Black Hills Energy Announces It Plans To Seek A Rate Increase From Iowa Utilities Board
(Grimes)-- Customers of Black Hills Energy may soon be paying more for natural gas. The company has announced it's seeking a rate increase through the Iowa Utilities Board. Officials with Black Hills Energy say the increase is needed to help fund more than $250 million in improvements to the company's infrastructure in Iowa made since 2011. They add it's the first review of Black Hills Energy's rates in more than a decade.
A typical residential customer would see their monthly bill increase by a little more than two dollars a month, based on an average monthly use of 63 therms. Company officials say the increase for customers will vary depending upon rate class, load factors and total usage.
They add the rate review does not affect the cost of natural gas delivered by Black Hills Energy during the abnormally cold weather in February of this year, adding the natural gas commodity is a direct pass-through to customers, meaning there is no mark-up or profit.