Nebraska regulatory rate review
Providing you with the energy you depend on
At Black Hills Energy, our most important responsibility is providing safe, reliable natural gas service to our Nebraska customers and communities – over 304,000 customers in more than 300 communities across the state. This requires our continuous investment in the natural gas pipeline infrastructure that serves homes and businesses including over 8,700 miles of pipeline mains, approximately 327,300 service lines and over 1,300 miles of transmission pipeline.
Since our last rate filing in 2020, the company will have invested approximately $453 million on behalf of Nebraska customers to support system safety, reliability, integrity and customer additions. These investments include ongoing inspections and maintenance costs and pipeline replacement projects to meet state and federal safety regulations.
Update to natural gas rates
We submitted a rate review to the Nebraska Public Service Commission on May 1, 2025, requesting an increase in rates to recover critical system costs needed to support the safe and reliable delivery of natural gas for our customers. This allows us to continue using the System Safety Investment Rider (SSIR) to support accelerated, safety-focused pipeline replacement across the state.
We are requesting this update to rates because inflationary cost pressures have led to substantial increases in all aspects of providing safe, reliable natural gas service to customers.
The rate review does not affect the cost of natural gas, which is adjusted monthly* in Nebraska. Natural gas prices are a pass-through cost without any markup from Black Hills Energy.
*This rate review does not propose changes to the Choice Gas program.
How your energy rates are set
Each day, our Black Hills Energy team works to maintain, replace and update critical equipment to provide you with the safe, reliable natural gas service you depend on. It's our responsibility to make investments consistently and prudently in the safety and resilience of our system. The Nebraska Public Service Commission (NPSC) regulates public utilities, including Black Hills Energy. Preparing to file a rate review takes over a year of prep work and is the standard process for a public utility to set new rates and tariffs. This allows the company to recover prudent costs and system investments necessary to meet our responsibility to provide safe, reliable natural gas service for our customers. Prior to deciding on proposed changes, the NPSC carefully reviews the request and considers public comment along with testimony from the Commission staff and other intervening parties.
Subject to Commission approval, we are requesting an update in base rates which would result in an average monthly bill increase for residential customers of about $6.27 per month based on an average monthly usage of 54 therms. This equates to less than a 2% increase in base rates over five years, or a 9.4% increase since Black Hills Energy last changed its rates. As proposed, interim rates, subject to refund, would take effect on Aug. 1, 2025, with final rates anticipated during the first half of 2026.
Proposed bill changes
|
Customer Class |
Average Monthly Bill - Current Rates |
Average Monthly Bill - Proposed Rates |
Avg Monthly $/ Change |
Avg Monthly %/ Change |
|
Residential |
|
|
|
|
|
54 Therms |
$ 66.38 |
$ 72.65 |
$ 6.27 |
9.4% |
|
Small Commercial |
|
|
|
|
|
118 Therms |
$ 144.46 |
$ 150.75 |
$ 6.29 |
4.4% |
|
Large Commercial |
|
|
|
|
|
1,514 Therms |
$ 1,138.77 |
$ 1,239.29 |
$ 100.52 |
8.8% |
Other changes include:
With this 2025 rate review, we are seeking to continue to support accelerated, safety-focused pipeline replacement projects across the state through the renewal of the SSIR. This funding mechanism is allowed by NPSC which allows Black Hills Energy to recover its capital investments on certain types of infrastructure replacements that address safety and reliability. SSIR investments benefit customers and are critical to the ongoing safety and reliability of the system but do not cover all of the investment needs.
How we’re supporting our customers
We recognize the impact of rising energy bills for our customers. That’s why we work hard to control our own costs and why we have avoided updating our base rates for five years. We have worked diligently to manage cost increases with the goal of maintaining stable bills for customers.
Our work to help customers includes:
- We’ve increased our efforts to provide support for customers, including launching a new Energy Assistance team to help our most vulnerable customers access programs and resources to help make their bills more affordable.
- Customers who experience challenges paying their bills are encouraged to contact us at 888-890-5554 or submit an online form on our customer service page as soon as they think they may be experiencing financial difficulties to discuss payment arrangements.
- Enrolling in Budget Billing, a free payment plan that averages the amount owed each month, is a great way to avoid seasonal spikes in bills.
Community Impact
Black Hills Energy supports a strong community by focusing on economic development, assisting community organizations and maintaining a commitment to invest in the natural gas infrastructure that provides our customers with safe, reliable energy. In 2024, Black Hills Energy’s economic impact in Nebraska totaled approximately $120 million, including compensation to our hard-working local employees, charitable contributions, payments to suppliers and local taxes paid. Our charitable impact totaled nearly $500,000 in 2024, including contributions, sponsorships, scholarships and donations from the Black Hills Corp. Foundation.
Frequently asked questions
What is a rate review?
Utilities periodically review customer rates to align with the actual cost of delivering natural gas service – this includes operating costs, capital investments and other system expenses. As a regulated public utility, Black Hills Energy must work with the Nebraska Public Service Commission (NPSC) to request review and approval for any change to tariffs or rates.
Black Hills Energy will follow the NPSC’s formal process to recover allowable costs and system investments necessary to meet our responsibility to provide safe, reliable natural gas service for our customers. The NPSC will review our request and consider public comment and perspective from stakeholders.
Why are you requesting a rate update?
Our most important responsibility is providing safe, reliable natural gas service to our Nebraska customers and communities. Black Hills Energy serves over 304,000 natural gas customers in Nebraska. It’s our responsibility to make investments consistently and prudently in the safety and resilience of our system.
Why now?
We are requesting this update to rates because inflationary cost pressures have led to substantial increases in all aspects of providing safe, reliable natural gas service to customers. This includes natural gas pipeline construction and higher costs for steel pipes, valves, flanges and fittings, and increased costs for vehicle expense, and compensation for our hardworking Nebraska employees and contractors. Since our last rate filing in 2020 and through the end of 2025, Black Hills Energy will have invested approximately $453 million on behalf of customers to support the safety, reliability and integrity of the natural gas system.
How will this rate update impact customer bills?
As proposed, the average residential customer would see a monthly bill increase of about $6.27 based on an average monthly usage of 54 therms. This equates to a less than 2% annual increase in base rates over five years, or a 9.4% increase since Black Hills Energy last changed its rates.
When will new rates take effect?
If approved by the NPSC, new, interim rates would take effect on Aug. 1, 2025, with final rates anticipated during the first half of 2026.