Black Hills Energy seeks $45 monthly bill hike

Black Hills Energy customers in South Dakota are facing a significant rise in their monthly electricity costs. The utility has applied for a rate increase that, if approved, could add $45 to the average residential customer's bill. This increase includes a proposed $19.70 monthly surcharge specifically to recoup the $320 million construction cost of the new Lange II natural gas-powered electrical generation plant.

The new plant, located in northwestern Rapid City, is slated to begin delivering power in December. Company officials emphasize that Lange II is essential for meeting growing energy demands and will replace the aging Ben French plant, thereby enhancing system reliability. This surcharge may be collected on an interim basis starting in December, pending a final decision from the state Public Utilities Commission.

In addition to the surcharge for the new plant, Black Hills Energy is requesting a general rate increase of approximately $25 per month for the average residential customer. This broader rate adjustment aims to generate an additional $50.6 million in annual revenue. The company argues that its base electric rates have remained unchanged since 2014, and this adjustment is necessary to account for infrastructure investments, inflation, and increased operating expenses.