Black Hills Energy to collect incurred extreme weather costs in new time frame

Black Hills Energy got approval from the Iowa Utilities Board (IUB) to collect natural gas costs incurred during the extreme weather event in February 2021 over two years.

The recovery of natural gas costs began in April 2021 and will continue through March 31, 2023.

Initially, the cost recovery was planned over three years, but that was changed to a two-year term with this recent action. This will result in a slight increase in customers’ bills. The previous cost per therm was $0.18123 per therm, charged on monthly usage. With the IUB order, customers can now expect a cost of $0.33904 per therm.

“The financial well-being of our customers is important to us, and we recognize how these additional costs can impact a family budget,” Shirley Welte, vice president of Iowa operations, said. “We remain committed to supporting reasonable energy costs.”

The IUB also issued its final decision regarding the request from Black Hills Energy to increase its customer natural gas rates to recover investments in its pipeline infrastructure and increased operating costs. This will result in a $0.20 increase for an average residential monthly bill. The new rates went into effect on Jan. 1, 2022.

Customers who need help paying their monthly bills can contact Black Hills Energy to connect with a local energy assistance partner agency.