In its request, Black Hills Power is seeking a $3.8m increase in annual revenues and that new rates become effective for its Wyoming customers on the in-service date of Wygen III, which is expected to be April 1, 2010.
If the proposed rates are approved, a typical Wyoming residential customer using an average of 600kWh of power each month will see an increase of $19.44 per month, but the actual change in each customer’s monthly utility bill will vary based on their electric service rates and electricity use.
The increase experienced by Black Hills Power’s commercial and industrial customers in Wyoming will vary depending on rate class, load factor, and the amount and nature of their electricity use. Black Hills Power currently serves approximately 2,700 residential, commercial and industrial electric customers in northeastern Wyoming.
The last base rate increase of 8.97% for Black Hills Power customers in Wyoming was based on 1994 costs and became effective in August 1995. During the past 15 years, Black Hills Power residential energy consumption in Wyoming has increased 33% and commercial energy consumption has increased 28%.
When adjusted for inflation, the proposed Black Hills Power rates for Wyoming customers in 2010 would be approximately equal to rates paid by customers in 1995. In addition, Black Hills Power has voluntarily incorporated 35MW of wind generation into its supply portfolio as the demand for renewable energy has continued to grow in the region.
