Starting next year Black Hills Power customers will see an increase in their monthly bill.
Black Hills Power filed two rate plans yesterday with the South Dakota Public Utilities Commission.
Chuck Loomis, the Vice President of Operations at Black Hills Power says one plan will allow the company to recover recent system investments through a revenue increase.
While the other will begin recovering financing costs for a new power plant that will be placed in service in late 2014. The new plant, that will be built in Cheyenne, Wyoming, will replace the three oldest plants in the system to comply with the new emissions law that will be in place in early 2014. The plants that will be replaced are located in Raid City, SD, Gillette, Wyoming, and Osage, Wyoming.
The Rapid City plant shut down operations on August 31; but will completely close it's doors early 2014 when construction begins on the new plant in Cheyenne.
The new rates would go into effect April 1, 2013, and would increase the bill for a typical residential customer about $7 per month or an increase of about 24 cents per day.
"The phase in plan will allow us to recover the financing cost of the new plant. And thus result in a lower overall increase at the time the plant is placed in service in late 2014," said Loomis.
The requested revenue increase is the first such filing for Black Hills Power in three years.