The R Street Institute announced on March 10 that it supports South Carolina’s S. 867 bill and its amendment, which would allow large commercial and industrial electric customers to access retail choice. The testimony was delivered by Josiah Neeley, senior fellow in energy at the R Street Institute, before the Senate Agriculture and Natural Resources Subcommittee.
The proposal is significant as it aims to give large businesses more options in choosing their electricity providers, potentially leading to lower costs and increased efficiency in the state’s power market. Neeley said that changes like these are important as electricity demand is projected to rise substantially in the coming decade.
Neeley explained that while South Carolina currently operates under a vertically integrated monopoly utility model—where consumers have only one option for electric service—other states have adopted systems allowing some or all customers to choose their power providers. He pointed out that states such as Virginia permit larger commercial and industrial customers to procure electricity from the open market while maintaining the traditional model for residential users.
“Allowing large, sophisticated commercial and industrial customers to access cheaper power through the market helps to reduce cost, which is good for business,” Neeley said. He added that this approach enables these customers to adjust their usage based on broader market dynamics, shifting demand away from peak periods when prices are high. According to Neeley, this not only reduces stress on generation and transmission resources but also improves overall power market efficiency—a benefit that can extend even to those without direct access to retail choice.
Neeley concluded his testimony by expressing support for the legislation and offering to answer any questions from committee members.
