Black Hills Energy customers in Cheyenne will be paying more for electricity beginning March 1, the utility announced Monday.

Senior Community Affairs Manager Laurie Farkas says the company is three years into a five-year project to replace aging, 40-year-old underground electric cable in the city, and the rate hike, which was approved by the Wyoming Public Service Commission, will recover the cost.

"This work is necessary for our system's safety and reliability," Farkas told KGAB Radio.

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As approved, residential customers with an average usage of 600 kilowatt-hours per month will see an increase of approximately $8 per month.

Small commercial customers with an average usage of 975 kilowatt-hours per month will see an increase of approximately $10 per month.

Farkas says it's been eight years since the last rate hike, and since then, the company has invested approximately $250 million into its electric system, spanning 1,400 miles of distribution and transmission lines.

“As an energy company that serves more than 44,000 electric customers in Cheyenne, it’s our responsibility to consistently and prudently make investments in the safety and resilience of our system on behalf of our customers and the communities we serve,” said Mark Stege, Vice President of Wyoming operations.

“We recognize the impact these investments can have on customer bills, so we’re diligent in our planning and budgeting," Stege added.

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