RAPID CITY, S.D. March 2, 2015 - Black Hills Corp. (NYSE: BKH) utility subsidiary Black Hills Power today received approval from the South Dakota Public Utilities Commission of a settlement agreement that allows the company to increase its electric revenues in South Dakota.

The agreement between Black Hills Power and PUC Commission staff completes proceedings in the rate request Black Hills filed with the PUC in March 2014, and permits the utility to increase electric rates for its 65,500 customers in South Dakota on April 1, 2015.

The new rates will generate an estimated $6.89 million in additional annual revenue. The settlement does not stipulate return on equity and capital structure. 

The PUC decision allows Black Hills Power to recover operating expenses and infrastructure investments, chiefly for its portion of the natural gas-fired Cheyenne Prairie Generating Station in Cheyenne, Wyo., and related infrastructure serving the utility's South Dakota customers.

"Our goal is to provide safe, reliable, cost-effective energy for our customers, while delivering an appropriate return for our investors," said Linn Evans, Black Hills Corp.'s president and chief operating officer of utilities.

The 132-megawatt Cheyenne Prairie Generating Station was built for less than the budgeted amount and was placed into commercial operation, as scheduled, on Oct. 1.

The new facility was necessary to replace a portion of the generation capacity of Black Hills Power's Osage and Neil Simpson I plants in Wyoming, and the Ben French plant in South Dakota. Those three coal-fired plants, which had been in service for an average of more than 50 years, were retired in March 2014 to comply with new Environmental Protection Agency air emissions regulations.

"The Cheyenne Prairie station will produce immediate and long-term benefits and help us to meet increasingly strict EPA air emissions regulations," Evans said. "We are committed to producing electricity at a good value by controlling costs and making responsible investments."

Investor Relations:
Jerome E. Nichols
605-721-1171
Jerome.nichols@blackhillscorp.com

Media Contact:
Mutch Usera
605-484-1476
Mutch.usera@blackhillscorp.com

24-Hour Media Assistance:
866-243-9002

Digital Media:
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Black Hills Power, Inc.
Black Hills Power is the legacy utility business of Black Hills Corp. and has been delivering energy for more than 131 years. The electric utility serves 69,000 customers in 31 communities in western South Dakota, northeastern Wyoming and southeastern Montana.


Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a growth-oriented, vertically-integrated energy company with a tradition of exemplary service and a vision to be the energy partner of choice. Black Hills Corp. is based in Rapid City, S.D., and serves 777,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company generates wholesale electricity and produces natural gas, oil and coal. Black Hills Corp.'s 1,948 employees partner to produce results that are improving life with energy. More information is available at www.blackhillscorp.com.
 

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 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, including the factors discussed above, our ability to obtain adequate cost recovery for our utility operations through regulatory proceedings and the timing in which new rates would go into effect, the risk factors described in Item 1A of Part I of our 2013 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

 





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Source: Black Hills Corporation via Globenewswire

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