South Dakota utility regulators have given the green light to the merger of Black Hills Energy and NorthWestern Energy in a unanimous decision made in Pierre. This merger leads to the creation of Bright Horizon Energy, a utility giant with a projected value of $15.4 billion, serving 2.1 million customers across eight states. The decision aligns with state law, which favors merger approval unless significant customer impacts are identified. Public Utilities Commission Chairman Chris Nelson emphasized that the approval process is dictated by legislative standards.
Regulators also approved two negotiated settlements to address customer protection and labor concerns. One settlement ensures South Dakota customers are not charged for executive “golden parachutes” and other merger costs. It also restricts rate increases and mandates the new company’s headquarters remain in Rapid City for at least ten years, with a corporate office near Sioux Falls for five years. The other settlement prioritizes union and local contractors for future projects.
Frank Kloucek, the Democratic candidate for the Public Utilities Commission, criticized the merger, labeling it a “super monopoly.” He expressed concerns over insufficient time for public input during the commission’s meeting, which took place after the vote.
Announced in August, the merger aims to diversify energy sources, cater to rising energy demands from data centers, and offer investor benefits. NorthWestern Energy currently serves 65,600 electric and 51,200 natural-gas customers in South Dakota, whereas Black Hills Energy serves 78,976 electric customers in the state. Among the states included in the merger, only Montana has yet to approve it.
