Nebraska Annual Price Option

Signup for 2011-12 APO program starts Aug. 31, 2011

Black Hills Energy will offer the APO fixed-price program to residential gas customers in Nebraska for 2011-12.

Participation in the Annual Price Option is optional and offered as a service of Black Hills Energy.

Customers who choose APO pay the same fixed price each month for natural gas for one year instead of a traditional billing rate. Natural gas costs vary throughout the year depending on the natural gas market and other factors. The fixed APO natural gas price will be in effect for 12 months, Nov. 1, 2011, through Oct. 31, 2012.

Black Hills Energy does not profit from the natural gas portion of the customer's bill. The cost of natural gas is passed to customers without mark-up or discount, regardless of the billing option customers choose.

Due to its set natural gas price, APO provides certainty for the natural gas portion of the Black Hills Energy bill. Natural gas accounts for the largest portion of the customer's monthly bill. Customers considering APO should weigh having a fixed natural gas price for 12 months, which APO provides, against future natural gas prices on traditional billing which vary monthly and that could possibly be lower than the APO price.

Once enrolled and the program starts, customers are required to remain on APO for the entire one-year term unless they move out of Black Hills Energy's Nebraska service territory.

APO sign-up forms will be mailed to each residential customer Aug. 30, 2011. Customers will be able to sign up after Aug. 30 by mail or online at www.annualpriceoption.com.

Participation in the program will be limited to the first 18,000 customers who sign up. Sign-up ends Sept. 30, 2011, or when the 18,000 limit is reached, whichever occurs first.

For customers who are on the APO program now, 2010-11 APO gas prices remain in effect until this year's program ends with October 2011 billing. There is no automatic rollover year-to-year, so current APO customers who want to participate in the 2011-12 program must sign up for it.

Customers who use Black Hills Energy's CheckLINE, Budget Billing and eBill services may also sign up for APO. Budget Billing's annual true-up still applies.

All bills will still include Black Hills Energy's delivery charges and other fees and taxes approved by the Nebraska Public Service Commission. Even with the price for natural gas locked in for a year, APO customer bills will increase or decrease based on the amount of natural gas used.