Black Hills Corp. Iowa Gas Utility Reaches Settlement Agreement for Rate Revision
GRIMES, Iowa, November 08, 2021 (GLOBE NEWSWIRE) – Black Hills Corp. (NYSE: BKH) announced today that its Iowa natural gas utility, Black Hills / Iowa Gas Utility Company, LLC, doing business as Black Hills Energy, has reached an agreement with all parties intervening in 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 161,000 customers in 133 communities across the state.
âWe are delighted to reach a constructive agreement with the Iowa Office of Consumer Advocate and other key Iowa stakeholders,â said Linn Evans, President and CEO of Black Hills Corp. âThe investments underway reflect our commitment to our Iowa customers for safety and reliable service, supporting economic growth in the communities we serve and achieving our clean energy goals.
Black Hills Energy has nearly tripled its investment in its Iowa pipeline system since its last general tariff filing approved over 10 years ago. These investments include the replacement, upgrade and maintenance of more than 2,800 miles of natural gas pipelines and 164,000 system service lines across the state – critical infrastructure needed to ensure the safe and reliable delivery of natural gas to people. clients’ homes and businesses and supporting the growing needs of local communities.
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 Iowa Utilities Board. If approved as filed, the application will shift approximately $ 2.2 million in user revenue to base tariffs and generate approximately $ 3.7 million in additional revenue per year. The regulation proposes a capital structure of 50% equity and 50% debt and a return on equity of 9.6%. Black Hills is seeking new rates effective January 1, 2022, replacing interim rates in effect on June 11.
Black Hills Society
Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-driven 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 others, 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.