Black Hills Corp. Requests Rate Review in Arkansas

Rhea-AI Summary

Black Hills Corp (NYSE: BKH) said its Arkansas natural gas utility filed a rate review with the Arkansas Public Service Commission on Dec. 8, 2025 requesting $29.4 million in new annual revenue to recover capital and operational costs for more than 189,000 Arkansas customers across 100+ communities.

The filing seeks recovery of about $147 million in safety, reliability and system integrity investments since the last general rate filing in 2023, uses a capital structure of 50.2% equity / 49.8% debt and requests a 10.5% return on equity, with new rates proposed in the second half of 2026.

Positive

• $29.4M requested in new annual revenue
• Recovery sought for $147M in pipeline investments since 2023
• Filed ROE of 10.5% based on 50.2% equity capital structure
• Targets rate implementation in H2 2026

Negative

• Requesting $29.4M implies higher customer rates if approved
• Significant $147M capital recovery depends on regulator approval

Argus Dec 8 session

+0.26% close to close 0.6x rel. volume Open Argus

Details

News Market Reaction – BKH

On Dec 8, the day this news came out, BKH closed 0.26% above the previous close.

Data tracked by StockTitan Argus for the Dec 8 session.

Key Figures

Requested new annual revenue: $29.4 million Infrastructure investments sought for recovery: $147 million Arkansas gas customers: over 189,000 customers +5 more

Requested new annual revenue

$29.4 million

Arkansas natural gas rate review application

Infrastructure investments sought for recovery

$147 million

Safety, reliability and system integrity since 2023 filing

Arkansas gas customers

over 189,000 customers

Served across more than 100 communities in Arkansas

Capital structure basis

50.2% equity / 49.8% debt

Assumed in Arkansas rate review request

Requested return on equity

10.5%

Proposed ROE in Arkansas rate case

Planned timing for new rates

second half of 2026

Target implementation for Arkansas rate changes

Total utility customers

1.35 million

Natural gas and electric customers across eight states

States served

8 states

Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, SD, Wyoming

Historical Context

5 past events · Latest: Nov 05

5 events

1. Nov 05

   Q3 2025 earnings

   24h Move

   +0.2%

   Stronger Q3 EPS, reaffirmed 2025 guidance, merger and project updates.

2. Oct 28

   Dividend declaration

   24h Move

   -2.4%

   Announced quarterly dividend and upcoming Q3 earnings release details.

3. Oct 08

   Earnings call schedule

   24h Move

   -1.2%

   Set dates and access details for Q3 2025 earnings release and call.

4. Sep 26

   Equity issuance

   24h Move

   +1.5%

   Completed ATM equity program raising funds for 2025 capex and growth.

5. Sep 25

   Debt offering

   24h Move

   +1.5%

   Priced $450M senior notes mainly to refinance 2026 maturity and fund needs.

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

Key Terms

rate review, capital structure, return on equity, natural gas pipeline infrastructure

4 terms

rate review regulatory

"has filed a rate review application with the Arkansas Public Service Commission"

Rate review is a regulatory check where an insurer, utility, or other regulated service provider submits proposed price or premium increases to a government agency for examination and possible approval or modification. It matters to investors because the outcome determines how much revenue the company can charge customers, affecting earnings, profit margins and demand; think of it like a landlord asking the city for permission to raise rents, with regulators able to limit or reshape the increase.

capital structure financial

"The request is based on a capital structure of 50.2% equity and 49.8% debt"

Capital structure is the way a company finances its operations and growth by using different sources of money, such as borrowed funds (loans or bonds) and owner’s equity (investments from owners or shareholders). It’s like a recipe for baking a cake, where the balance of ingredients affects the final product's strength and taste; similarly, the mix of debt and equity influences a company's stability and risk. For investors, understanding a company's capital structure helps gauge how risky it might be to invest or lend money.

View in glossary

return on equity financial

"and a return on equity of 10.5%."

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.

natural gas pipeline infrastructure technical

"system integrity investments for its natural gas pipeline infrastructure since its last"

A network of pipes, compressor stations, storage sites and control equipment that moves natural gas from production areas to power plants, factories, homes and export terminals — like a highway system for gas. Investors care because these physical assets generate steady fee-based income, determine how much gas can reach customers (which affects prices), and require large, long-term investments and regulatory approvals that shape returns and risks.

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

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RAPID CITY, S.D., Dec. 08, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its Arkansas natural gas utility has filed a rate review application with the Arkansas Public Service Commission requesting $29.4 million in new annual revenue to recover the necessary capital infrastructure and operational costs required to deliver safe, reliable natural gas service for over 189,000 Arkansas customers in more than 100 communities in Arkansas.

The company is seeking recovery of approximately $147 million in safety, reliability and system integrity investments for its natural gas pipeline infrastructure since its last general rate filing in 2023. These critical investments are 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. “Our critical infrastructure investments and prudent cost management enable us to operate, maintain, and upgrade our Arkansas natural gas system while supporting growth.”

The request is based on a capital structure of 50.2% equity and 49.8% debt and a return on equity of 10.5%. The company is seeking to implement new rates in the second half of 2026.

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

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

What did Black Hills Corp (BKH) file with the Arkansas Public Service Commission on Dec. 8, 2025?

Black Hills filed a rate review requesting $29.4 million in new annual revenue for its Arkansas natural gas utility.

How much investment recovery is Black Hills Corp (BKH) seeking for Arkansas since 2023?

The company seeks recovery of approximately $147 million in safety, reliability and system integrity investments since 2023.

What return on equity and capital structure did Black Hills Corp (BKH) propose in the Arkansas filing?

The filing is based on a capital structure of 50.2% equity / 49.8% debt and requests a 10.5% return on equity.

When does Black Hills Corp (BKH) aim to implement new Arkansas rates?

The company is seeking to implement new rates in the second half of 2026.

How many Arkansas customers would be affected by Black Hills Corp (BKH)'s rate request?

The request covers service for over 189,000 Arkansas customers in more than 100 communities.