Columbia, January 6, 2026
Dominion Energy South Carolina has proposed a 12.7% rate increase for residential electricity users, set to take effect in July 2026, pending approval. The hike aims to generate an additional $322 million in revenue and address infrastructure repair costs, new investments, and rising operational expenses. Public hearings are scheduled for March to gather customer feedback as the Public Service Commission reviews the proposal, which encompasses more than 820,000 customers across the state.
Columbia
Dominion Energy South Carolina has initiated a request to increase electricity rates for its customers, proposing a 12.7% hike for residential users. If approved, these new rates would come into effect in July 2026. This adjustment is projected to add approximately $20 to the average monthly power bill for residential customers using 1,000 kilowatt-hours (kWh) of electricity. The utility’s application, filed electronically on January 2, 2026, seeks an overall average increase of 11.47% across all South Carolina customer classes.
Details of the Proposed Rate Increase
The proposed rate increase aims to generate an additional $322 million in revenue for Dominion Energy South Carolina. This significant adjustment is attributed to several factors, including the costs associated with repairing infrastructure damage from Hurricane Helene. Furthermore, the company cites substantial investments totaling $1.4 billion in new generation and transmission facilities, which include the development of three natural gas peaker plants and essential transmission upgrades. These investments are deemed necessary to meet growing customer demand and comply with federal regulatory requirements.
Beyond infrastructure and storm recovery, Dominion Energy South Carolina also points to rising operational costs driven by increasing property taxes and general inflation. To help attract the capital needed for future projects, the utility is also seeking to increase its allowed rate of return from 9.94% to 10.5%. The cost of essential materials such as copper, steel, and aluminum, crucial for maintaining and expanding the power grid, has also risen. The company has additionally absorbed the cost of connecting approximately 23,000 new customers since its last rate adjustment.
Impact on Different Customer Segments
While residential customers face a proposed 12.7% increase, other customer categories would also experience adjustments if the request is approved. Commercial rates are slated to rise by 5.91%, and industrial rates could see an increase exceeding 14.86%.
For a typical residential customer consuming 1,000 kWh per month, the average bill, which was $157 in July 2025, would increase to approximately $177 starting in July 2026. Prior to this, in May 2024, the average residential bill stood at $132.
It is important to note that this specific rate hike request does not include funding for a proposed 2,200-megawatt, $5 billion natural gas plant planned for Colleton County. Dominion Energy South Carolina is set to co-fund this project with the state-owned utility Santee Cooper through separate financial arrangements.
The Approval Process and Public Participation
The proposed rate changes are currently under review by the Public Service Commission (PSC) of South Carolina. The regulatory process includes several opportunities for public input and scrutiny. An evidentiary hearing is scheduled to take place in May 2026, where the details of Dominion Energy South Carolina’s request will be thoroughly examined.
In preparation for these decisions, Dominion Energy South Carolina has requested to host four public hearings in March, located in Columbia, Aiken, Bluffton, and North Charleston. These hearings provide a crucial avenue for customers to voice their concerns and perspectives directly to the commission. Residents unable to attend these sessions can also submit a formal letter of protest to the PSC.
If the Public Service Commission grants its approval following the review process and hearings, the new rates are scheduled to be implemented in July 2026.
Broader Context of Energy Costs in South Carolina
This latest proposal from Dominion Energy South Carolina comes at a time when electricity consumers across the state are already experiencing rising power bills. It has been approximately 16 months since Dominion Energy South Carolina customers last saw an adjustment to their rates.
The trend of increasing electricity costs is not exclusive to South Carolina but reflects a broader national pattern. Across the United States, utility rate increase requests and approvals collectively reached over $34 billion in the first nine months of 2025. This figure represents almost double the amount requested and approved during the same period in 2024. The national average price of electricity also saw an increase that outpaced inflation in 2025, a trend that government forecasters anticipate will continue throughout the current year.
Previous rate hike requests in South Carolina demonstrate a history of utility rate adjustments. For instance, a 2024 application for a 14.21% increase was eventually scaled back to about a 5% increase through a settlement agreement, resulting in an approximate $10 monthly increase for typical residential customers.
Frequently Asked Questions (FAQ)
- What is Dominion Energy South Carolina proposing?
- Dominion Energy South Carolina is proposing to increase electricity rates by 12.7% for residential customers, with an overall average increase of 11.47% for all South Carolina customers.
- When would the proposed rate hike take effect?
- If approved, the new rates would come into effect in July 2026.
- How much more would residential customers pay?
- The average residential bill for customers using 1,000 kilowatt-hours (kWh) per month would increase by approximately $20, from about $157 to $177 per month.
- What are the main reasons for the proposed increase?
- The reasons include offsetting costs for repairs from Hurricane Helene, funding $1.4 billion in new generation and transmission investments, meeting federal regulatory requirements, rising property taxes and inflation, and increasing the allowed rate of return to attract investors.
- How can customers voice their opinions on the rate hike?
- Customers can attend public hearings scheduled for March in Columbia, Aiken, Bluffton, and North Charleston, or they can submit a formal letter of protest to the Public Service Commission (PSC) of South Carolina.
- Which areas in South Carolina are affected?
- The rate hike would impact over 820,000 customers in the Midlands and Lowcountry of South Carolina, including cities like Columbia, Aiken, and Charleston.
- Does this rate hike include funding for the proposed natural gas plant?
- No, this specific rate hike request does not include money for the proposed 2,200-megawatt, $5 billion natural gas plant in Colleton County.
Key Features of the Proposed Dominion Energy South Carolina Rate Hike
| Feature | Details | Scope |
|---|---|---|
| Overall Average Rate Increase Requested | 11.47% | State-level |
| Residential Rate Increase Requested | 12.7% | State-level |
| Proposed Effective Date | July 2026 | State-level |
| Average Monthly Residential Bill Increase | Approximately $20 (for 1,000 kWh/month) | State-level |
| Current Average Monthly Residential Bill (July 2025) | $157 (for 1,000 kWh/month) | State-level |
| Total Revenue Increase Requested | $322 million | State-level |
| New Investments Cited | $1.4 billion (including three natural gas peaker plants and transmission upgrades) | State-level |
| Change in Allowed Rate of Return Requested | From 9.94% to 10.5% | State-level |
| Number of Customers Affected | Over 820,000 | State-level |
| Regulatory Body | Public Service Commission (PSC) of South Carolina | State-level |
Deeper Dive: News & Info About This Topic
HERE Resources
Dominion Energy Proposes 12.7% Rate Hike for South Carolina Residents
South Carolina Family Mourns Loss of Son from Brain-Eating Amoeba
Severe Thunderstorms Cause Damage in Augusta, CA
Severe Thunderstorm Hits Coastal Jasper and Beaufort County
Winter Storm Hits the Lowcountry: Essential Updates
Renewed Interest in South Carolina’s Nuclear Power Reactors
Author: STAFF HERE HILTON HEAD
The HILTON HEAD STAFF WRITER represents the experienced team at HEREHiltonHead.com, your go-to source for actionable local news and information in Hilton Head Island, Beaufort County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the RBC Heritage golf tournament, Hilton Head Island Wine & Food Festival, and the Gullah Celebration. Our coverage extends to key organizations like the Hilton Head Island-Bluffton Chamber of Commerce and Community Foundation of the Lowcountry, plus leading businesses in tourism and hospitality that power the local economy such as Sea Pines Resort and Sonesta Resort Hilton Head Island. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
