DENVER – Sept. 14, 2020 – Black Hills Corp.’s (NYSE: BKH) Colorado natural gas utility, Black Hills Colorado Gas, Inc., doing business as Black Hills Energy, on Friday, Sept. 11, filed a rate review application with the Colorado Public Utilities Commission requesting $13.5 million in new annual revenue to recover the investments made in its natural-gas infrastructure to serve customers. In a separate filing, as required by the Colorado commission, the company is also proposing a five-year system safety and integrity rider to recover the investment cost of maintaining the safety and integrity of the natural gas system.
From July 2018 through year-end 2020, Colorado Gas will have invested over $105 million in replacing, upgrading and expanding its natural gas system in the state. The 7,000 miles of natural gas transmission and distribution pipeline in Colorado provide the critical infrastructure required to meet the growing needs of its 192,000 Colorado customers. These investments have maintained safety and reliability by replacing aging infrastructure while meeting compliance requirements of state and federal regulations.
“We take a deliberate approach to assessing infrastructure upgrades and additions to our system, and this rate review reflects our ongoing need to maintain safe and reliable service while meeting growing customer
demand driven by Colorado’s robust economy,” said Vance Crocker, vice president of Colorado Operations. “We look forward to working with the Colorado commission and staff to ensure that Colorado Gas can continue to fulfill the growing and essential requirements of its customers.”
As proposed, the rate review is requesting a capital structure of 50% percent equity and 50% percent debt and a return on equity of 9.95% for investments Colorado Gas made in its natural gas system. The company is seeking to implement new rates in the second quarter of 2021.