2024 Wyoming Gas Rate Review Approval: FAQ
Black Hills Energy’s Wyoming natural gas utility filed a rate review with the Wyoming Public Service Commission (WPSC) on May 18, 2023, seeking a $19.3 million increase in base rates to recover the necessary capital infrastructure and operational costs required to enable safe, reliable natural gas service for customers in Wyoming. The company also requested the extension of the Wyoming Integrity Rider (WIR), which expires in 2023.
This request was approved through a settlement agreement approved by the WPSC with new rates to be implemented Feb. 1, 2024. Residential customers with an average usage will see an increase of approximately $7.26 per month. Small general service customers with an average usage will see an increase of approximately $1.23 per month.
What is a rate review?
Utilities periodically review customer rates to align with the actual cost of delivering natural gas service – this includes operating costs, capital investments and other system expenses. As a regulated public utility, Black Hills Energy must request approval from the WPSC for any change to tariffs or rates.
What is the Wyoming Integrity Rider (WIR)?
The Wyoming Integrity Rider (WIR) supports ongoing infrastructure replacement projects driven by state and federal regulation.
Why now?
Since its last rate review in 2019, the company completed more than $140 million in system safety, integrity, and reliability projects for its natural gas utility system in Wyoming. These critical projects were required to support the safe and reliable delivery of natural gas and transportation services and meet compliance requirements of state and federal regulations. It is necessary for the company to recover costs for investments made on behalf of customers to continue to provide safe, reliable service and prepare for expected growth and demands on our system of over 133,000 households and businesses in 56 counties across the state.
What is needed to maintain the natural gas system?
Black Hills Energy safely maintains and operates more than 6,400 miles of natural gas system infrastructure in Wyoming. Ongoing inspections and maintenance are pivotal to the delivery of safe reliable natural gas service. This includes infrastructure replacement projects such as investments in the transmission and distribution system and other projects to meet state and federal regulations.
How will this benefit Black Hills Energy customers?
Our customer-focused investments are essential to continue to deliver safe and reliable natural gas service and support the ongoing growth in Wyoming. For example, from 2020 through 2022, the company completed more than 40 integrity projects and over 1,800 individual meter replacements in Wyoming cities, including Cody, Rawlins, Laramie, Casper, Wheatland, Riverton, and Cheyenne.
How will it impact customer bills?
Residential customers with an average usage will see an increase of approximately $7.26 per month. Small general service customers with an average usage will see an increase of approximately $1.23 per month.
What bill assistance options are available to customers?
Black Hills Energy offers many programs to help customers manage their bills.
- Customers who experience trouble paying their bills are encouraged to contact us at 888-890-5554 or at www.blackhillsenergy.com as soon as they think they may be experiencing financial difficulties to discuss payment arrangements, including budget billing.
- Black Hills Energy is committed to helping customers save energy and money through energy efficiency programs and tips. Go to www.blackhillsenergy.com/efficiency-and-savings to find ways to save money by saving energy, including energy efficiency rebates and tips to reduce energy consumption.
- Customers may apply for energy assistance through Energy Share of Wyoming.
- Black Hills matches donations from customers and employees through our Black Hills Cares program which forwards the funds to Energy Share of Wyoming for distribution throughout the state. Those who wish to contribute to the fund can designate one-time or monthly donation(s) to Black Hills Cares on their bill stub, or by going to www.blackhillsenergy.com.
How is Black Hills Energy communicating this to its customers?
Once the rate review is complete, we will communicate any changes to customers through a variety of channels. In the meantime, customers can find information on this webpage. Additional information about public utilities and regulatory process can be found on the WPSC website.