Black Hills Corp. Gas Utility Receives Approval for New Rates in Nebraska

Black Hills Corp. (NYSE: BKH) announced that its Nebraska natural gas utility received Nebraska Public Service Commission approval of a unanimous settlement for new rates effective Jan. 1, 2026.

Rhea-AI Summary

Black Hills Corp. (NYSE: BKH) announced that its Nebraska natural gas utility received Nebraska Public Service Commission approval of a unanimous settlement for new rates effective Jan. 1, 2026.

The settlement permits recovery of over $453 million of system investments since the last general rate filing in 2020 and supports service for more than 304,000 Nebraska customers. It will generate approximately $23.9 million of new annual revenues and migrate about $18.5 million of annual rider revenue into base rates for a total base rate revenue increase of $42.4 million. Rates are based on a 9.85% return on equity and a capitalization of 50.5% equity / 49.5% debt.

The settlement also renews a five-year System Safety and Integrity Rider and establishes a new insurance tracker, a manufactured gas plant tracker, and a weather normalization pilot.

Positive

• Recovery of over $453 million in system investments
• Total annual base rate revenue increase of $42.4 million
• New rates effective Jan. 1, 2026 provide regulatory certainty

Negative

• Higher customer charges implied by a $42.4 million base rate increase effective Jan. 1, 2026

Argus Dec 10 session

+0.98% close to close 0.6x rel. volume Open Argus

Details

News Market Reaction – BKH

On Dec 10, the first trading day after this news, BKH closed 0.98% above the previous close.

Data tracked by StockTitan Argus for the Dec 10 session.

Key Figures

Recoverable system investments: $453 million Nebraska customers: 304,000 customers New annual revenues: $23.9 million +5 more

Recoverable system investments

$453 million

Investments since last Nebraska general rate filing in 2020

Nebraska customers

304,000 customers

Natural gas customers served in Nebraska

New annual revenues

$23.9 million

New annual revenues from approved Nebraska rates

Rider revenue to base rates

$18.5 million

Annual rider revenue migrated into base rates

Total base rate increase

$42.4 million

Total annual base rate revenue increase in Nebraska

Return on equity

9.85%

ROE underpinning the new Nebraska rates

Capital structure

50.5% equity / 49.5% debt

Regulatory capitalization for Nebraska rate case

New rates effective date

Jan. 1, 2026

Effective date for approved Nebraska base rates

Historical Context

5 past events · Latest: Nov 05

5 events

1. Nov 05

   Q3 earnings & guidance

   24h Move

   +0.2%

   Q3 2025 EPS growth and reaffirmed full-year adjusted earnings guidance.

2. Oct 28

   Dividend declaration

   24h Move

   -2.4%

   Announced quarterly dividend of $0.676 per share with set pay date.

3. Oct 08

   Earnings call scheduling

   24h Move

   -1.2%

   Scheduled timing and access details for Q3 2025 earnings call.

4. Sep 26

   ATM equity completion

   24h Move

   +1.5%

   Completed 2025 ATM program raising $219.6M via 3.7M new shares.

5. Sep 25

   Debt offering pricing

   24h Move

   +1.5%

   Priced $450M senior notes at 4.550% to refinance 2026 maturity.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

return on equity, System Safety and Integrity Rider, manufactured gas plant, weather normalization, +1 more

5 terms

return on equity financial

"The new rates are based on a return on equity of 9.85% and capitalization..."

Return on equity shows how effectively a company uses its shareholders' money to generate profit. It is calculated by dividing the company's net profit by its shareholders' equity, indicating how much profit is earned for each dollar invested by owners. Higher return on equity suggests the company is good at turning investments into earnings, which can be an important factor for investors assessing its profitability and efficiency.

System Safety and Integrity Rider regulatory

"allows for renewal of a five-year System Safety and Integrity Rider to fund..."

A system safety and integrity rider is an add-on to a contract, insurance policy, or regulatory filing that requires specific protections for a company’s operational or digital systems—such as security controls, testing, monitoring, and reporting. For investors it matters because the rider shifts responsibility, can increase costs or compliance burdens, and reduces the chance of disruptive failures or liability; think of it as a required safety inspection and warranty for a company’s critical systems.

manufactured gas plant technical

"a new manufactured gas plant tracker, and a new weather normalization..."

A manufactured gas plant (MGP) is a former industrial facility that produced town gas from coal, oil or other feedstocks before modern natural gas networks existed; think of it as an old factory that made gas instead of cars. It matters to investors because these sites commonly left behind soil and groundwater contamination and long-term cleanup obligations, which can create legal liabilities, costly remediation expenses, reduced property value and unpredictable financial risk for companies that own or develop the land.

weather normalization technical

"and a new weather normalization pilot program."

Weather normalization is the process of removing the effects of unusually hot, cold, stormy or calm weather from a company’s reported results so the underlying business trend is clearer. Think of it like comparing a store’s sales after removing the impact of an unexpected heatwave; investors use it to judge whether revenue, energy use or demand changed because of the company’s operations, not because the weather was unusually strong or weak.

forward-looking statements regulatory

"This news release includes “forward-looking statements” as defined by the..."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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RAPID CITY, S.D., Dec. 09, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its natural gas utility subsidiary in Nebraska received approval from the Nebraska Public Service Commission of a unanimous settlement agreement for new rates. The new rates will provide recovery of over $453 million of system investments since the utility’s last general rate filing in 2020 and operational costs required to deliver safe, reliable natural gas service for over 304,000 Nebraska customers.

“These new rates will support our ability to safely and reliably serve our customers and communities in Nebraska,” said Linn Evans, president and CEO of Black Hills Corp. “We are proud of our solid track record of delivering for the needs of our customers, and we remain diligently focused on maintaining dependable natural gas service in Nebraska.”

The approved settlement agreement will generate approximately $23.9 million of new annual revenues and migrate approximately $18.5 million in annual rider revenue to base rates for a total annual base rate revenue increase of $42.4 million. The new rates are based on a return on equity of 9.85% and capitalization of 50.5% equity and 49.5% debt. New rates will be effective on Jan. 1, 2026, replacing interim rates in place since Aug. 1, 2025.

The approved settlement also allows for renewal of a five-year System Safety and Integrity Rider to fund accelerated, safety-focused pipeline replacement across the state, a new insurance tracker, a new manufactured gas plant tracker, and a new weather normalization pilot program.

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 1.35 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
Sal Diaz
investorrelations@blackhillscorp.com

24-Hour Media Relations Line
888-242-3969

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 anticipated revenues from the new rate increase. 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 2024 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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Black Hills Corp (BKH) announce about Nebraska gas rates on Dec. 9, 2025?

The company said its Nebraska gas utility won unanimous approval for new rates effective Jan. 1, 2026, recovering over $453 million of investments.

How much annual revenue will BKH’s Nebraska rate change add for shareholders?

The settlement will generate approximately $23.9 million of new annual revenues and migrate $18.5 million of rider revenue into base rates, totaling $42.4 million.

What return on equity and capital structure were approved for BKH Nebraska rates?

The new rates are based on a 9.85% return on equity and a capitalization of 50.5% equity / 49.5% debt.

When did interim Nebraska rates begin before the Jan. 1, 2026 effective date for BKH?

Interim rates had been in place since Aug. 1, 2025 and will be replaced on Jan. 1, 2026.

What regulatory mechanisms were included in the BKH Nebraska settlement?

The settlement renews a five-year System Safety and Integrity Rider and adds an insurance tracker, a manufactured gas plant tracker, and a weather normalization pilot.