Black Hills Energy Arkansas proposes new rates for natural gas

In an effort to recover non-rider eligible capital expenditures and operating expense increases, Black Hills Energy Arkansas, Inc. filed a rate review application this week that could hike the average residential bill as much as 10 percent per month.

While there will be some variation in that, the average residential customer’s bill would increase by about $8.65. Rate class, load factors and total usage will all factor into actual rate changes, though. However, the company labeled it necessary for the more than $220 million it has invested into Arkansas since its last rate review, in 2017.

“This rate review request will enable us to continue to meet the growing needs of our system and continue our commitment of safely and reliably serving our customers with affordable natural gas as an energy choice,” Chad Kinsley, vice president of operations for Black Hills Energy Arkansas, said. “As a company, we are committed to working efficiently, providing outstanding service, and being a good partner to the communities we serve.”

Through its investments, Black Hills has upgraded and expanded the natural gas system in the region, improving safety, integrity and reliability for more than 7,200 miles of infrastructure. In addition to the ongoing rate review, it is also pushing for an enhanced Safety, Integrity and Reliability Rider to allow continued replacement and upgrade efforts affecting pipeline operations. According to the company, its efforts brought about a direct economic impact in Arkansas of $102 million in 2020 alone.

New rates would not go into effect until the fourth quarter of 2022, if approved by regulators with the Arkansas Public Service Commission (APSC).