Black Hills Corp. Natural Gas Utilities Receive Approvals for Three 2021 Rate Review Settlements
RAPID CITY, S.D., Jan. 05, 2022 (GLOBE NEWSWIRE) — Black Hills Corp. (NYSE: BKH) today announced that in December its natural gas utility subsidiaries in Colorado, Iowa and Kansas, doing business as Black Hills Energy, received final approvals for their separately filed rate reviews to recover investments made in natural gas infrastructure systems in their respective states.
“These approvals complete our three 2021 strategic rate review regulatory initiatives,” said Linn Evans, president and CEO. “Concluding these rate reviews allows us to continue investing in safe and reliable service for our customers while supporting the growth of local communities in Colorado, Iowa and Kansas.”
Black Hills Colorado Gas
Black Hills Colorado Gas, Inc.’s settlement agreement was effective Dec. 13 after approval by operation of law following the decision from an Administrative Law Judge. The agreement will result in an estimated $6.49 million in additional annual revenues with new rates beginning Jan. 1, 2022. The new revenue is based on a return on equity of 9.2% and a capital structure of 50.3% equity and 49.7% debt.
Colorado Gas, serving more than 194,000 customers in 119 communities, has invested more than $150 million in its 7,000-mile natural gas pipeline system since its last approved general rate filing in 2018. Previously, the Colorado utility received approval from the Colorado Public Utilities Commission for a new system safety and integrity rider for a period of three years effective Jan. 1, 2022.
Black Hills Iowa Gas
Black Hills / Iowa Gas Utility Company, LLC, received approval on Dec. 28 from the Iowa Utilities Board for a settlement agreement that will generate an estimated $3.7 million in new revenues and additionally migrates $2.2 million of rider revenue to base rates and renews its safety and integrity rider for an additional five years. The settlement agreement allows a capital structure of 50% equity and 50% debt and a return on equity of 9.6%. New rates were effective Jan. 1, 2022, replacing interim rates that were effective June 11, 2021.
Black Hills Energy has nearly tripled its investment in its natural gas pipeline system in Iowa over the last 10 years. These investments include replacing, updating and maintaining more than 2,800 miles of natural gas pipelines and 164,000 system service lines to serve 161,000 customers in 133 communities throughout Iowa.
Black Hills Kansas Gas
Black Hills / Kansas Gas Utility Company, LLC, received approval on Dec. 30 from the Kansas Corporation Commission for a settlement agreement that renews its safety and integrity rider for an additional five years and migrates $6.6 million of rider revenue to base rates. New rates were effective Jan. 1, 2022.
Black Hills Energy has invested approximately $130 million in safety, reliability and system integrity for more than 4,600 miles of natural gas pipeline infrastructure over the last seven years to serve 117,000 customers in 66 communities throughout Kansas.
Black Hills Corp.
Black Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.3 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.
Investor Relations
Jerome E. Nichols
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jerome.nichols@blackhillscorp.com
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