Black Hills Corp. Requests Rate Review in Nebraska
Black Hills Corp. (NYSE: BKH) has announced an important step regarding its Nebraska natural gas utility. The company has officially submitted a rate review application to the Nebraska Public Service Commission, seeking to increase its annual revenue by $34.9 million. This request is aimed at recovering necessary costs associated with infrastructure and operations to ensure the safe and reliable delivery of natural gas to over 304,000 customers across Nebraska.
Investments in Infrastructure for Safe Operations
Since its last major rate filing in 2020, Black Hills Corp. has committed over $453 million towards enhancing the safety and reliability of its natural gas pipeline infrastructure. This investment impacts over 300 communities within Nebraska and was crucial for accommodating system growth, ensuring dependable service, and meeting compliance with state and federal regulations.
Company Commitment to Reliable Service
“We are dedicated to providing our customers with the safe and reliable natural gas service they depend on,” stated Linn Evans, the president and CEO of Black Hills Corp. He emphasized that the company is managing costs judiciously within an inflationary climate, while also undertaking critical infrastructure enhancements across their Nebraska natural gas system.
Details of the Rate Increase Request
The formal application highlights a need for $34.9 million in new revenue annually. Additionally, Black Hills Corp. has included an extra $18.5 million in rider revenue, culminating in a total proposed revenue increase of $53.4 million for the base rate. The proposal outlines a capital structure consisting of 50.52% equity and 49.48% debt, alongside a projected return on equity of 10.50%. The company is advocating for interim rate adjustments to take effect on August 1, 2025, with new rates expected to roll out by the first quarter of 2026.
Renewal of Pipeline Safety Initiatives
In conjunction with the new revenue request, Black Hills Corp. is also seeking to renew the System Safety and Integrity Rider (SSIR). This renewal is designed to bolster accelerated pipeline replacement initiatives throughout the state, reinforcing the company’s commitment to safety and reliability.
About Black Hills Corporation
Black Hills Corp. is a dynamic utility company that prioritizes customer service and growth. With a mission to enhance lives through energy, the company aims to be the preferred energy partner for individuals and businesses alike. Headquartered in Rapid City, South Dakota, Black Hills Corp. is proud to serve approximately 1.35 million natural gas and electric utility customers across eight states, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.
Contact Information for Investors
For investor inquiries, please contact:
Sal Diaz
Phone: 605-399-5079
Email: Investorrelations@blackhillscorp.com
Media Relations Contacts
For immediate media inquiries, please reach out to the 24-hour media relations line at: 888-242-3969.
Frequently Asked Questions
What is the purpose of Black Hills Corp.'s rate review application?
The application aims to recover costs associated with necessary capital infrastructure and operational expenses to maintain safe gas service for customers.
How much is Black Hills Corp. requesting in increased annual revenue?
Black Hills Corp. is seeking a total increase of $34.9 million in annual revenue, alongside an additional $18.5 million in rider revenue.
What investment has Black Hills Corp. made since the last rate filing?
Since 2020, the company has invested over $453 million to improve safety, reliability, and the integrity of its natural gas pipeline systems.
What is the return on equity that the company is seeking?
The company is looking for a return on equity of 10.50% as part of its rate application.
How does Black Hills Corp. plan to enhance pipeline safety?
Through the renewal of the System Safety and Integrity Rider, the company plans to expedite pipeline replacement initiatives to boost safety across the state.
