Black Hills Corp. Utility Receives Regulatory Approval to Increase Revenues
03 March 2015 - 11:08AM
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:
www.blackhillscorp.com
Twitter.com/blackhillspower
Facebook.com/blackhillspower
Youtube.com/user/BHImprovingLife
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.
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Black Hills Corporation via Globenewswire
HUG#1898913
Black Hills (NYSE:BKH)
Historical Stock Chart
From Feb 2024 to Mar 2024
Black Hills (NYSE:BKH)
Historical Stock Chart
From Mar 2023 to Mar 2024