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Colorado gas regulatory rate review

Black Hills Energy received approval by the Colorado Public Utilities Commission (CPUC) to implement new provisional base rates for natural gas usage, effective Feb. 13, 2024. The rate increase recovers approximately $20 million in critical infrastructure and operational costs to support safe, reliable natural gas service for customers. Final rates are pending approval by the CPUC, anticipated in May 2024.   

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 CPUC for any change to tariffs or rates.

Why now?

From 2021 - 2023, the company completed more than $110 million in system safety, integrity, and reliability projects for its natural gas utility system in Colorado. 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 207,000 households and businesses across the state.

What is needed to maintain the natural gas system?

Black Hills Energy spends millions of dollars each year to safely operate, maintain its more than 7,000-mile natural gas system in Colorado to support safe, reliable natural gas service for customers. Final rates are pending approval by the CPUC, anticipated in May 2024. 

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 Colorado. For example, the company removed more than 90 percent of the steel pipe that has a propensity for leaking with new modern leak resistant pipes.

How will it impact customer bills?

On average, residential customers with an average usage will see an increase ranging from approximately 2.4% to 16% per month. Small commercial customers with an average usage will see an increase of approximately 5.4% to 12.9% per month, depending on the region of the state.

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 our 24/7 customer service number 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 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 multiple programs. Colorado payment assistance. 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.