Energy Deregulation in South Dakota
Deregulated energy services: Only natural gas.
Deregulated gas service territories: None, deregulation enacted but not being applied as of 2022.
South Dakota’s natural gas industry has been deregulated since 2005. The South Dakota Public Utilities Commission regulates gas delivery, but wholesale prices are determined by supply and demand in a free market.
Wholesale gas purchases appear on your bill under the name of Purchased Gas Adjustment, and they are billed directly with no markup. Gas utilities cover their operating costs and infrastructure investments with the base rates, which are separate from the PGA.
There are three investor-owned utilities that deliver gas in South Dakota: MidAmerican Energy, North Western Energy, and Montana-Dakota Utilities Company (MDU). Their delivery rates are regulated by the South Dakota PUC.