NPSC approved an annual revenue increase of approximately $8.7m, based on a return on equity of 10.1% with a capital structure of 52% equity effective for natural gas service on and after 1 September 2010.
Under the new rates, a typical residential customer will see an approximate increase of $3.90 per month, and a typical commercial customer will see an approximate increase of $1.88 per month.
The increase experienced by large commercial and industrial customers will vary depending on rate class and the amount and nature of their natural gas use.
Black Hills Energy implemented an interim rate increase of $12.1m in early March 2010, and since the new rates approved by the NPSC are lower than the interim rates, customers are expected to receive refunds for the difference between the two rates.
The new rates also include changes to the monthly customer charge (a flat fee for natural gas service that stays the same each month) in addition to the base rate.
