South Dakota electricity rates
As of May 2026, the average residential electricity rate in South Dakota is 15.73 cents per kilowatt-hour, 14.7% below the U.S. average of 18.44¢. That is the 31st highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +9.8% from 14.33¢ in May 2025
- Vs. U.S. average
- -14.7% U.S. average 18.44¢
- National rank
- #31 of 51 · #21 cheapest
- Supply market
- MISO / SPP Regulated monopoly
Why South Dakota pays what it pays
South Dakota has good generation fundamentals: federal hydropower from the Missouri River dams, a strong wind resource, and no expensive mandates. What it does not have is customer density. Fewer than a million people are spread across seventy-five thousand square miles, and someone has to pay for the poles and wire between them.
That fixed-cost-per-customer problem is the main reason South Dakota sits above North Dakota, Nebraska and Iowa despite similar generation. It also explains why the state's rate rose faster than its neighbours'. When capital spending rises, there are fewer customers to spread it across.
Federal hydro allocations through the Western Area Power Administration remain a genuine advantage, particularly for the co-operatives and municipal systems that hold them.
How South Dakota compares
South Dakota ranks #31 of 51 jurisdictions by residential price, making it the 21st cheapest. Within the West North Central division, 5 of 6 neighbouring states are cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Nebraska | 13.59 | +3.3% | #48 |
| North Dakota | 13.61 | +3.9% | #46 |
| Missouri | 13.68 | +5.1% | #45 |
| Iowa | 14.14 | -0.1% | #43 |
| Kansas | 15.13 | +2.7% | #34 |
| South Dakota | 15.73 | +9.8% | #31 |
| Minnesota | 16.95 | +7.0% | #22 |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.
What a bill looks like at this rate
The figures below apply the May 2026 South Dakota average to four usage levels. They are arithmetic, not quotes. A real bill also carries fixed customer charges, taxes and any rider specific to your utility.
Estimate your South Dakota bill
Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
Who sells electricity in South Dakota
Black Hills Energy serves the southwest including Rapid City, NorthWestern Energy the southeast including Sioux Falls, and Otter Tail Power parts of the northeast. Rural electric co-operatives cover most of the state's land area.
South Dakota has no residential retail choice. The Public Utilities Commission regulates the investor-owned utilities. Co-operatives are governed by their own member-elected boards and are not rate-regulated by the state.
What you can actually do about it
Because co-ops are self-governed, members have a direct route to influence rates that customers of investor-owned utilities do not: board elections and annual meetings. Turnout is typically very low.
Off-peak and dual-fuel heating rates are widely available from South Dakota co-ops and are among the largest discounts offered anywhere in the Midwest.
Closest states by price
These jurisdictions charge within a fraction of a cent of South Dakota, which is useful if you are comparing a move or a multi-state operating cost.
South Dakota electricity rates: common questions
What is the average electricity rate in South Dakota?
The average residential electricity rate in South Dakota is 15.73 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -14.7% relative to the national average of 18.44¢/kWh.
How much is a typical monthly electric bill in South Dakota?
At the May 2026 average rate of 15.73¢/kWh, a household using 900 kWh a month would pay about $142, and one using 1,500 kWh about $236. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
Have electricity rates in South Dakota gone up?
South Dakota rates rose 9.8% over the year to May 2026, from 14.33¢ in May 2025 to 15.73¢.
Can I choose my electricity supplier in South Dakota?
Regulated monopoly. South Dakota households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.
Where does this South Dakota rate figure come from?
It is the residential-sector average revenue per kilowatt-hour reported by utilities to the U.S. Energy Information Administration on Form EIA-861M and published in the Electric Power Monthly, Table 5.6.A. It blends supply and delivery across every residential customer in the state, so it is a statewide average rather than a quote for any individual household.