Black Hills Corp. Requests Rate Review and Rider Renewal in Kansas
Rhea-AI Summary
Black Hills Corp. (NYSE: BKH) has filed a rate review application with the Kansas Commission for its natural gas utility operations. The company is seeking to recover costs for infrastructure investments and operations serving 120,000 Kansas customers. Since 2021, Black Hills Energy has invested $118 million in safety, reliability, and system integrity across 4,765 miles of natural gas pipeline infrastructure in Kansas.
The application requests $17.2 million per year in additional revenue and approximately $4.4 million of rider revenue integration into base rates, totaling a $21.6 million annual base rate revenue increase. The request is based on a capital structure of 50.44% equity and 49.56% debt, with a 10.50% return on equity. The company aims to implement new rates in the second half of 2025.
Positive
- Planned $118 million infrastructure investment demonstrates commitment to system growth and reliability
- Potential $21.6 million annual revenue increase if rate review is approved
- Continuation of Gas System Reliability Surcharge (GSRS) program for safety improvements
Negative
- Rate increase could impact customer affordability and satisfaction
- High inflationary environment affecting operational costs
- Implementation of new rates not expected until second half of 2025
News Market Reaction – BKH
In the trading session that priced this news, BKH gained 0.25%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
RAPID CITY, S.D., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its Kansas natural gas utility has filed a rate review application with the Kansas Corporation Commission requesting recovery of the necessary capital infrastructure and operational costs required to deliver safe, reliable natural gas service for 120,000 Kansas customers.
Since its last general rate filing in 2021, Black Hills Energy will have invested approximately
“Our customers deserve safe and reliable natural gas, and these investments adjust for the rising cost of operating, maintaining and upgrading our Kansas natural gas system,” said Linn Evans, president and CEO of Black Hills Corp. “Our rate review proposal will enable the company to continue investing in critical infrastructure to meet the needs of customers while prudently managing in a high inflationary environment that has impacted every business sector.”
The application requests an estimated
This rate application also allows the company to continue using the Gas System Reliability Surcharge (GSRS) to fund accelerated, safety-focused pipeline replacement across the state. This application satisfies the requirement to file a general rate case in Kansas by the end of 2026 to remain eligible for commission approval of future GSRS filings.
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 1.34 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
Sal Diaz
605-399-5079
Investorrelations@blackhilscorp.com
24-Hour Media Relations Line
888-242-3969
