July 10, 2018

Xcel Energy customers in South Dakota will receive a rebate on their bills as a result of the Federal Tax Cuts and Jobs Act.

The company plans to distribute $10.9 million to customers in the state, according to a news release issued by the company.

Customers will receive a one-time credit on their bills. The estimated refund for a residential customer will average $55.73 but will vary based on each customer’s actual usage.

“We are pleased to deliver the tax reform benefits to our South Dakota customers that will directly benefit them and the economy as a whole,” said Chris Clark, president, Xcel Energy-South Dakota. “The savings from the tax cut will also enable us to continue investing in important projects for the future — projects that result in better levels of service for customers and provide the benefits of a modern electric system at a lower price.”

According to the company, it’s projected to save $10.9 million this year after its tax rate dropped from 35 percent to 21 percent under the federal legislation.

The South Dakota Public Utilities Commission staff and Xcel Energy filed a joint motion with the commission asking for approval to distribute the money to customers. The PUC approved the request Tuesday.

As an additional part of the agreement, South Dakota customers will not see any increases in their base electric rates until at least Jan. 1, 2021, which is the earliest any future rate reviews could take effect.