Black Hills Corp. Gas Utility Receives Approval for New Rates in Kansas
Rhea-AI Summary
Black Hills Corp. (NYSE: BKH) has received approval from the Kansas Corporation Commission for new utility rates for its natural gas subsidiary. The approved settlement will generate $10.8 million in new annual revenues and transfer $4.4 million in annual rider revenue to base rates, totaling a $15.2 million annual base rate revenue increase.
The new rates, effective August 1, 2025, will support system investments of approximately $118 million made since 2021. The settlement allows continued use of the Gas System Reliability Surcharge for pipeline replacement and includes approval for a new insurance tracker with deferred accounting treatment. The company serves 120,000 customers in Kansas and can file an abbreviated case later for capital placed in service through December 31, 2025.
Positive
- Approval secured for $15.2 million total annual base rate revenue increase
- Recovery of $118 million in system investments since 2021
- Continuation of Gas System Reliability Surcharge (GSRS) for pipeline replacement
- Approval for new insurance tracker with deferred accounting
- Option to file abbreviated case for additional capital through Dec 31, 2025
Negative
- Rate increase may impact customer utility bills
News Market Reaction – BKH
On the day this news was published, BKH gained 0.68%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
RAPID CITY, S.D., July 24, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its natural gas utility subsidiary in Kansas received approval from the Kansas Corporation Commission of a unanimous settlement agreement for new rates. The new rates will provide recovery of approximately
“This approval will support our ability to safely and reliably serve our customers and communities in Kansas,” said Linn Evans, president and CEO of Black Hills Corp. “We take great pride in our responsibility to deliver the dependable natural gas service our 120,000 Kansas customers depend upon every day.”
The approved black box settlement agreement will generate approximately
The approved settlement allows the company to continue using the Gas System Reliability Surcharge (GSRS) to fund accelerated, safety-focused pipeline replacement across the state and included approval of a new insurance tracker with deferred accounting treatment. The settlement also includes approval for the company to file an abbreviated case at a later date that includes the addition of capital placed in service through Dec. 31, 2025.
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
How much will Black Hills Corp's (BKH) new Kansas rate increase generate in annual revenue?
When will BKH's new Kansas gas utility rates take effect?
How many customers does Black Hills Corp serve in Kansas?
What system investments will the new BKH rates cover in Kansas?
What additional approvals did Black Hills Corp receive in the Kansas rate settlement?
