Black Hills Energy customers could face a 45% electric-bill increase if regulators approve two requests

Two pending Black Hills Energy requests could raise the monthly bill for a typical South Dakota residential electric customer by about $44.83 if the South Dakota Public Utilities Commission approves both at the levels the company has proposed. The potential increase would be about 45% compared with the current-rate bill used in the company’s filings, but neither request is final.

The PUC is reviewing a general rate case and a separate Phase-In Plan Rate request tied to the Lange II generating project. The proposals could affect approximately 75,000 Black Hills Energy customers in South Dakota. The dollar figures are company estimates for a residential customer using about 650 kilowatt-hours per month; actual bills would depend on final commission decisions, customer usage and rate class.

General rate case seeks $50.6 million annually

Black Hills Energy filed its general rate case, docket EL26-003, on February 19, 2026. The company is seeking approximately $50.6 million in additional annual revenue, representing a proposed overall increase of about 25.1%.

For a typical residential customer using 650 kilowatt-hours per month, the company says the request would add $25.13 to the monthly bill. The July 28 PUC agenda also identifies approximately 75,000 potentially affected customers.

Docket EL26-003 remains pending. The commission’s July 28 agenda described the company’s request and customer estimate; it did not approve the proposed rates.

Separate Lange II request could add $19.70

In a separate proceeding, docket EL26-024, Black Hills Energy filed an application on August 5 to amend its Phase-In Plan Rate. The company is seeking approximately $39.5 million annually through the proposed rate mechanism.

The request would recover actual and forecasted costs associated with Lange II. According to the company’s application, the project is a generating plant with 97.4 megawatts of net capacity, located northwest of Rapid City on 160 acres owned by Black Hills Energy.

Black Hills Energy estimates the phase-in request would add another $19.70 per month for a typical residential customer using about 650 kilowatt-hours. The company has requested a December 1, 2026, effective date. That date is proposed, not confirmed, and docket EL26-024 remains pending.

How the potential bill estimate is calculated

The two proposed additions total $44.83 per month:

• $25.13 from the general rate case
• $19.70 from the Lange II Phase-In Plan Rate request
• $44.83 in combined proposed additions

The company’s bill-impact materials use a current-rate residential bill of $98.96 for the 650-kilowatt-hour comparison in the general rate case. Adding the proposed $25.13 general-rate increase produces a $124.08 bill under the proposed general rates. Adding the separate $19.70 Lange II phase-in amount to that figure produces an estimated combined bill of about $143.79.

That calculation is not a universal bill amount. It applies to the usage and customer assumptions in the company’s filings, and it assumes both requests are approved at the stated levels. Higher- or lower-use households, commercial customers and other rate classes could see different impacts.

What happens next

The PUC will review the filings, testimony, cost information and customer impacts. Intervenors, including large commercial customers and other affected parties, may participate in the proceedings and examine or challenge the requests.

On August 25, the commission’s agenda described the Lange II request and asked whether the proposed tariff revisions should be approved. The docket later showed an August 26 procedural order assessing a filing fee and authorizing consulting contracts; those actions did not approve the proposed rate.

For the Lange II case, Black Hills Energy has asked for authority to begin collecting the proposed phase-in rate on an interim basis if the project is in service and the commission has not issued a final order by December 1. The application says any interim collection would be subject to refunds while the PUC completes its review.

Customers should not assume that the full proposed increase will appear on future bills. The final amounts, timing and customer-class impacts will depend on commission decisions in EL26-003 and EL26-024. Residents can follow those dockets and future PUC orders for revised estimates, decisions and effective dates.

Sources

• South Dakota PUC docket EL26-003: Black Hills Energy general rate case
• South Dakota Searchlight: Average Black Hills Energy customer faces potential $45 increase

Look for updates to this story

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