Black Hills Energy has proposed an 8.8% increase to electric base rates and is requesting approval from the Colorado Public Utilities Commission (PUC).The company says that residential customers would see an average monthly bill increase of $10.90 a month, or 8.8%, based on an average usage of 600 kilowatt-hours a month.If the rate increase is approved, it would go into effect in March ,2027.Black Hills says one component of the proposal is a $38 million customer refund, which they claim would reduce the bill impact on customers.The refund money was previously collected to fund new renewable energy projects under the companys Renewable Energy Standard Plan and Clean Energy Plan. When Black Hills Energy submitted its last rate review in 2024, it had been eight years since the company had requested an update in base electric rates." With this filing, we are seeking to update rates on a more regular cadence, so bill impacts are more modest each time and customers can plan for them, just like they plan for other rising household expenses. This adds more transparency to the rate-making process.The points that Black Hills Energy says are key to the rate proposal are listed below: Approximately $184 million has been invested since the last rate review in 2024 to improve reliability, strengthen the electric grid, and extend the life of key generation infrastructure.  The company is proposing to direct a portion of the refund to develop a pilot program that would provide a monthly discount to income-qualified customers participating in the Black Hills Energy Affordability Program. Rate design changes to lower energy costs for income-qualified customers. As proposed, the company would establish a flat rate for residential energy usage, eliminating the current inclining block rate, which charges a higher rate per kilowatt-hour for usage over 500 kWh per month. To learn more about the proposal, visit Black Hills Energy's website._______Watch KOAA News5 on your time, anytime with our free streaming app available for your Roku, FireTV, AppleTV and Android TV. Just search KOAA News5, download and start watching. ...read more read less