Public Notice No. 10587

PUBLIC NOTICE

Pursuant to the Wyoming Administrative Procedure Act and the Wyoming Public Service Commission’s (Commission) Rules, notice is hereby given that a public hearing is scheduled regarding the Application of Black Hills Wyoming Gas, LLC d/b/a Black Hills Energy (BHWG or the Company) for approval of a general natural gas service rate increase in the amount of $161,121,638 or 17.28% annually. The Wyoming Office of Consumer Advocate and the Federal Executive Agencies have intervened in this matter. The public hearing is set to commence on Tuesday, December 10, 2019, at 9:00 a.m., in the Commission’s hearing room located at 2515 Warren Avenue, Suite 300, in Cheyenne, Wyoming.

BHWG is a public utility as defined in Wyo. Stat. § 37-1-101(a)(vi)(D), subject to the Commission’s jurisdiction pursuant to Wyo. Stat. § 37-2-112.

BHWG is also requesting to implement a new tariff to replace its existing tariff which is comprised of the tariffs last in effect for the former BHGW utilities - Cheyenne Light, Fuel and Power Company (gas) (Cheyenne Light), Black Hills Energy, a Division of Cheyenne Light, Fuel and Power Company (NEWY), Black Hills Northwest Wyoming Gas Utility Company, LLC (NWWY), and Black Hills Gas Distribution, LLC (BHGD-WY). The new consolidated tariff will incorporate the requested rates, combine the tariffs of the consolidated entities and create new Divisions as follows:

The Application proposes consolidated base rates, general tariffs, transportation customer tariffs, gas cost adjustment provisions, construction allowances, extension policies, and the continuation of many of the existing rate riders of the four Black Hills legacy utilities. BHWG is also proposing to combine the existing base rate areas into five divisions with associated GCAs.

As proposed in its Application, the average impact on BHWG’s Residential and Small General Service customers is as follows:

Residential Customer Bill Impacts

Small General Service Customer Bill Impacts

BHWG states the rate increase proposed in its Application is because current rates do not reflect the cost of providing natural gas service to its customers.

BHWG is also proposing the following changes in this Application:

a.​Establishment of a new Wyoming Integrity Rider for the timely recovery of

safety and integrity investments of BHWG;

b.​Transition from four separate gas cost tariff provisions to five GCA Divisions (Casper, Cheyenne, Cody, Gillette, and Torrington) with consistent calculation methods and timing of filings;

c.​Elimination of interruptible sales, interruptible on-system transportation, and transmission only rate schedules;

d.​Establishment of a new Locational Authorized Cost Recovery Rider for the

appropriate recovery of acquisition and transition costs;

e.​Amortization of Non-Protected items related to the TCJA over a three year

period