FAYETTEVILLE, Ark. — Black Hills Energy said they applied for a $44 million base rate increase from the Arkansas Public Service Commission (APSC) to help recover infrastructure costs.
Black Hills Vice President Eric Eyre said the company has already invested about $130 million since 2021 toward safety, system integrity, and reliability to support the huge increase in population in Northwest Arkansas.
Eyre said, "Over the last several years, we went from 3,500 to 4,000 new customers. And certainly, as customers grow, they put demand on the system. So we model that and account for it."
The natural gas provider said the $44 million rate increase is meant to help the company recoup the money spent the last two years offering better services to black hills customers.
Eyre said those infrastructure costs went towards fixing existing issues and helping to prevent new problems from coming up in the future.
"We're mindful of the impact this will have on customers. And so we have done and will continue to do our best to mitigate those costs. We also have an obligation and responsibility to continue to invest in our system to make sure it's safe and reliable," Eyre said.
If the request is approved by the APSC, the average monthly gas bill for residential customers would rise about $15.
"If and when rates go into effect, it will be around late 2024, so it will not affect any heating bills this winter season," adds Eyre.
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