South Carolina Approves $5B Gas Plant for Dominion Energy and Santee Cooper
According to Utility Dive, the South Carolina Public Service Commission issued a formal written order on June 12, 2026, approving a $5 billion, 2,180-MW gas-fired power plant to be jointly developed by Dominion Energy South Carolina and Santee Cooper.
Project Scope and Timeline
The plant, known as the Canadys project, will be built on the site of a retired coal-fired power plant roughly 40 miles from Charleston, South Carolina. Dominion and Santee Cooper will each own half of the project and expect to bring it online by mid-2033. The cost estimate has grown significantly since the project was first conceived, when the utilities initially projected spending up to $2.5 billion. According to a Dominion official cited in the PSC’s decision, markets for gas-fired power plant equipment are “extremely tight” due to increased demand.
The project is being driven by rapid load growth in South Carolina, which Santee Cooper describes as the fastest growing U.S. state. To meet that demand ahead of the Canadys plant coming online, Santee Cooper plans to add 300 MW of battery storage next year and 285 MW of gas-fired generation in 2028. The PSC dismissed calls from the Sierra Club to impose a cost cap on the project or require the utilities to commit to retiring existing coal units.
What It Means for Subcontractors
- The Canadys project represents a multi-year construction pipeline leading to a mid-2033 in-service date, with procurement and site work likely ramping up well before that deadline.
- Tight equipment markets, flagged by Dominion officials in the PSC record, signal early competition for turbine installation, mechanical, and specialty trades subcontractors. Field service companies should monitor procurement timelines closely.
- Santee Cooper’s parallel buildout, including 300 MW of battery storage in 2027 and 285 MW of gas generation in 2028, means near-term work opportunities exist in South Carolina before the Canadys plant breaks ground in earnest.
- The project site near Charleston places it within reach of Gulf Coast contractors familiar with gas generation construction, making it worth tracking for firms already active in utility-scale power work across the Southeast.
- With no cost cap imposed by regulators, the utilities retain flexibility on contracting structures, but subcontractors should be prepared for tight bid environments given the scale of investment and compressed equipment supply chains.
