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Economic Impact

Creating economic value in our communities

Economic Impact

We create economic value within our local communities by providing jobs and benefits to our employees, by paying taxes, through community giving and by purchases made to maintain and upgrade our vast network of electric and natural gas system infrastructure. In 2018, our direct economic impact was estimated at over $1 billion.

Direct Economic Impact: Summary 2018 (rounded)
City franchise fees* $33,000,000
Community impact $4,100,000
Employee compensation (wages and benefits**) $325,000,000
Payments to suppliers (total spend) $564,000,000
Property tax $44,000,000
Sales, use and excise taxes*** $82,000,000
TOTAL $1,052,100,000
*Payments made to local governments for use of public rights-of-way.
**Benefits include employer contributions for Health and Welfare benefits as well as 401(k) and retirement contributions.
***Depending on state and local laws, we are required to collect sales tax from customers on taxable sales of goods and services. We also pay taxes on certain purchases made by Black Hills that have not been previously taxed by the vendor or service provider.

 

2018 Direct Economic Impact by State

Arkansas Direct Economic Impact 2018 (rounded)
  City franchise fees* $5,000,000
  Community impact $350,000
  Employee compensation (wages and benefits) $38,000,000
  Payments to suppliers (total spend) $35,000,000
  Property tax $4,000,000
  Sales, use and excise taxes $16,000,000
TOTAL   $98,350,000
*Payments made to local governments for use of public rights-of-way.
Colorado Direct Economic Impact 2018 (rounded)
  City franchise fees* $8,000,000
  Community impact $900,000
  Employee compensation (wages and benefits) $61,000,000
  Payments to suppliers (total spend) $98,000,000
  Property tax $17,000,000
  Sales and use tax $14,000,000
TOTAL   $198,900,000
*Payments made to local governments for use of public rights-of-way.
Iowa Direct Economic Impact 2018 (rounded)
  City franchise fees* $2,000,000
  Community impact $500,000
  Employee compensation (wages and benefits) $18,000,000
  Payments to suppliers (total spend) $17,000,000
  Property tax $2,000,000
  Sales and use tax $4,000,000
TOTAL   $43,500,000
*Payments made to local governments for use of public rights-of-way.
Kansas Direct Economic Impact 2018 (rounded)
  City franchise fees* $4,000,000
  Community impact $400,000
  Employee compensation (wages and benefits) $15,000,000
  Payments to suppliers (total spend) $19,000,000
  Property tax $4,000,000
  Sales and use tax $4,000,000
TOTAL   $46,400,000
*Payments made to local governments for use of public rights-of-way.
Nebraska Direct Economic Impact 2018 (rounded)
  City franchise fees* $7,000,000
  Community impact $800,000
  Employee compensation (wages and benefits) $54,000,000
  Payments to suppliers (total spend) $24,000,000
  Property tax $4,000,000
  Sales and use tax $20,000,000
TOTAL   $109,800,000
*Payments made to local governments for use of public rights-of-way.
South Dakota Direct Economic Impact 2018 (rounded)
  City franchise fees* $0
  Community impact $900,000
  Employee compensation (wages and benefits) $88,000,000
  Payments to suppliers (total spend) $35,000,000
  Property tax $4,000,000
  Sale, use and excise taxes $11,000,000
TOTAL   $138,900,000
*Payments made to local governments for use of public rights-of-way.
Wyoming Direct Economic Impact 2018 (rounded)
  City franchise fees* $7,000,000
  Community impact $400,000
  Employee compensation (wages and benefits) $50,000,000
  Payments to suppliers (total spend) $42,000,000
  Property tax $7,000,000
  Sales, use and excise taxes $14,000,000
TOTAL   $120,400,000
*Payments made to local governments for use of public rights-of-way.

Supply Chain and Supplier Diversity

In 2018, we spent $564 million with suppliers to support our utility operations to better serve our customers. Nearly 50 percent of that spend was completed with businesses within our 8-state service territory. We also remain committed to supporting the small and diverse businesses that are located within our local communities. In 2018, our spending with small business, women- and minority-owned businesses and other diverse suppliers, represented 15 percent of our total dollars spent.

Solid Financial Performance

We celebrated 135 years of delivering energy to customers in 2018, a testament to our long-term strategy and financial strength. Sustaining Black Hills into the future requires solid financial performance to provide the necessary capital to invest in our customers and communities. Our financial results in 2018 reflected our ongoing investments to better serve our customers and support their increased demand for energy. For 2018, we reported earnings per share from continuing operations, as adjusted, of $3.54, a 5.4 percent increase compared to 2017.* This was above our earnings expectations for the year, due in part to weather benefits, particularly in the fourth quarter. In 2018, we increased our annual dividend payout by 6.6 percent, to $1.93 per share, the 48th consecutive year of dividend increases, one of the longest track records in the utility industry. This signals our ongoing confidence in our strategic plan and future growth opportunities made possible, in part, by our large electric and natural gas systems.

*Non-GAAP measure reconciled to GAAP.

Capital Investment

We are driving long-term earnings growth by making essential capital investments to meet our customers' needs and by achieving operating efficiencies through business standardization. Our 5-year capital investment program calls for the deployment of $2.8 billion to ensure the safety, reliability, and integrity of our extensive electric and natural gas systems - 9,000 miles of electric distribution and transmission lines and 46,000 miles of natural gas pipelines - while also serving our expanding customer base.

Read more in the 2018 annual report

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Did You Know?

Heating and cooling your home uses more energy and drains more energy dollars than any other system in your home. Typically, 44 percent of your energy bill goes for heating and cooling. Reducing use here saves you money on your utility bill.

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Contact Us

Rapid City Corporate Headquarters Black Hills Corporation

7001 Mount Rushmore Road Rapid City, SD 57702

Have a question about anything? Contact us online.

Work With Us

We're Improving Life with Energy by strengthening our communities through growth and development opportunities. That’s why we have a planning team focused on building strong partnerships with diverse businesses. Read more about economic development and our supplier diversity program network.

Careers

Black Hills Corporation offers employees the opportunity for something more than a job. We provide challenging, exciting work that makes a profound difference in the lives of others. Find a job with Black Hills today.

Improving Life With Energy

Every day, we want to be “improving life with energy.” We produce, market and deliver the vital electricity, coal, oil and natural gas that our customers need. Through our efforts, products and services, we also share our personal energy to strengthen our communities and support growth and development.

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