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BKHU - Black Hills News Story

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Black Hills Corp. Natural Gas Utilities Request Rate Reviews in Colorado and Iowa

Tue 1st June, 2021 10:50pm
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RAPID CITY, S.D., June 01, 2021 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:
BKH) today announced that its natural gas utility subsidiaries in Colorado and
Iowa separately filed rate review applications to recover investments made in
natural gas infrastructure systems in their respective states. These critical
investments were required to meet system growth, ensure the safe and reliable
delivery of natural gas to customers’ homes and businesses, and meet
compliance requirements of state and federal regulations.

The importance of these investments was recently demonstrated by the excellent
performance of Black Hills’ pipeline systems to serve extraordinary demand
during the extreme cold conditions of the polar vortex and Winter Storm Uri in
February. These investments in replacing and upgrading pipeline materials have
also contributed to more than a one-third reduction 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, filed a
rate review application with the Colorado Public Utilities Commission
requesting $14.6 million in new annual revenue. From July 2018 through
year-end 2020, the company has 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 critical
infrastructure required to meet the growing needs of its 194,000 Colorado

As filed, the rate review is requesting a capital structure of 50.26% equity
and 49.74% debt and a return on equity of 9.95%. The company is seeking to
implement new rates in the first quarter of 2022.

Black Hills Iowa Gas Rate Review Request

Black Hills / Iowa Gas Utility Company, LLC, doing business as Black Hills
Energy, filed a rate review application with the Iowa Utilities Board
requesting $8.3 million in new annual revenue. The company has invested over
$250 million in safety, reliability and system integrity in its more than
5,000-mile natural gas pipeline system in Iowa since its last rate review
filing more than 10 years ago.

Black Hills Energy is also seeking to implement a five-year System Safety and
Integrity Rider to prioritize safety-focused investments using a consistent,
long-term approach to benefit customers and allow the company to recover its
capital investments in these infrastructure upgrades. The rider will also
support the company’s clean energy goals for reducing greenhouse gas

If approved as filed, the request will shift approximately $2.2 million of
rider revenue to base rates and generate approximately $8.3 million per year
in additional revenue. 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
implement interim rates beginning June 11, subject to adjustment or refund.
The company is seeking to implement final rates in the first quarter of 2022.

“These rate review 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. “These investments
are also critical in helping meet our clean 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 customer focused, growth-oriented utility
company with a tradition of improving life with energy and a vision to be the
energy partner of choice. Based 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

Investor Relations
Jerome E. Nichols

24-Hour Media Relations Line

Caution Regarding Forward Looking Statement
This news 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 under the
Private Securities Litigation Reform Act of 1995. All statements, other than
statements of historical facts, included in this news release that address
activities, events or developments that we expect, believe or anticipate will
or may occur in the future are forward looking statements, including
anticipated revenues from the new rate increases, approval for the rider
request and our ability to deliver an appropriate return to investors. These
forward-looking statements are based on assumptions which we believe are
reasonable based on current expectations and projections about future events
and industry conditions and trends affecting our business. However, whether
actual results and developments will conform to our expectations and
predictions is subject to a number of risks and uncertainties that, among
other things, could cause actual results to differ materially from those
contained in the 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 with the SEC from time to time.

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
not possible for us to predict all such 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
update publicly any such forward-looking statements, whether as a result of
new information, future events or otherwise.


GlobeNewswire, Inc. 2021
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