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Glossary of Terms

Not familiar with a term?  We've got you covered!

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

F

Fair

As in “fair” rate of return. In ratemaking “fair” is a subjective term requiring significant study to support the proposed level.

Federal Energy Regulatory Commission (FERC)

An agency of the government of the United States created by an Act of Congress, the Department of Energy Organization Act, in 1977. This Act transferred to the FERC most of the former Federal Power Commission’s interstate regulatory functions over the electric power and natural gas industries. The Act also transferred from the Interstate Commerce Commission the authority to set oil pipeline transportation rates and to set the value of oil pipelines for ratemaking purposes. In 1978, Congress passed the Natural Energy Act, broadening the FERC’s jurisdiction and regulatory functions. The FERC now also regulates producer sales of natural gas in intrastate commerce. The FERC establishes uniform ceiling prices for each of several categories of natural gas, and these prices apply to all sales on a nationwide basis.

FERC Out

Contract provisions enabling a company to get out of gas purchase contracts based upon regulatory changes that are detrimental to the company. 

Financial Hedging

A transaction entered into for the purpose of protecting the value of a commodity or security from adverse price movement by entering an offsetting position in a related commodity or security.

Firm Transportation Service (FTS)

Transportation services for which facilities have been designed, installed, and dedicated to a certified quantity. Firm transportation service takes priority over interruptible service. 

Fixed Cost

Certain costs which in the aggregate do not vary in amount regardless of the quantity of gas sold or transported. See VARIABLE COSTS. 

Fixed Price

A price that is agreed upon by two parties and cannot change, regardless of subsequent fluctuations in market price. 

Fixed Variable

A classification method that assigns 100% of fixed costs to the demand component of the rate.

Fractionation

The process of separating liquid hydrocarbons removed from natural gas into propane, butane, ethane and the like. Fractionation can also refer to separating various petroleum liquids from crude oil. 

Franchise Tax/Fee
A fee that certain communities charge our company for doing business in their communities; fees will vary from community to community.
Functional Unbundling

Pricing each aspect of a service separately, such as the generation, transmission and distribution of electricity, or the production, transportation and storage of natural gas. 

Did You Know?

You should inspect, clean or replace your air filter if it looks dirty every 30 days. A dirty filter can increase energy costs and be harmful to your equipment.

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Rapid City Corporate Headquarters Black Hills Corporation

7001 Mount Rushmore Road Rapid City, SD 57702

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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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