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ElectricityRatePerKWh

Electricity Rate in South Dakota (2026): 15.73c/kWh Average

The EIA residential electricity price in South Dakota is 15.73 cents per kWh as of May 2026, 2.71c below the US average of 18.44c/kWh. The South Dakota commercial rate is 11.78c/kWh and the industrial rate is 9.78c/kWh (EIA Electric Power Monthly, Table 5.6.A).

Residential Rate
15.73¢
per kWh
vs US Avg
-15%
2.71c below
Avg Monthly Bill
$134
998 kWh
Provider Choice
No
Regulated monopoly

South Dakota Electricity Rate: What You Need to Know

South Dakota electricity averages 15.73 cents per kWh for residential customers as of May 2026, according to the EIA Electric Power Monthly. This is 2.71c below the US average of 18.44c/kWh. The average monthly bill for South Dakota households is $134 based on typical usage of 998 kWh.

South Dakota gets more of its electricity from wind than almost any other state - wind turbines generate roughly 59% of in-state output, with hydropower from the big Missouri River dams (Oahe, Big Bend, Fort Randall, and Gavins Point) supplying about 21%, natural gas near 11%, and a shrinking coal share around 8%. That heavy wind-and-hydro base, both with essentially no fuel cost, is a big reason South Dakota's 15.73c/kWh rate (May 2026) sits below the US average of 18.44c. The market is regulated with no residential retail choice: Black Hills Energy serves the Rapid City area and the west, NorthWestern Energy serves the east around Sioux Falls, Otter Tail Power serves the northeast, and East River Electric Cooperative wholesales to rural distribution co-ops, all overseen by the South Dakota Public Utilities Commission. A major structural change is underway: in August 2025 Black Hills Corporation and NorthWestern Energy announced an all-stock merger valuing the combined utility at about $15.4 billion, a deal that still needs regulatory approval. South Dakota's relatively high average usage of 998 kWh per month - cold winters plus summer cooling - keeps the typical bill near $134 despite the low per-kWh price.

Generation mix: Wind 59%, hydro 21%, natural gas 11%, coal 8%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.

Year-over-year change: South Dakota rates rose 9.8% year-over-year as of May 2026. This compares to the US average increase of 6.2% over the same period.

Regulated: You Cannot Switch Electricity Suppliers

Black Hills Energy / Otter Tail Power operates as the regulated utility in South Dakota. Retail electricity choice is not available for residential customers. Options for reducing your bill include: time-of-use rate optimization, energy efficiency upgrades, and rooftop solar.

Your South Dakota Electricity Bill Components

Energy charge (998 kWh x 15.73c)$156.99
Fixed customer charge (estimated)~$10.00
Estimated monthly total$166.99
South Dakota Rate by Sector - May 2026
Residential (US 18.44c)15.73c
Commercial (US 13.54c)11.78c
Industrial (US 8.71c)9.78c
Source: EIA Electric Power Monthly, Table 5.6.A.
Dominant Utility
Black Hills Energy / Otter Tail Power
Adjacent States
North Dakota13.61c
Minnesota16.95c
Nebraska13.59c
Montana14.67c
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South Dakota Electricity: Frequently Asked Questions

What is the electricity rate in South Dakota in 2026?+
The average residential electricity rate in South Dakota is 15.73 cents per kWh as of May 2026, according to the EIA Electric Power Monthly. This is 2.71c below the US average of 18.44c/kWh (-15%). The average monthly electricity bill in South Dakota is approximately $134 based on 998 kWh typical monthly usage.
What is the commercial electricity rate in South Dakota?+
The average commercial electricity rate in South Dakota is 11.78 cents per kWh as of May 2026, according to the EIA Electric Power Monthly (Table 5.6.A). That compares with the US commercial average of 13.54c/kWh. Commercial rates apply to businesses, offices, schools, and retail. They are usually lower per kWh than residential rates, but a commercial bill can still be much larger because of higher volume and demand charges.
What is the industrial electricity rate in South Dakota?+
The average industrial electricity rate in South Dakota is 9.78 cents per kWh as of May 2026, according to the EIA Electric Power Monthly (Table 5.6.A), versus a US industrial average of 8.71c/kWh. Industrial customers such as factories, manufacturers, and large facilities pay the lowest per-kWh price of the three EIA sectors because they buy power at high volume, often at higher voltage, under demand-based rate structures.
Can I switch electricity providers in South Dakota?+
No - South Dakota operates a regulated electricity market. Black Hills Energy / Otter Tail Power serves as the regulated monopoly utility. Customers cannot switch electricity generation suppliers. Options for reducing bills include time-of-use rate optimization (where available), energy efficiency upgrades, and solar installation.
What is the average monthly electricity bill in South Dakota?+
The average South Dakota household uses approximately 998 kWh per month. At 15.73c/kWh plus approximately $10 in fixed charges, the average monthly bill is $134. This varies by season (higher in summer for cooling-dominant states like Florida, higher in winter for heating-dominant states).
What is the primary electricity source in South Dakota?+
South Dakota's generation mix is primarily Wind 59%, hydro 21%, natural gas 11%, coal 8%. This fuel mix is a key factor in the state's electricity rate - states relying on hydro or nuclear typically have lower rates, while states heavily dependent on natural gas or petroleum (like Hawaii) face higher costs.
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