Black Hills Corp. Colorado Electric Utility Proposes First Electric Rate Review in 8 Years
June 14 2024 - 6:52PM
Black Hills Corp. (NYSE: BKH) today announced its Colorado electric
utility, Black Hills Colorado Electric, LLC, doing business as
Black Hills Energy, filed a request with the Colorado Public
Utilities Commission seeking to update its electric rates to
account for the rising cost of operating, maintaining and upgrading
its Southern Colorado electric system which serves over 100,000
customers in Pueblo, Cañon City, Rocky Ford and surrounding
communities.
Since its last general rate filing in 2016, Black Hills Energy
has deployed approximately $371 million in strategic capital
investments vital to providing safe and reliable electric service
to its customers and plans to invest approximately $98 million in
additional capital in 2024. These investments include upgrades made
to support the resilience and reliability of its transmission and
distribution system, which spans over 3,700 line miles.
“We are very mindful of the impacts of inflation and rising
supply chain costs on our customers and our business, and we have
worked diligently to manage cost increases,” said Campbell Hawkins,
Black Hills Energy’s vice president of Colorado Utilities. “That’s
why the company has avoided seeking a rate update for eight years.
We are taking action to minimize the customer impact and have
redoubled our efforts to provide support for customers who need it,
including launching a new Energy Assistance Team with a dedicated
resource in Pueblo, Colorado.”
As proposed, the rate review is requesting additional annual
revenues of $36.7 million with a capital structure of 52.75% equity
and 47.25% long-term debt and a return on equity of 10.5%. New
rates are expected in the first quarter of 2025.
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 1.34 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
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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 the expected revenues and return on investments. 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 2023 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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