Seneca Faces End of Favorable Power Deal as Costs Loom

Seneca’s decade-long “sweetheart” electricity supply contract with Santee Cooper is expiring, and the city’s power consultant is urging immediate preparation for a much tighter and more expensive wholesale power market.

At Tuesday’s city council meeting, consultant Ted Orrel warned that regional suppliers are facing a growing capacity shortage, meaning Seneca can no longer count on the low rates it has enjoyed. Santee Cooper’s chief commercial officer, Marty Watson, expressed hope that the state-owned utility can extend its agreement with the city, but Orrel stressed that competition for available power will drive prices higher regardless of the chosen supplier.

To brace for the coming increases, Utilities Director Josh Riches recommended a 4.5% retail rate hike effective January 1, 2026, plus a $1.5 million draw from the city’s electric fund reserves to maintain financial stability during the transition…

Newly seated Mayor Ronnie O’Kelley acknowledged that council will soon face difficult budget decisions as the era of inexpensive power comes to an end for Oconee County’s largest municipality. Council approved the measure in title only after first reading Tuesday night…