PIERRE, S.D. (KELO.com) — A legislative battle is heating up in Pierre between municipal electric utilities and rural electric co-operatives over a law that allows cities to take over rural electric customers and infrastructure when annexations take place
Rural electric cooperatives are angered by what they say is the unfair loss of tens of millions of dollars’ worth of potential revenue due to the unilateral taking of parts of their service territories and customers by growing cities that annex new lands and homes — a process now legal under state law.The co-ops are supporting a bill that would give them more rights when cities expand and take customers and revenues away from the rural providers. They say the loss of customers could lead to higher rates for rural residents.
Municipalities say the existing law is working and helps them attract development to annexed land. They are fighting the bill, arguing that adding uncertainty to provision of utility services in annexed land will hamper attempts to lure new development, including major employers.
In the latest piece published by South Dakota News Watch, available here, reporter Nick Lowrey breaks down the complicated debate and provides all sides of the issue.
