South Dakota Rate Review

In April 2018 we asked the South Dakota Public Utilities Commission (SDPUC) to first review the costs we incur to provide our customers with energy and related services and then determine how much our customers should pay for those services.

This is what's driving the rate review

As the second smallest investor-owned utility in the country, our size gives us unique perspective into the small, rural communities we serve. With those communities and customers in mind, we make smart, innovative business decisions to ensure the prices they pay for reliable energy and top-notch customer service continue to be among the lowest in the country.

Stronger, cleaner infrastructure Smarter technologies Rising costs
For example, required environmental technologies at coal-fired Big Stone Plant allow us to continue using this low-cost baseload resource. Transmission projects efficiently move energy produced in the region and improve reliability of the energy grid. Technologies allow customers to get more for their energy dollar. For example, our new Customer Information System will allow customers more access and options related to their energy use and our services. The SDPUC established our current base rates in 2011 based on 2009 costs. Since then costs we incur to provide our customers with energy and related services have increased, so it's time for the SDPUC to review them again.

How this will impact customers

We proposed to increase non-fuel rates by approximately $3.3 million, or 10.1%, as the first step in a two-step process. If the SDPUC approves the overall request as filed, a typical residential customer’s bill would increase by approximately $11 a month and a typical business customer’s bill would increase by approximately $24 a month. The increase would be more for some customers and less for others, depending on the rates on which they’re served and the amount of energy they use.

The second step in the request is an additional 1.7% increase in 2020 to recover costs for a wind generation facility that’s scheduled to be in service in 2019. If the SDPUC approves that portion of the request as filed, a typical residential customer’s bill would increase by approximately $1.75 a month and a typical business customer’s bill would increase by approximately $4.50 a month.

Even with these increases, we’ll continue to have some of the lowest rates in the country.

Filing Documents

Volume 1:

Letter of Transmittal
Application for Change in Electric Rates & Interim Rates Pending Final Rates
Notice of Proposed Change of Rates and Charges
Attestation by Chief Financial Officer
Request for Confidential Treatment
Statements A through R showing Cost of Service

Volume 2A:

Testimony and Schedules of Witnesses
  Bruce G. Gerhardson
    Policy
  Tyler A. Akerman
    Rate Base
    Revenue Requirement
    Adjustments
  Stuart D. Tommerdahl
    Major Projects
    Test Year Revenues
    Allocation Factors
    Other Regulatory Matters
  Bryce C. Haugen
    Transition of Capital Projects from Riders to Base Rates
    Class Cost of Service Study
    Class Revenue Responsibilities
  Kevin G. Moug
    Financial Soundness
    Capital Structure
    Cost of Capital

Volume 2B:

Kirk A. Phinney
  Big Stone AQCS
  Hoot Lake MATS
Bradley E. Tollerson
  Merricourt Wind Project
Robert B. Hevert
  Return on Equity
Peter E. Wasberg
  Employee Compensation
David G. Prazak
  Rate Design

Volume 3:

Interim Tariffs
  Non-Redlined
  Redlined
Proposed Tariffs
  Non-Redlined
  Redlined
Step In Tariffs
  Non-Redlined
  Redlined

Search