KDSN RADIO News
Black Hills Energy customers frustrated by rising utilities costs from Polar Vortex
Black Hills Energy, a prominent provider of gas and electric utilities in West Central Iowa, began recovering natural gas costs related to the Texas “polar vortex” in 2021. Lynn Porter, senior community affairs manager for Black Hills Energy, calls the polar vortex “an unprecedented event.”
“So passing on those extraordinary costs to our customers would have resulted in very large bills similar to asking a customer to pay in one lump sum what they normally would in a year,” said Porter.
Porter says the Iowa Utilities Board approved a two-year collection plan in December establishing a monthly rate of about $0.34 per therm. Many local customers, like Gary Volkert of Denison, are frustrated with recent bills listing a surge of around 25%.
“If our costs increase, where does it come from? It has to be reflected upon our business, what we charge our customers, and it’s a difficult pill to swallow,” said Volkert.
Volkert says that along with more expensive bills, there’s been a lack of transparency.
“The only thing that I’ve been told is that it was cold in Texas. Did their natural gas costs go up 25% because of the events of two or three days? Why? What is the reason? What is the bottom line?” said Volkert.
Lynn Porter says the Polar Vortex 2021 charge customers see on their bills is going to vary.
“We do not make any money on the natural gas charge. That is a pass-through charge. The customer’s bill is going to fluctuate based on how much they use each month,” said Porter. “The arctic event that happened last February caused the largest natural gas price increase in the last 20 years.”
The Iowa Utilities Board also authorized Black Hills Energy to increase other rates this past December. A $0.20 increase for an average residential monthly bill in recovery pipeline infrastructure investments and higher operating costs.
