Who We Are
Black Hills Corp. Company Profile
Ready to serve
For 135 years, Black Hills Corp. has delivered safe, reliable, affordable and environmentally responsible energy to our customers. Based in Rapid City, South Dakota, Black Hills Corp., doing business as Black Hills Energy, is an investor-owned U.S. electric and natural gas utility company with regulated operations spanning a geographically diverse, 8-state region.
Black Hills Energy is composed of regulated natural gas and electric utilities supported by vertically-integrated mining and power generation businesses. We employ nearly 2,900 women and men in communities across our service territory to manage our operations and serve our customers with the highest level of customer service. This is an important part of our company’s culture and legacy and we work hard each day to ensure every employee understands his or her role in delivering value and benefit to our customers. With this in mind, we continue to improve our business practices to make it easier for our customers to do business with us.
Black Hills Corp. State Overview
| State | Electric Utility Customers | Natural Gas Utility Customers | Communities Served |
|---|---|---|---|
| Arkansas | - | 172,000 | 100 |
| Colorado | 96,600 | 187,000 | 119 |
| Iowa | - | 158,500 | 133 |
| Kansas | - | 114,800 | 65 |
| Montana | 45 | - | 2 |
| Nebraska | - | 291,700 | 319 |
| South Dakota | 72,500 | - | 29 |
| Wyoming | 42,700 | 130,100 | 56 |
| Total | 211,845 | 1,054,100 | 823 |
Our business segments - at a glance
Regulated Electric Utilities (as of Dec. 31, 2018)
| State | Utility Customers | Total Power Generation Capacity (MW) | Total Owned Generation (MW) | Natural Gas (MW) | Coal (MW) | Wind (MW) | oil (MW) |
|---|---|---|---|---|---|---|---|
| Colorado Electric | 96,600 | 537 | 323 | 220 | 0 | 75 | 30 |
| South Dakota Electric | 72,500 | 130 | 444 | 215 | 220 | 0 | 10 |
| Wyoming Electric | 42,700 | 556 | 172 | 77 | 95 | 0 | 0 |
| TOTAL | 211,800 | 1223 | 939 | 512 | 315 | 75 | 40 |
Energy Mix by Source (Owned and Purchased Energy (as of Dec. 31, 2018)
| Source | 2018 | 2017 | 2016 |
|---|---|---|---|
| Coal | 32% | 32% | 33% |
| Natural Gas and Oil | 4% | 4% | 6% |
| Wind | 6% | 3% | 1% |
| Total Generated | 42% | 40% | 40% |
| Purchased energy | 52% | 54% | 53% |
| Purchased renewable energy (wind) | 6% | 6% | 7% |
| Total Purchased | 58% | 60% | 60% |
| TOTAL | 100% | 100% | 100% |
Transmission and Distribution
We invest in transmission and distribution maintenance, upgrades and new construction to meet our customers’ needs and to maintain the reliability of our electric system. Through our regulated electric utilities, we own electric transmission systems composed of high voltage transmission lines (greater than 69 kV) and low voltage distribution lines (69 kV or less).
Transmission and Distribution Line Miles in Operation (as of Dec. 31, 2018)
| Regulated Utility | State(s) | Transmission (in Line Miles) | Distribution (in Line Miles) |
|---|---|---|---|
| South Dakota Electric | South Dakota, Wyoming | 1,231 | 2,539 |
| South Dakota Electric – Jointly Owned* | South Dakota, Wyoming | 44 | - |
| Wyoming Electric | South Dakota, Wyoming | 49 | 1,291 |
| Colorado Electric | Colorado | 598 | 3,106 |
| TOTAL | 1,922 | 6,936 |
*South Dakota Electric owns 35 percent of a DC transmission tie that interconnects the Western and Eastern transmission grids, which are independently operated transmission grids serving the western U.S. and eastern U.S. respectively.
Regulated Natural Gas Utilities: the distribution and transportation of natural gas
- 1,054,000 natural gas utility customers in Arkansas, Colorado, Iowa, Nebraska, Kansas and Wyoming
- 4,700 miles of intrastate gas transmission pipelines
- 41,158 miles of gas distribution mains and service lines
- 600 miles of gathering lines
- 7 natural gas underground storage sites with 16.5 Bcf of working capacity. (Facilities are located in Arkansas, Colorado and Wyoming.)
Natural Gas System Infrastructure - in line miles (as of Dec. 31, 2018)
| State | Intrastate Gas Transmission Pipelines | Gas Distribution Mains | Gas Distribution Service Lines |
|---|---|---|---|
| Arkansas | 932 | 4,803 | 1,122 |
| Colorado | 689 | 6,699 | 2,457 |
| Iowa | 164 | 2,791 | 2,667 |
| Kansas | 325 | 2,868 | 1,347 |
| Nebraska | 1,263 | 8,539 | 3,203 |
| Wyoming | 1,327 | 3,447 | 1,215 |
| TOTAL | 4,700 | 29,147 | 12,011 |
Regulated Underground Gas Storage Facilities* (as of Dec. 31, 2018)
*Measured in million cubic feet (Mcf)
| State | Working Capacity (mcf) | Cushion Gas (Mcf) | Total Capacity (Mcf) | Maximum Daily Withdrawal Capacity (Mcfd) |
|---|---|---|---|---|
| Arkansas | 8,442,700 | 12,950,000 | 21,392,700 | 196,000 |
| Colorado | 2,360,895 | 6,165,315 | 8,526,210 | 30,000 |
| Wyoming | 5,733,900 | 17,145,600 | 22,879,500 | 32,950 |
| TOTAL | 16,537,495 | 36,260,915 | 52,798,410 | 258,950 |
Non-regulated Energy Services
-
The Choice Gas Program provides our customers in Nebraska and Wyoming the opportunity to choose their natural gas provider and the pricing options that best suit their needs. As of Dec. 31, 2018, we had 47,000 Choice Gas Program participants (retail gas distribution customers in Nebraska and Wyoming).
-
We provide our residential customers with natural gas appliance repair and protection plans, providing peace of mind from unexpected repair bills. More than 90,000 residential customers are participating in natural gas appliance repair/protection plans delivered through Service Guard and Customer Appliance Protection Plans.
Power Generation: the production of electric power
Our Power Generation segment supports and is vertically integrated into our electric utilities. This segment, which operates through Black Hills Electric Generation and its subsidiaries, acquires, develops and operates our non-regulated power plants. As of Dec. 31, 2018, Power Generation owned interests in three independent power plants operating in Wyoming and Colorado with a total net ownership of approximately 283 MW. Nearly all of this capacity is contracted to our affiliate electric utilities under a combination of mid- to long-term contracts.
Mining: the mining and production of coal for the purpose of generating electricity
Our Mining segment, consisting of a small coal mine in northeast Wyoming, supports and is vertically integrated into our electric utilities and Power Generation business. The mine is located near Gillette, Wyoming, and is adjacent to the only location where Black Hills owns coal-fired power plants.
The Mining segment operates through Wyodak Resources Development Corp., a direct, wholly-owned subsidiary of Black Hills' non-regulated holdings. We surface mine, process and sell primarily low-sulfur sub-bituminous coal to our adjacent coal-fired power plants. This very efficient mine mouth operation delivers coal to the adjacent power plants at less than $1 per million British thermal units (Btu).
- 4.1 million tons of low-sulfur Powder River Basin coal produced in 2018
- Nearly 100 percent of coal produced is contracted under long-term supply contracts to our on-site, mine-mouth generation facilities
- Wyodak Mine is the oldest, continuously operated surface coal mine in the United States. It has been operated by Black Hills since 1956.
- 46-year supply of coal reserves at current production rates
Learn more from our 2018 annual report and 10K
Understanding the Regulatory Compact
Our electric and natural gas utilities operate under a set of regulations determined by state public utilities commissions and federal agencies. As a regulated utility company, Black Hills is granted the exclusive right to sell electricity and natural gas in a defined service territory. In exchange, Black Hills operates under a set of conditions known as the “regulatory compact:”
-
Duty to serve: We will provide service to any residence or business that requests it within our defined service territory. Utilities cannot pick and choose their customers.
-
Cost of service pricing: The pricing for electric and natural gas services is regulated and determined by the costs we incur to generate and deliver this energy to our customers. Utilities can only charge customers for investments that have been deemed “used and useful” for providing utility service. We are granted the ability to recover our costs of doing business and the opportunity to earn a reasonable rate of return on our utility capital investments.
-
Resource planning process: Every few years, we go through a process governed by our state utility commissions to assess the resources necessary to serve customers’ future energy needs. Energy resource plans must be reviewed and approved by regulatory commissions in an open, public process so that our customers and other stakeholders are given the opportunity to provide input on the plans.
Awards and Recognition
2019
- ENERGY STAR Partner of the Year (Black Hills Energy Arkansas Gas)
2018
- Most Trusted Utility Brand (Market Strategies International)
- American’s Best Midsize Employers List (Forbes)
- Wyoming Governor’s Workplace Safety Award – Wyodak Mine (fifth consecutive year)
- South Dakota Governor’s Meritorious Achievement Award in Occupational Safety (Black Hills Energy South Dakota Electric)
- ServeNebraska Step Forward Community Volunteer Award (Black Hills Energy Nebraska Gas)
2017
- Utility Community Forestry Award, Nebraska Forest Service (for our Energy Saving Trees partnership with the Arbor Day Foundation)
- Wyoming Governor's Workplace Safety Award - Wyodak Mine
- SourceAmerica Business Partnership Award (national recognition for partnership with Black Hills Works)
2016
- America's Best Midsize Employers List (Forbes)
- Wyoming Governor's Workplace Safety Award - Wyodak Mine
2015
- Secretary of Defense Employer Support Freedom Award (the highest recognition given by the U.S. government for support of employees serving in the Guard and Reserve.)
- Greater Cheyenne Chamber of Commerce Community Beautification Award
- Top Workplace Award (The Denver Post)
- 24-Karat Gold winners, Colorado Environmental Leadership Program for Energy Efficiency Education Program (Colorado Electric and Colorado Gas utilities)
- Wyoming Governor's Workplace Safety Award - Wyodak Mine
2014
- Gold Leader, State of Colorado’s Environmental Leadership Program (in recognition of Black Hills’ achievement of environmental improvement and sustainability goals)
- Most Trusted Midwest Natural Gas Company (Market Strategies International)
- Achievers 50 Most Engaged WorkplacesTM in North America
- Top Workplace Award (The Denver Post)
- Wyoming Governor's Workplace Safety Award (Wyodak Mine employees)
- Top 100 Places to Work in IT (ComputerWorld)