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Utilities regulator approves increased natural gas rates

The South Dakota Public Utilities Commission meets at the state capitol in Pierre, SD.

This week the South Dakota Public Utilities Commission approved MidAmerican Energy's first natural gas rate hike in eight years.

Approximately 100,000 southeastern South Dakotans' bills will increase by about $4.

The commission regulates the amount utility providers can charge customers for transportation and operational costs. Those rates will increase 20.1%, resulting in a 5.4% total increase in the average customer’s bill.

A map of southeastern South Dakota showing city locations and gray service areas around those locations. Locations and areas represent places served by MidAmerican Energy.
MidAmerican Energy Company
MidAmerican Energy serves several communities in southeastern South Dakota with natural gas.

The increase is needed to due to recent infrastructure investments in the state, the company told the commission Tuesday.

“The main driver of those projects is reliability and safety,” said MidAmerican executive Nick Nation. They are not revenue-producing projects.”

Those improvements include replacing failing meter technology and pipelines.

The company originally asked for a 6.4% total increase in May 2022. Through negotiations with PUC staff, the company agreed to a lower rate.

It also agreed to a three-year moratorium on rate increases, and to reimburse customers with statement credits until all 2023 improvements have been completed.

“In this rate case, the company asked for a little over $7 million,” said Commissioner Chris Nelson. “Over the last year, PUC staff has very, very diligently picked through every one of their expenditures and has pared that down to the absolute minimum required by law.”

The new rates will affect usage after April 1.

The full docket can be viewed at the PUC website.

Slater Dixon is a junior at Augustana University studying Government and Data Science. He was born in Sioux Falls and is based out of SDPB's Sioux Falls studio.