Fayeetteville, Arkansas — Oct. 9, 2018 — Black Hills Corp. (NYSE: BKH) today announced that its Arkansas gas utility subsidiary, Black Hills Energy, will provide federal income tax reform benefits, resulting from the December 2017 passage of the federal Tax Cuts and Jobs Act, to its customers in Arkansas commencing Oct. 15, 2018.
The Arkansas Public Service Commission on Sept. 26, 2018, approved Black Hills Energy’s request to pass along the benefits to customers of a lower corporate federal income tax rate, which was reduced from 35 percent to 21 percent beginning Jan. 1, 2018. The commission approved the company’s request to refund $8.2 million of tax reform benefits accumulated from Jan. 1 through Oct. 15, 2018, to utility customers through a monthly credit to their bills beginning in mid-October and continuing through May 2019. For periods after October 15, 2018, the benefits of the reduced federal income tax rate will be included in customer rates. Those benefits will total approximately $1.5 million for the period October 15 to December 31, 2018 and approximately $6.2 million per year thereafter.
“We are pleased to finalize a plan to deliver savings from tax reform directly to our Arkansas customers,”
“We are pleased to finalize a plan to deliver savings from tax reform directly to our Arkansas customers,” said Linn Evans, president and chief operating officer of Black Hills Corp. “We strive to deliver long-term value to our customers, and it is our privilege to be able to provide them with these financial benefits. We want to thank the Arkansas Public Service Commission for their partnership in delivering these benefits to our customers.”
Upon passage of the Tax Cuts and Jobs Act in December 2017, Black Hills announced its intent to collaborate with utility commissions in the states in which it provides utility service to deliver to customers the benefits of a lower corporate federal income tax rate. Black Hills has now received state utility commission approvals in six states to provide the benefits of federal tax reform to utility customers. Black Hills has nearly completed its tax reform process and expects its final state filing by year-end. A list of states where benefits to customers of federal tax reform have been approved is listed below.
Approximate 2018 Benefit for Customers
|Start date for Customer Benefits|
|Arkansas||$9.7 million||October 2018|
|Iowa||$2.4 million||June 2018|
|Kansas||$1.9 million||April 2018|
|Nebraska||$3.8 million||July 2018|
|South Dakota||$7.7 million||October 2018|