(The Center Square) – South Dakota’s average electricity prices are 30th in the country, trailing all of its neighboring states with the exception of Minnesota, according to a report.
South Dakotans pay an average of 10.43 cents per kilowatt hour, according to the Energy Affordability Report published by the American Legislative Exchange Council, a nonprofit organization of state legislators.
The only neighboring state with higher electricity prices is Minnesota at 11.08 cents per kilowatt hour, the report said. Meanwhile, three other neighboring states are in the top ten for most affordable electricity: Wyoming, North Dakota, and Nebraska. Montana and Iowa are in the top 20.
Government policies and mandates were associated with more expensive electricity costs. However, South Dakota did not have any of the three common policies the report found typically drive prices up. South Dakota avoids imposing a Renewable Portfolio Standard and similarly does not have a Regional Greenhouse Gas Initiative or state-mandated net metering.
“The overall data shows that states that have implemented an RPS or carbon tax can also be causal in leading to higher prices over time. Previous data showed that states could have up to an 11% increase in electricity costs due to the implementation of an RPS alone,” wrote report author Joe Trotter, who serves as ALEC’s Energy, Environment, and Agriculture Task Force director.
Aside from how states choose to regulate electricity, other factors can determine cost including how the electricity is generated and delivered to consumers, the report said.
Gasoline and diesel prices were also examined. South Dakota fared slightly better with its gas prices, though every state was impacted by inflated crude oil prices, according to the report.
The average price for gas in South Dakota is $3.30, 22nd overall, the report said. With South Dakota drivers covering about 15,541 miles per year, they can expect to spend approximately $2,048 on gas this year, according to the report.
The state performed its best for diesel prices, where it ranked in the top ten most affordable states.
Diesel fuel in South Dakota costs $3.90 plus a $0.30 tax at the time of the report. A trucker in South Dakota could expect to spend an average of $27,006 on diesel in 2023.
The most affordable state for diesel was Oklahoma where truckers will spend an average of $25,525 on diesel fuel. Meanwhile, the most expensive state for diesel is Hawaii where truckers will spend an estimated $40,977 on it this year, the report said.
