Black Hills Corp. Natural Gas Utility Receives Approval for New Rates in Arkansas
Black Hills Corp. (NYSE: BKH) announced that its Arkansas natural gas utility, Black Hills Energy Arkansas, Inc., received approval from the Arkansas Public Service Commission for new rates effective October 2024. The approved settlement agreement will:
- Generate approximately $25.4 million in new annual revenues
- Migrate $3.7 million in annual rider revenue to base rates
- Result in a total annual base rate revenue increase of $29.1 million
The new rates are designed to recover about $130 million of pipeline system investments made since 2021. The approval allows a 9.85% return on equity and a capital structure of 46% equity and 54% debt. Black Hills Corp. serves 1.34 million natural gas and electric utility customers across eight states.
Black Hills Corp. (NYSE: BKH) ha annunciato che la sua utility di gas naturale dell'Arkansas, Black Hills Energy Arkansas, Inc., ha ricevuto l'approvazione dalla Commissione dei Servizi Pubblici dell'Arkansas per nuove tariffe in vigore da ottobre 2024. L'accordo di transazione approvato prevede:
- Di generare circa 25,4 milioni di dollari in nuovi ricavi annuali
- Di migrare 3,7 milioni di dollari in ricavi annuali da rider verso le tariffe base
- Di risultare in un aumento totale dei ricavi annuali delle tariffe base di 29,1 milioni di dollari
Le nuove tariffe sono progettate per recuperare circa 130 milioni di dollari di investimenti nel sistema di pipeline effettuati dal 2021. L'approvazione consente un ritorno sul capitale del 9,85% e una struttura del capitale di 46% capitale proprio e 54% debito. Black Hills Corp. serve 1,34 milioni di clienti di gas naturale ed energia elettrica in otto stati.
Black Hills Corp. (NYSE: BKH) anunció que su empresa de gas natural en Arkansas, Black Hills Energy Arkansas, Inc., recibió aprobación de la Comisión de Servicios Públicos de Arkansas para nuevas tarifas que entrarán en vigor en octubre de 2024. El acuerdo de conciliación aprobado incluirá:
- Generar aproximadamente 25,4 millones de dólares en nuevos ingresos anuales
- Migrar 3,7 millones de dólares en ingresos anuales de tarifas adicionales a las tarifas base
- Resultar en un aumento total de ingresos de tarifas base anuales de 29,1 millones de dólares
Las nuevas tarifas están diseñadas para recuperar alrededor de 130 millones de dólares en inversiones en el sistema de tuberías realizadas desde 2021. La aprobación permite un retorno sobre el capital del 9,85% y una estructura de capital de 46% capital propio y 54% deuda. Black Hills Corp. presta servicios a 1,34 millones de clientes de gas natural y electricidad en ocho estados.
블랙 힐스 코퍼레이션 (NYSE: BKH)은 아칸소의 천연 가스 유틸리티인 블랙 힐스 에너지 아칸소, Inc.가 2024년 10월부터 시행되는 새로운 요금에 대해 아칸소 공공 서비스 위원회의 승인을 받았다고 발표했습니다. 승인된 합의 내용은 다음과 같습니다:
- 약 2540만 달러의 새로운 연간 수익을 창출합니다.
- 370만 달러의 연간 추가 요금 수익을 기본 요금으로 이전합니다.
- 총 연간 기본 요금 수익 증가분이 2910만 달러에 달합니다.
새로운 요금은 2021년 이후 이루어진 1억 3천만 달러의 파이프라인 시스템 투자를 회수할 수 있도록 설계되었습니다. 승인된 내용은 9.85%의 자본 수익률을 허용하며, 자본 구조는 46% 자본과 54% 부채로 구성됩니다. 블랙 힐스 코퍼레이션은 8개 주에서 134만 명의 천연 가스 및 전기 유틸리티 고객에게 서비스를 제공합니다.
Black Hills Corp. (NYSE: BKH) a annoncé que son service public de gaz naturel en Arkansas, Black Hills Energy Arkansas, Inc., a obtenu l'approbation de la Commission des services publics de l'Arkansas pour de nouveaux tarifs qui entreront en vigueur en octobre 2024. L'accord de règlement approuvé comprendra :
- Générer environ 25,4 millions de dollars de nouveaux revenus annuels
- Migrer 3,7 millions de dollars de revenus annuels de frais supplémentaires vers les tarifs de base
- Résulter en une augmentation totale des revenus annuels des tarifs de base de 29,1 millions de dollars
Les nouveaux tarifs sont conçus pour récupérer environ 130 millions de dollars d'investissements dans le système de pipelines réalisés depuis 2021. L'approbation permet un retour sur fonds propres de 9,85% et une structure de capital de 46% de fonds propres et 54% de dettes. Black Hills Corp. dessert 1,34 million de clients de gaz naturel et d'électricité répartis sur huit États.
Black Hills Corp. (NYSE: BKH) hat bekannt gegeben, dass ihr Naturgasversorger in Arkansas, Black Hills Energy Arkansas, Inc., die Genehmigung der Arkansas Public Service Commission für neue Tarife erhalten hat, die ab Oktober 2024 gelten werden. Die genehmigte Einigungsvereinbarung beinhaltet:
- Einen jährlichen Neugewinn von etwa 25,4 Millionen US-Dollar zu generieren
- 3,7 Millionen US-Dollar Frachtgebühren jährlich auf die Basistarife zu migrieren
- Ein insgesamt jährliches Basistarifeinkommen von 29,1 Millionen US-Dollar zu erzielen
Die neuen Tarife sind darauf ausgelegt, ungefähr 130 Millionen US-Dollar an Investitionen in das Pipelinesystem, die seit 2021 getätigt wurden, zu decken. Die Genehmigung erlaubt eine Kapitalrendite von 9,85% sowie eine Kapitalstruktur von 46% Eigenkapital und 54% Fremdkapital. Black Hills Corp. bedient 1,34 Millionen Naturgas- und Elektrizitätsversorgungs-Kunden in acht Bundesstaaten.
- Approval of new rates to recover $130 million in pipeline system investments
- Generation of $25.4 million in new annual revenues
- Total annual base rate revenue increase of $29.1 million
- Approved 9.85% return on equity
- Increased rates for customers in Arkansas
Insights
The approval of new rates for Black Hills Energy Arkansas is a significant development for Black Hills Corp. The $130 million in pipeline system investments since 2021 demonstrates the company's commitment to infrastructure modernization and expansion. The $25.4 million in new annual revenues, combined with the $3.7 million migration from rider revenue to base rates, results in a total annual base rate revenue increase of $29.1 million.
The approved
For investors, this regulatory approval provides revenue predictability and supports the company's growth strategy in Arkansas. The successful settlement also indicates a constructive regulatory environment, which is important for utility companies' long-term financial health and ability to attract capital for future investments.
This rate case approval is a positive development for Black Hills Corp., enhancing its financial outlook. The
The approval allows Black Hills to earn a return on its significant
Investors should note that this regulatory success in Arkansas may serve as a positive precedent for future rate cases in other states where Black Hills operates. The company's ability to reach a unanimous settlement also speaks to its strong regulatory management skills, which is a key factor in utility valuation.
RAPID CITY, S.D., Oct. 02, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its Arkansas natural gas utility, Black Hills Energy Arkansas, Inc., doing business as Black Hills Energy, received approval from the Arkansas Public Service Commission of a unanimous settlement agreement for new rates effective with October billing cycles. The new rates are designed to recover approximately
“We are pleased to receive approval of a settlement that supports our long-term commitment to our Arkansas customers and communities to deliver safe and reliable natural gas service,” said Linn Evans, president and CEO of Black Hills Corp. “The critical infrastructure investments made on behalf of our customers are essential to meeting the growing demand for energy while also supporting continued resilience of our Arkansas natural gas system.”
The approved 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.
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 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 Energy Arkansas (BKH) receive approval for in October 2024?
How much pipeline system investment is Black Hills Corp. (BKH) recovering through the new rates in Arkansas?
What return on equity was approved for Black Hills Energy Arkansas (BKH) in the October 2024 rate settlement?
What is the approved capital structure for Black Hills Energy Arkansas (BKH) in the October 2024 rate decision?
