Black Hills Corp. (NYSE: BKH) has filed a rate review application with the Kansas Commission for its natural gas utility operations. The company is seeking to recover costs for infrastructure investments and operations serving 120,000 Kansas customers. Since 2021, Black Hills Energy has invested $118 million in safety, reliability, and system integrity across 4,765 miles of natural gas pipeline infrastructure in Kansas.
The application requests $17.2 million per year in additional revenue and approximately $4.4 million of rider revenue integration into base rates, totaling a $21.6 million annual base rate revenue increase. The request is based on a capital structure of 50.44% equity and 49.56% debt, with a 10.50% return on equity. The company aims to implement new rates in the second half of 2025.
Black Hills Corp. (NYSE: BKH) ha presentato una richiesta di revisione delle tariffe alla Commissione del Kansas per le sue operazioni di utilità del gas naturale. L’azienda sta cercando di recuperare i costi per gli investimenti infrastrutturali e le operazioni che servono 120.000 clienti in Kansas. Dal 2021, Black Hills Energy ha investito 118 milioni di dollari in sicurezza, affidabilità e integrità del sistema su 4.765 miglia di infrastruttura di pipeline di gas naturale in Kansas.
La richiesta prevede 17,2 milioni di dollari all’anno in entrate aggiuntive e circa 4,4 milioni di dollari di integrazione delle entrate extra nelle tariffe di base, per un totale di 21,6 milioni di dollari di aumento annuale delle entrate da tariffe di base. La richiesta si basa su una struttura di capitale del 50,44% di equity e del 49,56% di debito, con un ritorno sul capitale del 10,50%. L’azienda prevede di implementare nuove tariffe nella seconda metà del 2025.
Black Hills Corp. (NYSE: BKH) ha presentado una solicitud de revisión de tarifas a la Comisión de Kansas para sus operaciones de servicios públicos de gas natural. La empresa busca recuperar costos por inversiones en infraestructura y operaciones que atienden a 120,000 clientes en Kansas. Desde 2021, Black Hills Energy ha invertido 118 millones de dólares en seguridad, fiabilidad e integridad del sistema a lo largo de 4,765 millas de infraestructura de tuberías de gas natural en Kansas.
La solicitud solicita 17.2 millones de dólares al año en ingresos adicionales y aproximadamente 4.4 millones de dólares de integración de ingresos adicionales en las tarifas base, totalizando un aumento de ingresos de tarifas base anual de 21.6 millones de dólares. La solicitud se basa en una estructura de capital del 50.44% de patrimonio y 49.56% de deuda, con un retorno sobre el patrimonio del 10.50%. La empresa planea implementar nuevas tarifas en la segunda mitad de 2025.
블랙 힐스 코퍼레이션 (NYSE: BKH)은 캔자스 자연가스 공익사업 운영을 위한 요금 검토 신청서를 캔자스 위원회에 제출했습니다. 이 회사는 120,000명의 캔자스 고객을 위해 인프라 투자 및 운영 비용을 회수하려고 합니다. 블랙 힐스 에너지는 2021년 이래로 캔자스에서 4,765마일의 자연가스 파이프라인 인프라를 통해 1억 1,800만 달러를 안전성, 신뢰성 및 시스템 무결성에 투자했습니다.
이 신청서는 추가 수익으로 1,720만 달러를 요청하고 있으며, 기본 요금에 통합될 약 440만 달러의 추가 요금 수익을 요청하고 있습니다. 이는 연간 기본 요금 수익 증가 총계가 2,160만 달러가 됨을 의미합니다. 요청은 50.44%의 자본 및 49.56%의 부채 비율에 따라 이루어지며, 10.50%의 자본 수익률을 목표로 하고 있습니다. 회사는 2025년 하반기에 새로운 요금을 시행할 계획입니다.
Black Hills Corp. (NYSE: BKH) a déposé une demande de révision tarifaire auprès de la Commission du Kansas pour ses opérations de services publics de gaz naturel. L’entreprise cherche à récupérer les coûts liés aux investissements infrastructurels et aux opérations desservant 120 000 clients au Kansas. Depuis 2021, Black Hills Energy a investi 118 millions de dollars dans la sécurité, la fiabilité et l’intégrité du système sur 4 765 milles d’infrastructure de pipelines de gaz naturel au Kansas.
La demande réclame un montant additionnel de 17,2 millions de dollars par an en revenus et environ 4,4 millions de dollars d’intégration de revenus supplémentaires dans les tarifs de base, totalisant une augmentation annuelle des revenus de base de 21,6 millions de dollars. La demande est basée sur une structure de capital de 50,44 % de capitaux propres et 49,56 % de dettes, avec un retour sur capitaux propres de 10,50 %. L’entreprise vise à mettre en œuvre de nouveaux tarifs dans la seconde moitié de 2025.
Black Hills Corp. (NYSE: BKH) hat einen Antrag auf Überprüfung der Tarife bei der Kommission von Kansas für seine Erdgasversorgungsbetriebe eingereicht. Das Unternehmen möchte Kosten für Infrastrukturinvestitionen und Betriebe, die 120.000 Kunden in Kansas bedienen, zurückgewinnen. Seit 2021 hat Black Hills Energy 118 Millionen Dollar in Sicherheit, Zuverlässigkeit und Systemsicherheit in 4.765 Meilen Erdgas-Pipeline-Infrastruktur in Kansas investiert.
Der Antrag verlangt 17,2 Millionen Dollar pro Jahr zusätzlich an Einnahmen und etwa 4,4 Millionen Dollar für die Integration von Zusatzgebühren in die Grundtarife, was zu einer Gesamtsteigerung der jährlichen Grundtarifeinnahmen von 21,6 Millionen Dollar führt. Der Antrag basiert auf einer Kapitalstruktur von 50,44 % Eigenkapital und 49,56 % Fremdkapital, mit einer Eigenkapitalrendite von 10,50 %. Das Unternehmen plant, in der zweiten Hälfte von 2025 neue Tarife einzuführen.
Positive
- Planned $118 million infrastructure investment demonstrates commitment to system growth and reliability
- Potential $21.6 million annual revenue increase if rate review is approved
- Continuation of Gas System Reliability Surcharge (GSRS) program for safety improvements
Negative
- Rate increase could impact customer affordability and satisfaction
- High inflationary environment affecting operational costs
- Implementation of new rates not expected until second half of 2025
Insights
This rate review filing represents a strategically timed and well-structured request that could meaningfully impact Black Hills Corp’s Kansas operations. The $21.6M total revenue increase request, including $17.2M in new revenue, is particularly notable given the current regulatory climate where utilities nationwide are seeking cost recovery amid persistent inflationary pressures.
The requested 10.50% ROE warrants attention as it positions above the national average for recent gas utility rate cases, which have typically settled in the 9.4-9.8% range. This higher ask provides negotiating room while reflecting increased capital costs. The proposed 50.44% equity ratio aligns with industry standards and should find regulatory support.
Three key strategic elements stand out:
- The timing satisfies regulatory requirements to maintain GSRS eligibility through 2026, preserving this valuable tool for accelerated infrastructure investment recovery
- Rolling $4.4M of rider revenue into base rates helps stabilize the revenue stream
- The $118M in documented infrastructure investments since 2021 provides solid justification for the request
For investors, this filing demonstrates proactive regulatory management and a clear strategy to maintain stable returns while funding necessary system improvements. The preservation of GSRS eligibility is particularly valuable as it supports predictable cost recovery for ongoing safety and reliability investments. While rate case outcomes are never guaranteed, the well-documented infrastructure spending and alignment with regulatory requirements position this filing favorably for a constructive outcome in late 2025.
RAPID CITY, S.D., Feb. 03, 2025 (GLOBE NEWSWIRE) — Black Hills Corp. (NYSE: BKH) today announced that its Kansas natural gas utility has filed a rate review application with the Kansas Corporation Commission requesting recovery of the necessary capital infrastructure and operational costs required to deliver safe, reliable natural gas service for 120,000 Kansas customers.
Since its last general rate filing in 2021, Black Hills Energy will have invested approximately
“Our customers deserve safe and reliable natural gas, and these investments adjust for the rising cost of operating, maintaining and upgrading our Kansas natural gas system,” said Linn Evans, president and CEO of Black Hills Corp. “Our rate review proposal will enable the company to continue investing in critical infrastructure to meet the needs of customers while prudently managing in a high inflationary environment that has impacted every business sector.”
The application requests an estimated
This rate application also allows the company to continue using the Gas System Reliability Surcharge (GSRS) to fund accelerated, safety-focused pipeline replacement across the state. This application satisfies the requirement to file a general rate case in Kansas by the end of 2026 to remain eligible for commission approval of future GSRS filings.
Black Hills Corporation
Black 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.
Investor Relations
Sal Diaz
605-399-5079
Investorrelations@blackhilscorp.com
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FAQ
How much additional revenue is BKH requesting in its Kansas rate review?
BKH is requesting $17.2 million in additional annual revenue plus $4.4 million in rider revenue integration, totaling $21.6 million in annual base rate revenue increase.
What is the return on equity (ROE) requested by BKH in its Kansas rate application?
BKH is requesting a 10.50% return on equity in its Kansas rate review application.
How much has BKH invested in Kansas infrastructure since 2021?
BKH has invested approximately $118 million in safety, reliability, and system integrity for over 4,765 miles of natural gas pipeline infrastructure in Kansas since 2021.
When will BKH implement the new rates in Kansas if approved?
BKH is seeking to implement the new rates in the second half of 2025.
How many customers does BKH serve in Kansas?
BKH serves 120,000 natural gas customers in Kansas.