Iowa regulatory rate review

Providing you with the energy you depend on 

Every day, we provide essential energy that our customers rely on. From cooking and heating to fueling manufacturing and agriculture, Black Hills Energy is here for you.

Why is Black Hills Energy seeking a rate increase?

On May 1, 2024, Black Hills Energy submitted a proposal to the Iowa Utilities Board (IUB) to recover investments made in safety, reliability and system resilience for natural gas service to over 163,000 customers across 133 Iowa communities. Since the last rate review in 2021, the company has invested approximately $100 million in its infrastructure to modernize its system by updating and replacing aging pipe, safeguarding meters, and connecting to renewable natural gas projects to advance the sustainable use of the natural gas system. These projects have improved safety and reliability throughout Iowa in compliance with state and federal regulations and the obligation to serve.

 

What is a rate review?

Prior to deciding on proposed changes, the IUB carefully reviews the request and considers public comment along with testimony from the Office of Consumer Advocate under the Office of the Attorney General of Iowa, Black Hills Energy representatives and other interested parties.

The IUB regulates utilities to ensure that reasonably priced, reliable, environmentally responsible and safe utility services are available to all Iowans. If you’d like more information, visit www.iub.iowa.gov.

 

 

 

 

Customer Comment Hearings will be held at the following locations:

• Monday, July 22, 2024 — 5:30 p.m. — Council Bluffs Public Library, 400 Willow Ave, Council Bluffs, IA
• Tuesday, July 23, 2024 — 5:30 p.m. — DMACC Conference Center, 600 2nd Ave W, Newton, IA
• Monday, August 5, 2024 — 5:00 p.m. — Carnegie-Stout Public Library, 360 W 11th St, Dubuque, IA
• Tuesday, August 6, 2024 — 11:30 a.m. — Virtual Meeting, iub.iowa.gov

Persons with disabilities requiring assistive services or devices to observe or participate in a consumer comment meeting should contact the Utilities Board at 515-725-7300 or customer@iub.iowa.gov at least five days in advance of the scheduled date to request appropriate arrangements. 
 

When will rates take effect?

Under Iowa law, Black Hills Energy can implement a temporary increase in rates that will remain in effect until the IUB completes its review of the proposal. Black Hills Energy will implement a temporary rate increase of approximately 12.4%, effective May 11, 2024. Based on the average residential customer monthly usage of 63 therms the temporary rate would be an increase of approximately $2.94 per month.

Following the IUB’s final rate approval, customers may receive a refund (with interest) for the difference charged by Black Hills Energy during the period between May 11, 2024, and the date the newly approved rates go into effect.

 

Will rate changes impact how much we pay for the natural gas itself?

No. Usage is a primary factor in energy bills, and outdoor temperature is a key driver in determining how much natural gas customers use to heat their homes and businesses. The rate review doesn’t affect the cost of the natural gas delivered by Black Hills Energy. The cost of the natural gas commodity is a direct pass-through to customers, meaning there is no mark-up or profit.

To help hold down costs, we buy a portion of physical gas supply on a set price basis for the November to March heating season. We also purchase gas through short-term contracts and, when necessary, on the open market. 

How will the proposed changes impact my bill?

If the IUB approves the proposed rate requests, a typical Black Hills Energy residential customer using an average of 63 therms of energy a month would be $7.56 a month. The increase experienced by Black Hills Energy’s commercial, industrial, and governmental customers will vary depending on rate class and the level of energy demand and usage.

 

Are there ways I can reduce my natural gas bill?

• Check your furnace filter – make sure it’s clean and properly installed facing the correct direction.
• You could save as much as 30% of your energy costs by better insulating your attic or top floor. You can save about 8% of your energy costs by insulating the floor over any unheated areas, such as crawl spaces, basements and garages.
• Adjust your humidity. A well-humidified house at 68 degrees Fahrenheit is as comfortable as a dry house at 75 degrees.
• Make sure your fireplace damper closes tightly when you're not using it. Closing the damper could save 8% of your home's heat.
• Use kitchen, bath and other ventilating fans only as needed. In just one hour, these fans can blow away a house full of warmed air.
• If health concerns aren’t a factor, set your thermostat to 68 degrees in the winter. Check the thermostat on your water heater, too. It should still be hot enough to wash dishes and take a steamy shower without having it at its highest level.
• Reduce hot water usage. Use low-flow faucets and shower heads and take short showers instead of baths. Set the temperature on your water heater to 120 degrees or put it on the “warm” setting.

 

Does Black Hills Energy offer any energy assistance programs?

Black Hills Energy offers many programs to help customers manage their bills. View the options below.