A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 58-33-195, SO AS TO AUTHORIZE AND ENCOURAGE ELECTRICAL UTILITIES TO ESTABLISH AND IMPLEMENT TARGETED INVESTMENT PROGRAMS FOR THE RELIABILITY, RESILIENCY, AND MODERNIZATION OF DISTRIBUTION AND TRANSMISSION SYSTEMS.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Article 3, Chapter 33, Title 58 of the S.C. Code is amended by adding:

 

    Section 58-33-195. (A) In addition to filing certificates for utility infrastructure as provided in this chapter, electrical utilities may also seek approval of targeted investment programs for reliability, resiliency, and modernization of distribution and transmission systems to ensure a reliable, resilient grid serving customers in South Carolina.

    (B) An electrical utility is hereby authorized and encouraged to establish and implement a targeted investment program for the improvement, reliability, and resiliency of its distribution and transmission infrastructure. This program shall include investments in projects designed to improve service reliability, reduce outage risks, and enhance the resiliency of the electrical grid, particularly in response to severe weather events, natural disasters, or other potential disruptions. This program may also include projects aimed at integrating emerging technologies and modernizing the grid.

    (C) The electrical utility shall submit an initial investment plan to the commission. The commission shall review and issue a decision on the plan within one hundred thirty-five days of the utility's submission. The electrical utility shall propose material changes or updates to the program on a periodic schedule proposed by the electrical utility and subject to review and approval by the commission.

    (D) The electrical utility may defer in a regulatory asset to be included in its rate base, all costs incurred for the planning, development, and implementation of such program. Such costs that are deemed reasonable and prudent by the commission in rate proceedings shall be recoverable through applicable rates and charges. Such costs shall include, but are not limited to, capital costs, financing costs, operation and maintenance costs, and other expenses directly related to the execution of the targeted investment program.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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