Delivering safe, reliable electric service for Cheyenne
On Jan. 26, 2023, Black Hills Corp.’s electric utility Cheyenne Light, Fuel and Power, doing business as Black Hills Energy, received approval of a settlement agreement from the Wyoming Public Service Commission for new electric rates effective on or after March 1, 2023. The new rates will recover the costs of necessary capital investments made to continue safe, reliable electric service for customers in Cheyenne while supporting growing energy demand in the region.
We know any changes to customer bills can prompt additional discussion and questions in the communities we serve, so we’ve prepared some frequently asked questions as background.
Frequently asked questions
What is a rate review?
Utilities periodically review customer rates to align with the actual cost of delivering electric service – this includes operating costs, capital investments and other system expenses. As a regulated public utility, Black Hills Energy must request approval for any change to tariffs or rates from the WPSC.
Black Hills Energy will follow WPSC’s formal process to recover allowable costs and system investments necessary to meet our responsibility to provide safe, reliable electrical service for our customers. WPSC will review our request and consider public comment and perspective from stakeholders.
Why now?
Cheyenne Light last requested a rate review in 2013 with rates implemented in October 2014. It is necessary for the company to recover costs for investments made over the years to continue to provide safe, reliable top quartile service and prepare for expected growth and demands on our system.
What is being done to operate and maintain the electric system?
Ongoing inspections and maintenance are pivotal to the delivery of safe, reliable electric service – this includes things like pole/line, transformer and substation inspections, vegetation management, and replacement of circuits. We’ve also taken steps to minimize outage sizes by installing additional sectionalizing and fault indicating equipment. Additionally, we have replaced aging underground electrical cable throughout the city of Cheyenne and have rebuilt distribution and transmission lines on the system to enhance system reliability.
How much CLFP growth are we expecting in coming years?
Cheyenne Light is expecting more customers to request electrical service due to the recent and continued growth in the Cheyenne area.
How will this benefit Black Hills Energy customers?
Cheyenne Light has focused its investments on infrastructure for top quartile customer reliability, implementation of the proactive Distribution System Improvement Program, customer focused renewable assets, and supporting the ongoing growth of Cheyenne.
As approved by WPSC, how will the new rates impact customer bills?
Through our internal evaluation of rate design and individual customer load factors and usage characteristics, we’ve estimated the percentage rate change to individual customers. The average residential customer using about 600 kWh of electricity each month could see a rate increase of about 8%.
Typical use monthly bill
| Total bill _/1 | |||||
|---|---|---|---|---|---|
| Line no. | Customer class | Under current rates | Under proposed rates | Increase | % change |
| 5 | Residential | $93.29 |
$101.33 |
$8.04 | 8.6% |
| 6 | Commercial | $155.01 | $165.29 | $10.29 | 6.6% |
| 7 | Secondary general | $1,985.16 | $2,080.68 | $95.52 | 4.8% |
| 8 | Primary general | $28,665.54 | $29,759.91 | $1,094.37 | 3.8% |
What options are available for customers struggling to pay their monthly bills?
Black Hills Energy offers many programs to help customers manage their bills.
- Customers who experience trouble paying their bills are encouraged to contact us at our 24/7 customer service number as soon as they think they may be experiencing financial difficulties to discuss payment arrangements, including budget billing.
- Black Hills Energy is committed to helping customers save energy and money through energy efficiency programs and tips. Find ways to save money by saving energy, including energy efficiency rebates and tips to reduce energy consumption.
- Customers can also consider joining Black Hills Energy in providing energy assistance through the company’s Black Hills Cares program. Black Hills Energy matches donations from customers and employees to Black Hills Cares and forwards the funds to Energy Share of Wyoming for distribution throughout the state. Customers can designate one-time or monthly donation(s) to Black Hills Cares on their bill stub, or by going to our website.
How is Black Hills Energy contributing to the Wyoming economy and its communities?
In 2021, Black Hills Energy’s direct economic impact in Wyoming totaled $157 million dollars. This includes franchise fees, contributions, compensation to more than 400 Wyoming employees, payments to suppliers and property, sales and use taxes paid.
Black Hills Energy supports a strong community by focusing on economic development, assisting community organizations, and maintaining a commitment to invest in infrastructure that ensures safe, reliable energy. In 2021, Black Hills Energy Wyoming gave over $405,000 in support of community events and organizations such as chambers of commerce and non-profits. Additionally, our annual United Way Campaign is a point of pride – our local employees have donated more than $80,000 -- plus a 25% match from the Black Hills Corp. Foundation – resulting in $100,000 of funding that directly benefits Wyoming communities.
How is Black Hills Energy communicating this to its customers?
- Find additional information posted on this webpage.
- News release
- More information about public utilities and regulatory process can be found on the Wyoming Public Service Commission website.