Kansas Corporation Commission approves settlement in Black Hills Energy rate case

TOPEKA - This morning, the Kansas Corporation Commission approved a unanimous settlement agreement allowing Black Hills Energy to increase rates to recover costs incurred to provide natural gas service to customers. The agreement allows for a net incremental revenue increase of $10.8 million. The company requested an increase of $17.2 million in net incremental revenues in its application filed in February.

Under the terms of the settlement, residential customers with average usage (53.6 therms per month), will see an increase of approximately $5.96 per month or $71.52 per year. The new rates will take effect on August 1, 2025.

Other terms of the settlement include approval of Black Hills' request to refund approximately $2.9 million in excess deferred income tax to customers through its existing tax adjustment rider and authorization to file an abbreviated rate case later this year to allow recovery of capital investments to be placed in service through December 2025.

In testimony filed in support of the settlement, KCC staff stated that the agreed upon revenue increase strikes the proper balance between Black Hills' desire for reasonable assurances that it will earn sufficient revenue to meet its financial obligations and the need to keep rates as low as possible for customers while providing reliable service.

The settlement agreement was filed with the Commission on June 13. An evidentiary hearing, allowing the Commission to question the parties about the settlement, was held on June 30 and is available for viewing on the KCC YouTube Channel. A link to today's order is available here.