Black Hills Energy Arkansas residential customers may face an 8.6% rate hike next month, translating to an increase of about $6.38 for those using 49 Ccf of natural gas. The Arkansas Public Service Commission recently approved a settlement agreement regarding the utility’s rate case, which included approximately 189,000 customers in Northwest Arkansas.
The commissioners deemed the settlement fair, with one exception: a rejected allowance of $65,627 for community service hours. Black Hills must adjust its rates and tariffs by Monday to comply with the modified settlement. Initially, they sought a 12% increase, estimated at $11.12 monthly based on 51 Ccf usage, amounting to an additional $29.4 million in annual revenue.
Recently, customers experienced a slight increase of about 13 cents due to a separate pipeline project, expected to grow to about 67 cents monthly by the project’s fifth year. While the proposed increase excludes the expired Storm Uri Gas Charge, which had previously decreased bills by 12.8%, it allows for a customer charge bump from $15.51 to $17.67—although they initially proposed raising it to $28.
The commission also called for redesigning a billing adjustment rider to ensure customer rebates if revenues exceed the target, as well as increased awareness of the Low-Income Home Energy Assistance Program, allocating $165,000 for customer education. They should file an annual report detailing their outreach efforts.
Black Hills serves numerous counties, including Baxter, Benton, and Sebastian, among others.
