MONDAY, August 17, 2026|
Photo – Black Hills Energy logo – Courtesy Black Hills Energy
Hanna officials approved a 25‑year franchise agreement with Black Hills Energy to continue natural gas service for residents.
Representatives from Black Hills Energy, the natural gas and utility provider, were present during August 11th’s Hanna Town Council meeting to discuss renewing the company’s franchise agreement with the town. Senior Public Affairs Manager Laurie Farkas began her presentation with a brief overview of Black Hills Energy.
The energy company representative presented a 25‑year franchise agreement between Black Hills Energy and the town of Hanna. Senior Public Affairs Manager Farkas explained that a franchise agreement is a contract between the utility provider and the town.
The agreement gives the company authorization to operate within the town’s public rights‑of‑way and sets a franchise fee that the utility pays to the town for that access. Farkas said Black Hills Energy collects those fees on top of customer rates and provides that revenue to the town.
Farkas said the original 2001 agreement set franchise fees at one percent of the company’s gross income generated from Hanna customers. She said the fee was lowered to .0074 percent in 2007. Farkas said returning to the original one percent rate would add roughly 14 cents to customers’ monthly natural gas bills.
The proposed franchise agreement is set to expire in 2051. Farkas said it can be set for a shorter time period, but a longer term allows the governing body to revisit the contract less often. Despite being valid for 25 years, Farkas said the agreement can be changed or ended at any time.
Following Farkas’s presentation, the Hanna Town Council unanimously voted to approve the 25‑year natural gas franchise agreement with Black Hills Energy, leaving the franchise fee unchanged.
