A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS SO AS TO ENACT THE "SOUTH CAROLINA ELECTRIC RETAIL CHOICE ACT" BY ADDING CHAPTER 46 TO TITLE 58 SO AS TO PERMIT RESIDENTIAL AND SMALL COMMERCIAL CUSTOMERS TO CHOOSE THEIR ELECTRIC GENERATION SUPPLIER; TO PROHIBIT COMPETITIVE ELECTRIC GENERATION SERVICE WITHOUT A PERMIT FROM THE PUBLIC SERVICE COMMISSION AND REQUIRE SUPPLIERS TO PROVIDE CLEAR AND ACCURATE INFORMATION REGARDING ITS RATES, TERMS, AND ENVIRONMENTAL ATTRIBUTES; TO REQUIRE THE PUBLIC SERVICE COMMISSION TO ADOPT RULES AND REGULATIONS FOR ELECTRIC SUPPLIERS AND FOR THE IMPLEMENTATION OF THIS CHAPTER, AND TO ESTABLISH A CUSTOMER COMPLAINT PROCESS; TO ESTABLISH REQUIREMENTS FOR ELECTRIC DISTRIBUTION COMPANIES AND ELECTRICAL UTILITIES; TO PERMIT THE PUBLIC SERVICE COMMISSION TO APPROVE NONBYPASSABLE CHARGES TO RECOVER STRANDED COSTS AND PUBLIC POLICY PROGRAM EXPENSES, AND TO ENSURE FUNDING FOR AND SUPPLIER PARTICIPATION IN CERTAIN PROGRAMS.

 

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

 

SECTION 1.  This act may be cited as the "South Carolina Electric Retail Choice Act."

 

SECTION 2.  The General Assembly finds that:

    (1)   Retail electric competition can provide consumers with lower costs, innovative products, and renewable energy options.

    (2)   Opening the electricity market for residential and small commercial customers must be executed in a manner to preserve reliability, universal service, and consumer protections.

 

SECTION 3.  Title 58 of the S.C. Code is amended by adding:

 

CHAPTER 46

 

Electric Retail Choice

 

    Section 58-46-10.  For purposes of this chapter:

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

    (2) "Electric distribution company" means an investor-owned electrical utility providing wires service within South Carolina.

    (3) "Eligible customer" means any residential or small commercial customer as defined by commission rule.

    (4) "Retail choice" means the ability of an eligible customer to purchase electric generation service from a supplier other than the incumbent electrical utility.

    (5) "Supplier" means a person or entity licensed by the commission to provide competitive electric generation service.

 

    Section 58-46-20.  Beginning on January 1, 2028, all residential and small commercial customers shall have the right to choose their electric generation supplier. Incumbent electrical utilities shall continue to provide regulated distribution service and default generation service for customers who do not select a supplier.

 

    Section 58-46-30.  (A) No person shall provide competitive electric generation service without a license granted by the commission.

    (B) The commission shall adopt rules for licensing, financial security, consumer protection, and disclosure requirements for suppliers.

 

    Section 58-46-40.  (A) Suppliers shall provide clear and accurate information regarding its rates, terms, and environmental attributes.

    (B) Any customer shall have the right to rescind a retail choice contract within seven business days of enrollment without penalty.

    (C) The commission shall establish a customer complaint resolution process and shall enforce marketing standards for suppliers.

 

    Section 58-46-50.  (A) Electric distribution companies shall provide nondiscriminatory access to their wires for all suppliers.

    (B) Electrical utilities shall offer consolidated billing and maintain reliability and safety of the distribution system.

    (C) The commission may approve nonbypassable charges to recover stranded costs and public policy program expenses.

 

    Section 58-46-60.  The commission shall ensure continued funding for low-income assistance and energy efficiency programs and suppliers shall participate in such programs as directed by the commission.

 

    Section 58-46-70.  The commission shall promulgate regulations in accordance with the terms of this chapter.

 

SECTION 4.  Within eighteen months from the effective date of this act, the commission must promulgate its initial regulations to implement the provisions of this act. These regulations must include:

    (1) supplier licensing standards;

    (2) consumer protection rules;

    (3) tariff and billing protocols; and

    (4) stranded costs recovery mechanisms.

 

SECTION 5.  This act takes effect upon approval by the Governor.

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