About 117,000 Kansas customers of Black Hills Energy will see their overall rates for natural gas service decline under an agreement approved by the state agency that regulates utilities.
The decrease will occur even though the order from the Kansas Corporation Commission allows Black Hills to increase its monthly customer service charge by $1.56 a month, from $16.94 to $18.50.
The agreement requires the company to give its Kansas customers credits against their bills worth about $3 million each year for the next three years.
The credits reflect that the company will pay less in taxes because of changes from federal coronavirus relief measures.
The company earlier asked the commission to revise its rates, with slightly smaller credits to account for its tax savings, though the credits still would have offset other changes.
It later worked out the agreement with other parties in its rate case.
Black Hills has customers in 50 of the state’s 105 counties.