Iowa rate settlement brings 20 cent monthly gas bill increase for Black Hills Energy customers

The average residential customer of Black Hills Energy in Iowa will soon see a 20 cent increase on their monthly gas bills, as a result of a settlement between Black Hills Energy and the Office of Consumer Advocate over its latest rate review request.

The company filed to recover costs affiliated with safety, reliability, and system integrity investments made into its natural gas service across the state. This should affect approximately 161,000 customers, but less than initially expected. As a result of the settlement, Black Hills Energy withdrew the System Safety Integrity Rider and High Efficiency Assistance Tool it had initially proposed, although all of this will depend on approval from the Iowa Utilities Board.

A ruling is expected by the end of the year.

“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,” Shirley Welte, vice president for Black Hills Energy in Iowa, said. “This change in our service rates enables us to continue our investments and allows us to meet the needs of our thriving Iowa communities.”

It has been more than 10 years since Black Hills Energy last sought a base rate increase. Since then, the company reported that it invested more than $250 million into its infrastructure over the years, from replacements to upgrades and maintenance of thousands of miles of natural gas pipelines and system service lines.

If approved, the new settlement rates will go into effect on Jan. 1, 2022.