Black Hills Corp. Utility Receives Regulatory Approval to Increase Revenues
20 December 2014 - 8:34AM
PUEBLO, Colo., Dec. 19, 2014
- Black Hills Corp. (NYSE: BKH) subsidiary Black Hills Energy
today received approval from the Colorado Public Utilities
Commission for an estimated $3 million per year in additional
revenue, effective Jan. 1, 2015.
The new rates provide a return on the utility's
investment over the past three years to maintain and enhance its
electrical service infrastructure. The PUC order also authorized
the implementation of a return on the Company's capital
expenditures associated with constructing a new generating facility
that will replace the retired W.N. Clark coal-fired power plant.
The increased revenue is based on a return on equity of 9.83
percent with a capital structure of 49.83 percent equity and 50.17
percent debt.
"Our goal is to deliver safe, reliable electric
service at a good value 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. "We are
committed to providing value, controlling costs and making
responsible investments."
The new rates provide a return on additional
capital investments made in 2012 and 2013 totaling $54 million by
the utility to maintain and enhance its electrical service
infrastructure since the last rate case, in 2012. Those investments
include the 29-megawatt Busch Ranch Wind Farm south of Pueblo, in
operation since October 2012.
The new natural gas-fired turbine at the company's
Pueblo Airport Generating Station will replace the coal-fired W.N.
Clark power plant. The new turbine is expected to begin commercial
operation in early 2017.
Investor Relations:
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com
Media Contacts:
Bret Jones
719-248-9139
bret.jones@blackhillscorp.com
24-Hour Media
Assistance:
866-243-9002
Digital Media:
www.blackhillscorp.com
www.blackhillsenergy.com
Twitter.com/blackhillsenergy
Facebook.com/blackhillsenergy
Black Hills/Colorado Electric
Utility Company, LP d/b/a Black Hills Energy
Black Hills Energy serves 94,000 electric customers in 21
southeastern Colorado communities. Black Hills Energy is a
subsidiary of Black Hills Corp. (NYSE: BKH).
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 and our
ability to deliver an appropriate return to our investors. 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, 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#1882319
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