PIERRE, S.D. – South Dakota utility customers will soon see higher electric bills after the Public Utilities Commission approved a rate increase for Black Hills Energy.
The commission signed off on a settlement agreement that will increase Black Hills Energy’s annual electric revenue by more than 27 million dollars. Officials say the change will result in an average increase of about 16 dollars and 34 cents per month for a typical residential customer using 650 kilowatt-hours of electricity.
The approved settlement is significantly lower than the company’s original request, which sought a 50.6 million dollar annual increase. Regulators say negotiations reduced the proposed increase by roughly 46 percent while also securing a four-year moratorium preventing additional base rate increases before August 2030.
Black Hills Energy cited rising operating costs, infrastructure investments, capital improvements, and financing expenses as reasons for the increase.
The new rates take effect December 1st. Customers will also receive refunds, with interest, for the difference between interim rates charged since August and the lower rates approved under the final settlement. Officials note this is the utility’s first base rate increase since 2015.
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