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BHE looks at rate increase

By
Alexis Barker

Alexis Barker
NLJ News Editor
 
Proposed residential customer bill increases through Black Hills Energy could reach as high as 71.49% in northeastern Wyoming, according to information provided this week by Michael Howe, community affairs manager for the company. 
In June, Black Hills Energy announced that they had requested approval from the Wyoming Public Service Commission to consolidate its four gas utilities in the state into one new legal entity, called Black Hills Wyoming Gas, LLC. 
“Black Hills Energy also submitted a regulatory rate review application to the WPSC to consolidate the tariffs, rates and terms and conditions of service of its existing gas territories in Wyoming,” the June 5 press release states. “The rate review proposes new rates to recover investments in safety, reliability and system integrity for natural gas service to 129,500 Wyoming customers.” 
According to the release, the consolidation of the gas utilities in Wyoming would simplify and improve service for customers. 
“The company also filed a regulatory rate review application to consolidate and standardize practices to improve efficiencies, reduce costs and improve the value the company delivers to customers,” the release states. 
Residential bills, as proposed, will increase based on the customer’s geographic location and usage, if the commission approves the suggested increase. The increase to commercial customers will vary, based on rate class, load factors and total usage. 
“Due to rate design, individual customer load factors and usage characteristics, the percentage rate change to individual customers within each rate schedule may be higher or lower than the average for the customer rate class or rate schedule,” Howe said. “The impact on individual bills may vary from the proposed rate increase.”
According to estimated increases provided by Howe, Gillette is anticipated to experience the steepest increase of 71.49%, or an increase of $26.34. Casper is shown to expect an increase of 21.51%, while Newcastle and Upton as well as the Torrington area can anticipate increases of more than 19.5% (Upton/Newcastle 19.74%, Torrington 19.61%).
Both Cody and “Cheyenne Light” are listed for increases at 3.41% and 2.87% respectively. 
Looking at the other data provided, the areas that currently experience lower increases pay higher rates than the communities that will experience steeper increases. For instance, Cody customers currently pay $64.96 on average per month while Newcastle and Upton customers pay on average $48.88. The proposed increases would raise Cody’s average cost to $67.17 a month while Newcastle and Upton customers will pay an average of $58.54 a month. 
“We won’t know exactly how rate will be impacted until the commission reviews and finalizes the proposed plan,” Howe said. “Once the final ruling is made, we will be able to share the specifics.” 
The purpose of these increases, according to Howe, “is to allow the company to continue to make investments in people and infrastructure, meet the needs of a growing system, and continue their commitment to reliability and safety that customers have come to expect.”
“Black Hills Energy continues to invest in its Wyoming natural gas system to provide safe and reliable service to our customers,” Howe said. “The investments across the state will improve safety and reliability by replacing aging infrastructure, while complying with state and federal regulations. Our investments will also support the local economy, people and businesses in the communities we serve.” 
If approved, the new natural gas service delivery rates will take effect in early 2020 for customers in 56 communities across Wyoming. 
Howe said that any customers seeking more information can visit the Black Hills Energy website, blackhillsenergy.com/ReliableWY, where they can learn more about the rate review. Customers can also learn about energy assistance programs, what the company is doing to control its costs, and how the company contributes to the local and state economy. 

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