Skip to main content

Black Hills Corporation

  • News, Blogs, & Publications
  • In the Community
  • Careers
  • About
Menu Show search form
  • News, Blogs, & Publications
  • In the Community
  • Careers
  • About
  • Utilities & Businesses
  • Investor Relations
  • Work With Us
  • Learn About Energy
  • Utilities & Businesses
  • Investor Relations
  • Work With Us
  • Learn About Energy
  • Home
  • News
Bookmark and Share

Black Hills Corp. Natural Gas Utility Requests Rate Review and Rider Renewal in Kansas

WICHITA, Kan. – May 7, 2021 – Black Hills Corp. (NYSE: BKH) today announced that its Kansas natural gas utility, Black Hills / Kansas Gas Utility Company, LLC, doing business as Black Hills Energy, filed a rate review application with the Kansas Corporation Commission requesting $5.3 million in new annual revenue.

Black Hills Energy has invested approximately $130 million in safety, reliability and system integrity for more than 4,600 miles of natural gas pipeline infrastructure in Kansas since its last general rate filing seven years ago. These critical investments were required to meet system growth, ensure the safe and reliable delivery of natural gas to customers’ homes and businesses, and meet compliance requirements of state and federal regulations. The importance of these investments was recently demonstrated by the excellent performance of our pipeline system to serve extraordinary demand during the extreme cold conditions of Winter Storm Uri.

Black Hills Energy is also seeking renewal of its safety and reliability rider, the Gas System Reliability Surcharge. This legislatively approved rider allows gas utilities to recover capital investments for infrastructure upgrades. According to state law, a gas utility is required to periodically file a rate review application to continue recovering these investments through the GSRS.

“This request is a win-win for our customers and Black Hills,” said Linn Evans, president and CEO of Black Hills Corp. “Our customer-focused strategy and rider mechanism has delivered safe and reliable service to our Kansas customers for seven years since our last rate review in the state. Renewal of the rider will continue our ability to prioritize our investments to benefit customers while providing a fair return on investments for shareholders.”

The investments that Black Hills Energy has made in modern pipeline materials for Kansas customers has also contributed to more than a one-third reduction in greenhouse gas emissions intensity for the company’s pipeline system since 2005. Renewal of the rider will not only support the company’s efforts for safety and reliability but also its clean energy goals for reducing greenhouse gas emissions. If approved as filed, the request will shift approximately $4.9 million of rider revenue to base rates and will generate an estimated $5.3 million per year in additional revenue. The request is based on a capital structure of 50.34% equity and 49.66% debt and a return on equity of 10.15%. Black Hills Energy is seeking new rates in the first quarter of 2022.

Tags: news

No Comments

Add your comment below, and be the first to comment!

Add a Comment

(If you're a human, don't change the following field)
Your first name.
(If you're a human, don't change the following field)
Your first name.
(If you're a human, don't change the following field)
Your first name.
Your email won't be displayed but if provided, we may reach out to you about your comment.

For local information enter your zip code.

Did You Know?

Water heating can account for 14% to 25% of energy consumed in your home? Turn down the temperature to 120F degrees to save money.

Show me another tip

Get more summertime tipsGG

Contact Us

Rapid City Corporate Headquarters Black Hills Corporation

7001 Mount Rushmore Road Rapid City, SD 57702

Have a question about anything? Contact us online.

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.

Find out more about us

© 2022 Black Hills Corporation

Privacy Policy

Terms of Use