Dominion Energy South Carolina Awarded Record $27.4 Million Army Power Contract Modification
The utility's largest-ever federal award adds tariff rate adjustments to a 50-year electricity contract running through 2069 that supplies Army operations, the Defense Logistics Agency said.
CAYCE, SOUTH CAROLINA — Dominion Energy South Carolina Inc., the utility serving about 1.3 million electric and natural gas customers across the Palmetto State, received its largest federal contract on record to keep Army power flowing through 2069.
The estimated $27.4 million modification adjusts tariff rates on a 50-year agreement with no option periods, the Defense Logistics Agency said in a contract notice as announced on war.gov. The change reflects rate levels authorized by the South Carolina Public Service Commission. Performance runs through Nov. 18, 2069, with funding drawn from fiscal 2026 through 2070 Army operations and maintenance accounts.
The award ranks as the largest ever granted to the Cayce, South Carolina, utility, surpassing a previous record of $25,222,626, according to firestore:contracts. It marks the company’s first federal contract of 2026 and the 12th Department of Defense award placed in South Carolina this year. Seven such contracts were issued nationwide on Aug. 3, 2026.
Dominion Energy generates more than 6,000 megawatts from natural gas, nuclear, hydro and coal, including 1,000 megawatts of solar capacity, across a service territory of more than 16,000 square miles, according to dominionenergy.com. A workforce of roughly 3,000 employees maintains the grid. The company has invested more than $1.6 billion in infrastructure since 2020, with plans to spend $6 billion over the next five years, according to dominionenergy.com.
The modification benefits the utility by aligning its federal billing with state-approved rates, while the Army absorbs the higher tariff costs across the contract’s remaining decades. Ratepayers in South Carolina carry the underlying rate structure the commission sets.
Rate changes for Dominion Energy customers trace to a regulated review process. Dominion Energy South Carolina filed comprehensive settlement agreements for commission approval, and the average residential customer using 1,000 kilowatt-hours would see a bill rise by just under $12 from about $159. That 7.62% adjustment keeps rates below the national average, according to dominionenergy.com. Shareholders funded $6 million to assist customers, including a one-time $3 million bill credit and $1 million annually for three years for low-income assistance, according to dominionenergy.com.
For the average US reader, the award shows how state utility rulings ripple into federal spending. When a public service commission approves higher tariffs, the government pays more to power military installations, and those costs flow through long-dated contracts that outlast most careers.
Tariff-driven contract modifications have happened before. The Defense Logistics Agency routinely amends decades-long utility agreements to reflect state-authorized rate changes, a mechanism written into the original 50-year contract to avoid renegotiating terms each time regulators act.
The South Carolina Public Service Commission sets the rate levels that drive future adjustments to this contract. A date for the next tariff modification tied to this agreement has not been announced.
Long-term federal utility deals have anchored military bases for generations, as happened before across the South. The Charleston Navy Yard, opened in 1901, drew power and water contracts that tied regional utilities to defense payrolls for decades. Its 1996 closure erased thousands of jobs that had depended on those federal ties. The lesson for utilities like Dominion Energy is that steady government demand rewards the provider that keeps rates predictable and the lights on.
This contract represents the 1st contract awarded to Dominion Energy South Carolina Inc., in 2026, bringing the company’s total contract value for the year to $27,448,885. It is also the 12th Department of Defense contract awarded in South Carolina during 2026. This is the largest contract ever awarded to Dominion Energy South Carolina Inc., surpassing the company’s previous record of $25,222,626, and it is notable within the Defense Logistics Agency portfolio. Specifically, it falls between the 2026 Defense Logistics Agency portfolio’s year-to-date minimum of $9,000,000 and maximum of $1,525,000,000. Overall, this award was announced among 7 Department of Defense contracts issued nationwide on August 3, 2026.
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