Neighborhoods that have waited years for buried power lines would face a deadline under a proposed franchise agreement between the city of Charleston and Dominion Energy South Carolina.
City Council gave first reading approval Oct. 13 to the agreement, which would replace the city’s electric and gas agreements with the utility that have been in place since 1996, the city said.
Under the current process, underground work can’t begin until every affected property owner agrees, and projects waiting on those approvals can hold a spot on the city’s list for years. Under the new agreement, a project that doesn’t secure its easements within six months of receiving Dominion’s draft easements would come off the list. The next project would move up, and the removed one would have to reapply to council.
Each year, the city and Dominion would each set aside an amount equal to half a percent of Dominion’s electric sales in the city for undergrounding, and the city would match every dollar Dominion spends on a project. The agreement lists the 2026 contribution as $1,286,770 from each side.
For projects affecting more than 25 customers, the city could form an underground utility district, decided by referendum or petition. Property owners could pay a temporary fee for up to 10 years, and that fee plus the franchise fee could not exceed 7% of a customer’s electric bill.
The agreement would run 20 years with one 10-year renewal. Tree trimming remains under a separate agreement. In July, the Historic Charleston Foundation had urged a term of five to 10 years and called for folding the city’s tree protection agreement into the franchise deal.
“Our agreement with Dominion Energy hasn’t been updated since 1996, and Charleston has changed a lot since then,” Mayor William Cogswell said in the city’s announcement.
Dominion spokesperson Paul Fischer told Live 5 the agreement would provide “an enhanced framework for continued collaboration on undergrounding initiatives and other city priorities.”
The city said the franchise fees come from revenue already collected from customers in the city and that the new agreements, including a companion deal with Berkeley Electric Cooperative, will not negatively impact current rates.
Ansonborough has been on the undergrounding list for 20 years, Live 5 reported in July, and city leaders said a lack of signed easements was holding it up. The new agreement still must clear the rest of council’s approval process.
