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Black Hills Energy Announces Lower Energy Costs, Elimination of Demand Charges

PUEBLO, Colo., June 28, 2018 – Black Hills Energy announced yesterday lower energy costs for customers and the elimination of demand charges resulting from the conclusion of a 1-year process with the Colorado Public Utilities Commission (PUC) to redesign electric rates. New rates will take effect on July 1.

Under the new rate design, and with a monthly bill credit for corporate tax savings and lower summer fuel costs, the typical residential customer with an average use of 600 kilowatt-hours of energy per month will see a total monthly decrease of $4.94, or a decrease of about 5 percent. Typical small business customers will see a monthly decrease of $72.86, or a 19 percent lower bill, based on an average use of 2,300 kilowatt-hours per month.

“We’re very pleased to announce that the majority of Black Hills customers will see a decrease in their bills as a result of the changes taking effect on July 1,” said Vance Crocker, Black Hills’ vice president of electric operations for southern Colorado. “With that said, some customers will see an increase in their bills based on their energy use patterns.”

“Notable changes resulting from the redesign include eliminating the demand charge for small commercial customers, lowering the residential customer charge, and implementing a tiered rate structure for residential customers to provide them opportunities to save on their bills,” said Crocker.

 Changes taking effect on July 1 include:

  • Monthly bill credit for all customers: All customers will receive a credit that reflects 100 percent of the corporate tax savings resulting from legislation enacted earlier this year. This will appear on the bill in the line item General Rate Schedule Adjustment (GRSA).
  • Lower fuel costs: The quarterly Energy Cost Adjustment (ECA), taking effect on July 1, 2018, will result in additional savings to customers – especially helpful during the hottest months of summer when energy use is at its highest.
  • Lower customer charge: The fixed monthly residential customer charge will be cut by 50 percent and the small business customer charge will be reduced by 30 percent.
  • Elimination of demand charges: Small business customers will no longer see demand charges on bills, which will benefit customers with high, intermittent energy use, like churches, restaurants and sports complexes.
  • Tiered rates for residential customers: The energy charge will be divided into two price tiers to encourage efforts to conserve energy and help customers save money. Customers with lower energy use will see a greater decrease than typical residential customers.
  • Medical exemption rate from tiered rates for qualified residential customers: To help alleviate the burden of high electric use due to life-saving medical devices, a medical exemption from tiered rates will be available. For program information and income qualifications, contact Customer Service at 888-890-5554.
  • Time of Use program for small commercial customers: This voluntary pilot program will be available to encourage efficient energy use by providing on- and off-peak pricing levels.

For more information about the updated rate structure, visit www.blackhillsnergy.com/energyfuture.

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