Black Hills Corp. Natural Gas Intrastate Pipeline Company Receives Approval for New Rates in Colorado
19 July 2023 - 6:15AM
Black Hills Corp. (NYSE: BKH) today announced that its Colorado
intrastate natural gas pipeline, Rocky Mountain Natural Gas LLC,
doing business as Black Hills Energy, received approval from the
Colorado Public Utility Commission of a settlement agreement for
new rates to recover approximately $110 million of investments
since 2017 in its 600-mile pipeline system.
“We are pleased to receive approval of a settlement that
supports our long-term commitments to our Colorado customers and
communities to deliver safe, reliable and cleaner energy service,”
said Linn Evans, president and CEO of Black Hills Corp. “This
pipeline supports our ability to safely transport natural gas to
various delivery points throughout western Colorado and our
commitments to reduce emissions through a more resilient and modern
pipeline system.”
The approved settlement agreement will generate approximately
$8.2 million of new annual revenues based on a weighted average
cost of capital of 6.93% with a capital structure range of 50% to
52% equity, 48% to 50% debt and a return on equity of 9.50% to
9.70%. New rates were effective July 15, 2023.
Black Hills CorporationBlack 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 1.33 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 and
www.blackhillsenergy.com.
Investor RelationsJerome E.
Nichols605-721-1171jerome.nichols@blackhillscorp.com
24-hour Media Assistance888-242-3969
Caution Regarding Forward Looking StatementThis
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 new 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, the risk factors
described in Item 1A of Part I of our 2022 Annual Report on Form
10-K filed with the SEC, and other reports that we file with the
SEC from time to time.
New factors that could cause actual results to differ materially
from those described in forward looking statements emerge from
time-to-time, and it is not possible for us to predict all such
factors, or the extent to which any such factor or combination of
factors may cause actual results to differ from those contained in
any forward-looking statement. We assume no obligation to update
publicly any such forward-looking statements, whether as a result
of new information, future events or otherwise.
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