Feedback needed this summer for proposed natural gas rate increase

Four public meetings have been scheduled this summer — with one being held in Newton — for customers of Black Hills Energy to provide comments regarding a proposed gas rate increase. By now, customers should have received notices in the mail which show in great detail how the new rates would affect gas bills.

According to a notice acquired by Newton News, the typical monthly bills for residential customers will temporarily increase by about 4.5 percent in 2024 and then increase permanently by 11.7 percent in 2025. Non-residential general service, small volumes and large volumes will also increase by differing amounts.

Typical monthly bills in 2023, based on 63 therms (or 6,300 cubic feet of natural gas) per month, are about $64.82. Using those metrics, the average monthly bill would then temporarily increase to $67.76 in 2024, and then increase again to $72.38 in 2025, based on the proposal from Black Hills Energy.

Of note, the effects of the proposed changes on individual bills will vary depending on customer type, usage level, non-base rates in effect and the final rates approved by the Iowa Utilities Board (IUB), which is a state agency charged with regulating the rates and services of electric, gas and water utilities.

Black Hills Energy customers have the right to file a written objection to this proposed increase with IUB and request a public hearing.

Written objections or requests can be submitted online at iub.iowa.gov, by email at customer@iub.iowa.gov or by mail at Iowa Utilities Board, 1375 E. Court Ave., Des Moines, IA 50319-0069. Customers are encouraged to provide any facts to assist IUB with determining the justness and reasonableness of the request.

Customers will also be able to provide input at comment meetings in July and August. The notices from Black Hills Energy say this is the best way to provide feedback directly to IUB and other parties involved with the proposed rate increase. The dates are scheduled as follows:

NEWTON — 5:30 p.m. Tuesday, July 23 at DMACC Conference Center, 600 Second Ave. W., Newton, IA, 50208

COUNCIL BLUFFS — 5:30 p.m. Monday, July 22 at Council Bluffs Public Library, 400 Willow Ave., Council Bluffs, IA, 51503

DUBUQUE — 5 p.m. Monday, Aug. 5 at Carnegie-Stout Public Library, 360 W. 11th St., Dubuque, IA, 52001

VIRTUAL MEETING — 11:30 a.m. Tuesday, Aug. 6 at iub.iowa.gov

Black Hills Energy asks its customers to either call 888-890-5554 or email customerservice@support.blackhillsenergy.com if they have any questions about the rates. Iowa customers affected by the proposal are also encouraged to visit blackhillsenergy.com/IA-rates for current and proposed rate schedules.

The web page says the reason Black Hills Energy submitted a proposal to IUB is to recover investments made in safety, reliability and system resilience for natural gas service to over 163,000 customers across 133 Iowa communities. Since 2021, Black Hills Energy invested more than $100 million in its infrastructure.

Before the proposal from Black Hills Energy goes into effect, it must first be reviewed by IUB, which considers testimonies from the public, the Office of Consumer Advocate under the Office of the Attorney General of Iowa, utility representatives and other interested parties.

The proposal to adjust customers’ natural gas rates and charges will be officially submitted to IUB on May 1. The effective dates for final rates is March 1, 2025. Published notices estimate the requested increase in annual revenues for all customer classes combined is approximately $20.7 million, or 27.1 percent.

Black Hills Energy wants to also increase non-recurring charges for reconnect fees during business hours ($20 to $45, a 125 percent increase), reconnect fees for outside business hours ($75 to $120, a 60 percent increase) and connect fees outside business hours ($0 to $120, a new charge).

Under Iowa law, Black Hills Energy can implement a temporary increase in rates to remain in effect until IUB completes its review.

The temporary rate increase goes into effect May 11.