The Nebraska Public Service Commission (PSC) in December issued an order approving a $23.9 million agreement in Black Hills Energy’s request to raise natural gas rates.
The decision allows Black Hills to increase its fixed-customer and distribution charges—the rates regulated by the PSC. The average impact to bills will be an additional $2.85 per month for residential customers, $5.34 per month for small commercial customers and $72.01 per month for large commercial customers, according to data presented to the PSC. The new rates will take effect Jan. 1.
Customers in the Black Hills’ regulated utility program and Nebraska Choice Gas Program are equally impacted by the increases in customer and distribution charges, with the exception of some customers on the Fixed Monthly Bill (FMB) price option. FMB customers pay a set monthly rate which includes customer and distribution charges. Some natural gas suppliers have notified their FMB customers of their new rates. ACE did not increase rates for its customers on FMB.
Black Hills initially sought a $34.9 million rate increase in an application filed May 1 with the PSC. Black Hills ultimately agreed to a smaller increase of $23.9 million—a reduction of about $11 million from its original request.
Black Hills and the Public Advocate presented details of the settlement to the PSC at a public hearing in October, leading to December’s order approving the agreement.
In August, Black Hills began charging customers increased interim rates that are higher than the final approved rates. The company must refund the difference between the interim rates and final rates, with interest, to customers. Black Hills will file a refund plan by March 1 for review and approval by the PSC.
