Colorado gas SSIR Filing
Every day, Black Hills Energy provides essential energy that our customers rely on. From cooking and heating to fueling manufacturing and agriculture, Black Hills Energy is here for you.
We take our responsibility of providing safe and reliable energy seriously, which is why we’ve filed System Safety & Integrity Rider (SSIR) with the Colorado Public Utilities Commission. The maintenance, upgrades and replacement of critical infrastructure ensures our customers have the natural gas energy they need, when they need it.
On September 11, 2020, Black Hills Colorado Gas (BHCG) submitted a proposal to the Colorado Public Utilities Commission (CPUC) asking to for approval of a five-year System Safety Integrity Rider (SSIR) to prioritize safety-focused replacement projects using a consistent, long-term approach to benefit customers, regulators and the company.
With this filing, we’re seeking to support important projects into the future.
Even though the energy we provide every day is essential, it isn’t something we take for granted, and we know you don’t either. Our customers manage some incredible projects of their own and we know costs are important. Black Hills Energy has worked hard to keep customer bills notably stable over recent years, with increases that are below the rate of inflation for the last six years. That trend continues even with the proposed rider. We remain committed to providing safe, reliable and affordable energy into the future.
Below are a few details around those changes and how you may be impacted.
What is an SSIR?
A System Safety and Integrity Rider (SSIR) is a funding mechanism for programs that ensure system safety and reliability.
Our current SSIR filing includes the following programs:
- At-Risk Meter Relocation and Yard Line Replacement
- Problematic Pipe Replacement
- Miscellaneous Distribution Integrity and Safety
- Transmission Integrity Management Plan
- Data Infrastructure Improvement
To ensure the continued safe and reliable delivery of natural gas, infrastructure should be:
- Comprised of acceptable materials
- In good operating condition
- Documented regarding installation and maintenance
- In a safe location
- Locatable
To learn more about the SSIR click here
When will new policies and rates take effect?
We anticipate the SSIR will go into effect in June of 2021.
Will the SSIR 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 cost of natural gas comprises a significant portion of the bill. That cost is a direct pass-through to customers, without markup. The gas cost surcharge items on the bill are adjusted up or down each November to ensure charges cover the cost of gas delivered to customers.
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.
What is Black Hills Energy doing to control costs?
We’re committed to controlling costs and making responsible investments to deliver safe, reliable natural gas at a good value. Including the current rate review, customer bill increases have been below inflation for the past six years. We use technology and embrace process improvements to hold down costs and work more efficiently, while retaining our commitment to safety and reliability.
Is there anything I can do to reduce my natural gas bill?
There are many things you can do to save money and energy in your home. And you won’t have to sacrifice comfort. For example, Black Hills Energy provides a variety of energy efficient rebates, including:
- Rebates to replace old, inefficient appliances, furnaces and water heaters with energy-efficient natural gas appliances with the Energy Star designation.
- Rebates for adding weatherization improvements, such as insulation and weather-stripping to seal doors and windows.
- New construction rebate programs for residential and commercial buildings.
- Free online energy evaluations, as well as free basic walk-through assessments, which include a number of “quick fix” items for residential customers at no cost.
- Tips for how to increase the efficiency of your existing appliances and overall home energy usage.
Learn more at www.energy-ready.com.
Does Black Hills Energy have energy assistance programs?
Yes, Black Hills Energy offers many programs to help customers manage their bills.
- Budget Billing – Our budget billing level payment plan is a payment option that takes seasonal peaks out of the customer’s bill for a more even monthly payment. This is a free service for residential customers. The customer monthly balance is calculated based on the average of the previous 12 months’ actual bills.
- Customers who experience trouble paying their bills are encouraged to contact us at 888-890-5554 to discuss payment arrangements as soon as they think they may be experiencing financial difficulties.
- Customers can consider joining Black Hills Energy in providing energy assistance through the company’s Black Hills Cares program. Black Hills Energy matches donations from customers and employees to Black Hills Cares, and forwards the funds to Energy Outreach Colorado for distribution throughout the state. Customers can designate one-time or monthly donation(s) to Black Hills Cares on their bill stub, or by going to www.blackhillsenergy.com/bhcares.
How will the proposed changes impact my bill?
Black Hills Energy has worked hard to keep customer bills notably stable in recent years.
As proposed, the impact of these improvements to our customer’s bills will vary based on geographic location and usage.
The SSIR applies to customers in certain parts of our service territory. The proposed monthly residential bill increase for impacted customers ranges from $0.26 to $0.64. The proposed increase for impacted small commercial customers ranges from $0.40 to $1.16 per month.
Proposed SSIR Average Monthly Residential Bill Impacts
|
Base Rate Area/GCA Region and Communities Serviced |
Current Average Monthly Bill |
Proposed Average. Monthly Bill |
Monthly Change |
|
Base Rate Area 1: Western Slope GCA Region Western Slope communities located in Delta, Eagle, Garfield, Montrose, Ouray, Pitkin and San Miguel counties, including the towns of Aspen, Basalt, Delta, Glenwood Springs, Hotchkiss, Montrose, Olathe, Paonia and Telluride |
N/A |
N/A |
N/A |
|
Base Rate Area 1: North/Southwest GCA Region Communities in Larimer and Weld counties, including the towns of Dacono, Erie, Firestone, Frederick and Wellington |
N/A |
N/A |
N/A |
|
Base Rate Area 2: Central GCA Region Communities in Bent, Crowley, and Otero Counties, including the towns of Fowler, La Junta, Las Animas, Rocky Ford and Swink |
$46.51 |
$47.15 |
$0.64 |
|
Base Rate Area 2: North/Southwest GCA Region Communities in Cheyenne, Logan, Morgan, Phillips, Sedgwick, Washington, Weld, Archuleta, La Plata, Mineral and Yuma counties, including the towns of Akron, Wray, Pagosa Springs, Bayfield and Yuma |
$55.75 |
$56.39 |
$0.64 |
|
Base Rate Area 3: Central GCA Region Castle Rock south to Monument, Fountain, Woodland Park, east to Kiowa, Limon and Burlington, and the surrounding areas to these communities |
$50.30 |
$50.56 |
$0.26 |
Proposed SSIR Average Monthly Small Commercial Bill Impacts
|
Base Rate Area/GCA Region and Communities Serviced |
Current Average Monthly Bill |
Proposed Average. Monthly Bill |
Monthly Change |
|
Base Rate Area 1: Western Slope GCA Region Western Slope communities located in Delta, Eagle, Garfield, Montrose, Ouray, Pitkin and San Miguel counties, including the towns of Aspen, Basalt, Delta, Glenwood Springs, Hotchkiss, Montrose, Olathe, Paonia and Telluride |
N/A |
N/A |
N/A |
|
Base Rate Area 1: North/Southwest GCA Region Communities in Larimer and Weld counties, including the towns of Dacono, Erie, Firestone, Frederick and Wellington |
N/A |
N/A |
N/A |
|
Base Rate Area 2: Central GCA Region Communities in Bent, Crowley, and Otero counties, including the towns of Fowler, La Junta, Las Animas, Rocky Ford and Swink |
$94.86 |
$96.02 |
$1.16 |
|
Base Rate Area 2: North/Southwest GCA Region Communities in Cheyenne, Logan, Morgan, Phillips, Sedgwick, Washington, Weld, Archuleta, La Plata, Mineral and Yuma counties, including the towns of Akron, Wray, Pagosa Springs, Bayfield and Yuma |
$117.26 |
$118.42 |
$1.16 |
|
Base Rate Area 3: Central GCA Region Castle Rock south to Monument, Fountain, Woodland Park, east to Kiowa, Limon and Burlington, and the surrounding areas to these communities |
$75.81 |
$76.21 |
$0.40 |
Why does the SSIR only apply to Central and North/Southwest GCA regions?
The infrastructure in this region of our service territory is older than that in other parts of our system. Because of the materials and age of the pipes and fittings, there is a larger amount of higher risk, vintage pipe that needs to be addressed. Additionally, due to the more rural nature of this region, there is a smaller number of customers in these regions to spread the costs across.
Why is there no proposed SSIR impact for Rate Area 1?
In Rate Area 1, the infrastructure needs have been and will continue to be met through the current pace of projects without the need to accelerate work as is needed in the other areas.