RAPID CITY, SD – Black Hills Energy submitted a proposal to the South Dakota Public Utilities Commission on Feb. 19, 2026, requesting an update to its electric base rates to account for over a decade of infrastructure investments.

The filing marks the beginning of a formal regulatory process to review rates that have remained unchanged for more than 10 years. The utility provider, which serves 75,000 customers across its South Dakota territory, including Rapid City, is seeking to recover approximately $523 million in investments made since 2014.

According to the company, these funds were utilized to strengthen the electric grid, maintain system reliability, and implement measures to reduce wildfire risk. Black Hills Energy officials noted that these improvements have resulted in shorter and fewer power outages for local homes and businesses.

Data from 2024 shows that South Dakota customers experienced an average of 56.7 minutes of power interruptions. The Edison Electric Institute ranked the South Dakota utility as the 10th most reliable in the nation based on the System Average Interruption Duration Index.

If the South Dakota PUC approves the proposal, residential customers would see an average monthly bill increase of approximately $25, or about 25 percent. The company stated this reflects an average annual increase of 2 percent over the 12 year period since the last rate change.

“Our most important job is delivering the safe, reliable energy that our South Dakota customers depend on, and we’ve made necessary, prudent investments in our system over the past 12 years with that in mind,” said Wes Ashton, vice president of South Dakota and Wyoming utilities for Black Hills Energy. “We realize the impact higher energy bills will have on our customers, which is why we’ve worked hard to balance reliability with affordability, keeping our costs low and offering bill payment assistance programs for customers who need them.”

Interim rates are expected to go into effect in August 2026, while a final decision on the rates is anticipated in the first quarter of 2027.

The company also announced plans to file a similar rate review proposal with the Wyoming Public Service Commission in March for customers in the northeast region of that state.

For residents in Rapid City and surrounding areas facing financial difficulties, the utility highlighted several support options. These include energy assistance programs for income-qualified customers and energy efficiency resources designed to help reduce overall consumption. Customers experiencing challenges with their bills are encouraged to contact the company at 888-890-5554 to discuss payment arrangements.