PSC Approves Settlement Agreement in Black Hills Energy Rate Case

LINCOLN – The Nebraska Public Service Commission (PSC) issued an order today, Dec. 9, approving a $23.9 million agreement in Black Hills Energy’s request to raise natural gas rates.

The decision allows Black Hills to increase its fixed-customer and distribution charges – the rates regulated by the PSC. The average impact to bills will be an additional $2.85 per month for residential customers, $5.34 per month for small commercial customers and $72.01 per month for large commercial customers, according to data presented to the PSC. The new rates will take effect Jan. 1.

Black Hills initially sought a $34.9 million rate increase in an application filed May 1 with the PSC. Following an independent assessment of the application by PSC staff, three town hall meetings and negotiations with a Public Advocate appointed to represent consumers, Black Hills ultimately agreed to a smaller rate increase of $23.9 million – a reduction of about $11 million from its original filing.

Black Hills and the Public Advocate presented details of the settlement to the PSC at an Oct. 15 public hearing, leading to today’s order approving the agreement. 

“We commend all parties in this case for engaging in a collaborative and thorough review process,” said PSC Chairman Tim Schram, District 3. “Reaching this agreement spared ratepayers the added expense and uncertainty of a long, fully litigated case, while still ensuring the outcome is fair, reasonable and in the public interest.”

In August, Black Hills began charging customers increased interim rates that are higher than the final rates approved today. The company must refund the difference between the interim rates and final rates, with interest, to customers. Black Hills will file a refund plan by March 1 for review and approval by the PSC. 

Additional information is available on the NG-124 Black Hills Energy Rate Case page or under the Natural Gas Department tab of the PSC website.