Black Hills Corp. Provides Regulatory Update Prior to Investor Meetings
RAPID CITY, S.D., Dec. 06, 2021 (GLOBE NEWSWIRE) — Black Hills Corp. (NYSE: BKH) is providing a regulatory update for its Winter Storm Uri cost recovery applications and the finalization of three rate reviews in preparation for upcoming investor meetings. Leadership from Black Hills will be visiting with investors during the Bank of America Gas Utility Conference and the Wells Fargo 20th Annual Virtual Midstream, Utility & Renewable Symposium on Dec. 7 and Dec. 8, respectively.
“Our team successfully executed a productive regulatory calendar in 2021,” said Linn Evans, president and CEO of Black Hills Corp. “We are nearing completion of our Storm Uri applications and expect full recovery of costs incurred to safely and reliably serve customers during this extreme winter event. We also settled three rate reviews this year and anticipate final decisions by year-end. I want to extend my gratitude to our employee team, state regulators and other counterparties in reaching constructive outcomes.”
Winter Storm Uri Cost Recovery Applications
Black Hills filed cost recovery applications with seven state utility commissions earlier this year seeking recovery of $546 million in incremental energy costs for its electric and natural gas utilities. The applications continue to advance productively, and the status of each application is included in the table below. We anticipate resolution of all Storm Uri recovery applications no later than the first quarter of 2022.
| State | Electric or Gas | Status | Recovery Amount (in millions) | Recovery Term | Start Date | |
| Arkansas | Gas | Interim rates | $138 | 5 years* | 6-1-21 | |
| Colorado | Gas | Settlement** | $73 | 3 years | 4-1-22 | |
| Colorado | Electric | Settlement** | $23 | 2 years | 4-1-22 | |
| Iowa | Gas | Approved | $95 | 2 years | 4-9-21 | |
| Kansas | Gas | Settlement** | $88 | 5 years | 2-1-22 | |
| Nebraska | Gas | Approved | $80 | 3 years | 7-1-21 | |
| South Dakota | Electric | Approved | $20 | 1 year | 6-1-21 | |
| Wyoming | Gas | Settlement** | $29 | 3 years | 9-1-21 | |
| Total Recovery Costs Proposed in Applications | $546 | |||||
* Proposed recovery term in application.
** Settlements are pending final regulatory approval.
Regulatory Rate Reviews
Black Hills filed three rate reviews in 2021 for its gas utilities in Colorado, Iowa, and Kansas. Settlements were reached for all three rate reviews and filed with the respective state utility commissions, the outcomes of which are included in the table below. We anticipate final resolution of these rate reviews by year-end.
| Utility | Filing Date | Revenue Increase | ROE | Debt/Equity Ratio | New Rates Effective Date |
| Colorado Gas | June 1, 2021 | $6.5 million | 9.2% | 49.74%/50.26% | Jan. 1, 2022 |
| Iowa Gas | June 1, 2021 | $3.7 million* | 9.6% | 50%/50% | Jan. 1, 2022 |
| Kansas Gas | May 7, 2021 | Global Settlement | Jan. 1, 2022 | ||
* Does not include $2.2 million of rider revenue rolled into base rates.
Additional details regarding the Storm Uri applications and the three rate reviews can be found in the latest investor presentation on the Black Hills Corp. website at www.blackhillscorp.com under the “Investor Relations” section.
2022 Rate Reviews
Black Hills intends to file rate reviews for Arkansas Gas in December 2021, Wyoming Electric in the second quarter of 2022 and Rocky Mountain Natural Gas in the third quarter of 2022.
Black Hills Corporation
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
605-721-1171
jerome.nichols@blackhillscorp.com
24-Hour Media Relations Line
888-242-3969
Caution Regarding Forward Looking Statement
This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements, including future approvals for the settlement agreements and regulatory applications. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, the risk factors described in Item 1A of Part I of our 2020 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.
New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.
