Xcel Energy Granted Permission for Continued Special Fees and Transmission Cost Recovery in South Dakota

Xcel Energy has received approval from the South Dakota Public Utilities Commission (PUC) to continue charging customers a special fee through 2025 to promote energy efficiency.

The decision allows the company to maintain its incentives for energy-saving practices, while discussions remain about offering consumers more control over their electricity usage.

PUC Chairperson Kristie Fiegen suggested that customers should have the option to manage their energy use in more flexible ways, potentially reducing the need for a general fee.

Xcel’s Steve Kolbeck emphasized the role of technology and apps in helping customers better understand and control their energy consumption.

Additionally, the PUC approved the continuation of Xcel’s transmission cost recovery program, which charges customers to cover the costs of building and maintaining electrical transmission systems.

Commissioner Chris Nelson raised concerns about the growing costs, urging Xcel to find alternatives as transmission projects increase, particularly with the possibility of costs being passed on to South Dakota customers for power sent out of state.

Xcel’s management agreed that improvements are needed to ensure that all stakeholders benefit fairly from the transmission system.