Our company maintains cost-effective electricity

Updated South Dakota rates take effect April 1

On March 10, 2026, the South Dakota Public Utilities Commission (PUC) approved updated electric rates for our South Dakota customers. The new rates will take effect April 1, 2026. The approved rates reflect an annual net 7.74% base revenue increase, or $3.33 million, and support the safe and reliable delivery of cost-effective electric service. The last time we requested a South Dakota rate review was seven years ago. 

What this means for customer bills
As part of our company's rate review, we implemented interim, or temporary, rates for our South Dakota customers beginning December 1, 2025. Because final rates are lower than interim rates, customers won’t see an additional increase and will receive a refund of the difference with interest. This refund will appear as a credit on May 2026 bills.

Even with this change, our South Dakota residential rates remain approximately 35% lower than the national average and about 11% lower than the regional average, helping keep electricity one of the more affordable essential services for our customers.

For most households and businesses, electricity is just one part of the monthly budget. With updated rates effective April 1, typical daily electric service costs for our customers are as follows:

• For a typical South Dakota home, electric service will cost about $3.82 per day.
• For a typical South Dakota business, electric service will cost about $9.28 per day.

What electric rates support
Customers depend on electricity every day, often without needing to think about the ongoing work behind the scenes that keeps power flowing. Our company's electric rates support the people, equipment, and planning that helps keep homes warm, businesses running, and the lights on.

Electricity begins with generation, moves through transmission lines, and reaches homes and businesses through local distribution. Each step of that process is reflected in how customer dollars are used.

Out of every dollar our customers pay:

• 43 cents pays for producing electricity, ensuring there’s enough power available to meet customer needs every day.
• 33 cents supports transmission infrastructure, such as high voltage lines and substations that carry electricity across the region.
• 24 cents covers distribution infrastructure, including neighborhood power lines and equipment that safely delivers electricity to customers.

Planning ahead to keep electricity affordable and reliable
Providing reliable electric service at a reasonable cost requires long-term planning, ongoing investment, and coordination with regulators to ensure the system continues to meet customer needs.

Our approved rates reflect the costs of maintaining and operating the electric system, including investments needed to support today’s reliability and prepare for future demand. By managing operations and maintenance expenses efficiently, we can direct resources toward infrastructure improvements that support reliability while helping limit impacts to customer bills.

“Serving our customers as cost effectively as possible is a responsibility we take seriously,” said President Tim Rogelstad. “Even with these changes, electricity remains one of the most affordable essentials for households in our service area, and these rates reflect the cost of providing reliable service today while preparing for the future.”

Support for customers
We offer practical options to help customers manage their energy use and electric bills, including payment plans, budget billing, and energy efficiency programs. Customers can learn more at otpco.com/TakeControl or by calling 1-800-257-4044.

Some customers may also qualify for additional assistance through South Dakota programs such as the Low-Income Home Energy Assistance Program (LIHEAP), the Weatherization Assistance Program (WAP), or the Energy Crisis Intervention Program (ECIP), which can help with heating costs and home energy saving improvements.