The commission has approved general increases of $6.7 million for electric rates and $4.4 million for natural gas rates, reflecting the increased costs of providing service. The allowed return on equity is 10.9%, based on a capital structure that is 54% equity and 46% debt.
The electric rate increase includes placing into rate base the Wygen II power plant, a 90MW coal-fired facility that is in the final stages of construction and testing.
Other capital investments will accommodate the expansion and maintenance of both natural gas and electric distribution systems to accommodate continued population and energy demand growth in the service territory.
David Emery, chairman and CEO of Black Hills, said: We are pleased with the outcome of the rate making process with the Wyoming public service commission. As part of this action, Wygen II will become a regulated asset of Cheyenne Light. We believe this power plant will contribute to electric cost stability for our customers.
