Black Hills bills rise next month

South Dakota residents will pay more for electricity starting December 1. The Public Utilities Commission approved a settlement that adds $16.34 to the average monthly bill for a household using 650 kilowatt-hours. The change raises Black Hills Energy's annual revenue by over $27 million.

The utility originally sought a $50.6 million annual increase. Regulators negotiated the figure down by roughly 46 percent. As part of the deal, Black Hills Energy agreed to a four-year moratorium. No further base rate increases are permitted before August 2030.

The company attributed the cost hike to rising operating expenses, infrastructure investments, capital improvements, and financing costs. Officials described the approval as a resolution to the rate case after months of review.

This is the first base rate increase for the utility since 2015. Customers who paid interim rates since August will receive refunds with interest. The refunds cover the difference between those temporary charges and the final approved rates.

The commission signed off on the agreement on November 6. The new rates apply to all residential customers in the service territory. The settlement concludes the current rate proceeding.