Black Hills Energy is seeking a $12.1m or 6.5% increase in annual revenue. Interim rates take effect March 1, 2010. If final rates approved by the NPSC are lower than interim rates, customers will receive a refund with interest.
Dan Mechtenberg, vice president of Nebraska natural gas operations at Black Hills Energy, said: “We provide natural gas to customers in 110 Nebraska communities. Since 2006, we have spent nearly $30m in Nebraska to replace obsolete pipes and other equipment, make system upgrades and implement new technology so that our gas distribution systems are safe, reliable and efficient.
“While these improvements are necessary to serve our customers, the associated costs are not reflected in our current rates. We proactively work to keep our operating costs low and delay rate increases as long as we can. The process to recover investment costs and increases in operating costs requires a filing with the Nebraska Public Service Commission. This rate filing includes only those costs and capital investments made since our last request in 2006 and are critical to continue providing the safe and reliable natural gas service our customers deserve.”
The average monthly bill would increase by approximately $5.48 for residential customers if the proposed rates are approved, and $2.65 for commercial customers. The actual change in a customer’s bill will vary based on how much natural gas is used and the price of natural gas, which is not part of this rate case.
Black Hills Energy is also proposing to change the way its rates are structured, moving from a single delivery charge to a two-tier declining block delivery charge.
