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The Kansas Corporation Commission (KCC) has approved a settlement allowing Black Hills Energy to raise natural gas rates to recover service-related costs. The agreement permits a net revenue increase of $10.8 million—less than the $17.2 million the company originally requested in its February filing.

Starting August 1, 2025, residential customers using an average of 53.6 therms per month will see their bills increase by about $5.96 per month, or $71.52 annually.

As part of the settlement, Black Hills will refund approximately $2.9 million in excess deferred income tax to customers through its existing tax adjustment rider. The agreement also authorizes the company to file a streamlined rate case later this year to recover costs for capital investments in service through the end of 2025.

KCC staff supported the settlement, saying it strikes a balance between the company’s financial needs and keeping rates reasonable for customers while maintaining reliable service.

The settlement was filed June 13. A June 30 evidentiary hearing is available on the KCC’s YouTube channel.