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Regulatory Filings and Cost Adjustments

From time to time, we make updates to our rates and programs. So, the following information is to keep you updated on those changes. These changes affect all of our customers. If you click the links, you’ll get more details about the changes as well as how to contact us if you have any questions or need more information. Thanks for the opportunity to serve you.

To view filings in your area, please enter your zip code above.

Fixed Reasonable Charge for Off-Site Net Metering Adjusts on July 3, 2023 

Black Hills Energy has filed to adjust its Fixed Reasonable Charge rate on July 1, 2023 pending approval by the Colorado Public Utilities Commission in Proceeding No. 23AL-XXXX. The new rate will decrease to $0.002698 from $0.002869 per kWh. There are no customers taking service under the Off-Site Net Metering Tariff so there are no bill impacts or revenue changes to the Company.

Filing documents:

 

Adjustment to the Energy Cost Adjustment (ECA) effective July 1, 2019

On May 31st, 2019, we filed Advice Letter No. 774 at the Colorado Public Utilities Commission. The ECA rate is updated quarterly (February, May, August, and November) and is applicable to all retail customers. The ECA is strictly a pass-through charge. The ECA recovers costs incurred by the Company for natural gas used in the production of electricity, for costs associated with renewable energy production, and/or for wholesale power purchased on the open market by the Company to meet customers’ energy needs. These costs incurred by the Company are strictly pass-through costs.

The principal purpose of this filing is to amend the ECA rate consistent with the Company’s tariff as approved by Commission Decision No. C13-0794 in Proceeding No. 12AL-1052E. Additionally, Advice Letter No. 774 continues the calculation of the ECA based on the annual forecast method that was approved in Advice Letter No. 770.

The proposed ECA rate is $0.04099 per kWh which, if approved, is to be prorated to bills for all kilowatt-hour usage beginning July 1, 2019. The proposed ECA rate is a $0.00289 increase from the current ECA rate of $0.03810 per kWh. Appendix A provides the applicable tariff sheet. Appendix B provides a redlined version of the applicable tariff sheet and Appendix C provides calculation support for the proposed ECA rate.

The primary reasons for the increase in the ECA rate are described below:

  1. Recovery True-up – The current ECA rate includes a $3,638,173 under-recovery and the proposed rate reflects a $4,749,611 under-recovery from the period January – April 2019. The continued under-recovery position was caused by actual period costs for the period January – April 2019 being approximately $1.11M higher than the actual recoveries for the same period. The under-recovery is due in part to a delay in implementing the Q1 2019 rate. The Q1 2019 ECA rate became effective on February 15, 2019.
  2. Estimated Purchases for System – Estimated Purchases for System for July 2019 – June 2020 increased $2,624,750, or 6.16%, from $58,809,141 for the period April 2019 – March 2020. The increase in Estimated Purchases for System is partly attributable to Busch Ranch II coming on-line by way of a Purchased Power Agreement (“PPA”) in November 2019. Approximately $744k of additional Busch Ranch II PPA costs are being included in Estimated Purchases for System for this period, as compared to the previous period for forecasted costs in which they were not included. Additionally, it is forecasted that approximately 160,083 more MWh of energy will be purchased for the July 2019 – June 2020 time period as compared to the April 2019 – March 2020 forecast. This additional purchase load of 160,083 MWh further increases the Estimated Purchases for the period.
  3. Estimated Sales (kWh) – Estimated Sales for the period July 2019 – June 2020 decreased 45,653,732 kWh, or 2.21% from 2,064,439,126 kWh to 2,018,785,394 kWh. The reduction in kWh sales increases the ECA rate.

If permitted to go into effect on July 1, 2019, the tariff revision will increase annualized revenues by approximately $4.09M, if the current rate was not changes. Based on this proposed increase, the average residential customer monthly bill, under Rate Schedule RS-1 with an average usage of 600 kWh per month, will increase $1.80, from $100.28 to $102.08, or 1.79%. The average small commercial customer monthly bill, under Rate Schedule SGS-N with an average usage of 2,300 kWh per month, will increase $6.90, from $326.40 to $333.30, or 2.11%.

Filing documents:

Tax Cuts and Jobs Act

We’ve been working closely with state utility regulators to determine how credits from the federal corporate tax rate reduction will reach our customers in a straightforward and timely manner.

Learn more about the Tax Cuts and Jobs Act.

Adjustment to the Demand Side Management Cost Adjustment (DSMCA) effective July 1, 2019

On April 1, 2019, we filed Advice Letter No. 773 at the Colorado Public Utilities Commission. The DSMCA rate is updated semi-annually (April and October) and is applicable to all retail customers. The principal purpose of this April filing is to revise the DSMCA calculation to reflect the 2018 Financial Disincentive Offset, the 2018 Performance Incentive, and to true-up any over or under collection of costs in 2018.

The 2018 DSM program was the third and final program year of the Company’s approved 2016-2018 portfolio, and the ninth program year for Black Hills. The Company achieved energy savings of 18,244,004 kWh in 2018 (at the meter) which represents 90% of the program’s goal for the 2018 program year. The Company achieved demand savings of 3,993 kW which represents 72% of the demand goal. To achieve these savings, the Company spent approximately $4,788 million, or 74% of its budget. In addition, under the Modified Total Resource Cost Test (mTRC), the cost-effectiveness of the portfolio was 2.97. A detailed annual report of the 2018 DSM plan results is filed in Proceeding No. 15A-0424E.

The proposed DSMCA rate is 1.77%, a decrease of 0.61% from the existing DSMCA rate of 2.38% which was approved in Proceeding No. 18AL-0880E.

If permitted to go into effect on July 1, 2019, the tariff revisions will result in decreased annual revenues of approximately $1,541,690. Based on this proposed reduction, the average residential customer monthly bill, under Rate Schedule RS-1 with typical usage of 600 kWh per month, will decrease $0.60 from $100.88 to $100.28, or 0.59%. The average small commercial customer monthly bill, under Rate Schedule SGS-N with typical usage of 2.300 kWh per month, will decrease $1.94 from $328.34 to $326.40, or 0.59%. Large commercial and industrial customers may call Black Hills Energy at (719)-546-6410 to obtain information concerning how the requested tariff amendments may affect them.

You may view the filing documents here:

Black Hills Colorado Electric, LLC filed on February 4th, 2019

Black Hills Colorado Electric, LLC filed on February 4th, 2019 a Notice of Filing in Compliance with Decision No. C19-0023 giving notice that documents formerly designated as confidential or highly confidential information as well as the Energy Purchase Agreement between Black Hills Colorado Electric, LLC and Black Hills Electric Generation, LLC have now been filed in Proceeding No. 16A-0436E.

Please see the bid summary report below:

Eligible Energy Resource Request for Proposal Bid Summary (PDF)