Release: South Dakota PUC approves merger of two investor-owned utility companies
South Dakota PUC approves merger of two investor-owned utility companies
PIERRE, S.D. – South Dakota Public Utilities Commissioners approved the merger of NorthWestern Energy and Black Hills Energy at their ad hoc meeting in Pierre yesterday, June 24. The panel heard from company representatives, PUC staff, and intervenors regarding two settlements resolving all issues, offered by the parties, and voted to grant approval of the merger.
“There are two key points I want the public to understand. First, going forward, the PUC will continue to regulate NorthWestern and Black Hills Energy individually—nothing about that responsibility changes. Second, it is important to understand what South Dakota law says about the PUC’s role in this type of proceeding. The statute directs that the commission shall approve mergers of this kind unless there is a likelihood of significant adverse impact to customers in this state. It doesn’t say we may or if we want to; it says we shall, and that distinction matters. Based on that language and the record before us, I believe approval of this merger is appropriate,” stated PUC Chairman Chris Nelson.
The commission received a joint application requesting approval of the merger on Oct. 27, 2025. Since that time, parties have engaged in extensive discovery and completed a thorough analysis. Through settlement discussions, settling parties agreed to a comprehensive set of commitments that address all concerns identified by PUC staff and provide meaningful protections for South Dakota customers. The settlement does not modify the rates, terms, or conditions under which NorthWestern or Black Hills Energy currently provide service.
“I am so grateful to PUC staff for really digging into this docket. When I first read the statute outlining our role, it appeared to set a fairly low bar. I’m thankful that our staff worked diligently to secure so many added benefits for South Dakota customers throughout this process,” said PUC Vice Chairperson Kristie Fiegen. “The extension of rate moratoriums, the assurance that shareholders—not customers—will cover merger‑related costs, and the confirmation that the companies will maintain a local presence and continue to operate and file for rates separately are meaningful additions that will benefit customers,” she added.
Under the terms of a merger agreement signed in August 2025, NorthWestern Group will become a direct subsidiary of Black Hills Corporation, which will be renamed Bright Horizon Energy Corporation upon closing. NorthWestern Energy Public Service Corporation will remain a direct subsidiary of NorthWestern Group and an indirect subsidiary of parent company Bright Horizon Energy Corporation. When the merger is finalized, the combined company will have an enterprise value of $15.4 billion and serve approximately 2.1 million customers across eight states.
“I am very pleased with this agreement and deeply appreciate the extensive work that all parties invested to reach this point. It is clear that it required significant collaboration and negotiation, and I commend you for crafting a historic agreement and a comprehensive package that truly benefits South Dakota,” remarked Commissioner Gary Hanson.
Laborers International Union of North America, Great Plains Laborer’s District Council, and South Dakota Laborers Local 620 were granted intervention in this proceeding and began actively participating in the docket in December 2025.
The full docket can be viewed on the PUC website at puc.sd.gov, Commission Actions, Gas & Electric Dockets, 2025 Gas & Electric dockets, GE25-001 – In the Matter of the Joint Application of NorthWestern Energy Public Service Corporation, Black Hills Corporation and NorthWestern Energy Group, Inc., for Approval of Merger.
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Minnehaha County Republican Chairman Korry Petterson said if wrongdoing is proven to have occurred, it should not be tolerated and felony convictions would result in Pischke no longer being allowed to participate in official county party functions.