What's Happening?
An executive order issued by President Trump could potentially undermine state-level consumer protection measures related to artificial intelligence and the infrastructure for AI data centers. This includes
large load tariffs, which are designed to ensure that tech companies contribute financially to the growing electricity demand. The Sierra Club, a prominent environmental organization, has expressed concerns about the impact of this order on utility customers. The organization has been involved in settlements with Duke Energy Progress and Duke Energy Carolinas, which required the Public Service Commission (PSC) to consider large load tariffs that could protect consumers. Meanwhile, South Carolina utilities are facing increased costs, with Dominion and Santee Cooper proposing a $5 billion gas plant, double the original estimate, due to supply chain issues and increased plant size. This plant is expected to serve new data centers, and the utilities are seeking an expedited approval process from the PSC.
Why It's Important?
The executive order and the proposed utility changes could significantly impact energy affordability in South Carolina. If consumer protections are weakened, residents and traditional businesses may face higher utility bills. The proposed gas plant, intended to support data centers, highlights the growing energy demand driven by technological infrastructure. The Sierra Club argues that the PSC has a responsibility to protect consumers from excessive rate increases, especially as utility bills rise due to reliance on expensive coal plants. The outcome of these developments could set a precedent for how states balance technological growth with consumer protection and energy affordability.
What's Next?
The Public Service Commission is expected to make a decision on the proposed gas plant by June 2026. This decision will be crucial in determining the future of energy costs and consumer protections in South Carolina. Stakeholders, including environmental groups and utility companies, will likely continue to advocate for their interests. The Sierra Club has called for the retirement of outdated coal plants if the gas plant is approved, emphasizing the need for a transition to more sustainable energy sources.
