South Dakota

Energy Efficiency Standards

South Dakota does not have a statewide energy efficiency portfolio standard for electric or natural gas utilities. The state has a voluntary "renewable, recycled and conserved energy objective," which sets a goal of obtaining 10% of the state's electricity through renewables, recycled energy and energy efficiency by 2015, but this is a nonbinding statement of a policy objective rather than a mandate.

Resource Planning

South Dakota requires electric utilities to submit a 10-year plan on a biennial basis.  The plan must include a statement of efforts made toward "efficient load management."

Rate Structures & Incentives

Cost Recovery

The South Dakota Public Utilities Commission can use costs, revenues, cost of capital and other factors in determining a utility's rate case. The commission approves energy efficiency cost recovery riders for utility tariff sheets on a case-by-case basis.

Lost Revenue Recovery

Lost revenue recovery for energy efficiency programs in South Dakota is handled on a case-by-case basis. Northwestern Energy was approved for a lost revenue recovery mechanism for both gas and electric programs in its 2009 plan, 2012 plan and subsequently in its 2017 plan.

Utility Incentives

The commission may approve incentive rates to encourage the performance and efficiency of public utilities in the form of pre-approved rate models that go into effect as levels of performance are reached. Utility incentive mechanisms have been approved as part of a number of utility efficiency plans.

Noncompliance Penalties

There is no mandatory energy efficiency standard. The state's renewable, recycled and conserved energy objective is voluntary, and as such, there is no penalty for noncompliance.

Stakeholder Collaboration

There is not an identified statewide stakeholder collaborative process for utilities engaged in energy efficiency programs in South Dakota.

Program Evaluation

Cost-effectiveness Testing

There is a statutory requirement for cost-effectiveness testing of energy efficiency, but it does not specify the test to be used or any other parameters of that testing. The choice of cost-effectiveness tests for energy efficiency programs in South Dakota is determined by the utility filing.

Net vs. Gross

Net vs. gross revenue is reviewed on a case-by-case basis in South Dakota. In MDU's 2009 natural gas plan, they measure only gross energy savings. In NWE's 2012 gas and electric plan their evaluation scope of work includes the measurement of the effect of both free riders and spillover. MidAmerican Energy’s 2018-2022 plan proposes reporting only ex-post and ex-ante gross energy savings.

Technical Resource Manual

South Dakota does not have a statewide Technical Resource Manual for energy efficiency program design and evaluation. Utilities determine their own evaluation methodologies and measure savings values.

State Energy Plan or Vision

The South Dakota State Energy Plan is implemented by the State Energy Management Office. The stated goal of the Plan is "to promote energy efficiency and energy cost savings by helping South Dakota’s institutions implement cost-effective energy efficiency improvement measures."

State Agency Energy Reduction Requirement

South Dakota does not have a specific energy reduction requirement for state agencies.

EE in New State Buildings

South Dakota requires any new or renovated state building that contains an HVAC system must achieve LEED Silver, "two globes" under the GBI Green Globes rating system or another comparable high performance building rating.

Key Policymaker Contacts