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Wyoming Rate Filing - Q&A
1. Why is the company raising is rates?
2. How much will my bill go up?
3. When will this rate increase be effective?
4. When was your last base rate increase?
5. How do Black Hills Power’s rates compare with other providers?
6. What is Black Hills Power doing to control costs?
7. Why did you need a new power plant?
8. Why did you choose to build a coal-fired power plant?
9. What other investments have you made in the electric system?
10. How is Black Hills Power planning to integrate renewable energy?
11. What is Black Hills Power doing to reduce carbon emissions?
12. What is Black Hills Power doing to help customers save energy?
13. What can I do to control my energy costs?
14. What can I do if I need help paying my utility bill?
1. Why is the company raising its rates?
BHP is requesting recovery of costs associated with construction of the Wygen III power plant and other generation, transmission and distribution investments along with increased operating expenses since 1995.
2. How much will my bill go up?
If approved as requested, a typical residential customer in Wyoming using an average of 600 kilowatt-hours (kWh) of power each month will see an increase of $19.44 per month, or about 64¢ per day. Actual changes in each customer’s monthly bill will vary based on tariff and electricity use.
The increase experienced by commercial and industrial customers will vary depending on the rate class, load factor and amount and nature of use. Key account meetings will be held to discuss specific commercial and industrial customer impacts.
3. When will this rate increase be effective?
The proposed increase requires approval by the Wyoming Public Service Commission. The Wyoming Public Service Commission will hold a public hearing to discuss the proposed filing in spring of 2010. The company anticipates new rates will be effective April 1, 2010.
4. When was your last base rate increase?
Black Hills Power’s last base rate increase in Wyoming of 8.97 percent was based on 1994 costs and became effective in August 1995.
5. How do Black Hills Power’s rates compare with other providers?
With the proposed increase, Black Hills Power’s residential customer rates are in-line with rates currently charged by other electricity providers in our region as indicated in the graph below.
Both MDU and Rocky Mountain Power have filed rate increases pending approval from the Wyoming Public Service Commission.
6. What is Black Hills Power doing to control costs?
Black Hills Power has worked hard to keep rates stable for 15 years and continues to work diligently to control costs. Prudent management of assets and employees operating efficiently allow Black Hills Power to reduce the frequency and dollar amount of rate filings.
Since 1995 the Consumer Price Index has increased by 41 percent overall. Similarly, the national average retail price of electricity has increased by about 38 percent. In comparison, your price for electricity has remained stable for 15 years.
7. Why did you need a new power plant?
Since 1995, Black Hills Power residential electricity use in Wyoming has increased by 33 percent and commercial use by 28 percent. Thus, it was necessary for Black Hills Power to add a new generation facility – Wygen III – to our generation fleet and other utility infrastructure to keep up with current and future demand from our customers.
8. Why did you choose to build a coal-fired power plant?
Black Hills Power is committed to providing reasonably priced electricity for our customers. Our 2007 Integrated Resource Plan confirmed the need for the Wygen III generation, both the megawatts needed & the fuel type selected, based on least cost planning to meet projected customer load.
Black Hills Power has a proven track record of building generation on-time and on-budget. Construction and operating costs for Black Hills Power’s Wygen III generating facility compare favorably to other facilities; for example Basin Electric’s Dry Fork Station planned investment amounts to $2597 per kW ($1 billion for 385 MW) versus our Wygen III constructed for $2470 per kW.
9. What other investments have you made in the electric system?
Black Hills Power has invested over $400 million in utility infrastructure over the past 15 years to improve reliability and serve the growing customer demand for electricity.
10. How is Black Hills Power planning to integrate renewable energy?
Black Hills Power has voluntarily incorporated 35 MW of renewable energy into our supply portfolio from the Happy Jack wind farm and Silver Sage wind farm, both near Cheyenne, Wyoming. We will continue to explore cost-effective renewable energy resources for our customers.
11. What is Black Hills Power doing to reduce carbon emissions?
Wygen III will be one of the cleanest coal-fired power plants in the nation, using state-of-the-art emissions control and water conservation technology.
The plant design and location will allow for potential capture and sequestration of carbon dioxide as new technologies are developed in the future.
12. What is Black Hills Power doing to help customers save energy?
Black Hills Power offers community-based programs like Weatherization Day, Power of Trees and Energy Efficiency Awareness Day to help raise public awareness about the things we can all do to have a positive impact on our homes, communities and environment.
- We regularly promote energy efficiency education and provide energy saving tips in our monthly customer newsletter and on our Web site at www.blackhillspower.com.
- Black Hills Power sponsors an annual Energy Efficiency Awareness Day in October to educate customers about the benefits of energy efficient equipment and appliances, and raise awareness about the no- and low-cost things that we can all do to help save energy.
- We support ENERGY STAR’s® National Change a Light Day to promote the use of compact fluorescent light bulbs for saving energy.
- BHP is a sponsoring partner of the Wyoming Home Performance with ENERGY STAR program and Wyoming Home Performance Alliance, a voluntary initiative that encourages Wyoming residents to take control of residential utility costs by using a comprehensive “whole-house” approach to energy-related improvements.
- Black Hill Power offers its customers cash back incentives for making energy saving home improvements.
13. What can I do to control my energy costs?
Black Hills Power offers energy efficiency programs and tips that can help customers use energy wisely. For example, a free energy audit is available and designed to help analyze your home’s energy usage and determine areas for improvement. You can also find detailed information and low- and no-cost energy saving ideas on our Web site at www.blackhillspower.com or by going to www.energystar.gov.
14. What can I do if I need help paying my utility bill?
Contact Black Hills Power Customer Service at 800-742-8948 and we will work with you to arrange payment options. We are available to serve you 24/7.
We also work in conjunction with local agencies like the Low Income Energy Assistance Program (LIEAP) which provides assistance to low-income South Dakota households to help them pay for their home heating bills and the Weatherization Assistance Program which helps low-income residents pay for home insulation and other energy-saving improvements to help lower their heating bills.
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