Reliable Arkansas
Providing you with the energy you depend on
Every day, we provide the essential energy that our customers rely on. From cooking and heating to fueling manufacturing and agriculture, Black Hills Energy is here for you.
That’s why we’ve been updating our natural gas system throughout Arkansas to deliver safe and reliable service to our customers. Infrastructure investments in our natural gas system improve the safety, reliability, sustainability and regulatory compliance of our 8,000 miles of pipeline in the state.
Update to natural gas rates
Last year, we went before the Arkansas Public Service Commission to seek approval to adjust customer rates so the actual cost of delivering natural gas service better reflects and supports the cost to operate, maintain and upgrade the system to meet customers’ needs. The rate adjustment was approved through a unanimous settlement agreement reached in August 2024 with the Arkansas Public Service Commission General Staff and the Office of Arkansas Attorney General Tim Griffin.
Starting with October 2024 bills, residential customers can expect to see a monthly bill increase of approximately $10 based on an average monthly usage of 53 Ccf (hundred cubic feet). The increase for commercial customers will vary, based on rate class, load factors and usage.
Black Hills Energy’s natural gas rates were last updated in 2022. Since our last rate filing in 2021, we have invested approximately $130 million in critical natural gas infrastructure projects to support the safety and continued resilience of the system. This investment also supports state and federal safety regulations and a substantial increase in customers particularly with rapid development in the Northwest Arkansas region and industrial growth in Northeast Arkansas.
This rate update does not affect the cost of natural gas, which is adjusted twice a year in Arkansas. Natural gas prices are a pass-through cost without any markup from Black Hills Energy.
What’s changing on the bill?
Starting with the October 2024 billing cycle, typical residential customers will see a monthly bill increase of about $10 based on an average usage of 53 Ccf of natural gas per month. The increase is primarily due to adjustments to the following billing components:
- Customer charge – a flat monthly charge for meter reading, billing and customer service and equipment such as meters. For residential customers, the Customer Charge will change to $15.51 per month from $12.33 per month.
- Delivery charge – gas service costs such as the cost of production, storage and transmission and distribution pipelines. For residential customers, the Delivery Charge will change to $0.7431 from $0.590624.
| Customer class | Current rates bill amount |
Updated rates bill amount |
Monthly change |
|---|---|---|---|
| Residential service: R-1 | |||
| 53 Ccf | $69.08 | $79.15 | $10.07 |
| Small business service: B1, B2, irrigation | |||
| 144 Ccf | $154.10 | $162.14 | $8.04 |
| 1,735 Ccf | $1,453.92 | $1,565.58 | $111.66 |
| Medium business service: B3 | |||
| 8,392 Ccf | $5,647.59 | $5,575.46 | ($72.12) |
To view the natural gas rate sheet for all customer classes, visit the Arkansas rates and regulatory information page.
Other changes include:
- System Integrity Rider – This supports ongoing infrastructure replacement projects, along with gas meters to increase safety.
- Tax Adjustment Rider – The PSC also approved a plan in this proceeding to refund Arkansas customers over $2.7 million resulting from state income tax reductions. A typical residential customer will see a credit on their bills of approximately $10.15 in January 2025.
For more information, visit the Understanding your bill page.
How we’re supporting our customers
We recognize the impact that cost increases have on our customers, especially at times of high inflation. That’s why we’ve increased our efforts to provide support for customers, including launching a new Energy Assistance team to help our most vulnerable customers access programs and resources to help make their bills more affordable. We’re also helping our customers find ways to use less energy through our energy efficiency programs and rebates.
- Customers who experience challenges paying their bills are encouraged to contact us at 888-890-5554 or submit an online form on our customer service page as soon as they think they may be experiencing financial difficulties to discuss payment arrangements.
- Enrolling in budget billing, a free payment plan that averages the amount owed each month, is a great way to avoid seasonal spikes in bills.
- Black Hills Energy is committed to helping customers save energy and money through energy efficiency programs and tips. Find ways to save money by saving energy, including energy efficiency rebates and tips to reduce energy consumption, at blackhillsenergy.com/ready.
- Arkansas 211 administers the Black Hills Cares energy assistance program in Arkansas. Customers may dial 2-1-1 or 1-866-489-6983 to speak with a community resource specialist.
- For payment assistance resources in Arkansas, go to blackhillsenergy.com/assistance.