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Commission questions Black Hills’ planned distribution spending and potential rate impacts
Summary
Commissioners and staff pressed Black Hills witnesses about an 78% increase in average annual distribution capital spending in the DSP, asking how the PUC can limit rate increases and whether methods used on generation planning could apply to distribution.
Commissioners at the July 24 evidentiary hearing pressed Black Hills and commission staff on whether the Public Utilities Commission can or should do more to limit customer rate increases tied to a large planned increase in distribution capital spending.
Staff and company testimony introduced competing perspectives. Black Hills witnesses described a multi-year capital budget process and said the company is revisiting planned spending in reaction to concerns about rates. Staff witnesses and the commission asked whether the PUC can set expectations for distribution capital so rate impacts are better anticipated and potentially constrained.
Key points from the hearing - Company process and scope: Black Hills witnesses described an annual five‑year capital‑planning process. The company said it is "scrubbing" the next five‑year plan to reduce spending while maintaining adequate service. - Scale of proposed change: In testimony reviewed during the hearing staff and company witnesses said…
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