MITCHELL, SD (Mitchell Now) — South Dakota continues to see relatively low electricity costs compared to much of the country, even as national rates have climbed at the fastest pace in recent years. Public Utilities Commission Chair Chris Nelson said rate increases in the state have remained modest.
“The rates have gone up 6.8% in the last four years. General inflation [has] gone up 19%,” Nelson said. “We’ve done […] a really good job here of keeping a lid on electricity prices — one-third the rate of what general inflation is.”
Nationwide, electricity rates rose 34% between 2020 and August 2025, marking the steepest five-year increase in recent history.
Nelson noted that while South Dakota’s prices remain competitive, the rise of large, power-hungry data centers has raised concerns about future demand. State regulators continue to monitor how increased energy use could affect long-term electric rates and infrastructure needs.