Black Hills (NYSE:BKH) filed a rate review application with the Colorado Public Utilities Commission for its electric utility serving over 102,000 customers in Southern Colorado.
The utility seeks $26.7 million in new annual revenue to recover about $184 million of infrastructure investments, based on a 10.5% ROE and a 51.02% equity / 48.98% debt capital structure, with proposed new rates in Q1 2027.
This announcement details a Colorado rate review seeking $26.7 million in new annual revenue tied to...
Analysis
This announcement details a Colorado rate review seeking $26.7 million in new annual revenue tied to about $184 million of grid and generation investments, based on a 51.02% equity capital structure and 10.5% ROE. It follows recent progress on a 1.8‑GW data center project and the pending NorthWestern merger. Investors may watch regulatory outcomes, timing of new rates in Q1 2027, and any further use of the effective shelf and at-the-market program.
Key Figures
New annual revenue request:$26.7 millionInvestments since last review:$184 millionCustomers affected:Over 102,000 customers+4 more
7 metrics
New annual revenue request$26.7 millionColorado electric rate review filing
Investments since last review$184 millionCritical electric infrastructure in Southern Colorado
Customers affectedOver 102,000 customersColorado electric utility service in Southern Colorado
Requested ROE10.5%Return on equity in Colorado rate review
Shareholders of Black Hills and NorthWestern approved proposed all‑stock merger.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Recent news with strategic or earnings content often saw positive price reactions, while routine dividend or scheduling items sometimes coincided with mild pullbacks.
Recent Company History
Over the last few months, Black Hills has focused on large-scale growth and a transformative merger. Updates on a 1.8‑GW Cheyenne data center project and first‑quarter 2026 results, including reaffirmed EPS guidance of $4.25–$4.45, both saw positive market reactions. Shareholders of Black Hills and NorthWestern approved an all‑stock merger expected in the second half of 2026. Against this backdrop, the Colorado rate review fits an ongoing theme of recovering infrastructure investments through regulatory channels.
Regulatory & Risk Context
Active S-3 Shelf · Short Interest: 11.63%
Shelf Active
Short Interest
11.63% of float
0%15%30%+
moderateas of 2026-05-29Days to cover: 11.36
Active S-3 Shelf Registration
2026-05-19
An effective S-3ASR shelf filed on 2026-05-19 allows Black Hills to issue various securities, including debt and equity, via future prospectus supplements. The company has already used this shelf once, as reflected in a 424B5 prospectus supplement for an at-the-market common stock program.
Key Terms
rate review application, public utilities commission, capital structure, return on equity
4 terms
rate review applicationregulatory
"has filed a rate review application with the Colorado Public Utilities Commission"
A rate review application is a formal request that an insurance company files with a regulator asking permission to change the prices it charges customers, usually for health, auto, or property insurance. Investors care because approval or rejection directly affects an insurer's future revenue and competitiveness—think of it like a store asking the city for permission to raise its prices; the decision can boost profit potential or constrain growth.
public utilities commissionregulatory
"with the Colorado Public Utilities Commission requesting recovery of the necessary capital"
A public utilities commission is a government agency that oversees and regulates essential services such as electricity, water, and natural gas to ensure they are provided safely, reliably, and at fair prices. For investors, it matters because these agencies influence the profitability and stability of utility companies, which are often seen as steady, reliable investments due to their regulated nature.
capital structurefinancial
"The request is based on a capital structure of 51.02% equity and 48.98% debt"
Capital structure is the way a company finances its operations and growth by using different sources of money, such as borrowed funds (loans or bonds) and owner’s equity (investments from owners or shareholders). It’s like a recipe for baking a cake, where the balance of ingredients affects the final product's strength and taste; similarly, the mix of debt and equity influences a company's stability and risk. For investors, understanding a company's capital structure helps gauge how risky it might be to invest or lend money.
return on equityfinancial
"and a return on equity of 10.5%."
Return on equity shows how effectively a company uses its shareholders' money to generate profit. It is calculated by dividing the company's net profit by its shareholders' equity, indicating how much profit is earned for each dollar invested by owners. Higher return on equity suggests the company is good at turning investments into earnings, which can be an important factor for investors assessing its profitability and efficiency.
RAPID CITY, S.D., June 12, 2026 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its Colorado electric utility has filed a rate review application with the Colorado Public Utilities Commission requesting recovery of the necessary capital infrastructure and operational costs required to deliver safe, reliable electric service to over 102,000 customers in Southern Colorado.
The company is seeking $26.7 million in new annual revenue for recovery of approximately $184 million of critical investments since its last rate review and including additions in 2024 to improve reliability, strengthen the electric grid, and extend the life of key generation infrastructure.
“As we deliver on our responsibility to provide safe and reliable energy to improve the lives and livelihoods of our customers and communities, this request supports our ability to make the required investments to maintain our electric system,” said Linn Evans, president and CEO of Black Hills Corp. “As a result of investments to replace aging infrastructure and enhance our system, our customers in Colorado are experiencing fewer interruptions and less disruption to homes and businesses.”
The request is based on a capital structure of 51.02% equity and 48.98% debt and a return on equity of 10.5%. The company is seeking to implement new rates in the first quarter of 2027.
About 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 1.37 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 605-399-5079 Investorrelations@blackhillscorp.com
24-Hour Media Relations Line 888-242-3969
FAQ
What rate review did Black Hills (NYSE:BKH) file in Colorado on June 12, 2026?
Black Hills requested a Colorado electric rate review seeking $26.7 million in new annual revenue. According to the company, the filing aims to recover about $184 million invested in reliability, grid strength, and generation infrastructure since its last rate review.
How many customers are affected by Black Hills' Colorado rate review request (BKH)?
The rate review affects more than 102,000 electric customers in Southern Colorado. According to Black Hills, the requested revenue supports investments that replace aging infrastructure, enhance the system, and reduce service interruptions and disruptions for homes and businesses in the region.
Why is Black Hills (BKH) seeking $26.7 million in new annual revenue in Colorado?
Black Hills is seeking $26.7 million in new annual revenue to recover about $184 million of critical investments. According to the company, these investments improve reliability, strengthen the electric grid, and extend the life of key generation infrastructure serving Southern Colorado customers.
What capital structure and ROE are included in Black Hills' Colorado rate request (BKH)?
The Colorado rate request is based on a capital structure of 51.02% equity and 48.98% debt. According to Black Hills, the filing also proposes a 10.5% return on equity to support continued investment in its electric system and infrastructure.
When does Black Hills expect new Colorado electric rates from this BKH filing to take effect?
Black Hills is seeking to implement the new Colorado electric rates in the first quarter of 2027. According to the company, the timing aligns with regulatory review of its request for additional revenue to recover recent grid and generation investments.
How does Black Hills say its Colorado investments impact reliability for BKH customers?
Black Hills states that recent investments are reducing interruptions and disruptions for Colorado customers. According to the company, replacing aging infrastructure and enhancing its system has led to fewer service interruptions for homes and businesses served by its Southern Colorado electric utility.
