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Black Hills Energy reaches settlement agreement to recover costs from 2021 winter storm

According to the US Energy Information Administration, households that heat primarily with...
According to the US Energy Information Administration, households that heat primarily with natural gas should expect to spend at least 30 percent more than last winter(KOLN)
Published: Nov. 10, 2021 at 9:23 AM CST
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WICHITA, Kan. (KWCH) – Black Hills Energy announced Wednesday that it has reached a settlement agreement for its plan to recover costs incurred for Kansas customers resulting from Winter Storm Uri in February 2021.

As a result of the storm, the company said it incurred significant costs to procure natural gas critical for customers. Incremental costs were the result of extraordinary demand above and beyond the company’s commission-approved procurement and commodity hedging program to reduce commodity cost volatility for customers.

The agreement with Kansas Corporation Commission (KCC) staff and Citizens’ Utility Ratepayer Board includes recovery over a five-year period for $87.9 million of incremental fuel costs incurred during the winter storm. While the recovery of natural gas costs typically occurs over twelve months, Black Hills Energy is proposing an average increase of $11.47 each month based on their usage moving forward.

The settlement agreement is pending a final hearing and approval by the KCC. Black Hills Energy delivers service to 117,000 customers across 66 communities in Kansas.

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