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KCC Approves Settlement Agreement in Black Hills Energy Rate Case

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TOPEKA – A unanimous settlement agreement approved by the Kansas Corporation Commission (KCC) this morning will result in a net rate reduction for Black Hills Energy customers. Beginning January 1, customers will see a credit on their monthly bills, the Tax Adjustment Rider, based on federal and state tax reforms. The Tax Adjustment Rider will refund $9.1 million to customers over a 3-year period. For individual ratepayers, that equals 5.4606% of base rates (the non-commodity cost portion of the bill).

In addition, the settlement agreement ensured the continued use of the Gas System Reliability Surcharge (GSRS) to fund Black Hills’ accelerated pipeline replacement program, and approved an increase to the monthly customer charge.

The GSRS, currently a separate line item charge generating $6.1 million per year, will become part of base rates to continue to fund system integrity and reliability improvements. The customer charge will increase from $16.94 to $18.50 per month.  Combined with the tax credit, the result of the three actions will produce a net rate reduction for Black Hills customers over the next three years.

This order stems from an application filed by Black Hills in May requesting to adjust its rates. It does not address extraordinary natural gas costs incurred during February’s winter weather event.  Those costs are addressed in Docket 21-BHCG-334-GIG, currently pending before the Commission.

Black Hills serves 117,000 Kansas customers in 50 counties.

Today’s order can be viewed at   https://estar.kcc.ks.gov/estar/ViewFile.aspx/20211230102459.pdf?Id=100b014b-3fbc-4604-a58e-6ab04cb14644

A recording of the Commission Business Meeting is available at   https://www.youtube.com/watch?v=qtUsl6IhG7g

Derek Nester
Derek Nesterhttps://sunflowerstateradio.com
Derek Nester was born and raised in Blue Rapids and graduated from Valley Heights High School in 2000. He attended Cowley College in Arkansas City and Johnson County Community College in Overland Park studying Journalism & Media Communications. In 2002 Derek joined Taylor Communications, Inc. in Salina, Kansas working in digital media for 550 AM KFRM and 100.9 FM KCLY. Following that stop, he joined Dierking Communications, Inc. stations KNDY AM & FM as a board operator and fill-in sports play-by-play announcer. Starting in 2005 Derek joined the Kansas City Chiefs Radio Network as a Studio Coordinator at 101 The Fox in Kansas City, a role he would serve for 15 years culminating in the Super Bowl LIV Championship game broadcast. In 2021 he moved to Audacy, formerly known as Entercom Communications, Inc. and 106.5 The Wolf and 610 Sports Radio, the new flagship stations of the Kansas City Chiefs Radio Network, the largest radio network in the NFL. Through all of this, Derek continues to serve as the Digital Media Director for Sunflower State Radio, the digital and social media operations of Dierking Communications, Inc. and the 6 radio stations it owns and operates across Kansas.

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