Santee Cooper filed a revised long-range energy plan with state regulators that proposes significant changes to the utility’s generation strategy. The plan acknowledges that increased electricity demand from major consumers, particularly data centers, is placing upward pressure on costs for the utility’s service area.
A major shift involves renewable energy timelines. In 2023, Santee Cooper had proposed building 1,500 megawatts of solar capacity by 2030 and 3,000 megawatts by 2040. Under the new preferred plan, these solar investments are delayed substantially, with significant additions not scheduled until 2052. Industry analysts have identified renewable energy as the most cost-competitive option for new electricity generation, making the delay a point of contention.
The utility has also adjusted its coal plant retirement schedule. Previously, Santee Cooper targeted closing its Winyah coal plant by 2030. The updated plan extends the potential retirement date to the end of 2034 and includes language suggesting further delays may occur. The company has tied the plant’s closure to construction of a new natural gas facility and to demand projections from large industrial customers.
The filing reflects broader industry trends documented by other utilities. Duke Energy noted in a filing with North Carolina regulators that coal operations present significant operational and economic challenges, while also creating reliability risks if utilities become overly dependent on aging coal units. Industry supply constraints, including a global shortage of gas turbines noted by analysts at Wood Mackenzie, are contributing to cost pressures across the sector.
The plan has drawn criticism from environmental advocates who contend it prioritizes serving large industrial users at the expense of residential and small business customers. South Carolina residents are also tracking costs associated with the Canadys natural gas power plant, currently under construction, which has experienced budget growth during its development.
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