For Immediate Release
PSC Approves Settlement Agreement in
Black Hills Energy Rate Case
Lincoln, January 26, 2021 – The Nebraska Public Service
Commission today, Tuesday, January 26, issued an Order
approving the stipulation and settlement agreement in the
NG-109 Black Hills Energy (BHE) Rate Case.
On June 1, 2020, Black Hills Energy filed an application with
the PSC seeking a $17.3 million general rate increase. The
proposal would increase Black Hills’ fixed customer charges
and distribution charges, the rates regulated by the
Commission.
During the eight-month long process, an independent
assessment of the application was conducted by the
Commission staff, three virtual town hall meetings were
held and a comprehensive review of the BHE filing by the
Public Advocate was performed.
Following the comprehensive review of BHE’s filing, the Public
Advocate and Black Hills representatives engaged in
negotiations. The negotiations resulted in a joint stipulation
and agreement of settlement, in which BHE agreed ultimately
to a general rate increase of $10.7 million, a reduction of
roughly $6.6 million from its original filing.
On October 28, the PSC held a hearing, during which the joint
stipulation and agreement of settlement was laid-out to the
commission, leading to today’s Order by the Commission
approving the agreement. The new approved rates will go
into effect on March 1.
“I want to thank everyone who participated in the rate case
process,” said Commission Chair Dan Watermeier. “Through
hard work and willingness to negotiate, the parties were able
to strike a balanced agreement that is good for both the
company and the ratepayers.”
BHE was allowed by state law to charge an interim rate during
the Commission’s review of the application. BHE began
charging an interim rate to its customers in September. The
utility will file a refund plan with the Commission for its
review and approval.
Commissioner Watermeier said, “If all goes as planned, we
would expect that BHE customers could begin seeing a
refund by June.”
Detailed information on the NG-109 Black Hills General Rate
Increase application, can be found on the Natural Gas
Department Main page of the PSC website by clicking on the
NG-109 Black Hills Energy Rate Case . ###
Contact:
Deb Collins- Media & Communications Mgr.
(402) 471-0226
deb.collins@nebraska.gov
