Black Hills Corp. Receives Approval for New Rates
Black Hills Corp. announced that its natural gas utility, operating as Black Hills Energy, has successfully secured approval for new rates from the Arkansas Public Service Commission. This decision marks a significant milestone as the utility progresses with its initiatives to invest in critical infrastructure and enhance service quality for customers in Arkansas.
Details of the Rate Increase
The approved rate increase stems from a unanimous settlement agreement aimed at recovering around $130 million in investments made since the utility's last general rate filing in 2021. With these new rates, customers can expect to see changes reflected in their October billing cycles.
Significant Revenue Generation
This new rate structure is projected to generate approximately $25.4 million in additional annual revenue for the company. Moreover, it will transition about $3.7 million in previous rider revenues into base rates, leading to a total increase in annual base revenue of $29.1 million.
Commitment to Customer Service
Linn Evans, president and CEO of Black Hills Corp., expressed enthusiasm regarding the approval, emphasizing the company’s dedication to delivering safe and reliable natural gas service to its Arkansas customers. The investments in infrastructure are not only crucial for meeting current demands but also play a vital role in ensuring the long-term resilience of the natural gas system.
Understanding the Financial Structure
The approval allows the company to maintain a return on equity of 9.85% and establishes a capital structure comprising 46% equity and 54% debt, supporting the utility's growth trajectory while ensuring fiscal responsibility.
About Black Hills Corp.
Black Hills Corp. stands as a proactive, customer-centric utility company that aims to be the preferred energy partner. Headquartered in Rapid City, South Dakota, the company has expanded its services to over 1.34 million natural gas and electric utility customers across various states, including Arkansas.
Continuous Improvement and Growth
The company’s growth-oriented approach is embedded in its mission to improve the quality of life through energy solutions, solidifying its reputation in the utility sector. Black Hills Corp. continually seeks innovative solutions that address energy needs while being conscious of environmental impacts.
Engagement with Investors and Media
For inquiries related to investor relations, Sal Diaz represents the company and can be reached via email. Additionally, media representatives can contact the company through their dedicated 24-hour media relations line for timely communications and updates.
Frequently Asked Questions
What is the significance of the new rate approval for Black Hills Corp.?
The approval facilitates recovery of substantial investments and aims to enhance service reliability for Arkansas customers.
How much annual revenue will the new rates generate?
The new rates are expected to generate about $25.4 million in additional annual revenue.
What is the return on equity allowed by the new rate structure?
The new structure allows for a return on equity of 9.85%.
Where is Black Hills Corp. headquartered?
Black Hills Corp. is headquartered in Rapid City, South Dakota.
How does Black Hills Corp. address customer service?
The corporation is committed to providing safe, reliable natural gas service while investing in infrastructure to meet customer demands.
