Black Hills Energy approved for rate hike, refunds by Nebraska regulators

As of March 1, Black Hills Energy will increase its rates by $10.7 million to cover investments in safety, reliability, and system integrity for its natural gas service in Nebraska.

The result will be monthly bill increases of around $4.02 for average residential customers and a more variable commercial rate, based on rate class and usage. Those rates could have been higher, as Black Hills Energy had requested a hike of $17.3 million on its initial application in June last year, but the Nebraska Public Service Commission $6.6 million off that request.

It results from the company’s first rate review request in nearly a decade. Despite this, it had invested more than $450 million in its infrastructure since the last review, leading to replacements, upgrades, and maintenance of more than 500 miles of natural gas transmission and distribution lines in the state. According to Black Hills Energy, this led to 33 percent reductions in greenhouse gas emissions intensity in the pipeline since 2005.

“Our customers expect safe, reliable, and affordable natural gas service in our growing system. To meet those expectations, we have invested, and will continue to invest, in our infrastructure, which features a robust pipeline safety program,” Kevin Jarosz, vice president of natural gas operations for Black Hills Energy in Nebraska, said. “This change in our service rates enables us to continue our investments and allows us to meet the needs of our thriving Nebraska communities.”

Proposed rates had been implemented, subject to refund, on Sept. 1, 2020. Since there is a difference between the two rates, the refund will be initiated as a credit on customers’ monthly bills, although it still needs to be approved by the commission.