BERKELEY COUNTY, S.C. – Due to rising costs, Santee Cooper is considering raising rates for the first time in nearly a decade but wants to first hear from its customers now through Oct. 8.
The power company is proposing to its Board of Directors an average 4.9% base rate increase that, if approved, would take effect in April 2025.
Inflation has increased approximately 25% since Santee Cooper said it last raised rates in 2017. Current rates won’t provide enough funds to meet its rising costs, the company said.
“Santee Cooper has low electric prices and highly reliable electric service, and that will not change because of these recommendations,” President and CEO Jimmy Staton previously said in a news release. “But we need to invest in our system to ensure we continue to power a reliable and sustainable future for all of our customers. We also need to make investments to meet new environmental regulations at generating stations. Unfortunately, inflation has increased 25% since we last raised rates, and new power lines and transformers cost a lot more today.”
According to Santee Cooper, the proposed increase is still far less than the 25% increase in inflation since it last increased its rates.
The recommended system adjustment of 4.9% breaks down to an average 8.7% increase for residential customers, but with new flexibility to control their individual bills; 4.1% for commercial customers; 5% for lighting customers; and 2.8% for industrial customers.
The proposed rates include a structural change that gives customers more flexibility in controlling their monthly bill. Currently, a typical residential customer is billed according to the total kilowatt-hours consumed each month (the energy charge) and the cost to serve the customer account (the customer charge). The proposed new rate structure would charge a residential customer about 40% less for total energy consumed and add a $10.03-per-kilowatt demand charge, applied to the highest electric demand recorded by the customer during Santee Cooper system peak hours each month (early mornings in winter and late afternoons in summer.)
“This new rate structure gives customers the ability to actually lower their bills, depending on current and future energy consumption habits,” Staton said. “If a family starts dinner at 5 p.m. every summer afternoon by turning on an oven that takes 5 kilowatts of electricity, they add $50 to their monthly demand charge. But if that family waits until 6 p.m. to turn the oven on every day, or uses a slow-cooker that takes much less electricity, they save that $50. If they adjust when they use the dishwasher or other high-demand appliances, they save even more.”
- Deadline Extended to Sept. 13, 2024: Deadline for submission of written comments. [SUBMIT HERE]
- Oct. 8, 2024: Deadline for oral comments at the Board of Directors meeting.
Customers have until Oct. 8 to review and comment on the proposed rates. Details about upcoming public comment meetings and how to submit written comments are at www.santeecooper.com/ratestudy, along with the rate study report, proposed rate schedules and other information explaining the changes and potential impacts for customers.
The board is scheduled to vote on new rates on Dec. 9.
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