The bill H. 5440 aims to amend the South Carolina Code of Laws by adding Chapter 32 to Title 58, which allows eligible customers to purchase all or part of their electricity demand from third-party electric suppliers. It establishes terms, conditions, and requirements for eligible customers, third-party electric suppliers, and incumbent electric suppliers regarding electric services, including transmission services. The bill outlines definitions for key terms such as "eligible customer," "third-party electric supplier," and "customer-sited generation," and it mandates that eligible customers must enter into contracts with incumbent electric suppliers when opting for third-party electricity.

Additionally, the bill specifies that the incumbent electric supplier is not liable for costs associated with the eligible customer's service from a third-party supplier, including transmission services. It also requires the Public Service Commission to approve a tariff containing a pro forma contract by January 1, 2027, which will be binding on both the eligible customer and the incumbent electric supplier. The bill emphasizes that any exceptions to this pro forma contract must be approved by the commission, while contracts between third-party suppliers and eligible customers will not be regulated by the commission.