South Dakota Regulators Approve Utility Merger, Creating “Bright Horizons”

State regulators have approved a merger between Black Hills Corporation and NorthWestern Energy, paving the way for a new company, Bright Horizons.

The South Dakota Public Utilities Commission unanimously approved the deal Wednesday, finding no significant risk to customers. The two utilities will continue operating separately, with the commission maintaining oversight of rates and service.

The merger includes protections for customers, such as an extended rate-increase freeze for NorthWestern users, bans on passing merger costs to customers, and requirements to keep offices in Rapid City and Sioux Falls.

Commissioners called the agreement historic, noting it strengthens the companies financially while preserving regulatory safeguards. The merger was first proposed in August 2025 and remains subject to potential legal challenges.