South Carolina's Public Service Commission finalized approval of the Canadys Gas Plant on June 13, advancing a natural gas infrastructure project without establishing cost caps despite mounting price estimates.
The PSC issued its Certificate of Environmental Compatibility and Public Convenience and Necessity after an initial May 15 approval. The final order removes financial guardrails that would have protected ratepayers from escalating project costs, a decision that drew criticism from consumer advocates and clean energy groups.
The Canadys facility represents a significant investment in fossil fuel infrastructure at a moment when South Carolina faces pressure to transition toward renewable energy. The PSC's approval proceeds despite estimates for the plant's construction and operation climbing substantially during the regulatory review process. Without cost caps, ratepayers absorb the risk of further budget overruns.
Utilities in South Carolina, including Duke Energy subsidiary South Carolina Electric & Gas, supported the project as essential for grid reliability and meeting future demand. Proponents argue natural gas provides a bridge fuel during the transition from coal-fired generation, which South Carolina has been retiring. The state maintains a significant portion of nuclear capacity that provides low-carbon electricity.
Environmental groups opposed the project, contending that South Carolina should accelerate renewable energy deployment instead of locking in decades of natural gas consumption. The plant's operational lifetime would extend well past 2050, locking in fossil fuel dependence when climate targets demand rapid decarbonization.
The PSC's decision reflects tension between utility claims about reliability requirements and clean energy advocates' assessment that renewables paired with storage can meet demand more cost-effectively. South Carolina currently generates roughly 60 percent of its electricity from nuclear and coal plants, with renewables comprising a small fraction of the portfolio.
The finalized Canadys approval represents a regulatory choice favoring natural gas infrastructure investment without financial constraints. This decision will shape South Carolina's energy mix for decades and establish baseline assumptions for the state