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.
Where South Dakota power comes from
South Dakota generated 22 TWh in 2025, the 42th largest output of any state. Wind supplied 57.2% of it, enough that the price of that fuel largely sets the price of electricity here. Renewables accounted for 81.2%, against 23.8% nationally, which ranks South Dakota #2 of 51.
- Wind 57.2% 13 TWh
- Hydroelectric 21.9% 5 TWh
- Natural gas 9.7% 2 TWh
- Coal 9.1% 2 TWh
- Solar 2% 437 GWh
Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.
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 South Dakota households actually pay
South Dakota looks more expensive on paper than it is in practice. Its rate ranks #31 of 51, but the average bill ranks only 34th, because households there use 981 kWh a month against a national average of 871. See how every state compares on bills.
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.
Heating in South Dakota: gas, heat pump or resistance
Residential natural gas in South Dakota averaged $9.32 per thousand cubic feet in 2024, about $0.90 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.
In South Dakota, gas remains cheaper to run than a heat pump by about $5.38 per million BTU at these assumptions, roughly $323 over a 60 million BTU season. A heat pump can still be the better purchase once cooling, equipment age and incentives are counted, but not on heating cost alone.
Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.
What each South Dakota utility charges
The statewide average hides a wide spread. Across the 20 South Dakota utilities reporting to the EIA, rates run from 8.68¢ at MidAmerican Energy Co to 15.30¢ at Dakota Energy Coop Inc . Together they serve 347,840 residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| Northern States Power Co - Minnesota | 13.87 | $103 | 745 | 92,204 |
| Black Hills Power, Inc. | 14.37 | $110 | 767 | 60,951 |
| NorthWestern Energy | 12.56 | $113 | 903 | 51,467 |
| Sioux Valley SW Elec Coop | 12.94 | $160 | 1,239 | 22,213 |
| Southeastern Electric Coop Inc | 12.41 | $140 | 1,128 | 20,160 |
| West River Electric Assn Inc | 14.25 | $128 | 897 | 18,423 |
| Watertown Municipal Utilities | 9.30 | $80 | 856 | 11,633 |
| City of Brookings | 11.12 | $90 | 807 | 10,544 |
| Black Hills Electric Coop, Inc | 14.76 | $164 | 1,109 | 9,227 |
| Otter Tail Power Co | 10.93 | $112 | 1,023 | 9,048 |
| Central Electric Coop, Inc | 13.64 | $201 | 1,474 | 6,483 |
| Montana-Dakota Utilities Co | 14.59 | $122 | 833 | 6,367 |
| City of Pierre | 10.65 | $94 | 881 | 6,126 |
| Northern Electric Coop, Inc | 11.29 | $226 | 1,998 | 5,757 |
| Rosebud Electric Coop Inc | 10.63 | $116 | 1,092 | 4,856 |
| MidAmerican Energy Co | 8.68 | $94 | 1,083 | 4,236 |
| Dakota Energy Coop Inc | 15.30 | $246 | 1,609 | 3,224 |
| City of Madison | 11.49 | $114 | 989 | 2,802 |
| City of Volga | 12.80 | $115 | 899 | 1,075 |
| Nebraska Public Power District | 9.73 | $122 | 1,255 | 1,044 |
Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.
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.
South Dakota sits in The Midwest. A single wholesale market stretching from Manitoba to the Gulf, containing both the cheapest wind states and some of the highest delivery costs in the country. Read the regional analysis.
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 the average monthly electric bill in South Dakota?
The average South Dakota household paid $138 a month across the twelve months to May 2026, using an average of 981 kWh. That is -11.4% against the U.S. average bill of $155, and it ranks 34th highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.
Why is the South Dakota bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. South Dakota ranks #31 of 51 on price but 34th on the actual bill, because households there use about 981 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
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.