SC utility regulators should protect ratepayers from skyrocketing energy bills 

I’m hearing from my constituents that it’s getting harder to make ends meet. And it’s no wonder, since South Carolina consumers are seeing inflation hit every element of our monthly budgets, from higher prices for food and homegoods, to cars and insurance, and more. Even as inflation stretches South Carolinians’ ability to cover rising costs, Dominion Energy’s recent request at the Public Service Commission - if approved - would make matters worse, raising already-high power bills nearly 20 percent from where they were last year.

Dominion points the finger at high fuel prices for the proposed 14 percent increase, which is on top of a 5 percent increase they imposed on ratepayers in April. We’ve all felt the sting of high gas prices at the pump, and now it’s going to affect us on our power bill.

Correction: it’s going to impact everyone BUT the power company.

The utility passes along all risk and all cost for fuel straight through to ratepayers, bearing none of the burden when markets fluctuate. They’ve got no skin in the game when it comes to fuel and, since natural gas infrastructure and facilities are so expensive, they have even less incentive to transition away from that form of energy generation. Simply put, they’re making piles of money on the return from their investment in natural gas.

In spite of the costs Dominion is passing along to folks already struggling to pay their bills, it doesn’t appear that the utility has plans to help or hedge this ongoing risk to ratepayers. They want to build out even more plants that run on expensive natural gas. If Dominion prioritized people over profits, the utility would pursue energy sources that would protect ratepayers - and focus on sources that don’t come with hefty fuel surcharges - like solar.

After its most recent rate case, Dominion touted its promise to develop an energy affordability program to help low-income customers, but the utility has not proposed any such program to help bring its customers much needed relief.

Fortunately, ratepayers have a line of defense when utilities request rate increases like this one: the Public Service Commission. Hopefully, commissioners will protect the public interest, issuing an order that requires Dominion to bear some responsibility for relying too heavily on natural gas, a fuel any analyst could have predicted would be subject to dramatic price swings.

The pattern Dominion is following is alarming. A utility that attempted to raise rates during the height of the pandemic, and is now on its second request of the year to collect fuel money from its ratepayers, is an investor-owned utility demonstrating its interest in shareholders, not ratepayers. South Carolinians deserve better, and the Public Service Commission has the power to strike that balance.

This story was originally published October 24, 2022 at 7:56 AM with the headline "SC utility regulators should protect ratepayers from skyrocketing energy bills ."