South Dakota Public Utilities Commission Approves Black Hills Energy Rate Increase Effective December 1
The South Dakota Public Utilities Commission (PUC) has approved a settlement agreement allowing Black Hills Energy to increase electric rates for its South Dakota customers by approximately $27.4 million annually, effective December 1. This translates to a 21.28% increase in base rate revenue and a 13.62% increase in total bills. A typical residential customer using 650 kilowatt-hours per month is expected to see their bill rise by about $16.34. Black Hills Energy initially requested a $50.6 million annual increase, but the PUC staff, along with intervenors including the South Dakota Large Customer Group, negotiated a significantly reduced settlement. The utility cited additional capital investment, increased operating costs, ongoing infrastructure investments, and higher cost of capital as reasons for the rate hike. As part of the agreement, Black Hills Energy has committed to a four-year base rate moratorium, preventing further increases before August 18, 2030.
