Senate subcommittee backs Santee Cooper authority to jointly build Kennedy’s gas plant with Dominion

A Senate committee advanced a bill that would let Santee Cooper jointly own natural gas generation and associated transmission facilities with Dominion Energy South Carolina at the site of the former Kennedy coal plant.

The legislation, filed as S.B. 12 and discussed at the committee meeting as an amended measure, would add statutory authority—currently required by the state Constitution—for Santee Cooper to enter a joint-build with Dominion at the Kennedy’s site. Subcommittee members reported a favorable recommendation before the full committee took up an amendment to name Dominion specifically.

The amendment’s sponsor said the bill does not change state regulatory oversight; Santee Cooper would still need all certifications and approvals. Keller Kasam of Dominion Energy South Carolina told committee members the Kennedy site has been cleared of coal ash, capped with flowable backfill, and placed under a 430-acre conservation bank adjacent to Oxbow Lakes and the Edisto River. “All of the coal ash has been removed. It's been replaced with flowable backfill, and the site is clean,” Kasam said.

Kasam described work to secure natural gas supply for a proposed roughly 2,000-megawatt combined-cycle plant: a regional request for proposals (RFP) that sought about 295,000 dekatherms, precedent agreements with pipeline shippers including Kinder Morgan’s South system and Mississippi Crossing, and planned looping and compressor upgrades to move fuel to the Savannah River crossing. He said the project includes a 50,000-dekatherm set-aside for economic-development customers.

Jeff Fennel of Santee Cooper said the utility’s resource plans call for dispatchable natural gas to replace aging coal units and to meet peak load growth; Santee Cooper estimates about 250 megawatts of new peak demand on its retail system from residential and commercial growth. Fennel said the joint project could deliver cost savings and operational efficiencies compared with two separate builds.

Committee members pressed on oversight and safeguards in light of past large projects. Senator Blackman and others asked about third‑party engineering reviews and rotating reviewers to avoid “groupthink.” Sponsors pointed to existing checks: projects must still obtain Joint Bond Review Committee approval for property transactions and financing and must come through routine permitting and certification processes.

Subcommittee members and witnesses repeatedly emphasized that the bill is project-specific and not a blanket change to oversight. The committee agreed to take up the amendment naming Dominion and recorded a voice vote in favor; no formal roll-call vote or opposition was entered in the transcript.

If enacted, the measure would allow Santee Cooper to partner with Dominion on projects at Kennedy’s but would not eliminate requirements to seek later project-level approvals, financing, or permits.

The committee moved the item forward; a subcommittee report recommending favorable passage was noted during the meeting.