Subcommittee backs joint authorization for Kennedy gas project; Santee Cooper outlines VC Summer RFP and timetable

The Judiciary Subcommittee voted to advance a joint authorization tied to a proposed shared natural-gas generation project at the Kennedys site and received an update from Santee Cooper and other utility officials on related market and permitting work.

The vote, taken by voice, approved consideration of S 51 and S 12; the committee chair called the question and members responded “aye.” No recorded opposition was entered on the transcript; the chair declared the motion approved.

Committee members and utility representatives told the panel they view the Kennedys brownfield site as a strategic location to replace retiring coal plants and to provide fuel capacity that could support economic development across South Carolina. Keller (role not specified in the transcript) said Kennedys has been cleaned of coal ash, “it has a substation, it has transmission,” and that the site is well positioned to serve growth along the coast and up from Charleston into Dorchester County.

Why it matters: Subcommittee members heard that the Kennedys project is being marketed as an “anchor load” to secure cheaper pipeline capacity and that precedent agreements have been signed with regional utilities. Officials said the joint build authorization strengthens the state’s ability to attract the necessary pipeline and generation investments and to compete for major industrial users who need reliable power.

What officials told the committee

Keller (role not specified in the transcript) described an open season effort to secure 295,000 decatherms of natural-gas capacity for the site and said Southern Company, Oglethorpe and the Tennessee Valley Authority have already joined precedent agreements. Keller said the project is being structured so the gas capacity can serve more than one use, lowering per-user cost by creating an anchor demand for pipeline capacity.

An unnamed utility official who identified Jimmy (role not specified) as a gas-side lead emphasized the supply-chain work underway, including connections that would bring gas from header projects in the Mississippi–Arkansas area and around Elba Express and Transco into South Carolina. That official added that the market testing and precedent agreements will help secure lower-cost supply than pricing tied directly to Henry Hub.

Santee Cooper’s update on VC Summer

Santee Cooper outlined an expedited market test for the retired VC Summer nuclear site. Santee Cooper’s representative said the authority issued a request for proposals, engaged Centerview Partners as financial advisor and sent nondisclosure agreements to seven prospective participants. The transcript shows Santee Cooper set a May 5 deadline for proposals to ensure eligibility for federal loan and grant programs, saying that applications to the Department of Energy’s loan programs must be in place by September to qualify for awards in 2026.

Santee Cooper officials told the committee they changed course from a longer feasibility study to an RFP because private-sector interest appeared earlier and because the federal timeline is compressed. Santee Cooper said it has assembled technical and financial advisors and is building scaffolding and a data room to speed due diligence by prospective bidders.

Ownership and risk questions

Multiple senators pressed Santee Cooper and Dominion Energy about ownership, construction risk and regulatory oversight. Santee Cooper said it does not intend to carry construction performance risk and expects ownership to be held by third-party investors or a consortium; Santee Cooper and Dominion said customers would not bear the construction risk. Dominion said it owns the land and is willing to offer a ground lease or sale.

Dominion also noted that an operating arrangement separate from construction—potentially involving NRC-certified senior reactor operators at the adjacent operating unit—could be considered, but that operating is distinct from ownership or construction. Senators asked how an outside owner and a possible operating agreement would interact with state oversight and the Public Service Commission; speakers said such arrangements would face close scrutiny by the Nuclear Regulatory Commission and state regulators.

Implementation details and constraints

Officials emphasized permitting reform and rate-making predictability as important to attracting capital. Keller said the companies are not seeking subsidies but want a “predictable, stable, and transparent” rate-making structure and rate stabilization to support investment.

Committee action

At the end of the Kennedys and VC Summer discussion the subcommittee voted—by voice—to advance the joint authorization tied to S 51 and S 12. The transcript records the motion and a second; members responded “aye” and the chair declared the motion approved. The record does not include a roll-call tally.

Ending

Committee members signaled interest in continued oversight as the RFP process and precedent agreements advance. Several senators emphasized that the Kennedys gas project and potential VC Summer repurposing are intended to be part of an ‘‘all-of-the-above’’ approach to meeting the state’s electricity needs, not mutually exclusive strategies.