Black Hills Corp. Natural Gas Utility Requests Approval of Settlement Agreement for Rate Review in Wyoming
25 October 2023 - 8:30AM
Black Hills Corp. (NYSE: BKH) today announced that its Wyoming
natural gas utility, Black Hills Wyoming Gas, LLC, doing business
as Black Hills Energy, filed a settlement agreement for approval by
the Wyoming Public Service Commission for its application for new
rates to recover over $140 million of investments since 2019 in its
more than 6,400-mile natural gas system.
“These critical investments support the long-standing
expectations from our customers and communities for reliable, safe
and resilient natural gas service, particularly during extreme
weather, like Wyoming has experienced the last two winters,” said
Linn Evans, president and CEO of Black Hills Corp. “These
investments are also needed to meet the growing needs of our
Wyoming communities.”
The settlement agreement is pending a final hearing and approval
by the Wyoming commission. If approved, the settlement agreement
will generate approximately $13.9 million of new annual revenues
based on a capital structure of 51% equity and 49% debt and a
return on equity of 9.85%. The agreement provides for new rates
effective Jan. 1, 2024.
The settlement agreement extends the Wyoming Integrity Rider for
an additional four years of investments in the company’s
distribution, transmission, and storage integrity programs, limited
to a maximum of $80 million in project expenditures over that
period. The agreement also approves the establishment of the Green
Forward Program, a voluntary renewable natural gas environmental
attribute and carbon offset pilot program.
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 approval of the settlement, expected revenues
from the new rate increase and ability to deliver an appropriate
return to 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,
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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