South Carolina Senate Bill S0093

South Carolina 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25

Caption

Natural Gas Rate Stabilization Act

Impact

The proposed amendments are intended to enhance regulatory oversight of natural gas rates, which have been a point of contention since the RSA's introduction in 2005. By mandating a reevaluation every five years, the bill aims to strike a balance between utility stability in rate-setting and the need for regulatory transparency and consumer protection. This move is expected to provide consumers with more predictable rates and ensure that utilities remain responsive to the economic realities and operational costs within a defined period.

Summary

S0093 proposes amendments to the South Carolina Code of Laws, specifically targeting the Natural Gas Rate Stabilization Act (RSA). The bill aims to reform the rate-setting mechanisms for natural gas utilities by establishing a five-year term for public utilities' elections to come under the Act. Notably, it removes the previous provision that allowed these elections to automatically remain in effect until the next general rate proceeding. This change introduces a regulated timeframe for public utilities to submit rate adjustments, ensuring periodic oversight.

Contention

Some stakeholders may argue that the amendments could impose additional administrative burdens on public utilities, hindering their operational flexibility. However, supporters assert that regular reviews by the Public Service Commission will ultimately benefit consumers by preventing unjustified rate hikes and ensuring that rate designs remain fair and equitable. The bill indirectly addresses concerns about the lack of oversight in past practices, where once a return on equity or rate design was set, adjustments were seldom reviewed.