Black Hills Corp. Natural Gas Intrastate Pipeline Company Requests Rate Review in Colorado

Rhea-AI Summary

On October 11, 2022, Black Hills Corp. (NYSE: BKH) submitted a rate review application to the Colorado Public Utility Commission, seeking $12.3 million in new annual revenue. This request follows over $120 million invested in safety and system integrity for its natural gas pipeline infrastructure since 2017. The application proposes a capital structure of 52% equity and a 12.25% return on equity, with new rates aimed for implementation by July 16, 2023. This move underscores the company's commitment to delivering safe and reliable natural gas service to customers.

Positive

• Black Hills Energy has invested over $120 million in pipeline infrastructure since 2017 to enhance safety and reliability.
• The proposed rate increase seeks to support ongoing investments and operational execution.

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• None.

DENVER, Oct. 11, 2022 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its Colorado intrastate natural gas pipeline, Rocky Mountain Natural Gas LLC, doing business as Black Hills Energy, filed a rate review application with the Colorado Public Utility Commission requesting $12.3 million in new annual revenue.

Black Hills Energy has invested over $120 million in safety, system integrity and reliability for more than 600 miles of natural gas pipeline infrastructure in Colorado since its last rate review in 2017. These critical investments were required to ensure the safe and reliable delivery of natural gas and transportation services and meet compliance requirements of state and federal regulations.

“This rate review request reflects our commitment to our Colorado customers to deliver safe, reliable and cleaner natural gas service,” said Linn Evans, president and CEO of Black Hills Corp. “This investment in our system, combined with excellent operational execution by our team, supports our ability to safely transport natural gas to various delivery points throughout western Colorado and reduces emissions through a more resilient and modern pipeline system.”

As proposed, the rate review requests a capital structure of 52% equity, 48% debt and a return on equity of 12.25%. Black Hills Energy is seeking to implement new rates on or before July 16, 2023.

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 and www.blackhillsenergy.com.

Investor Relations
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com

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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 anticipated revenues from the new rate increase and ability to deliver an appropriate return to investors. 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 2021 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

What is the new annual revenue Black Hills Corp. is seeking?

Black Hills Corp. is requesting $12.3 million in new annual revenue.

When does Black Hills Corp. plan to implement the new rates?

Black Hills Corp. aims to implement new rates on or before July 16, 2023.

How much has Black Hills Corp. invested in its pipeline infrastructure since 2017?

Black Hills Corp. has invested over $120 million in its pipeline infrastructure since 2017.

What is the proposed return on equity for Black Hills Energy?

The proposed return on equity for Black Hills Energy is 12.25%.