WICHITA, Kan. – Oct. 14, 2021 – Black Hills Energy announced today a settlement has been reached in the utility’s rate review request to recover safety, reliability and system integrity investments for natural gas service for its approximately 117,000 customers in 66 communities in Kansas. The settlement results in a net-zero base rate revenue impact to customers, after offsetting the base rate revenue increase of $6.61 million by the GSRS revenue currently being collected of $6.61 million. It also includes annual refunds to customers related to recent federal and state tax reform of approximately $3.3 million per year, for a total refund amount of $9.1 million, over the next three years. The settlement is pending final approval from the Kansas Corporation Commission, which will be determined before the end of the year.
Black Hills Energy has not sought a base rate increase in Kansas in seven years, and since then has invested $130 million in its infrastructure across the state. These investments include replacing, upgrading and maintaining more than 4,540 miles of natural gas pipelines in the state – critical infrastructure for the safe and reliable delivery of natural gas to customers’ homes and businesses that supports the growth needs of local communities.
“Our customers expect safe, reliable and affordable natural gas service. In order to meet those expectations, we have invested, and will continue to invest, in our infrastructure, which features a proactive pipeline safety program,” said Jerry Watkins, general manager for Black Hills Energy in Kansas. “This settlement in our service rates enables us to continue making customer-focused investments while keeping rates affordable for our customers.”
If approved, the proposed settlement rates will be implemented on January 1, 2022, and will include an 87-cent credit for residential customers based on an average monthly usage of 58 therms. Customers who would like information about managing their energy bills should call Black Hills Energy at 888-890-5554 or visit www.blackhillsenergy.com/assistance.