The South Dakota Public Utilities Commission approved a rate increase for NorthWestern Energy’s natural gas customers in South Dakota during their meeting this week (Dec. 17, 2024) in Pierre.
The new rates will go into effect Thursday (Dec. 19, 2024) for natural gas customers in the company’s South Dakota territory.
PUC Chairperson Kristie Fiegen says NorthWestern’s initial “ask” was to generate approximately $6 million in additional annual revenue. She says the parties agreed on a nearly $4.6 million ($4,599,335) increase.
Fiegen says a residential customer using an average of 100 therms of natural gas per month would see a $6.47 increase in their monthly bill. She says the approved settlement includes many terms designed to balance the interests of NorthWestern Energy and their South Dakota customers.
Additionally, the two entities agreed to raise the residential customer service charge by $2.00 per month, as well as approving a rate moratorium preventing the NorthWestern Energy from requesting an increase in base rates that would take effect before Jan. 1, 2028.
NorthWestern Energy submitted its application to the PUC on June 21, 2024. The rate approved was presented in a settlement stipulation offered jointly by NorthWestern Energy and PUC staff. NorthWestern Energy requested a 9.1% total bill increase. The PUC authorized a 7% increase instead. The company’s last base rate increase for natural gas customers was filed in May 2011 (May 20, 2011).
The full docket can be viewed on the PUC’s website at puc.sd.gov, Commission Actions, Natural Gas Dockets, 2024 Natural Gas Dockets, NG24-005 – In the Matter of the Application of NorthWestern Energy Public Service Corporation dba NorthWestern Energy for Authority to Increase Rates for Natural Gas Utility Service in South Dakota.
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