Black Hills Corp. (NYSE: BKH) has filed a rate review application with the Nebraska Public Service Commission, seeking $34.9 million in new annual revenue to cover infrastructure and operational costs. The utility company has invested over $453 million in natural gas infrastructure since its last rate filing in 2020, serving more than 304,000 Nebraska customers across 300 communities. The application includes rolling in $18.5 million of rider revenue, bringing the total annual base rate revenue increase to $53.4 million. The company's request is based on a capital structure of 50.52% equity and 49.48% debt, with a 10.50% return on equity. Black Hills Corp. aims to implement interim rates by August 1, 2025, with new rates expected in Q1 2026. Additionally, the company seeks to renew its System Safety and Integrity Rider (SSIR) to support accelerated pipeline replacement initiatives.
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Positive
Significant infrastructure investment of $453 million since 2020 demonstrates commitment to system improvements
Large customer base of over 304,000 Nebraska customers provides stable revenue stream
Proposed return on equity of 10.50% indicates potential for solid shareholder returns
Negative
Requested $53.4 million total rate increase could face regulatory scrutiny and potential customer pushback
Rate review process creates regulatory uncertainty until Q1 2026
Operating in inflationary environment may pressure costs and margins
News Market Reaction – BKH
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In the trading session that priced this news, BKH gained 0.87%, reflecting a mild positive market reaction.
RAPID CITY, S.D., May 01, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its Nebraska natural gas utility has filed a rate review application with the Nebraska Public Service Commission requesting $34.9 million in new annual revenue to recover the necessary capital infrastructure and operational costs required to deliver safe, reliable natural gas service for over 304,000 Nebraska customers.
Since its last general rate filing in 2020, the company will have invested over $453 million in safety, reliability and system integrity for its natural gas pipeline infrastructure serving over 300 communities in Nebraska. These critical investments were required to meet system growth, ensure the safe and reliable delivery of natural gas to customers’ homes and businesses, and meet compliance requirements of state and federal regulations.
“We are committed to serving our customers with the safe and reliable natural gas service they depend on,” said Linn Evans, president and CEO of Black Hills Corp. “We are prudently managing our costs in an inflationary environment as we make critical infrastructure investments in operating, maintaining, and upgrading our Nebraska natural gas system.”
The application requests $34.9 million per year in new revenue and rolls in an additional $18.5 million of rider revenue for a total annual base rate revenue increase of $53.4 million. The request is based on a capital structure of 50.52% equity and 49.48% debt and a return on equity of 10.50%. The company is seeking interim rates to be effective Aug. 1, 2025, with new rates anticipated in the first quarter of 2026.
This rate application also includes a request to renew the System Safety and Integrity Rider (SSIR) to support accelerated, safety-focused pipeline replacement across the state.
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 1.35 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 605-399-5079 Investorrelations@blackhillscorp.com
24-Hour Media Relations Line 888-242-3969
FAQ
How much is Black Hills Corp (BKH) requesting in new annual revenue from Nebraska customers?
Black Hills Corp is requesting $34.9 million in new annual revenue, with a total annual base rate revenue increase of $53.4 million when including $18.5 million of rider revenue.
When will BKH's new utility rates take effect in Nebraska?
Black Hills Corp is seeking interim rates effective August 1, 2025, with final new rates anticipated in the first quarter of 2026.
How many customers does Black Hills Corp serve in Nebraska?
Black Hills Corp serves over 304,000 natural gas customers across more than 300 communities in Nebraska.
How much has Black Hills Corp invested in Nebraska infrastructure since 2020?
Black Hills Corp has invested over $453 million in safety, reliability, and system integrity for its natural gas pipeline infrastructure in Nebraska since its last rate filing in 2020.
What is the proposed return on equity in BKH's Nebraska rate review application?
Black Hills Corp is requesting a 10.50% return on equity, with a capital structure of 50.52% equity and 49.48% debt.
