Your support can be great here.
Black Hills Energy 2021 Polar Vortex rate went to zero or ceased effective April 1, 2023
As Storm Uri gripped much of the country in February 2021, Black Hills Energy stood ready to respond to record increases in energy demand on the natural gas delivery system. The record cold event contributed to dramatic increases in natural gas supply prices. As a result, Black Hills Energy experienced significant commodity cost increases from suppliers due to extremely high demand and natural gas production interruptions.
The natural gas commodity costs normally flow through to customers with no markup. Black Hills Energy worked closely with the Iowa Utilities Board (IUB) to determine the best path forward to manage the long-term impact of increased natural gas pricing for customers.
On March 24, 2021, an order from the IUB was approved for Black Hills Energy to recover costs with April 2021 billing statements. An additional line item was added to customer bills titled “2021 Polar Vortex”, with cost recovery over a three-year period of $0.18123 per therm, charged on monthly usage. The recovery of natural gas costs was set to continue through March 31, 2024.
On December 1, 2021, the IUB issued an order for recovery to happen over a shortened period, resulting in an increase in the cost per therm from $0.18123 to $0.33904. Charges are based on usage and can be higher or lower dependent upon time of year and energy used during each billing cycle.
The 2021 Polar Vortex rate went to zero or was ceased effective April 1, 2023. April bills may have a proration of charges based upon the number of days remaining in March which will be dependent upon the customer’s bill cycle.
Over the last decade, Black Hills Energy has made significant investments in system integrity in Iowa. They’ve worked closely with and under the approval of the IUB on plans to address reliability, integrity and growing demand. These improvements may not be top of mind for the general public– but at Black Hills Energy, they’re critical to fulfilling a commitment to safety and reliability. During the coldest temperatures of this recent event, the system – which was designed for peak conditions – performed as intended.
Greater Dubuque Development and our private and public partners thank Black Hills Energy for navigating through these unprecedented weather and global market conditions. If you have any questions, please contact Mark Ernst, Senior Account Manager for Black Hills Energy at 563-585-4015 (office) or cell 563-590-8997. Mark can also be reached via e-mail at mark.ernst@blackhillscorp.com. If Mark is not available, please feel free to contact Jeff Staudenmaier, Eastern Iowa Operations Manager at 563-585-4035 or via e-mail jeff.staudenmaier@blackhillscorp.com
Your support can be great here.