Black Hills Corp. Natural Gas Utility Requests Rate Review in Iowa
Rhea-AI Summary
Black Hills Corp.'s Iowa natural gas utility, Black Hills Energy, filed a rate review application with the Iowa Utilities Board for $20.7 million in new annual revenue. The request reflects critical system investments and inflationary impacts on costs to ensure safe and reliable natural gas delivery to over 163,000 customers across 133 communities. The company plans to implement interim rates within 10 days of the application and final rates by Q1 2025.
Positive
Black Hills Energy investing approximately $100 million in safety, system integrity, and reliability for natural gas infrastructure in Iowa.
Commitment to providing a reliable, safe, and resilient energy future for Iowa customers.
Plans to implement interim rates promptly after the rate review application.
Negative
Requesting $20.7 million in new annual revenue through rate review application.
Inflationary impacts on costs affecting customers and the business.
Potential adjustment or refund of interim rates, subject to change.
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.
GRIMES, Iowa, May 01, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its Iowa natural gas utility, Black Hills/Iowa Gas Utility Company, LLC, doing business as Black Hills Energy, filed a rate review application with the Iowa Utilities Board requesting
Black Hills Energy has invested approximately
“This request reflects critical system investments and inflationary impacts on costs as we continue to deliver on our commitment to providing a reliable, safe and resilient energy future for our Iowa customers,” said Linn Evans, president and CEO of Black Hills Corp. “We are proud of our legacy of keeping our customers safe and businesses operating through extreme weather conditions and supporting economic growth. We are very mindful of the impacts of inflation on our customers and our business, and we are carefully managing our costs while maintaining the integrity of our systems and service levels in the communities in which we live and operate.”
As proposed, the rate review is requesting a capital structure of
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 1.34 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 future anticipated revenues from the new rate increase and 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 2023 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
What is the purpose of Black Hills Corp.'s rate review application?
How many customers will benefit from the critical investments by Black Hills Energy in Iowa?
When does Black Hills Energy plan to implement interim rates after the rate review application?
What is the proposed capital structure and return on equity in the rate review request?
Where is Black Hills Corp. based and how many customers does it serve?
