Black Hills Gets Natural Gas Rate Hike Approval

LINCOLN, NE (JANUARY 26, 2021) – The Nebraska Public Service Commission has issued an Order approving a rate increase for Black Hills Energy.

On June 1, 2020, Black Hills Energy filed an application with the PSC seeking a $17.3 million
general rate increase. The proposal would increase Black Hills’ fixed customer charges and
distribution charges, the rates regulated by the Commission.

During the eight-month long process, an assessment of the application was
conducted by the Commission staff, three virtual town hall meetings were held and a
comprehensive review of the BHE filing by the Public Advocate was performed.

Following the comprehensive review of BHE’s filing, the Public Advocate and Black Hills
representatives engaged in negotiations. The negotiations resulted in a joint
agreement of a settlement, in which Black hills agreed to a rate increase of $10.7
million, a reduction of roughly $6.6 million from its original filing.

The new approved rates will go into effect on March 1.  They will result in an increase of about $4.00 monthly for the average natural gas using home.

“I want to thank everyone who participated in the rate case process,” said Commission Chair
Dan Watermeier. “Through hard work and willingness to negotiate, the parties were able to
strike a balanced agreement that is good for both the company and the
ratepayers.”

BHE was allowed by state law to charge an interim rate during the Commission’s review of the
application. BHE began charging an interim rate to its customers in September. The utility will
file a refund plan with the Commission for its review and approval.

Commissioner Watermeier said, “If all goes as planned, we would expect that BHE customers
could begin seeing a refund by June.”

Detailed information on the NG-109 Black Hills General Rate Increase application, can be found
on the Natural Gas Department Main page of the PSC website by clicking on the
NG-109 Black Hills Energy Rate Case .

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