Black Hills Corp. Colorado Gas Utility Reaches Settlement
DENVER, Oct 05, 2021 (GLOBE NEWSWIRE) – Black Hills Corp. (NYSE: BKH) announced today that its Colorado natural gas utility, Black Hills Colorado Gas, Inc., doing business as Black Hills Energy, has reached an agreement with parties to its rate review for a general rate increase to support the company’s efforts to continue to provide safe and reliable natural gas service to its customers.
“I would like to thank the staff at Colorado Public Utilities, the Colorado Office of Utility Consumer Advocate, Energy Outreach Colorado and the other parties to the settlement for the good faith negotiations and for coming together on the issues,” said Linn Evans. , President and CEO of Black. Hills Corp. âThe investments underway reflect our commitment to our Colorado customers for safe and reliable service, support economic growth in the communities we serve, and meet our clean energy goals. “
Black Hills Energy has invested more than $ 150 million in its 7,000 mile Colorado gas pipeline system since its last approved General Tariff filing in 2018. These investments include safety replacements and the modernization and expansion of its network. of natural gas serving more than 194,000 customers in 119 communities across the state.
The importance of these investments has been demonstrated by the excellent performance of the Black Hills pipeline system in meeting extraordinary demand during extreme weather events. Investments in the replacement and modernization of pipeline materials have also contributed to a reduction of more than a third in greenhouse gas emissions intensity for the company’s pipeline system since 2005.
The settlement agreement is subject to final review and approval by the administrative judge and the Colorado Public Utilities Commission. If approved, the settlement will translate into approximately $ 6.49 million in new annual base rate revenue effective January 1, 2022, to recoup Black Hills Energy’s investments in utility infrastructure and facilities. Operating Expenses. The new income is based on a return on equity of 9.2% and a capital structure of 50.3% equity and 49.7% debt.
Black Hills Society
Black Hills Corp. (NYSE: BKH) is a growth-driven, customer-focused utility company with a tradition of improving lives through energy and a vision to be the energy partner of choice. Headquartered in Rapid City, South Dakota, the company serves 1.3 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.
Jerome E. Nichols
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Caution regarding forward-looking statement
This press 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 by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this press release that deal with activities, events or developments which we expect, believe or anticipate will occur or could occur in the future are forward-looking statements, including the approval of settlement and anticipated revenues from new tariffs. These forward-looking statements are based on what we believe to be reasonable assumptions based on current expectations and projections regarding future events and industry conditions and trends affecting our business. However, whether actual results and developments will comply with our expectations and forecasts is subject to a number of risks and uncertainties which, among other things, could cause actual results to differ materially from those contained in forward-looking statements, the risk factors described in Item 1A of Part I of our 2020 Annual Report on Form 10-K filed with the SEC, and other reports that we file from time to time with the SEC.
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 impossible for us to predict all of these 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 publicly update any such forward-looking statements, whether as a result of new information, future events or otherwise.