Black Hills : Increased Funding Sought for Low-Income Energy Assistance Program

New statewide rules prompt request for increase in BHEAP surcharge

PUEBLO, Colo., Aug. 11, 2017 - Black Hills Energy today submitted a proposal to the Colorado Public Utilities Commission (PUC) seeking an 11 percent increase in its electric bill surcharge for low-income energy assistance.

As proposed, residential customers would pay an extra 3 cents per month for the Black Hills Energy Assistance Program surcharge (BHEAP), a change from 28 cents per month to 31 cents per month. Small-business customers would see their monthly BHEAP surcharge increase by 10 cents, a change from 90 cents per month to $1 per month.

Under PUC rules, utilities may collect no more than 31 cents per month from residential customers to fund low-income energy assistance programs such as BHEAP. In addition to this rule, the PUC earlier this year imposed new, standardized rules that eliminate any cap on the amount of funding paid to qualifying participants for monthly bill credits or arrears payment assistance.

'The intent behind the Commission's new rules is to provide the highest amount of benefit to households with the greatest need,' said Fred Stoffel, Black Hills Energy director of regulatory services. 'In Black Hills' case, the amount of money we are able to raise for BHEAP will not support all the customers who have depended on BHEAP in the past. This is what's prompting our request for an increase.'

BHEAP is currently funded at $75,000 per month and provides benefits to nearly 1,100 households. If the proposed increase is approved, annual funding for BHEAP would grow by an estimated $8,200 per month or $98,400 per year, providing benefits to approximately 900 households under the new rules.

Starting on Oct. 1, BHEAP benefits will be distributed first to those with the highest need established by the Federal Poverty Level percentage (FPL). For example, households with an annual income at 100 percent of the FPL (about $24,600 a year for a four-person household) will receive priority funding under the new BHEAP program. Households at 165 percent of the FPL (about $40,600 a year for a four-person household) will be considered for funding only after other applicants with lower household incomes are served and only if BHEAP funds are available.

'To help our customers understand what the new rules mean to them, we will contact all current BHEAP participants by mail starting next week to provide more information about the changes,' said Stoffel.

More information is available at www.blackhillsenergy.com/bheap.

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