IUC issues order opening safety investigation into Black Hills Energy

The Iowa Utilities Commission (IUC) has opened a comprehensive investigation to review Black Hills Energy’s (Black Hills) compliance with state and federal pipeline safety regulations across Iowa.

The decision in today’s order in Docket No. PSA-2026-0001 follows a June 2025 inspection of Black Hills’ Spencer Unit, which includes natural gas pipelines in 18 communities in northwest Iowa. IUC inspectors identified more than 100 safety issues spanning 16 violation categories. None of the findings included an immediate threat to the public, but because of the high volume of problems found, the IUC initially opened an investigation in Docket No. PSA-2025-0001 in September 2025 to address the Spencer Unit concerns and determine whether civil penalties were warranted.

However, as the IUC reviewed the data and looked at other Black Hills operations, the agency became increasingly concerned about potentially broader, company-wide safety issues that are not isolated to the Spencer Unit.

The sheer number of violations, delays in making necessary corrections, and the increased risk to public safety prompted the IUC to broaden its investigation. For this reason, the IUC is deferring the final decision on civil penalties for the Spencer Unit until it completes a full evaluation of Black Hills’ safety and management practices throughout the rest of the state. 

Next steps in the docket include:

• Company Response Required: Black Hills must respond to the IUC’s order within 30 days to address the root causes of these widespread violations, their delays in fixing known issues, and whether further corrective action plans are needed.
• Official Hearing Scheduled: The IUC will hold a formal “show cause” hearing at 9 a.m. August 27, 2026, in the IUC Hearing Room in Des Moines. The hearing will require the company to address its safety practices and compliance with regulations statewide. The IUC will review the company’s written response to the order and testimony at the hearing to evaluate what penalties and corrective actions are required.

About the Iowa Utilities Commission

The IUC regulates utilities to ensure that Iowans have access to safe, reliable, and reasonably priced services. The IUC enforces natural gas pipeline safety in partnership with the federal Pipeline and Hazardous Materials Safety Administration (PHMSA). Inspections are required in a unit at least every three years.