Natural gas company Black Hills Corp. receives approval for new rates in Arkansas – Black Hills (NYSE:BKH)

RAPID CITY, SD, Oct. 2, 2024 (GLOBE NEWSWIRE) — Black Hills Corp. BKH announced today that its Arkansas natural gas company, Black Hills Energy Arkansas, Inc., doing business as Black Hills Energy, received approval from the Arkansas Public Utilities Commission of a unanimous agreement for new rates effective starting October billing. The new rates are designed to recoup approximately $130 million of pipeline system investments since the utility's last general rate filing in 2021.

“We are pleased to receive approval of an agreement that supports our long-term commitment to our customers and Arkansas communities to provide safe and reliable natural gas service,” said Linn Evans, president and CEO of Black Hills Corp. “The “Critical infrastructure investments made on behalf of our customers are essential to meeting growing energy demand while supporting the continued resilience of our Arkansas natural gas system.”

The approved settlement agreement will generate approximately $25.4 million of new annual revenue and migrate approximately $3.7 million in annual passenger revenue to base fares for a total annual base fare revenue increase of $29.1 million. The approval allows for a return on equity of 9.85% and a capital structure of 46% equity and 54% debt.

Black Hills Corporation.
Black Hills Corporation. BKH is a customer-focused, growth-oriented utility company with a tradition of improving lives with energy and a vision to be the energy partner of choice. Headquartered in Rapid City, South Dakota, the company serves 1.34 million electric and natural gas customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

Investor Relations
Sal Diaz
investor relations@blackhillscorp.com

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Caution Regarding Forward-Looking Statements
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission (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 fact, included in this press release that address activities, events or developments What we expect, believe or anticipate will occur or may occur in the future are forward-looking statements, including anticipated revenue from new rate increases. These forward-looking statements are based on assumptions that 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, risk described in Item 1A of Part I of our 2023 Annual Report on Form 10-K filed with the SEC, and other reports we file with the SEC from time to time.

New factors emerge from time to time that could cause actual results to differ materially from those described in the forward-looking statements, and it is not possible for us to predict all of such factors, or the extent to which such factors or combination of factors may cause the results. Actual results may differ from those contained in any forward-looking statements. We undertake no obligation to publicly update any such forward-looking statements, whether as a result of new information, future events or otherwise.