Black Hills Energy files request for rate hike

04/30/2014 8:19 AM

04/30/2014 8:20 AM

Black Hills Energy has filed a request with the Kansas Corporation Commission to raise natural gas rates on its 111,000 Kansas customers.

The company said in its filing that it is seeks an increase of $7.3 million. The average residential customer will see his bill rise about $4.17 per month.

The rate increase is being driven not by the price of gas, the company said, but the cost of maintaining its distribution system.

The company said that neither it nor its predecessor, Aquila, had raised rates for eight years. The company has spent $50.8 million on the system since late 2006.

Present rates are “unjust and unreasonable” and are squeezing the company’s profit margins, the company wrote in its filing.

With the rate increase, the company would have a rate of return of 7.5 percent.

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