Black Hills Energy can now offer a special electricity rate to large power users in South Dakota after the state Public Utilities Commission approved the proposal in a 2-1 vote on Tuesday.
Commissioners Chris Nelson and Gary Hanson supported allowing the utility to offer a blockchain interruptible service tariff for customers using 10 megawatts or more. Commissioner Kristie Fiegen opposed the plan, saying the company should further examine marginal costs.
This is the first blockchain-related tariff approved in South Dakota and comes as lawmakers consider multiple bills involving data centers. Black Hills Energy applied for the tariff in April 2025 and negotiated extensively with PUC staff, resulting in a joint stipulation. Some details were discussed in a closed session.
The tariff is aimed at a blockchain company that Black Hills already serves in Wyoming. Under the agreement, the company must accept that its power can be cut off with 15 minutes’ notice, and Black Hills Energy must buy additional power on the open market for these customers. The utility also agreed that no costs will be shifted to other ratepayers, and staff said the arrangement could even create savings.
Each individual customer contract will require separate PUC approval — a condition that helped secure Nelson’s support. Fiegen maintained her objections, while Hanson said the safeguards were sufficient to protect consumers.
Comments