Dominion Energy and Santee Cooper Secure State Approval for $5 Billion Gas Project

Dominion Energy and Santee Cooper have received state approval for their $5 billion gas project, with the South Carolina Public Service Commission dismissing calls for a cost cap or the retirement of coal-fired units.

The utilities expect the project, known as Canadys, to be operational by mid-2033, with each company owning half of the project.

The project's planned location is about 40 miles from Charleston, South Carolina, driven by rapid load growth in the state, which is the fastest-growing in the US.

To meet this growth, Santee Cooper plans to add 300 MW of battery storage next year, followed by 285 MW of gas-fired generation in 2028 and 1,090 MW from the Canadys project in 2033.

The company is also exploring the addition of nuclear generation to its portfolio, with coal-fired generation currently making up 51% of its installed capacity, followed by gas at 25%.

The Sierra Club had called for the approval of the plan to be conditional on the retirement of existing coal-fired units, but the PSC rejected this, citing the need for new replacement generation to be online first.