Black Hills Corp. Natural Gas Utility Proposes Voluntary RNG and Carbon Offset Program for Customers in Colorado

Rhea-AI Summary

Black Hills Corp. (NYSE: BKH) announced a new proposal through its subsidiary, Black Hills Energy, for a renewable natural gas and carbon offset program aimed at residential and business customers in Colorado. This voluntary program, designed based on customer feedback, will allow participants to offset their natural gas emissions by purchasing fixed-price blocks at $5 each. The comprehensive pilot program will run from 2023 to 2026, pending approval from the Colorado Public Utilities Commission. Black Hills Energy plans to expand the proposal to other states, including Kansas and Nebraska, later this summer.

Positive

• Introduction of a voluntary renewable natural gas and carbon offset program for residential and business customers.
• The program is designed based on customer feedback, indicating strong interest.
• Potential for market growth in carbon offset and renewable natural gas development.

Negative

• None.

RAPID CITY, S.D., June 06, 2022 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced its Colorado natural gas utility subsidiary, doing business as Black Hills Energy, submitted a proposal to the Colorado Public Utilities Commission seeking approval to offer a voluntary renewable natural gas and carbon offset program for residential and business customers. The program would allow participants to offset 100% or more of the emissions associated with their own natural gas usage.

“We believe natural gas will continue to play a critical role in a clean energy future,” said Linn Evans, president and CEO of Black Hills Corp. “While thousands of customers and communities rely on natural gas each day for highly efficient home and space heating, water heating, and cooking, our customers are increasingly looking to us for sustainable and cost-effective options to help them reduce the carbon footprint associated with their natural gas usage.”

“Our Colorado natural gas customers have told us they are interested in sustainable energy and we’re listening,” said Evans. “We’ve designed this voluntary RNG and carbon offset program with their direct feedback in mind, cultivated over the past two years through customer surveys which indicated that more than half would be ‘somewhat’ or ‘very interested’ in a program of this nature.”

As proposed, participants in the voluntary program would be able to purchase fixed price “blocks” at $5 per block, representing a portion of their natural gas usage. One block would be the equivalent of 20.5 therms of natural gas, which amounts to approximately 25% of the average Colorado residential customer’s monthly usage. Based on customer preference, participants could purchase enough blocks to offset more than 100% of the emissions associated with their natural gas usage. The offset would be achieved through a combination of carbon offset credits and renewable natural gas attributes.

Black Hills Energy has designed its voluntary RNG and carbon offset program as a comprehensive four-year pilot program starting in 2023 and running through 2026, pending Colorado PUC approval.

“Over the course of the pilot program, we will closely monitor a variety of performance factors to better understand how we can shape the program to meet the expectations of our customers,” continued Evans. “As customer interest and enrollments grow, we will study the potential for growth in the carbon offset market and in renewable natural gas development across the communities we serve.”

The company will submit the voluntary RNG and carbon offset program to state regulators in Kansas and Nebraska later this summer with filings in Arkansas, Iowa and Wyoming expected by 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

24-hour Media Assistance
888-242-3969

FAQ

What is Black Hills Corp's new program proposal in Colorado?

Black Hills Corp. proposed a voluntary renewable natural gas and carbon offset program to help customers offset emissions related to their natural gas usage.

How much will participants pay for the renewable natural gas program?

Participants can purchase fixed-price blocks at $5 each to offset their natural gas emissions.

When will the renewable natural gas pilot program start?

The pilot program is set to start in 2023 and run through 2026, pending approval from the Colorado Public Utilities Commission.

Which states will receive the renewable natural gas program proposal?

The proposal will initially be submitted in Colorado, with plans to file in Kansas, Nebraska, Arkansas, Iowa, and Wyoming by 2023.

What are the benefits of the renewable natural gas program for customers?

Customers can offset 100% or more of the emissions from their natural gas usage, responding to growing interest in sustainable energy solutions.