Black Hills Energy’s residential gas customers in Arkansas started paying higher rates on October 12. The company says the average household will see its total monthly bill rise by about $6, or 8%, as the first full winter under the new rates approaches.
The Arkansas Public Service Commission approved the increase, according to a Black Hills Corp. news release dated October 13. It covers more than 189,000 customers in over 100 Arkansas communities.
What the average bill looks like now
Black Hills Energy’s Arkansas rate page puts the typical residential bill at $80.60, up from $74.64. That is an increase of $5.97, or 8.00%, and the company says it is based on average monthly use of 49 hundred cubic feet of gas, known as Ccf.
A household that burns more gas than that will pay more than $6 extra, and one that burns less will pay less. The change shows up in the charges for delivering gas, not in the price of the gas itself. The company states that the new rate does not affect the cost of natural gas, which is adjusted twice a year and passed through at cost with no markup.
Anyone on a fixed income who heats with Black Hills Energy gas should look at the line items on the next bill. That means the delivery charges and the gas cost, and whether Budget Billing, the utility’s payment plan that averages bills across the year, would smooth out the winter spike.
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Small businesses on the system fare worse in percentage terms. The company’s table shows a small business using 224 Ccf paying $23.60 more, a 10.22% rise, while a medium business pays 2.47% more. Some large businesses on demand schedules see their bills fall by about 1.6% to 1.8%.
Why the commission approved a bigger delivery charge
Black Hills Energy told regulators it needed to recover about $147 million in natural gas system safety, reliability and integrity investments made since its last rate filing in 2023. The utility says it maintains 8,000 miles of gas pipeline in the state.
The company filed for the review in December 2025, and a release from that month shows it asked for $29.4 million in new annual revenue. The approved increase is smaller. Black Hills says the new rates will generate approximately $17.9 million of new annual revenue.
The commission also set the return on equity, the profit rate regulators allow a utility to earn on the money shareholders have invested. The company says it is 9.8%, below the 10.5% it had requested in its filing, on a capital structure of 47.5% equity and 52.5% debt.
Who feels it most this winter
Gas bills climb sharply from November through February, when furnaces run most days. A flat $6 average is a monthly figure at average use, so a household on a fixed income with an older home or a medical need to stay warm may use far more gas than 49 Ccf in the coldest months.
One charge has gone away. The company says a surcharge tied to Winter Storm Uri in February 2021, which was spread over five years, ended in May 2026. That ending does not erase the new increase, but it removes a separate line that customers had been paying since 2021.
Where help with a heating bill comes from
The federal Low-Income Home Energy Assistance Program, known as LIHEAP, is run in Arkansas through a network of community organizations covering all 75 counties. The state’s energy assistance page currently lists the program as closed, and says applications are usually taken first-come, first-served from January to April 30 and from July to September 30.
The state page also says local Community Action Agencies can point people to other options, and that Arkansas LIHEAP never charges a fee for applications. Households that apply need a photo ID, Social Security cards, recent utility bills, proof of income and proof of residency.
Black Hills Energy runs its own help as well. Its energy assistance programs page lists Black Hills Cares, which is funded by voluntary donations from customers and employees, payment arrangements for people who have fallen behind, a Medical Extension Program for households whose service is medically essential, and the 211 referral line. The company has also said it is launching a new Energy Assistance team and that customers having trouble paying can call 888-890-5554.
What to check before the cold sets in
Because LIHEAP is closed for now, the practical order is to call the local Community Action Agency to ask when the next window opens, ask Black Hills Energy about Budget Billing, and request a payment arrangement before a balance falls behind rather than after.
The $6 increase is small beside a heating bill that can run well past $150 in a cold month, but it adds to everything else a fixed-income household is paying for. Anyone whose Arkansas gas bill is already hard to cover has a short list of places to ask, and the earlier the call the more choices tend to remain open.
Facing a higher Black Hills gas bill this winter?
A bigger delivery charge arrives just as LIHEAP is closed for the season, and a missed application window or an unrenewed program can mean a winter of shutoff notices. Households that wait until the balance is already behind have the fewest choices left.
The Senior Property Tax & Home-Cost Relief Kit pulls together heating, cooling and home-repair help for older homeowners, with an application log and renewal calendar to keep track of each program’s dates. Part 5 covers utilities and home costs, so the Black Hills increase can be weighed against the other bills it competes with.
Get the heating-help guide and application log for a higher Black Hills gas bill →
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
