Black Hills Energy gets 27 million dollar raise, cutting original ask by nearly half

The South Dakota Public Utilities Commission approved a settlement that raises Black Hills Energy’s annual electric revenue by more than $27 million. The agreement increases the average monthly bill for a typical residential customer, defined as using 650 kilowatt-hours, by about $16.34.

Black Hills Energy originally requested a 50.6 million dollar annual increase. The commission’s approval reduces that figure by roughly 46 percent. The utility cited rising operating costs, infrastructure investments, capital improvements, and financing expenses to justify the request.

Regulators secured a four-year moratorium as part of the deal. This prevents the company from seeking additional base rate increases before August 2030. Officials noted this is the utility’s first base rate increase since 2015.

The new rates take effect on December 1. Customers will receive refunds, with interest, for the difference between the interim rates charged since August and the lower rates approved in the final settlement.

The commission signed off on the settlement agreement on Thursday. The decision follows a period of negotiations that bridged the gap between the company’s initial proposal and the regulator’s counter-offer.