Energy Prices Are Rising. We're Here To Help.

South Dakota Rate Review

We know many Americans are facing challenging times, and no one wants to see rising electric bills. We are also committed to providing reliable, sustainable energy service at the most affordable rates possible to our customers. 

NorthWestern Energy requested a regulatory electric rate review in South Dakota as we continue to strengthen our electric system. The South Dakota Public Utilities Commission approved NorthWestern Energy’s settlement agreement with SDPUC staff which allows for an 11.38% increase in NorthWestern Energy total electric bills, or a 17.97% increase in base electric rates, from a $21.52 million increase in South Dakota electric revenues effective Jan. 10, 2024.

The rate increase will ensure that our customers will continue to be served by a financially sound company capable of efficiently funding the significant capital expenditures needed to maintain, expand and modernize our energy infrastructure.  

We recognize that our rate increase will impact our customers during a period when other prices are also increasing, which is why we’re here to help customers who may be struggling with their bills. Customers concerned about their ability to pay their energy bill can contact NorthWestern Energy for information about energy assistance programs and to arrange flexible payment options.

Official Customer Notice

Download the customer notice that will be included in all South Dakota electric customer bills beginning Jan. 15.

View our Regulatory Rate Review Filings

On June 15, 2023, NorthWestern Energy filed an application with the South Dakota Public Utilities Commission, which regulates investor-owned energy companies in the state, for a regulatory rate review of electric services.

How much will my bill increase?

For a typical electric residential customer using 750 kilowatt-hours per month, the approved rate increase will mean a monthly bill increase of:

 

$13.67

The increase represents a 1.42% yearly increase since the previous rates were established in 2015. Since then, NorthWestern Energy has invested $267 million in our South Dakota electric infrastructure to continue our commitment to providing reliable, sustainable energy service at the most affordable rates possible to our South Dakota customers.

Below is a sample of new rates, based on average use by customer class.

Residential Customers

Monthly Usage
(kWh)
Monthly Electric
Bill under Prior
Rates
Monthly Electric
Bill under New
Rates
Amount of
Increase
Percentage
Increase

400

$58.62$66.40$7.7813.3%
500$71.70$81.16$9.4613.2%
600$84.78$95.92$11.1413.1%
750$104.39$118.06$13.6713.1%
1000$135.24$152.78$17.5413.0%
2000$211.42$234.68$23.2611.0%

 

South Dakota Residential Rate Comparison

 Prior RateNew Rate
Customer Charge$6.00$7.00
First 200 kWh$0.09476$0.11186
Next 600 kWh$0.09322$0.11186
Next 200 kWh$0.08397$0.09913
Next 200 kWh$0.06701$0.07909
Over 1,200 kWh$0.03153$0.03565
Ad valorem taxes$0.00349$0.00349
Delivered Cost of Energy$0.00939$0.00939
Delivered Cost of Fuel$0.02468$0.02468

 

Commercial Customers

Monthly Usage
(kWh)
Monthly Electric
Bill under Prior
Rates
Monthly Electric
Bill under New
Rates
Amount of
Increase
Percentage
Increase

400

$71.08$79.87$8.7912.4%
1,000$158.40$176.74$18.3411.6%
*5,000$576.84$639.82$62.9810.9%
*10,000$1,153.70$1,279.64$125.9410.9%
*50,000$4,670.54$5,256.56$586.02
12.5%
*100,000$9,215.09$10,362.31$1,147.2212.4%
*1,000,000$88,147.01$98,847.02$10,700.0112.1%

*Assumes a 50% load factor

We recognize that our rate increase will impact our customers during a period when other prices are also increasing.  NorthWestern Energy is committed to helping customers who may be struggling with their bills.

What can I do to manage my bill?

If you're concerned about paying your bill, reach out to us right away. We have billing and payment options that can help.

Payment Assistance

If you are worried about your ability to pay a higher energy bill, there are payment assistance programs available.

Budget Billing

With Budget Billing, your NorthWestern Energy bill is the same amount each month, year round.

Payment Arrangements

We can also explore a payment arrangement if your account qualifies. Log in to your My Energy Account for payment and billing program information. Or call our Customer Service Team at 800-245-6977 to discuss additional options.

Service & Payment Locations

Our walk-in Customer Service locations are available for in-person assistance. Find the office nearest you.

BE ENERGY EFFICIENT

Save money by being more energy efficient. Check out our top-10 low-cost or no-cost tips for energy efficiency.

Understanding your bill

Learn more about the separate pieces that make up your bill and what they all mean.

We are strengthening our energy infrastructure

Our recent South Dakota Rate Review will ensure our customers will continue to be served by a financially sound company capable of efficiently funding the significant capital expenditures needed to maintain, expand and modernize our energy infrastructure.

Since 2014, NorthWestern Energy has invested $267 million in our South Dakota electric infrastructure to continue our commitment to providing reliable, sustainable energy service at the most affordable rates possible to our customers. 

These investments include:

Bob Glanzer Generating Station

The 58-megawatt Bob Glanzer Generating Station in Huron was commissioned in May 2022, providing on-demand resources to support the variability of wind and solar projects coming onto NorthWestern Energy’s system and to help serve our South Dakota customers affordably and reliably during extended periods of peak energy demand.

Upgraded Meters

NorthWestern Energy replaced all electric meters in South Dakota, which were manually read, with two-way communicating Advanced Metering Infrastructure meters. NorthWestern Energy now has situational awareness from meter data, which can be used to identify issues on the system before there is an outage. Customer experience will be elevated through the expanded use of the AMI platform in the future.

LED Streetlights

NorthWestern Energy’s 17,000 streetlights in South Dakota are being converted to LED lights over the next several years, which use 50% less electricity and last longer. LED lights increase safety at night through greater visibility and fewer streetlight outages.

Annual Inspections

Distribution poles and underground cable are inspected annually and those not meeting condition standards have been replaced.

Improved Service Reliability

Advanced Distribution Management System software was implemented to improve service reliability.

System Upgrades

Substations, transmission systems and switchyards are frequently upgraded.

Track your energy use in My Energy Account

With My Energy Account, you can visually track your energy use, month-to-month and year-over-year. Understanding your energy use can help you develop habits to save energy and money.