South Dakota Public Utilities Commission

The South Dakota Public Utilities Commission (PUC) is an elected three-member executive body serving the state of South Dakota. Under Title 49 of the South Dakota Codified Laws, the PUC regulates investor-owned electric, natural gas, and telecommunications utilities to ensure safe service and reasonable rates ^[1], . The commission also oversees the licensing and inspection of state public grain warehouses and grain buyers ^[1]. While it maintains broad authority over investor-owned entities, it has more limited jurisdiction over municipal utilities and cooperatives ^[1], . The agency operates with an annual budget of approximately $5.05 million for fiscal year 2025 ^[1]. Three commissioners lead the agency: Chairman Chris Nelson, Vice Chairperson Kristie Fiegen, and Commissioner Gary Hanson ^[2]. A professional staff of analysts and attorneys supports these elected officials in Pierre ^[2].

Historical Background

The entity originated in 1885 as the Dakota Territory Board of Railroad Commissioners ^[1], . After South Dakota achieved statehood in 1889, the state legislature continued the board as the Railroad Commission ^[1]. Originally an appointed body, the legislature converted the commission into an elected office in 1893 ^[1]. The first elections for the board occurred in 1894 ^[1], . Jurisdiction expanded in 1890 to include grain warehouses and again in 1909 to cover telephone and telegraph operations ^[13]. The legislature officially renamed the body the Public Utilities Commission in 1940 ^[1]. Major structural changes include the 1997 shift to staggered six-year terms for commissioners to ensure continuity ^[13]. Since 2003, Republican candidates have maintained a majority on the commission ^[1].

Current Events

In March 2026, Governor Larry Rhoden signed House Bill 1038 into law to regulate large-scale data centers ^[5]. This legislation allows the PUC to assess the actual costs of regulatory reviews directly to data center companies ^[3], . The law targets facilities with a peak electrical demand of 10 megawatts or greater ^[5], . Supporters, including Chairman Chris Nelson, argued that these 'cost-causers' should pay for specialized contract reviews rather than shifting costs to existing ratepayers ^[6], . During legislative testimony, Commissioner Fiegen noted that the PUC maintains the smallest staff of any utility commission in the country ^[6]. Additionally, the state has scheduled a general election for one commission seat on November 3, 2026 ^[2]. The incumbent for this seat is Gary Hanson ^[1]. Political parties will select their candidates at state conventions throughout June 2026 ^[2].