Pursuant to the Wyoming Administrative Procedure Act and the Wyoming Public Service Commission’s (Commission) Rules, the Commission hereby gives notice of the Application of Black Hills Wyoming Gas, LLC (BHWG or the Company) for approval of a general natural gas service rate increase of $16,121,638 or 17.28% annually, as more fully described below.
BHWG is a public utility as defined by Wyo. Stat. § 37-1-101(a)(vi)(D), subject to the Commission’s jurisdiction pursuant to Wyo. Stat. § 37-2-112. BHWG provides natural gas service to approximately 129,500 customers in Wyoming.
On June 3, 2019, BHWG filed its Application together with exhibits and revised tariff sheets, requesting authority to increase its natural gas utility service rates approximately $16,121,638 or, on average, 17.28% per year. In the Application, BHWG is requesting a 10.4% return on equity equating to an overall return of 7.54% on rate base. BHWG is requesting an effective date of July 3, 2019.
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:
Former Utility Proposed BH Wyoming Gas Division
Cheyenne Light Cheyenne Division
NEWY Gillette Division
NWWY Cody Division
BHGDWY Casper, Gillette and Torrington Divisions
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
Cheyenne Light Cheyenne $49.84 $51.27 $1.43 2.87%
NWWY Cody $64.96 $67.17 $67.17 3.41%
NEWY Gillette $36.84 $63.18 $26.34 71.49%
Casper Casper $50.35 $61.18 $10.83 21.51%
Gillette Gillette $48.88 $58.54 $9.65 19.74%
Torrington Torrington $52.24 $62.49 $10.25 19.61%
Small General Service Customer Bill Impacts
Cheyenne Light Cheyenne $83.37 $86.64 $3.2 3.92%
NWWY Cody $95.46 $109.03 $13.57 14.22%
NEWY Gillette $57.84 $100.63 $42.79 73.97%
Casper Casper $90.87 $116.63 $25.76 28.35%
Gillette Gillette $94.95 $119.17 $24.21 25.5%
Torrington Torrington $102.02 $125.71 $23.68 23.21%
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
f. Extend the ChoiceGas program to NEWY customers in Gillette beginning in the 2021 selection period.
This is not a complete description of the Application. Interested persons may inspect the Application at the Commission’s offices in Cheyenne, Wyoming, by visiting the Commission’s website at https://psc.wyo.gov/, or by visiting BHWG’s website at www.blackhillsenergy.com.
Anyone wishing to file a statement, intervention petition, protest or request for a public hearing in this matter must do so in writing filed with the Commission on or before July 18, 2019. Any intervention request filed with the Commission shall set forth the grounds of the proposed intervention or request for hearing as well as the position and the interest of the petitioner in this proceeding. Please be sure to mention Docket No. 30026-2-GR-19 (Record No. 15267) in all correspondence with the Commission.
If you wish to intervene in this matter or request a public, hearing which you will attend, and you require reasonable accommodation for a disability, call the Commission at (307) 777-7427 or write to the Commission, 2515 Warren Avenue, Suite 300, Cheyenne, Wyoming 82002. Communications-impaired persons may contact the Commission through Wyoming Relay at 711.
Dated: June 18, 2019.
Publish: June 26 & July 3, 2019 3353