In May of 2022, MidAmerican filed a request for a natural gas rate increase with the South Dakota Utilities Commission (SDPUC) to support the investment of more than $100 million in the natural gas distribution system in South Dakota. After almost a year of working with the SDPUC, a settlement was reached on March 28, 2023, authorizing a rate increase of $5.9 million, or 5.4%, effective on April 1, 2023. This percentage is an annual average based on all revenue classes in our service territory. The increase will support natural gas system improvement costs already invested and includes funding for planned infrastructure and safety improvements over the next two years. The projects will help serve a growing South Dakota customer base, relocate natural gas facilities to accommodate road work and help fund projects designed to enhance safety.
How much will my bill go up?
It’s important to remember that your gas bills have two parts: a supply charge and a delivery charge. This rate increase will affect the delivery portion of South Dakota customers’ gas bills increasing by 5.4% – the exact amount depends on the customer’s rate class or type of customer, such as whether you’re a residential, small business or large commercial customer. The delivery portion of your bill includes the basic service charge, meter charge, delivery charge and any rate-specific administration fees. The supply portion of your gas bill fluctuates based on market conditions and your usage, and is not affected by this rate increase.
When will I get by interim rate refund?
In November 2022, interim rates were implemented while the rate case was being reviewed by the SDPUC. Since the final rate increase is less than the interim rate increase, the difference will be refunded to customers for natural gas service consumed from November 15, 2022, through March 31, 2023. The refund will appear as a separate line and will be issued after May 1, 2023.
Will I be charged for infrastructure projects that haven’t been built?
No, a Capital Investment Phase-in Adjustment Clause will be applied to your bill for the purpose of phasing in the approved rate increase in multiple steps. This factor, which initially reduces your bill, will be in effect from April 1, 2023, until MidAmerican until MidAmerican completes and activates natural gas facilities currently under construction, through December 31, 2023. In addition, quarterly filings will update this factor to reflect the completion of new facilities, and MidAmerican will submit a final report for the SDPUC’s review no later than March 15, 2024.
For more information about rates, view MidAmerican’s Gas Tariffs for South Dakota