State regulators approve partial rollback of natural gas price increase

Date:

by Joshua Haiar, South Dakota Searchlight

         MidAmerican Energy’s 6% natural gas rate increase in South Dakota will be rolled back to 5.4%.

         The over 100,000 South Dakotans who get natural gas from the company can expect the change to take effect in May. The rate change will affect commercial customers as well as residential.

         MidAmerican proposed the 6% increase last May. The Public Utilities Commission and its staff had six months to investigate and make a decision before the company temporarily implemented the rate increase in November, but the three-member commission did not declare its decision in that timeframe. 

         The commission subsequently had another six months to make a retroactive decision, but meanwhile, the requested rate went into effect as an “interim rate hike.” That’s something the Public Utilities Commission describes as standard procedure.

         “We do receive some criticism on, ‘Can’t you get this done within this period of time?’” Commissioner Gary Hanson said during Tuesday’s hearing. “People simply don’t appreciate the amount of work that goes into these.”

         The reduced rate hike of 5.4% was reached through discussions among the company, PUC staff and a MidAmerican customer, Steve Wegman, whose standing as a formal intervenor in the rate case allowed him to participate in the process. Customers can expect refunds to make up for the extra portion of the higher temporary increase that’s already been collected.

         Commissioner Kristie Fiegen said the rate hike is primarily due to safety investments in southeastern South Dakota, like replacing old steel infrastructure. 

         Public Utilities Commission adviser Greg Rislov asked MidAmerican if the company is requesting a rate hike in other states. “The answer is no,” replied a MidAmerican spokesperson.

         As part of the new rate-increase agreement, MidAmerican cannot request another rate adjustment for three years.

         South Dakota Searchlight is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence.

Share post:

spot_img

Related articles

Relaunched Open Meetings Commission finds violations in five of six cases

By Joshua Haiar, South Dakota Searchlight The Lincoln County Commission violated South Dakota’s open-meetings laws when three commissioners attended a...

Minnehaha County auditor defends counting delays, proposes restrictions on absentee ballots

Leah Anderson suggests in-person voting should end on Friday before Election Day By Makenzie Huber, South Dakota Searchlight       SIOUX FALLS —...

Staunch conservatives take leadership positions in GOP-led state Legislature

By Joshua Haiar, South Dakota Searchlight       A group of staunchly conservative Republicans claimed control of key leadership positions in the...

Game, Fish and Parks achieves 1.6 million acres of public access, sets 2 million acre goal

By Joshua Haiar, South Dakota Searchlight The South Dakota Game, Fish and Parks Department has surpassed its goal of creating...

Log In

Latest articles

Phase One of 4th street project nears completion

Concrete crews have completed all concrete work on 4th Street, Center Avenue and Canyon Avenue including curb and...

Williamson proud of his service & grateful for the Honor Flight

By Garrick Moritz, Gazette Mark Williamson was pretty humble about his recent trip to Washington DC on an Honor...

Jasper man dies in fatal crash

Minnehaha County, S.D.- A Jasper, MN man died in a collision Thursday evening, November 14, three miles north...

Pierret Benefit Well Supported

Though we have not received the final tally of funds raised at the Mark Pierret Benefit held on...

GHS Football celebrates players

The GHS Annual Football Banquet honored the parents and players after a rough season on Monday, Nov. 18. The...

A new sport at Garretson

The rise of powerlifting across the state has found its way back to the Blue Dragons by Delilah Johnson,...
s2Member®