RAPID CITY, S.D. – April 8, 2019 – Black Hills Corp. (NYSE: BKH) today announced that its two Nebraska natural gas distribution utilities filed on March 29, 2019, a joint application with the Nebraska Public Service Commission to consolidate the two utilities into a new public utility entity. The filing also requests to consolidate the terms and conditions of the existing tariffs of the two utilities into a single tariff.
The request is part of a corporate-wide effort to simplify state utility structures in Colorado, Nebraska and Wyoming, states where Black Hills owns and operates more than one natural gas distribution utility. Black Hills is seeking to consolidate the assets, liabilities and operations of the Nebraska portion of Black Hills Gas Distribution, LLC and Black Hills/Nebraska Gas Utility Company into a new company called Black Hills Nebraska Gas, LLC. The two companies being merged, both doing business as Black Hills Energy, currently serve 292,000 Nebraska natural gas utility customers.
The proposed consolidation preserves the utilities’ business practices and ability to service customers with safe and reliable service. In addition, the utilities’ customers and communities should not expect any changes or impacts to their service.
“This is another step in our efforts to simplify and improve how we serve customers,”
“This is another step in our efforts to simplify and improve how we serve customers,” said Linn Evans, president and CEO of Black Hills Corp. “Combining our gas distribution companies within the state, which are already centrally operated under a common brand, creates efficiencies, reduces costs and improves the value we deliver to customers and shareholders.”
Black Hills currently plans to file a rate review in 2020 with the Nebraska commission seeking approval to adjust existing rate schedules within a single consolidated tariff.