Arkansas Regulators Approved Black Hills Energy Rate Plan

The Arkansas Public Service Commission finalized a new rate settlement for the utility's Northwest Arkansas customers.

Updated on Oct. 6, 2026 in Utilities

Isometric editorial illustration of an electric meter on a brick wall, representing utility infrastructure and rate structures. — The Arkansas Public Service Commission approved a settlement with Black Hills Energy that adjusts residential rate structures for approximately 189,000 customers statewide. AI Illustration. Upload story photo >

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The Arkansas Public Service Commission approved a settlement agreement for Black Hills Energy that updates rate structures for 189,000 customers. Residential bills will adjust to reflect the new $17.67 customer charge, partially offset by the recent expiration of a storm-related gas surcharge.

Why it matters

The commission determined the settlement is reasonable and serves the public interest, balancing utility cost recovery with consumer protections. The agreement mandates new funding for low-income energy assistance awareness while rejecting specific corporate expense claims.

The settlement sets a 9.80% return on equity and includes $165,000 for low-income energy assistance education. Regulators specifically rejected a $65,627 allowance for community service hours previously requested by the utility.

The players

Arkansas Public Service Commission

This state regulatory body is responsible for overseeing utility rates and ensuring that service providers operate in the public interest.

Black Hills Energy

This energy utility provider serves 189,000 customers across the Northwest Arkansas region.

The details

Black Hills Energy must now file revised tariffs in compliance with the modified settlement by October 12, 2026. The company is also required to initiate a new docket within six months to overhaul its billing determinant adjustment rider.

December 2025: Black Hills filed the initial rate change application.
May 31, 2026: The Storm Uri Gas Charge expired for customers.
October 2, 2026: The Commission approved the settlement agreement.
October 12, 2026: Deadline for the utility to file compliant rates and tariffs.
November 2026: New residential rates are expected to take effect.

Market Landscape

This settlement aligns with ongoing utility sector efforts to modernize billing structures while adhering to state-level consumer advocacy standards. By decoupling certain charges and mandating riders, the commission is moving toward more transparent recovery models in the Arkansas utility market.

Residential customers may see an 8.6% rate increase starting next month, though the total bill impact will be adjusted by the recent expiration of the Storm Uri charge. Households should prepare for a new monthly customer charge of $17.67.

The takeaway

Customers should review their upcoming utility statements to understand how the new customer charge interacts with the removal of expired storm surcharges. Residents who may struggle with higher costs can look into the expanded public awareness resources for low-income assistance programs.