Black Hills Energy bills to increase; reflect one-time credit
by October 3, 2024 10:13 am 221 views
Arkansas customers of Black Hills Energy will see natural gas bills rise because of a rate hike starting with October billing, the company said Wednesday (Oct. 2). The average residential customer using 53 ccf (hundred cubic feet) will see bills rise by about $10 monthly.
Customers of the Rapid City, S.D.-based utility will also see a one-time bill credit of about $10.15 in January. This is part of a plan to refund Arkansas customers over $2.7 million because of state income tax reductions.
The Arkansas Public Service Commission approved the plan and a general rate adjustment for Black Hills Energy as it invests in infrastructure to meet rising energy demand while supporting the continued operations of the Arkansas natural gas system. The rate adjustment resulted from a unanimous settlement agreement with the Arkansas Public Service Commission general staff and the Office of the Arkansas Attorney General Tim Griffin.
The release shows the bill increase for commercial customers will vary based on rate class, load factors, and usage.
Black Hills Energy previously requested a rate change in 2021. Since then, the company said it has invested about $130 million in infrastructure in the state.
The investments meet federal safety and reliability regulations and support an increase in energy demand, “particularly with rapid development in the Northwest Arkansas region and industrial growth in Northeast Arkansas,” the release shows. “Reliability projects have included pipeline replacement with lower-emitting materials, exchanging meters with advanced technology and increasing natural gas capacity in growing communities. Additionally, safe digging education and enforcement support remain priorities to meet safety goals.”
The company noted that this rate increase does not affect the cost of natural gas, which is adjusted twice annually in Arkansas and passed through to customers without any markup from Black Hills Energy. Link here for more information on the rate change.
Black Hills Energy sells natural gas to more than 186,000 Arkansas customers in more than 100 communities and has 8,000 miles of transmission and distribution pipelines in the state. The company has 1.34 million natural gas and electric utility customers in eight states.
Black Hills shares (NASDAQ: BKH) opened Thursday at $60.51. During the past 52 weeks the share price has ranged between $61.96 and $46.61.