South Dakota law limits who can control electric facilities

The law bars prohibited persons from owning, operating, or controlling an electric facility. An electric facility includes infrastructure used to generate, transmit, or distribute electricity, but excludes on-site generation for private use. A prohibited person is an entity defined by state law or a person who is not a U.S. citizen and is a citizen of a country listed in state law. Small stock holdings do not count as ownership or control. An owner or operator may not make an agreement that gives a prohibited person direct or indirect control. A violating agreement entered into on or after July 1, 2026, cannot be enforced. A prohibited person who acquires an interest must give it up within one year. A facility is not invalidated or forfeited solely because a former owner or operator was not a U.S. citizen. A violating agreement entered into on or after July 1, 2026, cannot be enforced. An acquired interest must be given up within one year of acquisition.

The Public Utilities Commission may investigate alleged violations and seek enforcement in court. After notice of an alleged violation, the commission may investigate and, if it substantiates the allegation, may bring an action. The commission or a court-appointed receiver may ask the Hughes County Circuit Court to enforce forfeiture or divestiture of an interest, or to end a violating agreement. The court may appoint a receiver and set the receiver’s duties. The commission or receiver must prove a violation by the greater weight of the evidence. The action must be brought within three years after the first allegation is referred to the commission. The court may allow recovery of attorney fees and enforcement costs. An enforcement action must be brought within three years after the first allegation is referred to the commission.