Xcel's South Dakota customers to pay more for electricity under proposed settlement

Agreement allows Minneapolis-based utility to hike rates on east river customers for second time in four years

Clarification: Xcel’s rate hike will not impact customers of East River Electric Power Cooperative, a separate utility company. That was not clear in an earlier version of this article.

Tens of thousands of east river residents will see their monthly electric bills rise should state regulators approve a utility company’s rate increase request.

The South Dakota Public Utilities Commission is scheduled to take up an ongoing rate increase application first filed on June 30, 2025, by Minneapolis-based Xcel Energy during its May 8 regular meeting.

Xcel’s rate increase request comes as neighboring Minnesota works to convert its energy grid to 100 percent carbon-free by 2040, which a lone intervenor in the matter said would come at a cost for South Dakotans. PUC staff, meanwhile, have also pointed to Minnesota policies increasing rates for South Dakota residents.