Nebraska Natural Gas Rate Application

Black Hills Energy filed a rate application with the Nebraska Public Service Commission Dec. 1, 2009, to recover the cost of capital investments the company has made in its Nebraska natural gas distribution systems since July 1, 2006, and increased operating expenses incurred during the same time period.

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. Even with this increase, Black Hills Energy rates are comparable to other natural gas providers in Nebraska.

The proposed 6.5 percent increase in annual revenue that Black Hills Energy is requesting requires approval by the NPSC. It will hold public hearings in 2010 to discuss Black Hills Energy's rate application, and Black Hills plans to hold community meetings in 2010 as well.

The NPSC has 210 days to review and analyze Black Hills Energy's request. Black Hills Energy will implement interim rates March 1, 2010. If final rates are lower than interim rates, customers will receive a refund with interest.