Black Hills Energy seeks a possible rate increase after more than a decade

RAPID CITY, S.D. (KOTA) -Black Hills Energy has filed a rate review proposal with the South Dakota Public Utilities Commission, requesting its first rate increase in more than 12 years.

The company serves 75,000 customers across South Dakota. In its filing, Black Hills Energy said the proposed increase is tied to approximately $523 million in system investments made since 2014.

A company spokesperson said the investments were directed toward strengthening the electric grid, maintaining reliability, and reducing wildfire risk.

Black Hills Energy Vice President of Utilities Wes Ashton said, “This rate review is primarily about capital investments that we made during that same period. So while we continue to deliver safe, and reliable service, and we’ve kept our cost to deliver that service relatively flat, what we have had to do is continue to invest with in our system.”

The company said the proposal represents approximately a 25% increase in residential rates.

Ashton said, “With this filing we made this week, we have asked for a review of the cost of the investments we have made that would equivocate to approximately a 25% increase to residential rates over the period going forward. So for an average home, they would expect to see somewhere in the neighborhood of about a $25 increase once this process was complete.”

If the PUC approves the proposal, rates would take effect in August 2026. Final rates are expected in the first quarter of 2027.

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