Support Small Independent Renewable Energy Producers in SD

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The South Dakota Public Utility Commission is requesting public comments on whether or not they should draft rules regarding “Avoided Costs” for electricity purchased by Utilities by facilities that can include small renewable energy owned by individuals.

We urge you to write the PUC and express your support for rule making today. It can be as simple as the comment below:

“I am writing in favor of the SD PUC making rules for avoided costs as they impact small independently owned distributed generation renewable energy facilities.”

Submit comments to:

Karen Cremer,,
and/or physically mailed to the PUC at
Public Utilities Commission
Capitol Building, 1st floor
500 E. Capitol Ave.
Pierre, SD 57501-5070


“The Public Utility Regulatory Policy Act (PURPA) was passed in 1978. One of the most important effects of the law was to create a market for power from non-utility power producers, which now provide 7 percent of the country’s power. Before PURPA, only utilities could own and operate electric generating plants. PURPA required utilities to buy power from independent companies that could produce power for less than what it would have cost for the utility to generate the power, called the “avoided cost.” From Union of Concerned Scientists.

In their discussion, the SD PUC has many questions regarding writing the rules around avoided costs, starting with if their rule would impact small distributed generating renewable facilities or restricting larger facilities.

Largely the Commission is interested in input from people about if this is something they should move forward with. If they open the rulemaking, there will be additional opportunities to comment on the areas they should address and what the rule should do.

For more background information go to the PUC website on this issue.