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BKH - Black Hills News Story

$69.86 -0.6  -0.8%

Last Trade - 22/04/21

Sector
Utilities
Size
Large Cap
Market Cap £3.18bn
Enterprise Value £5.95bn
Revenue £1.22bn
Position in Universe 1506th / 6851

Black Hills Corp. Natural Gas Utility Receives Approval for Consolidation and Rate Increase in Nebraska

Tue 26th January, 2021 9:15pm
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LINCOLN, Neb., Jan. 26, 2021 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH)
today announced that its Nebraska natural gas utility, Black Hills Nebraska
Gas, LLC, doing business as Black Hills Energy, received approval from the
Nebraska Public Service Commission of a settlement agreement providing the
company a general rate increase and allowing consolidation of its base rates
and tariffs.

The commission’s approval is the final step in Black Hills’ utility
jurisdiction consolidation process in Nebraska. Previously, Black Hills
received approval and legally consolidated its two natural gas utilities in
the state. This settlement agreement allows Black Hills Energy to establish
statewide uniform customer rates and consolidate general tariffs.

“This approval is an important step toward simplifying how we operate our
natural gas utilities in Nebraska,” said Linn Evans, president and CEO of
Black Hills Corp. “Our consolidation effort will improve customer service
and reduce the complexity and number of rate reviews and other regulatory
filings.”

Black Hills Energy has invested more than $450 million in its 13,000-mile
natural gas pipeline system in Nebraska since its last general rate filing 12
years ago in 2009. These investments include replacing, upgrading and
maintaining more than 500 miles of natural gas transmission and distribution
pipeline to serve approximately 300,000 customers in over 300 communities
throughout the state. Not only have these investments in modern pipeline
material improved safety and reliability for customers, they have contributed
to more than a one-third reduction in greenhouse gas emissions intensity for
the company’s pipeline system since 2005.

The approved settlement will shift approximately $4.6 million of rider revenue
to base rates and will generate an estimated $6.5 million in new annual base
rate revenues starting March 1, 2021, to recover Black Hills Energy’s
investments in utility infrastructure and increased operating expenses. The
new revenue is based on a return on equity of 9.5% and a capital structure of
50% equity and 50% debt.

The approved settlement agreement also allows Black Hills Energy to renew and
expand its System Safety and Integrity Rider across all its Nebraska service
area to recover the costs of safety infrastructure projects during the next
five years.

Black Hills Corporation
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 1.28 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 our ability to realize
efficiencies in regulatory processes and 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 2019 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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