2025 Arkansas regulatory rate review
Providing you with the energy you depend on
At Black Hills Energy, our most important responsibility is providing safe, reliable natural gas service to our Arkansas customers and communities – over 189,000 customers in more than 100 communities across our service territory. This requires continuous investment in the 8,000 miles of natural gas pipeline infrastructure that serves homes and businesses across the state. These investments support system safety, reliability, integrity and customer additions and include ongoing inspections and maintenance costs and pipeline replacement projects to meet state and federal safety regulations.
Update to natural gas rates
Late last year, we submitted a rate review to the Arkansas Public Service Commission (PSC), requesting an increase in base rates to adjust for the rising cost of operating, maintaining and upgrading our Arkansas natural gas system. This includes recovery of approximately $147 million in natural gas system safety, reliability and integrity investments since our last rate filing in 2023.
New rates
New rates went into effect on Oct. 12, 2026, reflecting Black Hills Energy's investments to safely and reliably serve our Arkansas customers.
- The average residential customer will see a total monthly bill increase of approximately $6, or 8%. This is based on an average monthly usage of 49 Ccf (hundred cubic feet).
- The new rate does not affect the cost of natural gas, which is adjusted twice a year in Arkansas. Natural gas prices are a pass-through cost without any markup from Black Hills Energy.
- Separate from this rate review, Arkansas customers will no longer see the Storm Uri Gas Charge on their bills. The charge, which began in 2021, ended in May 2026. Approved by the Arkansas PSC, the temporary increase was spread over five years to recover Storm Uri costs. Those costs included the pass-through cost of natural gas purchased during the February 2021 extreme weather event to ensure service to customers.
- When factoring in the expired Storm Uri charge and the approved rate adjustment, average residential customers will see a bill reduction compared to last year.
How your energy rates are set
The Arkansas PSC regulates public utilities, including Black Hills Energy. Preparing to file a rate review takes over a year of prep work and is the standard process for a public utility to set new rates and tariffs that allow the company to recover allowable costs and system investments necessary to meet our responsibility to provide safe, reliable natural gas service for our customers.
Prior to deciding on proposed changes, the Arkansas PSC carefully reviews the request and considers testimony from the Commission Staff, Black Hills Energy and other interested parties. The final Black Hills Energy service rates approved by the Commission may include rates that are higher or lower than the rates proposed by the company or currently in effect.
New rates effective Oct. 12, 2026
| Customer class | Average monthly bill - current rates | Average monthly bill - approved rates | Avg monthly $/ change | Avg monthly change* |
|---|---|---|---|---|
| Residential service | ||||
| 49 Ccf | $74.64 | $80.60 | $5.97 | 8.00% |
| Small business service | ||||
| 224 Ccf | $230.98 | $254.58 | $23.60 | 10.22% |
| Medium business service | ||||
| 7,974 Ccf | $5,585.41 | $5,723.20 | $137.78 | 2.47% |
| Large business service: non-demand - low load factor** | ||||
| 33,744 Ccf | $21,097.41 | $22,390.80 | $1,293.39 | 6.13% |
| Large business service: non-demand - mid load factor** | ||||
| 36,826 Ccf | $22,867.88 | $23,789.51 | $921.63 | 4.03% |
| Large business service: non-demand - high load factor** | ||||
| 40,722 Ccf | $25,105.96 | $25,226.79 | $120.83 | 0.48% |
| Large business service: demand - low load factor | ||||
| 118,501 Ccf | $77,787.92 | $76,577.68 | ($1,210.24) | -1.56% |
| Large business service: demand - mid load factor | ||||
| 139,911 Ccf | $84,977.28 | $83,618.74 | ($1,358.54) | -1.60% |
| Large business service: demand - high load factor | ||||
| 148,598 Ccf | $88,298.15 | $86,705.37 | ($1,592.78) | -1.80% |
*Percentages are based upon average consumption volumes and estimated total amounts billed to customers including the customer charge, delivery charge, demand charges, riders and cost of gas (for sales classes only).
**The Large business non-demand rate schedule has been eliminated; customers previously receiving service under this rate schedule will now be billed under the Large business demand rate schedule.
How we’re supporting our customers
We recognize the impact of rising energy bills for our customers. That’s why we continually look for ways to control costs and increase efficiency.
Our work to help customers includes:
- Increasing our efforts to provide support for customers, including launching a new Energy Assistance team to help our most vulnerable customers access programs and resources to help make their bills more affordable
- Supporting energy assistance programs in Arkansas through financial contributions and by educating customers on assistance options. For more information visit blackhillsenergy.com/assistance.
- Providing Budget Billing, a free payment plan that averages the amount owed each month, which is a great way to avoid seasonal spikes in bills
- Helping customers save money and energy through energy efficiency programs, energy-saving tips and rebates. Learn more at blackhillsenergy.com/ready.
Customers who experience challenges paying their bills are encouraged to contact us at 888-890-5554 or submit an online form on our customer service page as soon as they think they may be experiencing financial difficulties to discuss payment arrangements.