Rising energy costs are leading to rate increases from many electric and gas utilities.

South Dakota Public Utilities Commissioner Gary Hanson says they have to look at utility costs and what the law allows in rate hike cases.

Hanson says utilities are allowed to increase rates to cover most of their increasing fixed costs.

Hanson says they compare rate requests with other regulators across the country.

Hanson says investor-owned utilities are allowed to pass through increasing costs of raw energy products to their customers.