RAPID CITY, SD, June 01, 2021 (GLOBE NEWSWIRE) – Black Hills Corp. (NYSE: BKH) announced today that its Colorado and Iowa natural gas utility subsidiaries have separately filed rate revision requests to recoup investments made in natural gas infrastructure systems in their respective states. These critical investments were necessary to meet system growth, ensure the safe and reliable delivery of natural gas to customers’ homes and businesses, and meet state and federal regulatory compliance requirements.
The importance of these investments was recently demonstrated by the excellent performance of the Black Hills pipeline systems in meeting extraordinary demand during the extreme cold conditions of the polar vortex and winter storm Uri in February. These investments in the replacement and modernization of pipeline materials have also contributed to a reduction of more than a third in greenhouse gas emissions intensity for the company’s pipeline systems since 2005.
Black Hills Colorado Gas Rate Review Request
Black Hills Colorado Gas, Inc., doing business as Black Hills Energy, has filed a rate review application with the Colorado Public Utilities Commission, seeking $ 14.6 million in new annual revenue. From July 2018 to the end of 2020, the company invested $ 144 million in replacing, upgrading and expanding its natural gas system in the state. The more than 7,000 miles of natural gas transmission and distribution pipeline provide the essential infrastructure necessary to meet the growing needs of its 194,000 Colorado customers.
As filed, the tariff revision calls for a capital structure of 50.26% equity and 49.74% debt and a return on equity of 9.95%. The company is looking to roll out new tariffs in the first quarter of 2022.
Black Hills Iowa Gas Rate Review Application
Black Hills / Iowa Gas Utility Company, LLC, doing business as Black Hills Energy, has filed a rate review application with the Iowa Utilities Board seeking $ 8.3 million in new annual revenue. The company has invested more than $ 250 million in the safety, reliability and system integrity of its 5,000-mile pipeline network in Iowa since its last tariff revision filing more than 10 years.
Black Hills Energy is also seeking to implement a five-year Security and System Integrity Rider to prioritize security-focused investments using a consistent, long-term approach to benefit customers and enable the business to recoup its capital investments in these infrastructure upgrades. The rider will also support the company’s clean energy goals to reduce greenhouse gas emissions.
If approved as filed, the application will transfer approximately $ 2.2 million in user revenues to base rates and generate approximately $ 8.3 million per year in additional revenues. The request is based on a capital structure of 50% equity and 50% debt and a return on equity of 10.15%. Black Hills Energy will apply interim rates effective June 11, subject to adjustment or refund. The company is looking to implement final tariffs in the first quarter of 2022.
“These rate revision requests reflect our commitment to our customers for safe and reliable service and to support economic growth in Colorado and Iowa,” said Linn Evans, president and CEO of Black Hills Corp. energy goals while ensuring that our customers continue to have natural gas as an energy choice.
Black Hills Corp.
Black Hills Corp. (NYSE: BKH) is a growth-driven, customer-focused utility company with a tradition of improving lives through energy and a vision to be the energy partner of choice. Headquartered in Rapid City, South Dakota, the company serves 1.3 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.
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Caution regarding forward-looking statement
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this press release that deal with activities, events or developments which we expect, believe or anticipate will occur or may occur in the future are forward-looking statements, including anticipated revenues from further rate increases, approval of the rider request and our ability to deliver a return. suitable for investors. These forward-looking statements are based on what we believe to be reasonable assumptions based on current expectations and projections regarding future events and industry conditions and trends affecting our business. However, whether actual results and developments will comply with our expectations and forecasts is subject to a number of risks and uncertainties which, among other things, could cause actual results to differ materially from those contained in forward-looking statements, the risk factors described in Item 1A of Part I of our 2020 Annual Report on Form 10-K filed with the SEC, and other reports that we file from time to time with the SEC.
New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is impossible for us to predict all of these factors, or the extent to which any such factor or combination of factors. may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to publicly update any such forward-looking statements, whether as a result of new information, future events or otherwise.