Black Hills Corp. Natural Gas Utility Receives Approval for New Rates in Iowa
Black Hills Corp (NYSE: BKH) announced that its Iowa natural gas utility received approval from the Iowa Utilities Commission for new rates. The settlement agreement aims to recover approximately $100 million of pipeline system investments made since 2021. The approved settlement will generate about $15 million in new annual revenues based on a weighted average cost of capital of 7.21%. Final approved rates will replace interim rates in January 2025, which have been in place since May 11, 2024.
Black Hills Corp (NYSE: BKH) ha annunciato che la sua utility del gas naturale in Iowa ha ricevuto l'approvazione dalla Commissione delle Utility dell'Iowa per nuove tariffe. L'accordo di transazione mira a recuperare circa 100 milioni di dollari di investimenti nel sistema di pipeline effettuati dal 2021. L'accordo approvato genererà circa 15 milioni di dollari di nuovi ricavi annuali basati su un costo medio ponderato del capitale del 7,21%. Le tariffe finali approvate sostituiranno le tariffe interim a gennaio 2025, attualmente in vigore dal 11 maggio 2024.
Black Hills Corp (NYSE: BKH) anunció que su empresa de gas natural en Iowa recibió la aprobación de la Comisión de Utilidades de Iowa para nuevas tarifas. El acuerdo de conciliación tiene como objetivo recuperar aproximadamente 100 millones de dólares en inversiones en el sistema de tuberías realizadas desde 2021. El acuerdo aprobado generará alrededor de 15 millones de dólares en nuevos ingresos anuales basado en un costo promedio ponderado de capital del 7,21%. Las tarifas finales aprobadas reemplazarán a las tarifas provisionales en enero de 2025, las cuales han estado vigentes desde el 11 de mayo de 2024.
블랙 힐스 코프 (NYSE: BKH)는 아이오와 자연가스 유틸리티가 아이오와 유틸리티 위원회로부터 새로운 요금을 승인받았다고 발표했습니다. 이번 합의는 2021년 이후 발생한 파이프라인 시스템 투자액 약 1억 달러를 회수하는 것을 목표로 하고 있습니다. 승인된 합의는 가중 평균 자본 비용 7.21%를 기준으로 연간 약 1500만 달러의 새로운 수익을 창출할 것입니다. 최종 승인된 요금은 2025년 1월에 임시 요금을 대체할 예정이며, 임시 요금은 2024년 5월 11일부터 시행되고 있습니다.
Black Hills Corp (NYSE: BKH) a annoncé que son service de gaz naturel de l'Iowa avait reçu l'approbation de la Commission des utilités de l'Iowa pour de nouveaux tarifs. L'accord de règlement vise à recouvrer environ 100 millions de dollars d'investissements dans le système de pipelines effectués depuis 2021. L'accord approuvé générera environ 15 millions de dollars de nouveaux revenus annuels sur la base d'un coût moyen pondéré du capital de 7,21 %. Les tarifs finaux approuvés remplaceront les tarifs provisoires en janvier 2025, qui sont en vigueur depuis le 11 mai 2024.
Black Hills Corp (NYSE: BKH) gab bekannt, dass das Gasversorgungsunternehmen in Iowa die Genehmigung der Iowa Utilities Commission für neue Tarife erhalten hat. Die Vergleichsvereinbarung zielt darauf ab, etwa 100 Millionen Dollar an Investitionen im Pipelinesystem, die seit 2021 getätigt wurden, wiederzuerlangen. Der genehmigte Vergleich wird auf Basis eines gewichteten durchschnittlichen Kapitalkosten von 7,21 % jährlich etwa 15 Millionen Dollar neue Einnahmen generieren. Die endgültigen genehmigten Tarife werden im Januar 2025 die vorübergehenden Tarife ersetzen, die seit dem 11. Mai 2024 in Kraft sind.
- Secured regulatory approval for rate increase in Iowa
- New rates will generate $15 million in additional annual revenues
- Recovery of $100 million in infrastructure investments
- None.
Insights
This rate case approval represents a significant win for Black Hills Corp, securing
The settlement's timing is strategic, with final rates implementation in January 2025 replacing interim rates from May 2024. This regulated revenue increase provides predictable cash flows and supports the utility's investment recovery model. The approved rate base additions reinforce BKH's ability to maintain and upgrade critical infrastructure while ensuring reasonable returns for shareholders.
The regulatory outcome demonstrates constructive relationships with Iowa regulators and showcases BKH's ability to successfully navigate rate cases, which is important for utility investors focused on stable, regulated returns.
RAPID CITY, S.D., Dec. 02, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its Iowa natural gas utility, Black Hills/Iowa Gas Utility Company, LLC, doing business as Black Hills Energy, received approval from the Iowa Utilities Commission of a settlement agreement for new rates. The new rates are designed to recover approximately
“We are pleased to receive approval of a settlement that supports our commitment to our Iowa customers and communities to deliver safe and reliable natural gas service,” said Linn Evans, president and CEO of Black Hills Corp. “Our investments made on behalf of our customers are essential to supporting continued resilience of our Iowa natural gas system.”
The approved black box settlement agreement will generate approximately
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 1.34 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.
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Sal Diaz
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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 2023 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 rate increase did Black Hills Corp (BKH) receive approval for in Iowa?
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