Santee Cooper Approved Plan for New Power Capacity
The utility's shift to a natural-gas plant will affect long-term power reliability for South Carolina businesses.
Updated on Sept. 30, 2026 in Utilities
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The Santee Cooper board voted to submit a 2026 integrated resource plan that replaces the aging Winyah Generating Station with a new natural-gas facility. The proposal addresses a significant surge in peak power demand across the state's 2 million-resident service area.
Why it matters
Rising power demand, which hit 7,246 megawatts in recent projections, forces the utility to modernize an infrastructure that currently relies on a 51-year-old station. This shift marks a major capital expenditure strategy intended to stabilize energy reliability as the gap between capacity and demand widens.
Santee Cooper served 2 million residents with a current capacity of 5,163 to 5,388 megawatts, falling short of a projected 7,246-megawatt demand by 2040. The proposed $5 billion natural-gas plant in Colleton County aims to bridge this supply gap while targeting a 43 percent reduction in greenhouse-gas emissions compared to 2005 levels.
The players
Santee Cooper
A state-owned electric utility providing power to 2 million South Carolina residents and businesses.
S.C. Public Service Commission
A state regulatory body that oversees the rates and infrastructure plans of South Carolina utilities.
The details
The utility plans to decommission the 51-year-old coal-fired Winyah Generating Station, shifting generation to an 870-megawatt natural-gas plant. While awaiting regulatory approval, the system relies on interim upgrades to handle stress, underscored by 24 days this summer that required over 5,000 megawatts of delivery. The due-diligence phase for the new power plant is slated to begin next year, following the recent board approval of the 2026 resource plan.
Timeline
September 29, 2026: Board members voted to submit the 2026 integrated resource plan.
September 30, 2026: Deadline for submitting the resource plan to the S.C. Public Service Commission.
May 2027: Scheduled Public Service Commission hearing regarding the proposed plan.
Market Landscape
This development follows the utility's mandate to submit a 2026 integrated resource plan to the S.C. Public Service Commission. It reflects a broader industry trend of transitioning away from aging coal assets toward natural gas to manage rising peak demand.
Business operators should anticipate long-term rate adjustments as the utility initiates the $5 billion investment process for new capacity. Monitor the upcoming May 2027 commission hearings to gauge how these costs may be structured and passed through to commercial power users.
The takeaway
The transition from the 51-year-old Winyah station indicates a period of significant utility-led capital projects in South Carolina. Operators should review their facility's energy demand projections and track the Public Service Commission hearings for potential future rate impacts.
What happens next
The S.C. Public Service Commission is scheduled to hold a hearing on the submitted resource plan in May 2027.
Further reading
For more on how state energy policies affect local infrastructure, see Utilities.
Source note: This article includes information reported by Post and Courier.
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