The Wyoming Public Service Commission (Commission) approved the Application of Black Hills Wyoming Gas, LLC d/b/a Black Hills Energy (BHWG or the Company), for authority to establish a deferred regulatory account to record and preserve expenses and any benefits received related to the COVID-19 pandemic, effective on and after March 13, 2020.
BHWG expects to incur extraordinary expenses related to the COVID-19 pandemic and is requesting permission to establish a regulatory asset to record and preserve those expenses. The Company states these expenses were unanticipated and are not currently included in its base rates. BHWG further states it anticipates incurring extraordinary expenses including, increased operations expenses due to COVID-19 precautions, an increase in bad debt related to customers’ inability to pay utility bills, and other COVID-19 related expenses. The Company states the potential magnitude of the expenses related to the COVID-19 pandemic prompted BHWG to seek authorization for deferred accounting now, even though it is not currently capable of fully anticipating the scope or scale of the impacts. BHWG also states the risks related to its COVID-19 response are well outside ordinary business risks for the Company. BHWG states that deferred accounting will enable it to track its COVID-19 related expenses.
BHWG will provide quarterly status updates, commencing on July 1, 2020, and continuing until the Commission determines that it is no longer prudent to track extraordinary expenses related to the COVID-19 pandemic in the Company’s deferred regulatory account. The Commission’s approval is subject to notice, protest, intervention, change, further investigation, opportunity for hearing and further order of the Commission.
