EIPS 5-Why Transparency Matters: Regulation, Public Trust, and the Next Decade of Power Growth

As electricity demand accelerates across Georgia, South Carolina, and North Carolina, the most important issue facing residents is no longer whether growth will occur, but how it will be managed . Power plants, transmission lines, and grid upgrades last for decades and are paid for by the public over long periods of time. When decisions of this magnitude are made without clear disclosure, public trust erodes—and costs can quietly shift onto residential customers with little warning.

At the center of this issue is regulation . Electric utilities are regulated monopolies. Customers do not have the option to switch providers if costs rise or planning assumptions prove wrong. In exchange for that monopoly status, utilities are supposed to operate under strict oversight, with regulators ensuring reliability, reasonable pricing, and fair allocation of costs. When oversight is strong, the system works. When it is weak or opaque, risk accumulates in ways the public cannot see until it appears on monthly bills.

A key regulatory principle is cost causation : customers who create costs should be the ones who pay for them. This principle becomes especially important as data centers and other large, concentrated loads drive new generation, transmission, and reserve capacity. If those customers are allowed to connect under contracts that do not fully account for long-term infrastructure costs, exit risk, or system-wide reliability impacts, the remaining costs are spread across everyone else. Residential customers then pay for assets they did not need and did not request.

Each of the three states illustrates this challenge differently. In Georgia, the scale of data center growth has made the issue visible. Regulators are being asked to approve large amounts of new capacity based on forecasts that assume continued hyperscale expansion. The central question is whether pricing mechanisms, special contracts, and safeguards are strong enough to protect ordinary customers if those forecasts change.

In North Carolina, the issue is less dramatic but equally important. Growth is more diversified across population, manufacturing, and data processing, which can make the cost impacts harder to isolate. When growth drivers are bundled together in planning documents, it becomes more difficult for the public to understand which investments are tied to which customers—and who ultimately pays.

South Carolina presents the most complex transparency challenge. The state is served by multiple utilities with different ownership structures and planning approaches. Dominion Energy South Carolina has emphasized the need for new firm capacity to replace retiring coal units and support future demand, arguing that certain large investments are necessary to avoid higher long-term costs. At the same time, Duke Energy operates extensively in South Carolina through its Carolinas planning process, blending South Carolina demand with North Carolina forecasts. This combined planning can obscure state-specific cost drivers, making it harder for South Carolina residents to see how much of future investment is tied to in-state growth versus regional assumptions.

This lack of clarity feeds public concern. When large projects are announced with limited detail, when negotiations occur behind closed doors, or when cost impacts are described only in technical filings, citizens reasonably suspect that decisions are being made without their interests fully represented. Transparency is not about opposing growth or technology; it is about ensuring that growth happens with informed consent and proper accountability.

Transparency also improves outcomes. When assumptions are openly debated, regulators can stress-test forecasts, require stronger cost-sharing provisions, and demand clearer commitments from large users. When contracts are visible and understandable, utilities are incentivized to align pricing with actual risk. When the public understands how decisions are made, trust increases—even when rates must rise for legitimate reasons. Over the next decade, the Southeast will continue to grow. Data centers, manufacturing, and population shifts will require new infrastructure. That growth can support economic development without unfairly burdening households—but only if regulators insist on openness, discipline, and adherence to cost-causation principles. Electricity may be invisible, but the financial commitments behind it are very real and very long-lived.

The ultimate choice facing these states is not between growth and affordability. It is between transparent planning that earns public trust and opaque decision-making that quietly transfers risk to those least able to bear it. The path chosen now will shape utility bills, economic competitiveness, and public confidence for decades to come.