South Carolina H. 5439 Would Bring Electricity Choice to Homes

by our Energy Team 6 min read ElectricChoice.com Editorial
South Carolina state flag flying over Charleston harbor

On March 26, 2026, South Carolina Representative Brewer introduced H. 5439 — the South Carolina Electric Retail Choice Act — a bill that would fundamentally change how South Carolinians buy electricity. Unlike recent deregulation measures in other states that target only large industrial users, this bill opens the door to residential and small commercial customers.

Here's what the bill proposes, where it stands, and what it would mean for South Carolina electricity consumers.

Residential includedHomes and small businesses eligible
Jan. 1, 2028 startProposed effective date for choice
7-day rescissionCancel any contract penalty-free

What H. 5439 Proposes

The bill would add a new Chapter 46 to Title 58 of the South Carolina Code, creating a complete retail choice framework from scratch. South Carolina has never had retail electricity competition — this would be the state's first.

Full retail choice for residential and small commercial customers Starting January 1, 2028, all eligible customers could choose their electric generation supplier. The incumbent utility remains the default for anyone who doesn't actively switch.
Supplier licensing and consumer protections No entity can sell competitive generation without a license from the SC Public Service Commission. Suppliers must disclose rates, terms, and environmental attributes clearly. Customers get 7 business days to cancel any contract without penalty.
Utilities keep the wires — and a safety net role Investor-owned utilities continue to own and maintain the distribution grid, provide consolidated billing, and serve as the default supplier for customers who don't choose a competitive option.

Key Provisions of the Bill

Summary of key provisions in South Carolina H. 5439
Provision Details
Eligible customersResidential and small commercial (as defined by PSC rule)
Start dateJanuary 1, 2028
Supplier licensingRequired — PSC sets financial security and disclosure standards
Contract rescission7 business days, no penalty
Distribution accessNondiscriminatory wires access for all licensed suppliers
Stranded cost recoveryPSC may approve nonbypassable charges
Low-income programsContinued funding required; supplier participation mandated
Regulatory timelinePSC must finalize rules within 18 months of enactment

Why This Bill Is Unusual

Most electricity deregulation activity in the 2020s has been incremental — expanding existing competitive markets to slightly larger customer classes, or removing outdated caps (like Virginia's recent HB 921). South Carolina H. 5439 is different in two important ways:

It starts with residential

States like Texas, Pennsylvania, and Ohio phased in competition over years, typically starting with the largest industrial customers and eventually expanding to smaller users. South Carolina's bill skips the phased approach entirely and launches with residential and small commercial from day one.

It's building from zero

South Carolina has never had any form of retail electricity competition. There's no existing competitive infrastructure, no registered retail suppliers, and no established switching processes. The bill gives the Public Service Commission 18 months to build the entire regulatory framework from scratch — licensing standards, billing protocols, consumer protection rules, and stranded cost mechanisms.

What Would Change for SC Consumers

If enacted, South Carolina residents would join customers in Texas, Pennsylvania, Ohio, Illinois, Connecticut, New York, and other deregulated states who can shop for electricity supply. Here's what that looks like in practice:

  • Choose your supplier. Pick from licensed competitive providers offering different rates, contract lengths, and energy sources (including 100% renewable options).
  • Keep your utility for delivery. Duke Energy, Dominion Energy, or your local utility still delivers the electricity to your home and responds to outages. Only the generation/supply portion changes.
  • One bill or two. The bill requires utilities to offer consolidated billing, so you'd likely still receive a single bill — but your supply charges would come from your chosen provider.
  • 7-day cooling-off period. If you sign up and change your mind, you have 7 business days to cancel without any penalty or early termination fee.
  • Low-income protections continue. Energy assistance and efficiency programs remain funded. Suppliers must participate in these programs as directed by the PSC.

Current Status

As of June 2026, H. 5439 is in the early stages of the legislative process:

  1. March 26, 2026 — Introduced by Rep. Brewer; read first time in the House.
  2. March 26, 2026 — Referred to the House Committee on Labor, Commerce and Industry.
  3. Currently — Residing in committee. No hearing date has been publicly scheduled.

It's important to note that this bill has not been passed. It is a proposal that must clear committee, pass both the House and Senate, and be signed by the Governor before it becomes law. South Carolina's traditional utility structure and the political dynamics around stranded costs and utility revenue make passage far from certain.

Challenges and Open Questions

  • Stranded cost recovery. Utilities have invested billions in generation infrastructure under the regulated model. The bill allows the PSC to approve nonbypassable charges to recover these costs — but the size and duration of those charges will heavily influence whether competitive rates are actually lower for consumers.
  • Supplier readiness. With no existing competitive market, licensed retail suppliers would need to enter the state, build customer acquisition operations, and integrate with utility billing systems — all within 18 months of enactment.
  • Consumer education. States that have deregulated have learned that customer confusion is a major early challenge. Effective consumer education programs would be critical to prevent predatory marketing practices.
  • Co-op and municipal utility exclusion. The bill applies to "investor-owned electrical utilities," which means customers served by electric cooperatives or municipal utilities (a significant portion of rural SC) would not gain choice under this bill.

How This Compares to Other States

Comparison of South Carolina H. 5439 to other state deregulation frameworks
Feature SC H. 5439 (Proposed) Texas Pennsylvania
Residential choiceYesYesYes
Implementation timeline~18 monthsPhased (1999–2002)Phased (1997–2000)
Default serviceUtility providesProvider of last resortUtility default service
Rescission period7 business days3 federal business days3 business days
Starting from scratchYesNo (wholesale existed)No (partial existed)

What to Watch For

  1. Committee hearings. Whether the Labor, Commerce and Industry Committee schedules hearings will signal how seriously leadership is considering the bill.
  2. Utility response. Expect Duke Energy and Dominion Energy to weigh in on stranded cost provisions and the overall timeline.
  3. Consumer advocacy. Groups like AARP, the SC Office of Regulatory Staff, and low-income advocates will have strong opinions on consumer protections and rate impacts.
  4. 2027 session. If the bill doesn't advance this session, it could be re-introduced in 2027 with modifications based on stakeholder feedback.

Related Articles

Sources

  • South Carolina Legislature — H. 5439 (2025–2026 Session) — scstatehouse.gov
  • South Carolina Public Service Commission — psc.sc.gov
  • U.S. Energy Information Administration — South Carolina Electricity Profile — eia.gov