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PUC should deny BHP request

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The announcement Black Hills Power would be seeking approval for a rate increase sent a ripple of discontent through the community.

Black Hills Power is asking the South Dakota Public Utilities Commission for permission to increase user rates by 26.6 percent.

For an average residential electric user, the proposed increase would add about $18 to the monthly utility bill.

Maybe "ripple of discontent" doesn't capture the community's frustration with the proposed rate hike.

BHP has said it's seeking the increase to cover costs associated with a $247 million power plant near Gillette, Wyo., as well as to cover operating expenses over the past four years.

But BHP customers - 64,1000 in 20 South Dakota communities - are still struggling with the fallout of recession and will have a hard time believing a 26 percent increase in utility bills is necessary.

We agree. Twenty-six percent is excessive - especially in light of the 7.8 percent increase that went into effect only two years ago. We have to wonder if poor planning in 2007 or excessive growth is to blame for the recent request.

Black Hills Corporation has been a significant part of the hills economy and the corporation has been a good neighbor. It's growth, especially since 2007, has added hundreds of jobs to the area adding to the city's bottom line.

But even this good neighbor is asking too much.

There's a growing need for abundant energy, but growing to fill that need should be tempered with common sense.

Today, BHP rates are neither excessively high nor excessively low. While apples to apples rate comparisons are difficult due to fees and charges, BHPs rates are comparable or just under other providers. That makes us further question such as dramatic proposed increase.

Fortunately, the PUC has already voiced some concern about the BHP request, saying 26 percent request is unusually high.

PUC Chair Dusty Johnson promised the commission would be extremely thorough as it examines BHP's request. We're sure they will be and we'll continue to hope the PUC finds a much lower number to more appropriate than 26.6 percent.

What the PUC will approve isn't clear. We do know - should they come back with a lower number - it will still be a painful hike in our electric bill come April 2010.

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