Black Hills Corp.'s Rate Review Application
Black Hills Corp. (NYSE: BKH), known for providing essential utility services, has officially submitted a request for a rate review in Arkansas. This move comes as the company aims to secure $29.4 million in new annual revenue. The funds are designated to support vital infrastructure improvements and operational costs, ensuring that the more than 189,000 customers across over 100 communities in Arkansas receive safe and dependable natural gas service.
Importance of Infrastructure Investments
In its application, Black Hills Corp. highlights the necessity of recovering approximately $147 million invested in safety, reliability, and system integrity. This investment has been made since its last general rate filing in 2023, and it plays a crucial role in supporting system growth and compliance with regulatory requirements. These enhancements will fortify the natural gas pipeline infrastructure, thereby ensuring the continuous delivery of natural gas to homes and businesses throughout Arkansas.
Commitment to Safety and Reliability
Linn Evans, the president and CEO of Black Hills Corp., expressed the company’s unwavering commitment to its customers. He stated, "We are dedicated to providing safe and reliable natural gas service." The investments in critical infrastructure and effective cost management practices are instrumental in maintaining and enhancing the Arkansas natural gas system, while simultaneously supporting the company’s growth objectives.
Financial Structure and Future Rate Implementation
The rate review request is built on a capital structure comprising 50.2% equity and 49.8% debt, with a targeted return on equity of 10.5%. Black Hills Corp. plans to implement the new rates in the latter half of 2026, thereby aligning its financial strategies with the utmost standards of service delivery.
About Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a forward-thinking utility company with a strong customer focus and a mission to enhance lives through energy solutions. Headquartered in Rapid City, South Dakota, the company serves approximately 1.35 million customers for natural gas and electric utility services across eight states. These states include Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming, demonstrating the company’s broad footprint and commitment to energy excellence.
Contact Information for Investors
For further inquiries, investors can reach out to Sal Diaz at Black Hills Corporation by calling 605-399-5079 or via email at Investorrelations@blackhillscorp.com. The company also provides a 24-hour media relations line at 888-242-3969, ensuring communication channels are accessible for all stakeholders.
Frequently Asked Questions
What is the purpose of the rate review application?
The rate review application seeks to recover necessary funds for infrastructure and operational costs associated with delivering natural gas service in Arkansas.
How much revenue is Black Hills Corp. requesting?
The company is requesting $29.4 million in new annual revenue through this rate review process.
What are the main focuses of the utility investments?
The investments primarily focus on enhancing safety, reliability, and system integrity of the natural gas pipeline infrastructure.
When does the company plan to implement the new rates?
Black Hills Corp. aims to implement the new rates in the second half of 2026.
How can investors contact Black Hills Corp.?
Investors can contact Sal Diaz via phone at 605-399-5079 or email at Investorrelations@blackhillscorp.com.
