photo by: Jackson Barton

A Black Hills Energy crew is pictured near 1700 W. Sixth St. in this June 28, 2019 file photo.

The largest natural gas provider in Lawrence is seeking a rate increase that would add an extra $11 per month onto the bills of most residential customers.

Black Hills Energy is seeking approval from the Kansas Corporation Commission for the higher rates, which would begin in the second half of 2025.

The KCC is the state’s regulator of public utilities, and any rate increases must face a hearing before that board, where the utility must justify the proposed rate increase. In a press release on Tuesday, Black Hills Energy said inflation is the primary reason behind the request rate increase. The utility hasn’t increased rates in its Kansas territory since January 2022, and the company noted that inflation didn’t hit its highpoint until June of 2022, which it peaked at about 9%.

“The cost to operate and maintain the natural gas system has increased in every category,” Black Hills Energy said in a press release. “This includes pipeline construction costs, materials costs, vehicle expense, tools and internal and contract labor.”

The company says it has invested $118 million in its Kansas system for a variety of safety and reliability charges since late 2021.

Black Hills estimates that the rate increase would cause the average residential gas users to see an $11 increase in the portion of their monthly bill that is devoted to the delivery of gas. However, it is difficult to estimate how much a customer’s total bill would change during any give month. That is because the rate charged by Black Hills Energy is only for the delivery of the gas. The price of the actual gas is a separate rate that is not impacted by this rate increase request.

Rather, the price customers are charged for the natural gas itself is adjusted every month. The price is based on national natural gas prices, which can fluctuate broadly. Thus, if the price of natural gas is more expensive in 2025 than it was in 2024, the average customer likely will see an even larger increase in their total bill — unless they are able to figure out how to use less gas in their homes. Alternatively, if the price of natural gas is less in 2025 than 2024, customers likely will see their total bill increase by an amount less than the $11 per month average.

Look for an update on this article, as I’ll work to get some additional information from the KCC on how the rate case — which will involve a public comment period — is scheduled to move forward.