Liberty Steel Faces $7 Million Lawsuit Over Unpaid Electric Bills

GEORGETOWN, S.C. — Liberty Steel Georgetown Inc. is embroiled in a $7 million lawsuit initiated by Santee Cooper, claiming the mill has defaulted on an electricity service agreement.

The lawsuit, filed on February 13, asserts that Liberty Steel entered a service agreement with Santee Cooper on May 1, 2023, committing to five years of monthly payments for large power electric service. The utility alleges that Liberty Steel failed to pay for two months of service in late 2024, totaling $334,233.06.

Santee Cooper’s court documents revealed that after two months of non-payment and numerous attempts to resolve the issue, including emails and phone calls, the agreement was formally terminated in January 2025. The lawsuit seeks the outstanding balances of $167,280.50 for November and $166,942.56 for December, along with an additional $6.6 million for the contract termination fee and further damages.

Santee Cooper’s demand letter indicated that if the overdue balance was not settled, utility services would be disconnected, triggering immediate payment obligations. “The lack of attention to this matter from Liberty Steel has required that the Authority take this enforceable, contractual position,” it stated.

In October 2024, Liberty Steel announced it would idle operations, citing market conditions as a significant factor. Under local zoning laws, if the mill remains inactive for one year from October 11, 2024, the city can permanently shut it down.

City officials are closely monitoring the situation. They emphasize that the city has the authority to prohibit industrial operations on the site if Liberty Steel remains inactive for the allotted time.

According to the suit, the total amount claimed against Liberty Steel stands at $7,000,465.79, which includes both the overdue balances and the termination fee.

Previously, Liberty Steel Georgetown was brought back to life in 2018 after being idle for three years, fueled by tariffs imposed on imported steel and aluminum under then-President Donald Trump‘s administration. This led to job rehirings, expecting up to 125 positions at the mill.

However, the facility has since returned to inactivity. When asked about the potential impact of continued tariffs on the mill’s future operations, Liberty Steel’s Head of Communications Andrew Mitchell responded succinctly, stating, “There’s no update from previous guidance.”

As of now, Liberty Steel has not publicly responded to the lawsuit.