# South Dakota Electricity Rate Changes: What Changed in 2026 and What's Next

> Xcel Energy's South Dakota rates rose July 1, 2026 under a settlement: $25.6 million, about $13.48 a month for a typical home, with a refund of about $43.52 for interim overcharges. Black Hills Energy has a 25% request pending.

- URL: https://solarexaminer.com/posts/south-dakota-electricity-rate-changes-2026/
- Site: Solar Examiner (https://solarexaminer.com/)
- Category: Electric Rates
- Published: 2026-10-04
- Last verified: 2026-10-04
- Author: Tehseen Arbab

## Key takeaways

- We found no South Dakota rate change dated October 1, 2026.
- The Public Utilities Commission approved a $25.6 million (9.5%) Xcel Energy increase, effective July 1, 2026. Xcel had asked for $43.6 million (16.2%).
- A typical residential customer using 750 kWh pays about $13.48 more a month and was due an interim refund of about $43.52 on August and September bills.
- Xcel cannot raise base rates again before January 1, 2029. Black Hills Energy is asking for 25%, about $25.13 a month.



South Dakota did not have a rate change on October 1, 2026. Xcel Energy's rate case was settled in May, with final rates from July 1. Black Hills Energy's case is still open.

This article covers Xcel Energy (about 107,000 South Dakota customers) and Black Hills Energy. It does not cover NorthWestern Energy, Otter Tail, MidAmerican, cooperatives or municipal utilities.

## Quick Summary

| Item | Utility | Date | Residential impact |
|---|---|---|---|
| Interim rates | Xcel | Jan. 1, 2026 | Higher than final rates |
| Final rates | Xcel | July 1, 2026 | About +$13.48 a month at 750 kWh |
| Interim refund | Xcel | August and September 2026 bills | About $43.52 |
| Rate moratorium | Xcel | Until Jan. 1, 2029 | No base rate increases |
| Rate request | Black Hills Energy | Pending | About +$25.13 a month (25%) |

## Xcel Energy: Settled Below the Request

The South Dakota Public Utilities Commission (PUC) approved the settlement in Docket EL25-024.

- **Approved:** $25.6 million, 9.5%.
- **Requested:** $43.6 million, 16.2%. The settlement is 41% lower.
- **Previous base rate increase:** June 2023.
- **Moratorium:** no further base rate increases before January 1, 2029.

**Our math:** ($43.6 million − $25.6 million) ÷ $43.6 million = 41%.

## The Refund

Xcel put interim rates in place on January 1, 2026, based on its full request. Since the final increase is smaller, customers were owed the difference with interest. The PUC put that at about $43.52 for a typical residential customer, credited on August and September bills.

## Black Hills Energy: Pending

Black Hills Energy, which serves the Rapid City area, has asked for a 25% increase for typical residential customers, about $25.13 a month (Docket EL26-003). In May 2026 the PUC admitted eight intervenors, including a hospital and several manufacturers. No decision has been reported.

## What This Means for Homeowners With Solar

We did not verify South Dakota's current net metering or export credit rules for this article, so we give no export rates here. Ask your utility for its current solar tariff, and check how exported energy is credited before sizing a system. Fixed monthly charges are not reduced by solar.

Our [solar payback guide](/posts/solar-payback-period-without-federal-tax-credit/) shows how the retail rate and the export credit change the math.

## What to Check on Your Bill

1. Xcel customers: the refund credit on your August or September bill.
2. The customer charge.
3. The fuel clause line.

For help sorting the lines on your bill, see our guide to [reading your electric bill](/posts/how-to-read-your-electric-bill/).

## Limitations

Xcel figures come from the PUC's news release. Black Hills Energy figures come from a TV report. We did not find the Black Hills decision timeline or whether interim rates apply.

## Sources

- [South Dakota PUC, "PUC approves settlement to increase Xcel Energy electric rates below request," May 8, 2026](https://puc.sd.gov/News/2026/05082026.aspx)
- [KOTA, "PUC begins Black Hills Energy rate case as businesses, hospitals join proceedings," May 2026](https://www.kotatv.com/2026/05/10/puc-begins-black-hills-energy-rate-case-businesses-hospitals-join-proceedings/)

## Frequently asked questions

### Did South Dakota electric rates change on October 1, 2026?

We found no change on that date. Xcel Energy's final rates took effect July 1, 2026.

### How much did Xcel Energy rates rise in South Dakota?

About 9.5% overall, or roughly $13.48 a month for a typical residential customer using 750 kWh, according to the Public Utilities Commission.

### Why did Xcel customers get a refund?

Xcel charged higher interim rates from January 1, 2026 while the case was pending. The approved rates were lower, so the difference was refunded, about $43.52 for a typical residential customer.


Image credit: Photo by Rafael Moreno on [Unsplash](https://unsplash.com/photos/solar-panels-are-installed-on-a-rooftop-73JOOymZQTQ?utm_source=solarexaminer&utm_medium=referral)