Black Hills Corp. Electric Utility Receives Approval for New Rates in Colorado
Black Hills Corp. (NYSE: BKH) has received approval from the Colorado Public Utilities Commission for new electric utility rates in Colorado. The approved rates will enable recovery of approximately $370 million in system investments made since 2016 and cover inflationary impacts on customer service costs.
The new rates, effective March 22, 2025, will generate approximately $17.0 million in new annual revenues. The approval is based on a weighted average cost of capital of 6.90%, with a capital structure ranging from 47-49% equity and 51-53% debt, and a return on equity between 9.3-9.5%. The company has until April 7, 2025, to file for rehearing, reargument, or reconsideration with the commission.
Black Hills Corp. (NYSE: BKH) ha ricevuto l'approvazione dalla Commissione Pubblica per i Servizi dell'Energia del Colorado per nuove tariffe elettriche nel Colorado. Le tariffe approvate consentiranno il recupero di circa 370 milioni di dollari in investimenti nel sistema effettuati dal 2016 e copriranno gli effetti inflazionistici sui costi del servizio clienti.
Le nuove tariffe, in vigore dal 22 marzo 2025, genereranno circa 17,0 milioni di dollari in nuovi ricavi annuali. L'approvazione si basa su un costo medio ponderato del capitale del 6,90%, con una struttura di capitale che varia dal 47 al 49% di capitale proprio e dal 51 al 53% di debito, e un ritorno sul capitale proprio compreso tra il 9,3 e il 9,5%. L'azienda ha tempo fino al 7 aprile 2025 per presentare richiesta di riesame, riargomentazione o riesame alla commissione.
Black Hills Corp. (NYSE: BKH) ha recibido la aprobación de la Comisión de Servicios Públicos de Colorado para nuevas tarifas de servicios eléctricos en Colorado. Las tarifas aprobadas permitirán la recuperación de aproximadamente 370 millones de dólares en inversiones en el sistema realizadas desde 2016 y cubrirán los impactos inflacionarios en los costos del servicio al cliente.
Las nuevas tarifas, que entrarán en vigor el 22 de marzo de 2025, generarán aproximadamente 17,0 millones de dólares en nuevos ingresos anuales. La aprobación se basa en un costo promedio ponderado de capital del 6,90%, con una estructura de capital que varía del 47 al 49% en capital propio y del 51 al 53% en deuda, y un retorno sobre el capital propio entre el 9,3 y el 9,5%. La empresa tiene hasta el 7 de abril de 2025 para presentar una solicitud de reconsideración, reargumentación o revisión ante la comisión.
블랙 힐스 코퍼레이션 (NYSE: BKH)은 콜로라도 공공 유틸리티 위원회로부터 콜로라도의 새로운 전기 요금에 대한 승인을 받았습니다. 승인된 요금은 2016년 이후로 이루어진 시스템 투자 약 3억 7천만 달러의 회수를 가능하게 하며, 고객 서비스 비용에 대한 인플레이션 영향을 커버합니다.
2025년 3월 22일부터 시행되는 새로운 요금은 연간 약 1천7백만 달러의 새로운 수익을 창출할 것입니다. 승인은 6.90%의 가중 평균 자본 비용을 기준으로 하며, 자본 구조는 47-49%의 자기 자본과 51-53%의 부채로 구성되어 있으며, 자기 자본 수익률은 9.3-9.5% 사이입니다. 회사는 2025년 4월 7일까지 위원회에 재심리, 재논의 또는 재고 요청을 제출해야 합니다.
Black Hills Corp. (NYSE: BKH) a reçu l'approbation de la Commission des services publics du Colorado pour de nouveaux tarifs d'électricité dans le Colorado. Les tarifs approuvés permettront de récupérer environ 370 millions de dollars d'investissements dans le système réalisés depuis 2016 et couvriront les impacts inflationnistes sur les coûts du service client.
Les nouveaux tarifs, qui entreront en vigueur le 22 mars 2025, généreront environ 17,0 millions de dollars de nouveaux revenus annuels. L'approbation est basée sur un coût moyen pondéré du capital de 6,90%, avec une structure de capital variant entre 47-49% de capitaux propres et 51-53% de dettes, et un retour sur capitaux propres compris entre 9,3 et 9,5%. L'entreprise a jusqu'au 7 avril 2025 pour déposer une demande de réexamen, de réargumentation ou de réévaluation auprès de la commission.
Black Hills Corp. (NYSE: BKH) hat die Genehmigung der Colorado Public Utilities Commission für neue Stromtarife in Colorado erhalten. Die genehmigten Tarife ermöglichen die Rückgewinnung von etwa 370 Millionen Dollar an Systeminvestitionen, die seit 2016 getätigt wurden, und decken inflationsbedingte Auswirkungen auf die Kosten des Kundenservices ab.
Die neuen Tarife, die am 22. März 2025 in Kraft treten, werden voraussichtlich etwa 17,0 Millionen Dollar an neuen jährlichen Einnahmen generieren. Die Genehmigung basiert auf einem gewichteten durchschnittlichen Kapitalkosten von 6,90%, mit einer Kapitalstruktur, die zwischen 47-49% Eigenkapital und 51-53% Fremdkapital variiert, und einer Eigenkapitalrendite zwischen 9,3-9,5%. Das Unternehmen hat bis zum 7. April 2025 Zeit, um einen Antrag auf Wiederholung, erneute Argumentation oder Überprüfung bei der Kommission einzureichen.
- Secured approval for $17.0 million in new annual revenues
- Recovery of $370 million in system investments
- Approved return on equity range of 9.3-9.5%
- Immediate rate implementation effective March 22, 2025
- Lower weighted average cost of capital at 6.90%
- Higher debt ratio (51-53%) compared to equity (47-49%) in capital structure
Insights
The Colorado Public Utilities Commission's approval represents a significant regulatory milestone for Black Hills Corp's electric utility business. After a 9-year gap since their last general rate filing, the company has secured approval to recover
The approved parameters are notably balanced - a weighted average cost of capital of
The length between rate cases is particularly interesting. While many utilities file more frequent rate cases to capture ongoing investments, BKH's approach of bundling nearly a decade of investments demonstrates regulatory efficiency. The approval validates their investment strategy and confirms the regulatory compact - utilities make necessary infrastructure investments and regulators allow reasonable cost recovery plus return.
The established capital structure (47-49% equity/51-53% debt) provides financial stability while the authorized returns ensure BKH can attract necessary capital for future infrastructure investments. This regulatory certainty in Colorado strengthens BKH's position across its eight-state service territory.
This rate approval delivers
The recovery of
The approved financial parameters provide a solid foundation for BKH's Colorado operations. With a weighted average cost of capital at
This outcome eliminates significant regulatory uncertainty and establishes predictable earnings from these assets. While BKH maintains the option to file for rehearing by April 7, the approved terms appear reasonable, suggesting the core economics will likely remain intact. The revenue certainty provided by this decision enhances BHK's financial stability and supports its regulated utility business model across its multi-state operations.
RAPID CITY, S.D., March 24, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its electric utility subsidiary in Colorado received approval from the Colorado Public Utilities Commission for new rates. The approved new rates will provide recovery of approximately
The approved new rates provide approximately
As part of the regulatory process, the company has the opportunity to file a request for rehearing, reargument or reconsideration with the commission by April 7, 2025.
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 1.35 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
Sal Diaz
investorrelations@blackhillscorp.com
24-Hour Media Relations Line
888-242-3969
Caution Regarding Forward-Looking Statements
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 anticipated revenues from the new rate increase. 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 2024 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.
FAQ
How much additional revenue will BKH generate from the new Colorado rate approval?
What is the approved return on equity range for BKH's Colorado electric utility?
When did BKH's Colorado electric utility last file for a general rate increase?
How much system investment will BKH recover through the new Colorado rates?
When do the new electric utility rates take effect for BKH in Colorado?
