Lower electricity rate for new or expanding industries announced by electric cooperatives and Santee Cooper
February 1, 2012
COLUMBIA, SC – FEBRUARY 1, 2012 – Utilities whose systems make up thelargest electric power system in South Carolina today announced a new,lower electric rate designed to attract jobs and industrial expansion tothe state.
Twenty independent, member-owned electric cooperatives and state-ownedelectric and water utility Santee Cooper together provide power in all46 counties in the state.
The economic development rate is for new or expanding industries andcould result in savings of as much as 20 percent on electricity costs toan industry, depending on the size and characteristics of the electricload. For example, a plant operating on three work shifts (24 hours)would benefit more than a plant operating only one shift.
“Even in the face of increasing power-production fuel prices for coaland natural gas, we must look for ways to grow the state’s economy,”said Ron Calcaterra, CEO of Central Electric Power Cooperative,electricity supplier to the electric cooperatives.
An emphasis on industrial growth by the cooperatives and Santee Cooperis particularly important because they provide power to much of theareas where expansion is likely to take place — rural and suburbanareas.
“One of our goals is to promote economic growth in South Carolina byattracting capital investment and business expansion,” said LonnieCarter, president and CEO of Santee Cooper. “By partnering with Centraland the electric cooperatives in the development of this new rate, we’veproduced another key incentive for recruiters to bring additional jobsto our state.”
Santee Cooper sells more electricity to Central than to any othercustomer, and Central purchases much of its power needs from SanteeCooper. Together, they serve more consumers than any other electricutility in the state. The new economic development rate is available toany industrial customer that is served by the co-ops or Santee Cooper.
Central and Santee Cooper also promote growth through their jointlyfunded South Carolina Power Team, the only statewide non-governmentaleconomic development organization.
“The rural areas of South Carolina are becoming increasingly attractiveto new industry,” said Ralph Thomas, president of the S.C. Power Team.“Economic development incentive rates will be a tremendous asset inbringing new businesses and jobs to those areas.”
The new economic development rate reduces the demand charge over thefirst four years after a qualifying industry begins operation.Typically, the demand charge could represent as much as 40 percent of anindustry’s total power bill. The rate offers a discount off of the“firm” industrial rate, has an eight-year commitment, workforce andcapital investment requirements, and a four-year discount period.
The new rate will be offered to the 20 electric cooperatives in theCentral Electric system effective February 1. The final rate for thecooperatives may not be completed for several weeks, but any currentprojects considering a cooperative-served site will have access to thenew rate. The rate is available until Dec. 31, 2014.
While industrial rates are typically private contractual information,the boards of Central and Santee Cooper have approved the moreaggressive pricing approach.
“Governor Nikki Haley has emphasized employment growth, new jobs, asbeing key to a healthy state economy,” said Mike Couick, CEO of thestate association of electric cooperatives. “And I’ve told thegovernor’s staff that there’s nothing that would help the 1.5 millionSouth Carolinians we serve more than an improved economy. So, we’repleased to be working toward the same goal. We’re glad to do our part.”
About The Electric Cooperatives of South Carolina
The Electric Cooperatives of South Carolina, Inc. is the stateassociation of independent, member-owned electric cooperatives. Morethan 1.5 million South Carolinians in all 46 counties use power providedby electric cooperatives. Together, the co-ops operate the state’slargest electric power system with more than 70,000 miles of power linesacross 70 percent of the state. More information is available at www.ecsc.org.
About Central Electric Power Cooperative
Central Electric Power Cooperative provides wholesale electricservice to 20 electric distribution cooperatives in South Carolina. Itstransmission system was designed to serve the coordinated and integratedCentral-Santee Cooper system. Central purchases most of its power fromSantee Cooper, though significant future power purchases will come fromDuke Energy through an agreement that begins to phase in next year. www.cepci.org.
About Santee Cooper
Santee Cooper is South Carolina’s state-owned electric and waterutility, and the state’s largest power producer. The ultimate source ofelectricity for 2 million South Carolinians, Santee Cooper is dedicatedto being the state’s leading resource for improving the quality of lifefor the people of South Carolina. For more information, visit www.santeecooper.com.
About The South Carolina Power Team
The South Carolina Power Team represents the electriccooperatives and Santee Cooper in their industry recruitment efforts forSouth Carolina. The South Carolina Power Team provides professional,cost-free site location counseling to help new industrial anddistribution facilities find a home and existing ones expand. Furtherinformation is available at www.SCpowerteam.com.
