Arkansas Utility Regulators Approved New Black Hills Rates
Residential customers face higher fixed fees as the utility moves to adjust its regional rate structure.
Updated on Oct. 6, 2026 in Utilities
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The Arkansas Public Service Commission has approved a settlement agreement allowing Black Hills Energy to adjust its rates for 189,000 customers in Northwest Arkansas. The changes follow the expiration of the utility's Storm Uri Gas Charge.
Why it matters
The decision balances the utility's requested revenue increases with commission-ordered adjustments to consumer charges, impacting the operating costs for residents and small businesses in the region. Regulators rejected specific community service allowances while mandating further billing analysis.
The settlement sets a 9.80% return on equity and increases the residential customer charge to $17.67 from $15.51. The commission also rejected a $65,627 community service allowance while allocating $165,000 for low-income energy program awareness.
The players
Arkansas Public Service Commission
The state regulatory agency that oversees the rates, service standards, and compliance of utilities operating within Arkansas.
Black Hills Energy
An investor-owned utility providing natural gas and electricity services to 189,000 customers across Northwest Arkansas.
The details
The rate adjustment follows a December 2025 application where Black Hills sought a $29.4 million annual revenue increase. To comply with the commission's modified settlement, the utility must finalize its new tariffs by October 12, 2026. The approval requires the company to initiate a new proceeding within six months to redesign its billing determinant adjustment rider to ensure future rate transparency.
Timeline
December 2025: Black Hills filed its initial rate change application.
May 31, 2026: The Storm Uri Gas Charge reached its scheduled expiration.
October 2, 2026: Commissioners officially approved the settlement agreement.
October 12, 2026: Deadline for the utility to file compliant rates and tariffs.
November 2026: Expected implementation date for the new residential rates.
Market Landscape
The approval concludes a rate cycle defined by the phase-out of the Storm Uri Gas Charge, a landmark recovery cost for regional utilities. This settlement aligns with broader utility trends of resetting fixed customer charges while funding targeted low-income assistance programs.
Operators in Northwest Arkansas should budget for an average 8.6% increase in residential-equivalent utility costs starting in November. Ensure your accounting team tracks the $10.91 monthly credit from the expired Storm Uri charge against the new $17.67 base customer fee to verify accurate monthly billing.
The takeaway
The rate settlement marks a permanent shift in how energy costs are distributed for Northwest Arkansas households. Operators should monitor their November statements to confirm the $10.91 Storm Uri credit has been applied correctly alongside the new base charge structures.
What happens next
Black Hills Energy is required to file a new docket within six months of the October 2026 approval to redesign the billing determinant adjustment rider.
Further reading
For more on the regional regulatory environment, explore our coverage of Utilities.
Source note: This article includes information reported by Northwest Arkansas Democrat Gazette.
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