A proposed settlement would allow Montana-Dakota Utilities to increase gas rates for Western South Dakota, while the eastern part of the state would see lower rates.
The settlement consolidates customers on both sides of South Dakota into one rate jurisdiction. The agreement means that current customers would overall pay 2 percent more. Residents in the Black Hills area would pay 4.3% more, while customers in Eastern South Dakota would pay 4.1% less.
MDU originally requested rates be increased 6.3% in the Black Hills area, with rates cut 2.8% East River.
The state Public Utilities Commission meets Tuesday to decide whether to accept the settlement reached between its staff and MDU company officials.