forma contract may be approved by the Commission only as follows:

       (1) an incumbent electric supplier and an eligible customer file an executed contract which the Commission shall approve unless contrary to the public interest; or

       (2) an eligible customer may represent to the Commission its binding commitment to be party to an unexecuted contract consistent with its right to receive third-party supply under this chapter which the Commission shall adopt if it determines its provisions are just and reasonable.

    (B) The Commission shall not regulate any contract entered between a third-party electric supplier and a customer.

 

SECTION 2.  No later than January 1, 2027, the Commission shall approve a tariff containing a pro forma contract pursuant to Section 58-32-90.

 

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

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