Black Hills Corp. Gains Approval for New Rates
In an exciting development for consumers, Black Hills Corp. (NYSE: BKH) announced that its natural gas utility subsidiary has received the green light for new rates from the Kansas Corporation Commission. This decision follows a comprehensive unanimous settlement agreement aimed at enhancing the utility's ability to provide quality service. The new rates will facilitate the recovery of approximately $118 million in system investments made since the last general rate filing.
Enhancing Service Reliability for Customers
Black Hills Corp. is committed to ensuring its services remain reliable and safe for the community. As Linn Evans, the president and CEO, emphasized, "This approval will support our ability to safely and reliably serve our customers and communities in Kansas." With a customer base of 120,000 in the state, Black Hills Corp. is dedicated to delivering the dependable natural gas service that people rely on each day.
Details of the New Rate Structure
The approved black box settlement agreement is set to generate approximately $10.8 million in new annual revenues. Additionally, it will shift about $4.4 million from annual rider revenue to base rates, resulting in a total annual base rate revenue increase of $15.2 million. This adjustment is part of a broader strategy to keep up with the inflationary impacts on natural gas services, ensuring the utility can continue its mission effectively.
Investments in System Reliability and Safety
The implemented changes will allow Black Hills Corp. to maintain the Gas System Reliability Surcharge (GSRS), which is critical for funding accelerated, safety-focused pipeline replacements throughout Kansas. The settlement also includes a new insurance tracker featuring deferred accounting treatment. This strategic move enables the company to file an abbreviated case in the future, adding capital placed in service through a set date.
About Black Hills Corp.
Black Hills Corp. is more than just a utility provider; it is a growth-oriented company focused on enhancing the quality of life with energy solutions. Based in Rapid City, South Dakota, the company services around 1.35 million natural gas and electric customers across eight states, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. With a vision to be the energy partner of choice, Black Hills Corp. continues to expand its services and improve its offerings.
Contacting Investor Relations
If you would like to learn more about Black Hills Corp. or have inquiries, you can reach Sal Diaz at their Investor Relations via email. They also offer a 24-hour media relations line for immediate assistance. Please feel free to connect with their representatives to get the latest information.
Frequently Asked Questions
1. What prompted the rate increase for Black Hills Corp.?
The rate increase was approved to recover investments in the system and to address inflationary impacts on providing natural gas services.
2. How will the new rates affect customers in Kansas?
The new rates are expected to enhance service reliability and support safety improvements across the state's infrastructure.
3. What is the total annual revenue increase expected?
The approved settlement is projected to increase annual base rate revenue by approximately $15.2 million.
4. How many customers does Black Hills Corp. serve?
Black Hills Corp. serves about 120,000 customers in Kansas and approximately 1.35 million customers across its total service areas.
5. Where is Black Hills Corp. based?
Black Hills Corp. is headquartered in Rapid City, South Dakota.
