The Nebraska Public Service Commission voted unanimously on Tuesday to approve an agreement with Black Hills Energy to raise natural gas rates, but at a lower margin than the utility company initially proposed.
The $23.9 million rate increase came down from the $34.9 million that Black Hills Energy proposed initially after an independent assessment by PSC staff, three town hall meetings and negotiations with a public advocate.
Based on the initial increase amount, the utility company has been charging Nebraska residential customers an additional $6.27 per month on average since August, according to a Black Hills Energy news release. Under the newly approved rate, residential customers will pay an additional $2.85 per month on average. When asked why the percentage decreases for the overall negotiated rate increase are not proportional to the monthly rate changes, Brandy Johnson, senior manager of public affairs, said that the calculations were “complicated,” and pointed to a page on the company’s website explaining them.
The news release said that customers will receive a one-time credit, with interest, in mid-2026 for the difference they paid between the initial and negotiated fare increases. That will follow a review process to be approved by PSC.
Black Hills Energy and the Public Advocate first presented the settlement to the PSC on Oct. 15.
“I do have a concern with the increase,” commission chairman Tim Schram said before the vote on Tuesday. “We did avoid through this settlement a fully litigated rate case, which saves the consumers hundreds of thousands of dollars. And so, in weighing all components of the settlement, I will support it.”
The last increase was in 2020. Since then, Black Hills Energy has invested over $453 million in its natural gas service across Nebraska, according to the company’s news release.