In a recent decision by the South Dakota Public Utilities Commission, Xcel Energy is being directed to phase out a special monthly surcharge used to fund energy efficiency incentives for electricity customers by the end of 2025. The program will continue for another year, but with modifications.
The commission’s chair, Kristie Fiegen, emphasized that, moving forward, Xcel should allow residential and business customers to have more control over when and how they reduce their energy usage.
The commission initially saw differing opinions: Commissioner Chris Nelson supported continuing the program into 2025, excluding certain incentives like those for horticultural LED lighting and water heating heat pumps.
Commissioner Gary Hanson wanted to keep incentives for heat pumps. Ultimately, the commission approved the 2023 report and the 2024 performance incentive before agreeing to continue the program for another year in 2025.
Additionally, the commission approved Xcel’s transmission cost recovery package but cautioned that South Dakota customers should not bear the costs of transmitting electricity to other states. The commission stressed the need for oversight on how this cost is managed.