In its request, Black Hills Power seeks a 26.6% increase in annual utility revenues. The company anticipates new rates will be effective for its South Dakota customers from April 1, 2010.
If the proposed rates are approved, a typical South Dakota residential customer using an average of 600 kilowatt-hours of power each month will see an increase of $17.99 per month, but the actual change in each customer’s monthly utility bill will vary based on their electric service rates and electricity use, the company said.
The increase experienced by Black Hills Power’s commercial and industrial customers in South Dakota will vary depending on rate class, load factor, and the amount and nature of their electricity use.
Black Hills Power currently serves 64,100 residential, commercial and industrial electric customers in 20 communities in western South Dakota. The utility also serves customers in northeastern Wyoming, and a rate request is expected to be filed for those customers in the fourth quarter of 2009, said the company.
Chuck Loomis, vice president of operations at Black Hills Power, said: “Black Hills Power has been committed to providing our customers with safe, reliable electricity for over 125 years. As our integrated resource plan and analysis indicated in 2007, the investment made in Wygen III and other system upgrades are necessary to serve the growing energy needs in our service areas.
“And while we continually work to operate efficiently and keep our organization lean, this request reflects the increasing costs of providing the reliability and service our customers expect and deserve.”
Black Hills Power’s last base rate increase of 7.8% was based on 2005 costs and became effective in January 2007. When adjusted for inflation, the proposed Black Hills Power rates for South Dakota customers in 2010 would be approximately equal to rates paid by customers in 1995, said Black Hills.
