BHE plans consolidation

Alexis Barker
NLJ News Editor
 
“Black Hills Energy has requested approval from the Wyoming Public Service Commission to consolidate its four Wyoming gas utilities into one new legal entity, called Black Hills Wyoming Gas, LLC,” a release from the company dated June 5 states. 
“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 release continues. “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 proposed consolidation will simplify and improve service to customers. The regulatory rate review application to consolidate and standardize practices plans to improve efficiencies, reduce costs and improve the value the company delivers to customers. 
“As proposed, residential customer bills will increase, based on geographic location and usage. The increase for commercial customers will vary, based on rate class, load factors and total usage,” the release states. “The rate review does not affect the cost of the natural gas delivered by Black Hills Energy or Choice Gas suppliers. The natural gas commodity cost is a direct pass-through to customers, meaning there is no mark-up or profit.” 
According to Michael Howe, a media contact for the company, the proposed rates in the rate review for Weston County average residential monthly bill will increase bills from $48.88 to $58.54. 
The release states that Black Hills Energy continues to invest in its Wyoming natural gas system to provide safe and reliable service to its customers. In 2018, the company states, they invested $49 million in 2018 with plans to invest $106 million in 2019 to replace, upgrade and maintain nearly 6,000 miles of transmission and distribution pipelines in Wyoming, which is considered “critical infrastructure required to meet system growth needs and ensure the safe and reliable delivery of natural gas to customers’ homes and businesses.”
Despite the company’s planned investments in Wyoming infrastructure, Howe reported that no major capital projects are planned for Weston County, specifically, only that “all system upgrades will improve the safety and reliability for Black Hills Energy customers.”