Charleston SC, February 17, 2026
Santee Cooper, South Carolina’s public power utility, is increasing borrowing for major energy initiatives to meet rising power demands in Charleston and throughout the state. With a $3.2 billion budget for 2025, significant funds will be allocated to enhancing the electric system and incorporating sustainable practices. Key projects include the construction of new power generation and storage facilities. These efforts aim to foster economic growth, support local businesses, and ensure a reliable energy future in the Lowcountry.
Charleston, SC — As the Lowcountry continues its robust economic expansion, the vital role of reliable and forward-looking energy infrastructure becomes ever more apparent for Charleston SC business and the broader Charleston County economy. Santee Cooper, South Carolina’s state-owned public power utility, is significantly increasing its borrowing to fund major energy initiatives, a strategic move aimed at meeting the escalating power demands driven by population growth and industrial development across the state. These substantial investments underscore a commitment to modernizing the grid and ensuring a stable energy future, a foundation upon which South Carolina entrepreneurs and Charleston small business owners can build and thrive.
The utility’s proactive approach to infrastructure development is critical in an era of rapid growth. By planning for future energy needs and investing in diverse power sources and delivery systems, Santee Cooper seeks to provide the dependable service necessary for sustained economic prosperity. This endeavor highlights the complex balance between public utility operations, financial stewardship, and the imperative to foster an environment conducive to ongoing Lowcountry economic growth.
Strategic Investments for a Growing State
Santee Cooper’s financial planning for 2025 demonstrates a substantial commitment to capital improvements. The utility’s total budget for 2025 is set at $3.2 billion. A significant portion of this, $950 million, is allocated for capital expenditures, with $935.7 million specifically earmarked for electric system construction and capital equipment spending. These investments are crucial for bolstering the state’s energy backbone.
Within these capital plans, approximately $107 million is dedicated to environmental projects, reflecting an ongoing focus on sustainable operations. An even larger sum, $829 million, will be directed toward enhancements for the transmission and distribution systems and other system-wide improvements. Such investments are fundamental for maintaining reliability and accommodating the increasing load from new residential and commercial developments across South Carolina, including those impacting Charleston County economy.
Key Projects Driving Future Capacity
To address the growing energy demand, Santee Cooper has embarked on a series of ambitious projects designed to add over 5,000 megawatts (MW) of new electricity to South Carolina’s grid. Among these, a major initiative involves participation in the planned joint construction of a 2,200-MW natural gas combined cycle plant at Canadys, in collaboration with Dominion Energy South Carolina. This project is expected to provide reliable, baseload power and enhance the integration of solar power.
Further strengthening the state’s energy portfolio, Santee Cooper is also moving forward with the construction of two dual-fuel simple-cycle combustion turbines (CTs) at the existing Winyah Generating Station, adding another 100 MW of capacity. These turbines offer flexibility, capable of running on fuel oil or natural gas. Additionally, a 300-MW battery energy storage system (BESS) is planned for Berkeley County, representing a significant step in modernizing energy storage capabilities. An expansion already underway at the Rainey Generation Station is set to add 250 MW, contributing to the overall increase in power generation. These projects collectively aim to ensure the energy stability vital for fostering innovation among South Carolina entrepreneurs.
Financing the Future: Borrowing and Rate Adjustments
Funding these large-scale projects necessitates significant borrowing. Santee Cooper plans to finance a substantial portion of its capital plan through long-term debt, leveraging its advantage as a public power utility with access to tax-exempt financing. This mechanism allows the utility to issue low-cost, long-term bonds, spreading project costs over the lifespan of the assets, potentially 30 years or more. This strategy is designed to keep rates fair and sustainable by ensuring that current and future customers who benefit from these facilities contribute to their costs.
Accompanying these investments, Santee Cooper’s Board of Directors approved new base rates for retail customers, effective April 2025. This marks the first increase in base rates since 2017. The typical residential customer is projected to see an average increase of $11 in their monthly bill. These adjustments followed a public input process, demonstrating the utility’s commitment to transparency in its financial decisions. While borrowing and rate adjustments are necessary for growth, Santee Cooper also reported a debt of $7 billion in June 2024 and had received a $450 million taxpayer bailout less than two years prior. The utility’s leaders indicated in June 2024 that they would seek permission to borrow an additional $815 million. These financial dynamics are part of the ongoing discussion regarding public utility management and its impact on customers and the state’s economic landscape.
The Nuclear Question: A Path Forward?
A notable development in Santee Cooper’s long-term energy strategy involves the potential restart of two unfinished nuclear units at the V.C. Summer plant in Fairfield County, which could add 2,200 MW to the grid. In December 2025, Santee Cooper’s Board of Directors approved a Memorandum of Understanding (MOU) with Brookfield Asset Management for the potential sale of these partially built units.
This agreement includes a potential $2.7 billion cash payment to Santee Cooper if the parties reach a Final Investment Decision and commit to construction. The utility also targets a 25% ownership share, which would provide customers with access to the power generated by these reactors at no additional capital cost. This innovative approach could significantly reduce existing debt on customers’ power bills and addresses a long-standing financial challenge for the state. It also represents a strategic effort to harness a substantial, carbon-free energy source, potentially supporting further industrial attraction and job creation across South Carolina.
Economic Development and Community Impact
Beyond direct energy provision, Santee Cooper actively supports economic development throughout South Carolina. The utility offers various programs, including revolving loan programs, for local governments and nonprofit economic development organizations. These initiatives focus on increasing available industrial product across the state by funding land and building acquisition, infrastructure, and spec building development. By partnering with communities, Santee Cooper helps to create the necessary conditions for businesses to expand and for new ones to emerge, directly contributing to job creation and capital investment.
Such efforts are vital for communities like Charleston, where robust infrastructure and reliable power are prerequisites for sustained prosperity and the growth of Charleston small business ventures. The broad scope of Santee Cooper’s investments and economic development programs reflects a comprehensive strategy to power not just homes and industries, but also the overall economic vitality of South Carolina.
Conclusion
Santee Cooper’s substantial financial commitments and strategic energy projects signal a determined effort to fortify South Carolina’s energy future. While balancing the necessity of borrowing and rate adjustments, the utility is making significant investments in diverse power generation, transmission, and distribution, aiming to underpin the state’s remarkable economic expansion. From the promise of new gas-fired plants and battery storage to a potential resolution for the V.C. Summer nuclear units, these initiatives are designed to ensure dependable and affordable electricity for residents and businesses alike. As the Lowcountry continues to attract new residents and industries, these foundational energy investments are paramount to sustaining Lowcountry economic growth and providing a stable platform for Charleston SC business to flourish. We encourage our readers to stay informed and engaged in the ongoing discussions about Charleston’s and South Carolina’s economic future.
Key Features of Santee Cooper’s Energy Initiatives
| Feature | Description | Scope |
|---|---|---|
| 2025 Total Budget | $3.2 billion approved for utility operations. | State-level |
| 2025 Capital Expenditures | $950 million, with $935.7 million for electric system construction and equipment. | State-level |
| Environmental Projects (2025) | $107 million allocated for various environmental initiatives. | State-level |
| Transmission & Distribution (2025) | $829 million for system-wide improvements and infrastructure. | State-level |
| New Generation Capacity Goal | Adding over 5,000 MW of new electricity to the grid. | State-level |
| Canadys Natural Gas Plant | 2,200-MW combined cycle plant, joint construction with Dominion Energy. | State-level |
| Winyah Combustion Turbines (CTs) | Two dual-fuel simple-cycle CTs, adding 100 MW capacity. | State-level |
| Berkeley County Battery Storage (BESS) | 300-MW battery energy storage system. | State-level |
| Rainey Generating Station Expansion | 250-MW expansion currently underway. | State-level |
| Retail Base Rate Increase (April 2025) | First increase since 2017; average $11 monthly bill increase for typical residential customer. | State-level |
| V.C. Summer Nuclear Units Agreement | MOU with Brookfield Asset Management for potential sale/completion, targeting 25% ownership for Santee Cooper. | State-level |
| Potential Cash Payment from Nuclear Deal | $2.7 billion if Final Investment Decision and construction commitment are reached. | State-level |
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