Black Hills Energy Lowers Electric Rate Request to Lessen Customer Impact

Black Hills Energy Lowers Electric Rate Request to Lessen Customer Impact

PUEBLO, Colo. – November 8, 2024 – Black Hills Energy today announced an updated rate review filing with the Colorado Public Utilities Commission (PUC) which reduces its request by 32% compared to its original request filed with the PUC in June. The updated filing lessens the customer monthly bill impact across all customer classes.

“We are listening to our customers,” said Campbell Hawkins, Vice President of Colorado utilities for Black Hills Energy. “We have adjusted our cost-of-service calculation based on concerns from our customers and input from PUC staff, and the Colorado Office of Utility Consumer Advocate (UCA). The result is a significant reduction to the original proposed bill increase.”

If the updated request is approved by the PUC, residential customers would see an average increase of $15.11 per month. This equates to an approximate 1.75% annual increase over the eight years since Black Hills Energy last changed its rates and far below the rate of inflation. Small commercial customers would see an average of $23.03 per month. These averages are based on 600 kWh hours per month for residential customers and 1,523 kWh per month for small commercial customers. Bill impacts will vary across customer classes based on how much energy each customer uses.

The adjustment is part of the ongoing, transparent process of setting utility rates in Colorado by the PUC. Hawkins said the initial request was justified based on the increasing cost of providing safe, reliable electric service and that the company’s earlier rate update request included capital improvements made through 2024, as permitted by PUC rules. To lessen the cost impact on customers, Black Hills Energy determined not to seek recovery for the 2024 investments in this proceeding and will instead use 2023 as a “test year” for purposes of calculating the cost of service as recommended by PUC Staff and UCA.

The rate update request is the company’s first since 2016 and is needed to adjust for the rising cost of safely and reliably operating and maintaining its Southern Colorado electric system, which serves about 105,000 customers in Pueblo, Cañon City, Rocky Ford and surrounding communities. If approved, the new rates would go into effect on March 22, 2025.

“While we’re pleased to propose a change that will result in less impact on our customers, we recognize any increase is challenging,” Hawkins added. “We remain focused on offering solutions for the customers and communities we serve.”

These include:

· Energy efficiency and weatherization programs, such as free in-home virtual energy audits and rebates, to help all customers use less

· Energy assistance programs to connect customers who need help paying their bills with support programs and resources; this team can be reached by contacting us (888-890-5554)

· Enhanced economic development support, including new proposed economic development rates, to help Southern Colorado attract new business investment and jobs while reducing rate pressure on customers

For more information about the Black Hills Energy rate update request, visit us here.

If you need help paying your electric bill, please call us at 888-890-5554, or visit us at www.blackhillsenergy.com to learn more.

Media Contacts:

Julie Rodriguez 719-924-4103 julie.rodriguez@blackhillscorp.com

24-hour Media Assistance: 888-242-3969

About Black Hills Energy

Black Hills Energy is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.34 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. More information is available at: www.blackhillsenergy.com.