South Carolina Co-ops Adopt Data Center Rate to Shield Residents From Grid Costs

All 19 electric cooperatives in South Carolina voted Wednesday to adopt a new rate structure for data centers and other large power users that consume 20 megawatts or more. The Central Electric Cooperative Board approved the measure to prevent residents from paying for infrastructure upgrades needed by major corporations.

The board voted unanimously. Members from all of the state's co-ops participated. They established a standard rate for major electricity users and data centers that are running or under construction. The policy sets minimum 15-year contracts with early-termination penalties, prepayment for electric infrastructure upgrades, and provisions for reducing use during energy shortages.

"Data centers can bring significant benefits to the power grid, creating efficiencies and paying for system costs that otherwise would have been borne by South Carolina co-op members," said Rob Hochstetler, CEO of Central, in a statement per WIS. "Our responsibility is to secure reliable electricity at the best price for the 2 million South Carolinians who rely on electric cooperatives for power."

The new requirements include financial security measures. Cash deposits are required. Monthly energy demand minimums ensure enough revenue covers required system costs. The policy aims to protect the 2 million residents who depend on electric cooperatives from carrying the burden of expensive grid expansions.

The cooperatives provide power to one data center that began operating in 2007. Three other facilities under construction have contracts that include the new rate and its protections.