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Black Hills Corp. Natural Gas Utility Requests Rate Review and Rider Renewal in Kansas

Fri 7th May, 2021 9:10pm
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WICHITA, Kan., May 07, 2021 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH)
today announced that its Kansas natural gas utility, Black Hills / Kansas Gas
Utility Company, LLC, doing business as Black Hills Energy, filed a rate
review application with the Kansas Corporation Commission requesting $5.3
million in new annual revenue.

Black Hills Energy has invested approximately $130 million in safety,
reliability and system integrity for more than 4,600 miles of natural gas
pipeline infrastructure in Kansas since its last general rate filing seven
years ago. 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 our pipeline system to serve extraordinary demand during the
extreme cold conditions of Winter Storm Uri.

Black Hills Energy is also seeking renewal of its safety and reliability
rider, the Gas System Reliability Surcharge. This legislatively approved rider
allows gas utilities to recover capital investments for infrastructure
upgrades. According to state law, a gas utility is required to periodically
file a rate review application to continue recovering these investments
through the GSRS.

“This request is a win-win for our customers and Black Hills,” said Linn
Evans, president and CEO of Black Hills Corp. “Our customer-focused strategy
and rider mechanism has delivered safe and reliable service to our Kansas
customers for seven years since our last rate review in the state. Renewal of
the rider will continue our ability to prioritize our investments to benefit
customers while providing a fair return on investments for shareholders.”

The investments that Black Hills Energy has made in modern pipeline materials
for Kansas customers has also contributed to more than a one-third reduction
in greenhouse gas emissions intensity for the company’s pipeline system
since 2005. Renewal of the rider will not only support the company’s efforts
for safety and reliability but also its clean energy goals for reducing
greenhouse gas emissions.

If approved as filed, the request will shift approximately $4.9 million of
rider revenue to base rates and will generate an estimated $5.3 million per
year in additional revenue. The request is based on a capital structure of
50.34% equity and 49.66% debt and a return on equity of 10.15%. Black Hills
Energy is seeking new rates in the first quarter of 2022.

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 www.blackhillscorp.com.

Investor Relations
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com

24-Hour Media Relations Line
888-242-3969

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 increase and renewal of the rider 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.

(https://www.globenewswire.com/NewsRoom/AttachmentNg/56b34e64-17c6-4ecf-a4f6-b7848f82cfeb)



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