Approval of New Gas Rates
Black Hills Corp. (NYSE: BKH) has recently secured approval for new rates for its natural gas utility in Iowa, specifically through its subsidiary, Black Hills/Iowa Gas Utility Company, LLC, also known as Black Hills Energy. This decision by the Iowa Utilities Commission comes after a thorough examination of a settlement agreement aimed at charging rates that will help recover around $100 million from pipeline system investments made since the last general rate filing.
Commitment to Customers
Linn Evans, president and CEO of Black Hills Corp, expressed satisfaction regarding the approval, stating, "This agreement reflects our ongoing commitment to deliver safe and reliable natural gas service to our customers in Iowa." He emphasized the significance of these investments, clarifying that they are critical to the sustained resilience and reliability of the state's natural gas system.
Impact of the Rate Adjustment
The newly approved settlement will facilitate the generation of approximately $15 million in additional annual revenues, derived from a calculated weighted average cost of capital set at 7.21%. These new rates are scheduled to come into effect in January 2025, succeeding the interim rates implemented on May 11, 2024. This transition aims to maintain financial stability while ensuring continuous service quality for customers.
About Black Hills Corp.
Black Hills Corp. (NYSE: BKH) operates with a customer-centric approach. The company has a storied history focused on enhancing lives with energy solutions and aims to be recognized as the energy partner of choice across its service areas. With operations based in Rapid City, South Dakota, Black Hills serves approximately 1.34 million customers across eight states, including essential utilities in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.
Future Growth and Development
As the demand for reliable energy continues to grow, Black Hills Energy remains committed to expanding its infrastructure while adapting to changing energy needs and ensuring customer satisfaction. The recent rate increase reflects the company’s readiness to accommodate future growth while maintaining its reputation for reliability and service excellence.
Investor Relations Information
For inquiries or more detailed information regarding this development or any financial matters, Sal Diaz from Black Hills Corp.'s investor relations is available at investorrelations@blackhillscorp.com.
Frequently Asked Questions
What prompted the new rate increase for Black Hills Corp.?
The new rates were approved to help recover approximately $100 million in pipeline investments made since the last rate filing.
When will the new rates take effect?
The final approved rates are set to replace interim rates in January 2025.
How much additional revenue is expected from the new rates?
The approved settlement is anticipated to generate about $15 million in new annual revenues.
Who can I contact for more information about Black Hills Corp.?
For investor relations inquiries, you can contact Sal Diaz via email at investorrelations@blackhillscorp.com.
What is the primary focus of Black Hills Corp.?
Black Hills Corp. focuses on improving lives with energy, ensuring customer satisfaction, and building a reliable energy infrastructure.
