The bill S. 878 aims to amend the South Carolina Code of Laws by adding Chapter 32 to Title 58, which establishes regulations for third-party electric suppliers. It defines key terms related to third-party electric choice and allows eligible customers to purchase electricity from third-party suppliers while outlining the responsibilities of both the customer and the incumbent electric supplier. The bill stipulates that eligible customers must arrange for firm transmission services and that the incumbent electric supplier will not be liable for costs associated with third-party electricity supply. Additionally, it mandates that the incumbent supplier must have remote cutoff capabilities and outlines the conditions under which customers must continue to pay for capital costs if they leave the supplier's territory.

Furthermore, the bill requires the Public Service Commission to approve a tariff containing a pro forma contract that eligible customers can enter into, ensuring that the terms are binding on both the customer and the incumbent electric supplier. The Commission is also tasked with determining the financial obligations of customers who leave the incumbent supplier's territory while ensuring that residential and other commercial rates are not adversely affected. The act is set to take effect upon the Governor's approval, with a deadline for the Commission to approve the necessary tariff by January 1, 2027.