Notice of Application for Change in Rates for Arkansas Customers
Fayetteville, Ark. – Dec. 13, 2021 – Black Hills Energy Arkansas, Inc. (ARG) today announced it filed a rate review application with the Arkansas Public Service Commission (APSC) to recover non-rider eligible capital expenditures and operating expense increases since the last rate review.
Black Hills Energy has invested over $220 million in Arkansas since its last rate review in 2017 to serve customer needs across the state including the rapidly growing Northwest Arkansas region. These investments included upgrading and expanding the natural gas system to improve safety, system integrity, and reliability for over 7,200 miles of Arkansas natural gas infrastructure and serve approximately 180,000 customers.
“This rate review request will enable us to continue to meet the growing needs of our system and continue our commitment of safely and reliably serving our customers with affordable natural gas as an energy choice,” said Chad Kinsley, vice president of operations for Black Hills Energy Arkansas. “As a company, we are committed to working efficiently, providing outstanding service, and being a good partner to the communities we serve.”
For example, in 2020, Black Hills Energy’s direct economic impact in Arkansas totaled $102 million dollars. This includes franchise fees, charitable contributions, compensation to Arkansas employees, payments to suppliers, as well as property, sales and use taxes paid.
- Black Hills Energy supports a strong community by focusing on economic development, assisting community organizations, and maintaining a commitment to invest in infrastructure to allow for safe, reliable energy.
- In 2020, Black Hills Energy Arkansas gave nearly $519,000 in support of community events and organizations such as chambers of commerce and non-profits.
- Black Hills Energy’s 2021 annual United Way Campaign resulted in Arkansas employees contributing $65,000. The Black Hills Corporation Foundation matching contribution brought this total to over $81,000 and all these contributions go directly back into local Arkansas communities.
Even during the height of the COVID-19 pandemic, Black Hills Energy continued its focus on providing safe, reliable, and affordable natural gas service while at the same time offering support for those customers who may have financially struggled through the pandemic. Learn more here: blackhillsenergy.com/safety/response-covid-19-your-safety-our-top-priority
If approved, new rates will go into effect in the fourth quarter of 2022. Black Hills Energy is also seeking to implement an enhanced Safety, Integrity, and Reliability (SIR) Rider to allow the company to efficiently continue its replacement and upgrade efforts to support the ongoing safe and reliable operation of its natural gas pipeline system.
As proposed, the average residential customer bill would increase by $8.65, or approximately 10%, per month based on an average monthly use of 57 Ccf. The increase for customers will vary, based on rate class, load factors, and total usage. The rate review 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.
Customers who would like information about saving energy or bill payment assistance should call Black Hills Energy at 888-890-5554 or visit blackhillsenergy.com/assistance.
For more information about this rate review, please visit blackhillsenergy.com/ReliableAR.