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BKH - Black Hills News Story

$68.61 0.2  0.3%

Last Trade - 07/05/21

Sector
Utilities
Size
Large Cap
Market Cap £3.09bn
Enterprise Value £5.85bn
Revenue £1.28bn
Position in Universe 1546th / 6858

BLACK HILLS CORP.'S CHEYENNE LIGHT, FUEL & POWER REQUESTS REVENUE INCREASE

Tue 3rd December, 2013 12:30am

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20131203:nHUGdq6P 
 
CHEYENNE, Wyo., Dec. 2, 2013 - Black Hills Corp. (NYSE: BKH) subsidiary Cheyenne Light, Fuel and
Power today filed rate requests with the Wyoming Public Service Commission to increase the
utility's electric and natural gas system revenues to recover investments in electric and natural
gas infrastructure, including the Cheyenne Prairie Generating Station.

If approved as filed, the new electric and natural gas rates will generate an estimated $14
million per year in additional revenue, based on an aggregate capital structure of 54 percent
equity and 46 percent debt. The filing seeks a return on equity of 10.25 percent for investments
the company has made in its electric and natural gas systems. The primary component of the
electric filing is Cheyenne Light's portion of construction and operating costs for a new
generating station.

The $222 million Cheyenne Prairie Generating Station is under construction in Cheyenne and will be
co-owned by Cheyenne Light and another Black Hills Corp. utility, Black Hills Power.

"Our goal is to provide cost-effective energy for our customers while delivering an appropriate
return for our investors," said Linn Evans, Black Hills Corp.'s president and chief operating
officer of utilities. "These investments ensure our customers can continue to depend on us for
safe, reliable electric and natural gas service that supports continued community growth and the
increasing demand for energy." 

Cheyenne Light seeks to recover a return on its $127 million share of the new plant and associated
infrastructure and recover its share of operating expenses. Black Hills Power, an electric service
provider to the Black Hills region of South Dakota and Wyoming, will file a request within the
next several months to recover a return on its approximately $95 million share of the plant.

"The Cheyenne Light/Black Hills Power partnership benefits customers of both utilities, in part by
creating economies of scale that share construction and operating costs for the 132-megawatt
Cheyenne Prairie Generating Station," Evans said. "Natural gas fired generation has relatively low
air emissions and is an effective solution to meeting increasingly strict U.S. Environmental
Protection Agency air emission standards."

The Cheyenne Light rate requests seeks to implement the natural gas and electric rate increases
when the plant is placed into service, scheduled for Oct. 1, 2014. The Wyoming PSC and its staff
will conduct an extensive review of the rate plans, a process that considers public comments and
includes testimony from utility representatives, the Wyoming Office of Consumer Advocate and other
interested parties.

Cheyenne Light will provide periodic rate case updates at www.reliableclfp.com
http://www.reliableclfp.com/ , and company information is always available at
www.cheyennelight.com http://www.cheyennelight.com/  and www.blackhillscorp.com
http://www.blackhillscorp.com/ . You can also find helpful information at Cheyenne Light's
Facebook page and Twitter feed.

Cheyenne Light, Fuel & Power Company
Cheyenne Light, Fuel & Power Company, a subsidiary of Black Hills Corp., serves 40,000 electric
customers and 35,000 natural gas customers in the greater Cheyenne, Wyo., area. 

Black Hills Corporation
Black Hills Corp. (NYSE: BKH), a growth-oriented, vertically-integrated energy company with a
tradition of exemplary service and a vision to be the energy partner of choice, is based in Rapid
City, S.D. The company serves 769,000 natural gas and electric utility customers in Colorado,
Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company generates wholesale
electricity and produces natural gas, oil and coal. Black Hills' 1,925 employees partner to
produce results that are improving life with energy. More information is available at
www.blackhillscorp.com http://www.blackhillscorp.com/ .

Caution Regarding Forward Looking Statements
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 our ability and the timing of receiving regulatory approval
to recover our operating costs and a return on our investments. 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, including the
factors discussed above, our ability to obtain adequate cost recovery for our utility operations
through regulatory proceedings and the timing in which new rates would go into effect, the risk
factors described in Item 1A of Part I of our 2011 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. 
 
 Investor Relations:                                               
 Jerome E. Nichols         Phone: 605-721-1171                     
                                                                   
 Media Contact:                                                    
 24-hour Media Assistance  Phone: 866-243-9002                     
                                                                   
 Local Media Contact:                                              
 Sharon Fain               Phone: 307-778-212                      
                           Mobile: 307-286-2167                    
                                                                   
 Digital Media:            Cheyennelight.com                       
                           ReliableClfp.com                        
                           Twitter.com/cheyennelight               
                           Facebook.com/cheyennelightfuelandpower  
 
 

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX
Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content,
accuracy and originality of the information contained therein.
Source: Black Hills Corporation via Globenewswire


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