Electric transmission lines near Clark. (Robert Zullo/States Newsroom)
Xcel Energy is requesting a rate increase that would cause electric bills for the company’s average South Dakota residential customer to go up by 19%, which equates to $21 per month.
If approved by state regulators, it would be Xcel’s second increase in two years. The company attempted to raise rates by 18% in 2023, but regulators reduced that to 6%, which equated to a roughly $5 monthly increase for the average residential customer.
The company filed its latest request with the South Dakota Public Utilities Commission on June 30. Xcel said it needs the increase to cover inflationary costs, upgrade infrastructure, and recover costs from investments in wind turbines, natural gas facilities and transmission lines. The rate hike would raise $43.6 million in additional annual revenue for the company.
The commission’s staff is reviewing the request and will make a recommendation later this year. If approved, the new rates would take effect no earlier than Jan. 1.
Xcel has a total of 107,000 South Dakota electrical customers in Hanson, Lake, Lincoln, McCook, Minnehaha, Moody, Sanborn and Turner counties in the southeast part of the state. Most of the customers are located in the Sioux Falls area.
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