Iowa regulatory rate review
Providing you with the energy you depend on
Every day, we provide essential energy that our customers rely on. From cooking and heating to fueling manufacturing and agriculture, Black Hills Energy is here for you.
Why did Black Hills Energy seek a rate increase?
On May 1, 2024, Black Hills Energy submitted a proposal to the Iowa Utilities Commission (IUC) to recover investments made in safety, reliability and system resilience for natural gas service to over 163,000 customers across 133 Iowa communities. Since the last rate review in 2021, the company has invested approximately $100 million in its infrastructure to modernize its system by updating and replacing aging pipe, safeguarding meters, and connecting to renewable natural gas projects to advance the sustainable use of the natural gas system. These projects have improved safety and reliability throughout Iowa in compliance with state and federal regulations and the obligation to serve.
The IUC approved the request in an order issued on November 26.
What is a rate review?
Prior to deciding on proposed changes, the IUC carefully reviews the request and considers public comment along with testimony from the Office of Consumer Advocate under the Office of the Attorney General of Iowa, Black Hills Energy representatives and other interested parties.
The IUC regulates utilities to ensure that reasonably priced, reliable, environmentally responsible and safe utility services are available to all Iowans. If you’d like more information, visit www.iuc.iowa.gov.
When will rates take effect?
The new rates will take effect on Jan. 01, 2025, and will replace a temporary natural gas rate increase which has been in place since May 2024, as allowed by Iowa law when Black Hills Energy submitted its rate review proposal to the IUC.
Will rate changes impact how much we pay for the natural gas itself?
No. Usage is a primary factor in energy bills, and outdoor temperature is a key driver in determining how much natural gas customers use to heat their homes and businesses. The rate review doesn’t affect the cost of the natural gas delivered by Black Hills Energy. The cost of the natural gas commodity is a direct pass-through to customers, meaning there is no mark-up or profit.
To help hold down costs, we buy a portion of physical gas supply on a set price basis for the November to March heating season. We also purchase gas through short-term contracts and, when necessary, on the open market.
How will the approved changes impact my bill?
Relative to the temporary rates enacted in May 2024, under the new rates, the average residential customer bill will increase by $2.38 per month based on an average monthly use of 63 therms. The increase for customers will vary, based on rate class, load factors and total usage. The rate adjustment does not affect the cost of the natural gas delivered by Black Hills Energy. The cost of the natural gas commodity is a direct pass-through to customers, meaning there is no mark-up or profit.
Are there ways I can reduce my natural gas bill?
- Check your furnace filter – make sure it’s clean and properly installed facing the correct direction.
- You could save as much as 30% of your energy costs by better insulating your attic or top floor. You can save about 8% of your energy costs by insulating the floor over any unheated areas, such as crawl spaces, basements and garages.
- Adjust your humidity. A well-humidified house at 68 degrees Fahrenheit is as comfortable as a dry house at 75 degrees.
- Make sure your fireplace damper closes tightly when you're not using it. Closing the damper could save 8% of your home's heat.
- Use kitchen, bath and other ventilating fans only as needed. In just one hour, these fans can blow away a house full of warmed air.
- If health concerns aren’t a factor, set your thermostat to 68 degrees in the winter. Check the thermostat on your water heater, too. It should still be hot enough to wash dishes and take a steamy shower without having it at its highest level.
- Reduce hot water usage. Use low-flow faucets and shower heads and take short showers instead of baths. Set the temperature on your water heater to 120 degrees or put it on the “warm” setting.
Does Black Hills Energy offer any energy assistance programs?
Black Hills Energy offers many programs to help customers manage their bills. View the options below.
