Wyoming PSC approves first rate increase for Black Hills Energy customers in 15 years
Black Hills Energy customers in Wyoming will soon see their gas rates rise, following approval of an average $11.54 per month per customer increase by the Wyoming Public Service Commission (WPSC).
The move will offset $6 million in costs incurred by Black Hills over the last three years, following purchase of the northwest area system in 2015. In that time, they have set about replacing, upgrading and maintaining 620 miles of natural gas transmission and distribution lines that service its 7,200 customers in northwest Wyoming.
“Natural gas remains an excellent value and we are committed to controlling costs and making responsible investments that ensure we continue to deliver the safe, reliable natural gas our customers have come to expect, when they need it, where they need it,” Shirley Welte, vice president of natural gas and electric operations for Black Hills Energy, said.
Black Hills Energy representatives said that the rate increase would not affect the cost of the natural gas delivered to them. The natural gas commodity cost is a direct pass-through to customers, meaning there is no markup or profit. The new plan will take effect in September, at which time the residential increase will be reflected, while commercial customers will vary in their increased costs. Further, the company will now measure its monthly gas usage by therms instead of volume.
