Fergus Falls, MN – On Tuesday, the South Dakota Public Utilities Commission (PUC) approved updated electric rates for Otter Tail Power Company’s South Dakota customers.
The new rates will take effect April 1, 2026. The approved rates reflect an annual net 7.74% base revenue increase, or $3.33 million. Despite this change, Otter Tail Power says its South Dakota residential rates remain approximately 35%
lower than the national average and about 11% lower than the regional average
As part of its rate review, the company implemented interim, or temporary, rates for its South Dakota customers beginning December 1, 2025. Because final rates are lower than interim rates, customers won’t see an additional increase and will receive a refund of the difference with interest. This refund will appear as a credit on May 2026 bills.
Otter Tail Power says the approved rates reflect the costs of maintaining and operating the electric system, including investments needed to support system reliability and prepare for future demand.
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