Black Hills Energy natural gas rates to increase in February
Jan. 18—CHEYENNE — Black Hills Energy announced Wednesday that its natural gas service base rates will go up effective Feb. 1.
According to a news release, residential customers with an average energy use will see a monthly increase of approximately $7.26, an 8.09% increase, and small general customers, mostly businesses that use more energy, will see an increase of around $1.23 per month, a 0.64% increase.
"Customers rely on critical natural gas service from Black Hills Energy all day, every day," said Dustin McKen, general manager of Black Hills Energy in Wyoming, in the release. "As an energy company that serves more than 133,000 natural gas customers across the state, it's our responsibility to make thoughtful investments in the safety and resiliency of our system to meet residential and business demand."
In an email to the Wyoming Tribune Eagle, Black Hills said the new rates are a recovery of funds spent by the company to operate, maintain and update more than 6,400 miles of natural gas system infrastructure in Wyoming.
The decision to increase rates was approved by the Wyoming Public Service Commission on Dec. 21 of last year. Initially, Black Hills wanted the change to go into effect on Jan. 1, but members of the commission denied that, as they believed the energy company had not effectively communicated the intent to increase rates to its customers.
"To give them that month, when it hasn't even been communicated to the ratepayers beyond legal notice, and maybe a website notice, causes me a lot of concern," said Mary Throne, chairman of the Public Service Commission. "... I know it has monetary implications to the company, but it certainly has monetary implications for the thousands of Black Hills gas customers across the state of Wyoming who were not told that their gas rates were going to go up on Jan. 1."
"Public communication regarding rate reviews begins upon the initial filing with the Wyoming Public Service Commission and remains ongoing through the process," Black Hills said in an email. "With the completion of the rate review, we will continue to communicate these changes to customers through a variety of channels."
Although natural gas prices fluctuate monthly or quarterly in response to the notoriously volatile market, this is the first base rate increase from Black Hills since 2019.
John Burbridge, secretary and chief counsel of the Wyoming Public Service Commission, said the commission authorized the rate increase because it believed Black Hills has used its funds properly since 2019 and will continue to do so in the future.
"We don't micromanage utilities here. When they come in for rate increases, there's evidence of how they've spent the money in the past and what they need the money for in the future, and the commissioners look to make sure that the utility is acting reasonably or prudent in how they spend that money," Burbridge said. "If they don't act in a reasonable or prudent manner, the commissioners can deny that amount of increase the company is asking for."
It is the commissioners' duty to make decisions they feel are in the best interest of the public.
"When the commissioners are considering the public interest, they consider the rates that the utility would charge and how much the customers would pay," Burbridge said. "At the same time, they have to consider keeping the utility financially healthy enough so they can provide gas in a safe and reliable manner."
For customers who experience trouble paying their bills, Black Hills encourages them to reach out to them by phone or online to discuss payment arrangements. Customers may also apply for energy assistance through Energy Share of Wyoming.
Noah Zahn is the Wyoming Tribune Eagle's local government/business reporter. He can be reached at 307-633-3128 or nzahn@wyomingnews.com. Follow him on X @NoahZahnn.
