Black Hills Energy requests rate review for natural gas system investments in Nebraska 

KEARNEY, Neb. – May 2, 2025 – Black Hills Energy announced today it submitted a proposal with the Nebraska Public Service Commission requesting to increase its natural gas base rates to recover necessary capital infrastructure investments and to adjust for the rising cost of delivering safe, reliable natural gas service for its over 304,000 Nebraska customers in more than 300 communities. The filing also requests continuation of the System Safety and Integrity Rider (SSIR) to support accelerated, safety-focused pipeline replacement across the state.  

Since the company’s last rate filing in 2020, natural gas system costs have been significantly impacted by inflationary cost pressures. With the rate of inflation peaking at 9% in June 2022 – the highest inflation rate in over 40 years – the cost to operate and maintain the natural gas system has increased in every category. This includes pipeline construction costs, materials costs, vehicle expenses, tools and internal and contract labor.  

Black Hills Energy operates and maintains over 8,700 miles of natural gas pipeline mains, approximately 327,300 service lines and over 1,300 miles of transmission pipeline system infrastructure in Nebraska. Since its last rate filing, the company will have invested approximately $453 million on behalf of Nebraska customers to support system safety, reliability, integrity and customer additions. The investments include ongoing inspections and maintenance costs and pipeline replacement projects to meet state and federal safety regulations.  

Subject to approval by the Nebraska Public Service Commission, Black Hills Energy’s rate proposal would result in an average monthly bill increase for residential customers of approximately $6.27 per month, based on an average monthly usage of 54 therms and will vary between customers due to usage and other factors. The increase for commercial customers will vary, based on rate class, load factors and usage. As proposed, interim rates would take effect on August 1, 2025, with final rates anticipated in the first half of 2026.  

The rate review does not affect the cost of natural gas, which is adjusted monthly in Nebraska. Natural gas prices are a pass-through cost without any markup from Black Hills Energy.   

For more information about this rate review, visit blackhillsenergy.com/reliableNE.