Black Hills Electric Rate Case

On June 14, 2024, Black Hills filed an electric rate case with the PUC (Proceeding No. 24AL-0275E). The Company contended in this filing that its existing rates do not cover its current cost of providing electric service, so it requested an increase to recover infrastructure investment and operating costs, including pay and benefits for local employees.

Black Hills originally requested a proposed annual revenue increase of approximately $37 million, which would affect all rates, including the residential and commercial classes. On Nov. 8, 2024, the Company submitted rebuttal testimony, in which it requested a lesser annual revenue increase of some $25 million above its current base rate revenue of $180 million.

This is a Phase I and Phase II Rate Case, meaning that the PUC determines both the revenue requirement of Black Hills (i.e., how much money it can collect) and the allocation of those costs amongst customer classes (i.e., who pays what).
The Commission reached a decision on this proceeding on March 12, 2025. A final written order from the Commission is expected the week of March 17th. Appeals by parties to the PUC regarding this decision must be filed within 20 days of the written order. This is provided to help inform customers and does not necessarily constitute the final decision of the PUC. To learn more about this case, visit the PUC eFilings system, using Proceeding No. 24AL-0275E.

What Did the Commission Decide on March 12, 2025?
Commission approved a revenue requirement increase of about $17 million resulting in a total monthly bill increase of between $3.50/month to $7.40/month depending on household electric usage.

Additionally, several charges that customers see on their bills will be removed, including the General Rate Schedule Adjustment (GRSA), which had been about 3.6% of the customer’s bill.

Black Hills Currently Applies a Tiered Billing Rate Structure. Was that maintained in this decision?
Yes, the Commission’s decision maintains the current rate structure which applies different rates based on total household electric use as the default. Residential customers are charged a lower rate of 12 cents per kWh for the first 500 kWh used each month and 16 cents per kWh for usage above 500 kWh each month. Residential rates will increase an average of between 6 and 7 percent, depending upon household electrical usage. For example, a customer using 300 kWh a month will see an average monthly bill increase by $3.50 or 6 percent; and a household using 600 kWh will see an average monthly bill increase of about $7.40 or 7 percent. There is no change in the Fixed Monthly Customer Charge.

Residential Electric Rate Impacts

Small Business Electric Rate Impacts: 
Small business customers rates will increase from 9 to 11 cents per kWh with no increase in the Fixed Monthly Customer Charge.

What about Time of Use Rates?
The March 12th decision also set new Time of Use (TOU) rates. Black Hills will offer an Opt-In TOU program to all customers with On Peak hours between 5 PM and 8 PM. Customers should contact Black Hills Electric to learn more on how to participate. The on-peak and off-peak rates approved by the Commission are described below.
 
Residential Time of Use (TOU) Rates:

The new rates are anticipated to go into effect on March 22, 2025.
A final written order from the Commission is expected the week of March 17th. Appeals by parties to the PUC regarding this decision must be filed within 20 days of the written order. The rates approved via the Commission’s March decision will remain in effect throughout the appeal period.