Santee Cooper’s board has approved higher electric rates: residential base rates rise 4.7% in 2027, about $6.60 a month for a typical home, according to the utility. The new rates apply to bills rendered on or after Feb. 1, 2027. A second step is scheduled for 2028, and the way the monthly demand charge is calculated is changing too.
The vote, on Oct. 30, 2026, sets rates for Santee Cooper’s retail customer classes. For the rest of the state’s rate picture and how other South Carolina utilities credit solar, see our South Carolina electricity rates and solar guide.
What Santee Cooper Approved
Santee Cooper is South Carolina’s state-owned utility. Its board sets its retail rates; the state Office of Regulatory Staff (ORS) reviews proposals before the board votes. This is an approved increase, not a request.
| Customer class | 2027 base rate change | 2028 base rate change |
|---|---|---|
| Residential | +4.7% | +4.6% (Santee Cooper calls this the “proposed” 2028 adjustment) |
| Commercial | +2.9% | +2.9% |
| Lighting | +3.2% | +3.0% |
| Industrial | +2.6% | +2.1% |
| All retail classes, average | +3.3% | +3.1% |
Source: Santee Cooper rate study page, checked Nov. 1, 2026.
Effective dates. Santee Cooper says the rates “will take effect for bills rendered on or after Feb. 1, 2027, and Feb. 1, 2028.” Depending on your billing cycle, the first bill at the new rates may include some January usage.
Typical bill impact. Santee Cooper says “the typical residential customer would see an average monthly bill increase of about $6.60, or approximately 20 cents a day, in 2027, with a similar impact expected in 2028.” It does not say what monthly usage that typical customer has.
How 2028 is described. Santee Cooper’s pages say another overall 3.1% increase “will take effect in 2028,” and list Feb. 1, 2028 as an effective date. The residential page still calls the 4.6% residential figure for 2028 “proposed.” Santee Cooper’s news headline says the board approved new rates for 2027 and 2028, but we report the residential 2028 figure as scheduled, not final, until Santee Cooper’s published 2028 rate schedule confirms it.
Santee Cooper’s May proposal had the same 4.7% and 4.6% residential figures. It says rates are rising because of higher operating costs and needed investment in generation and transmission. In its May presentation to the board, management said its projections showed that “current rates will not recover costs to serve customers beginning in 2027.”
The Demand Charge Is Changing
Santee Cooper’s standard residential rate has three main parts: a monthly customer charge, an energy charge per kWh, and a demand charge per kW. The demand charge is based on how much power you draw at once during peak hours. Our explainer on residential demand charges covers how these charges work in general.
What’s changing. Today demand is billed on a single highest-hour charge each month. Under the new Balanced Demand Billing, it will be “the average of a customer’s maximum hourly use during the four highest peak periods each month.” Santee Cooper says this is meant “to reduce the impact of isolated spikes in electricity usage on customer bills.” It also says federal holidays will be excluded from peak-period calculations.
Peak windows. In management’s May presentation, residential demand is measured from 6 to 9 a.m. from November through March, and from 3 to 6 p.m. from April through October.
Worked example. Santee Cooper’s rate study fact sheet uses four monthly peaks of 6.5, 5.8, 5.2 and 4.6 kW.
- Single-highest-hour method: the bill uses 6.5 kW.
- Balanced Demand Billing: (6.5 + 5.8 + 5.2 + 4.6) ÷ 4 = 5.525 kW, which Santee Cooper rounds to 5.5 kW.
- At today’s demand charge of $8.00 per kW, that is $52.00 under the old method versus $44.00 under the new one (5.5 kW), a difference of $8.00 for that month. This uses the current rate only to show the effect of averaging; the 2027 demand charge is higher.
A home with one short spike gains the most from averaging. A home that hits a similar peak every day gains little.
Per-unit charges in the May proposal
| Standard residential (RG) | Before Feb. 2027 | 2027, as proposed in May | 2028, as proposed in May |
|---|---|---|---|
| Customer charge | $20.00 a month | $21.00 a month | $22.00 a month |
| Energy charge | 7.92¢ per kWh | 8.99¢ per kWh | 9.25¢ per kWh |
| Demand charge | $8.00 per kW | $8.75 per kW | $9.50 per kW |
Source: Santee Cooper management’s rate recommendation to the board, May 1, 2026. ORS’s July 30, 2026 review lists the same demand charges.
Santee Cooper revised its rate schedules after public comment, and we could not open the revised 2027 schedule. The residential increases (4.7% and 4.6%) did not change from the May proposal, but individual charges may have. Treat this table as the proposal, not the final tariff.
What It Means for Your Bill
Your increase depends on how much you use and how “peaky” your use is. ORS modeled the standard residential rate at 750, 1,000 and 2,000 kWh a month and at different load factors (how evenly a home uses power through the month). It estimated 2027 changes from about 2.4% to 6.1%, with larger increases for homes whose use is spread more evenly. ORS assumed Balanced Demand Billing would cut billed demand by 20%, and it said its examples are illustrative, not a forecast.
Practical steps:
- Find your demand line. Your bill shows your billed kW. Multiply it by the demand charge to see how much of your bill it drives.
- Shift big loads out of the peak windows. Winter mornings (6 to 9 a.m.) are when electric heat, water heaters and showers stack up. In summer, the window is 3 to 6 p.m.
- Use Santee Cooper’s rate calculator. Its residential rate study page links a calculator that estimates the change from your past use.
- Consider time-of-use. Santee Cooper offers a residential time-of-use rate as an alternative for customers who find Balanced Demand Billing doesn’t work for them.
If your bill comes from an electric cooperative rather than Santee Cooper, this rate schedule is not your rate. Check with your co-op.
What It Means for Solar and Batteries
Higher per-kWh energy charges make every kWh of solar you use at home worth a little more. But on a demand rate, panels alone don’t control the demand charge. The winter peak window runs from 6 to 9 a.m., when rooftop panels produce little. The summer window, 3 to 6 p.m., catches only the late-afternoon part of solar output.
A battery set to cover those windows can lower billed kW. Averaging four peaks also means one cloudy day that pushes up your use matters less than it did. Our guides to time-of-use rates and solar and sizing a home battery show how to run the numbers.
ORS’s review notes that Santee Cooper also proposed revisions to its Distributed Generation Rider, which covers customer-owned generation such as rooftop solar. We did not find the final rider terms. Get them in writing from Santee Cooper before you sign a solar contract.
Sources and verification
| Important claim | Source | Status |
|---|---|---|
| Board approved rates Oct. 30, 2026; 4.7% residential 2027; $6.60 a month (about 20 cents a day); 2028 residential 4.6% described as “proposed” | Santee Cooper, residential rate changes | Verified |
| Class increases for 2027 and 2028; bills rendered on or after Feb. 1, 2027 and Feb. 1, 2028; Balanced Demand Billing; federal holidays excluded | Santee Cooper, 2026 rate study (also: state-owned public power utility) | Verified |
| May proposal: 4.7% and 4.6% residential; Feb. 1 effective dates; reasons for the increase | Santee Cooper release, May 2026 | Verified |
| Proposed RG charges; peak windows; “current rates will not recover costs” | Santee Cooper management presentation, May 1, 2026 | Qualified (proposal; final schedule not opened) |
| ORS review; board approves retail rates; modeled 2.4% to 6.1% range; 20% billed-demand assumption; Distributed Generation Rider revisions | ORS letter and comments, July 30, 2026 | Verified |
| Four-peak example (6.5, 5.8, 5.2, 4.6 kW averages to 5.5 kW); time-of-use alternative | Santee Cooper rate study fact sheet | Verified |
| Board approval reported Oct. 30, 2026 | WPDE, Oct. 30, 2026 | Verified (news, used for context) |
| Demand-charge dollar comparison | Our arithmetic at the current $8.00 per kW | Qualified (illustration) |
Frequently asked questions
How much is the Santee Cooper rate increase for 2027?
Residential base rates rise 4.7%. Santee Cooper says the typical residential customer will see about $6.60 more a month, roughly 20 cents a day, starting with bills rendered on or after Feb. 1, 2027. Your change depends on how much and when you use power.
When do the new Santee Cooper rates start?
On bills rendered on or after Feb. 1, 2027. Santee Cooper notes that, depending on your billing cycle, the first bill may include some January usage. A second step applies to bills from Feb. 1, 2028.
What is Santee Cooper's Balanced Demand Billing?
Instead of billing demand on your single highest hour of use in the month, Santee Cooper will average your highest hourly use across the four highest peak periods in the month. One spike, such as running the oven, dryer and heat at once, counts for less.
Does the Santee Cooper rate increase need state approval?
Santee Cooper is state-owned, and its board approves its retail rates. Before the vote, South Carolina's Office of Regulatory Staff reviewed the proposal and filed comments in July 2026.
Is solar or a battery worth more after the Santee Cooper increase?
Higher per-kWh charges raise the value of each kWh of solar you use at home. The demand charge is set in morning and late-afternoon peak windows, so a battery that covers those hours may cut it more than panels alone. Check Santee Cooper's current solar rules before you size a system.
