Black Hills Energy is asking the South Dakota Public Utilities Commission to approve a major increase to its electric base rates. The utility filed its rate review request Thursday, seeking a roughly 25% hike that would affect about 76,700 customers and generate $50.6 million in additional revenue.
The company says the increase is needed to pay for $523 million in system upgrades made since 2014 to improve reliability, strengthen the electric grid and reduce wildfire risk. Black Hills Energy notes that outages have dropped in duration and frequency, with South Dakota customers experiencing an average of 56.7 minutes without power in 2024 — ranking the utility 10th in the nation for reliability.
If approved, a typical residential customer using 650 kilowatt‑hours per month would see an increase of about $25 a month, or 25.4%. Actual bill impacts will vary by usage and rate class. Interim rates would take effect in August 2026, with final rates expected in early 2027.
The company also plans to submit a similar rate proposal for customers in northeast Wyoming next month.
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