Black Hills Corp. requests $34.9 million revenue increase for Nebraska gas utility to enhance service and infrastructure.
Quiver AI Summary
Black Hills Corp. has announced that its Nebraska natural gas utility filed a rate review application with the Nebraska Public Service Commission seeking an additional $34.9 million in annual revenue to cover capital and operational costs associated with providing natural gas service to over 304,000 customers. Since the last rate filing in 2020, the company has invested over $453 million in enhancing the safety and reliability of its natural gas pipeline infrastructure. The total requested increase, which also includes $18.5 million from rider revenue, amounts to $53.4 million annually. The application includes a request for interim rates to begin on August 1, 2025, and new rates are expected by early 2026, along with a proposal to renew the System Safety and Integrity Rider to facilitate crucial pipeline replacement efforts. Black Hills Corp. serves 1.35 million utility customers across eight states.
Potential Positives
- The filing for a $34.9 million rate review demonstrates the company's commitment to investing in infrastructure necessary for safe and reliable natural gas service, which can enhance customer trust and satisfaction.
- The recent investment of over $453 million in safety, reliability, and system integrity underlines the company's proactive approach to maintaining and improving its natural gas pipeline infrastructure.
- The request to renew the System Safety and Integrity Rider (SSIR) indicates a strong focus on accelerated safety measures and compliance with regulatory standards, which can bolster the company's reputation as a responsible utility provider.
- The projected base rate revenue increase of $53.4 million signifies potential growth in financial stability, which may positively influence investor confidence moving forward.
Potential Negatives
- The substantial request for a $53.4 million increase in annual revenue may lead to customer dissatisfaction and pushback against rising utility costs, especially in an inflationary environment.
- The need for a rate review suggests potential financial instability or difficulties in managing costs effectively, which could raise concerns among investors and stakeholders.
- The application for interim rates may indicate a pressing need for cash flow, which could be perceived as a sign of financial distress or urgency within the company's operations.
FAQ
What is Black Hills Corp's recent rate review application about?
Black Hills Corp. has filed a rate review application requesting $34.9 million in new annual revenue for natural gas services in Nebraska.
How much has Black Hills Corp invested since the last rate filing?
Since the last general rate filing in 2020, Black Hills Corp has invested over $453 million in infrastructure and safety enhancements.
What is the total increase in base rate revenue being requested?
The application seeks a total annual base rate revenue increase of $53.4 million, including $18.5 million of rider revenue.
When are the new rates expected to take effect?
Interim rates are anticipated to take effect on August 1, 2025, with new rates expected in the first quarter of 2026.
What is the purpose of the System Safety and Integrity Rider (SSIR)?
The SSIR supports accelerated, safety-focused pipeline replacement projects across Nebraska, enhancing system safety and reliability.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$BKH Hedge Fund Activity
We have seen 186 institutional investors add shares of $BKH stock to their portfolio, and 166 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FIRST TRUST ADVISORS LP added 720,628 shares (+309.5%) to their portfolio in Q4 2024, for an estimated $42,171,150
- JUPITER ASSET MANAGEMENT LTD removed 468,131 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $27,395,026
- BLACKROCK, INC. added 453,485 shares (+4.1%) to their portfolio in Q4 2024, for an estimated $26,537,942
- BANK OF AMERICA CORP /DE/ added 340,686 shares (+203.6%) to their portfolio in Q4 2024, for an estimated $19,936,944
- PRUDENTIAL FINANCIAL INC removed 339,391 shares (-59.0%) from their portfolio in Q4 2024, for an estimated $19,861,161
- CAPITAL RESEARCH GLOBAL INVESTORS added 326,959 shares (+21.5%) to their portfolio in Q4 2024, for an estimated $19,133,640
- FULLER & THALER ASSET MANAGEMENT, INC. removed 322,568 shares (-19.5%) from their portfolio in Q4 2024, for an estimated $18,876,679
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
RAPID CITY, S.D., May 01, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its Nebraska natural gas utility has filed a rate review application with the Nebraska Public Service Commission requesting $34.9 million in new annual revenue to recover the necessary capital infrastructure and operational costs required to deliver safe, reliable natural gas service for over 304,000 Nebraska customers.
Since its last general rate filing in 2020, the company will have invested over $453 million in safety, reliability and system integrity for its natural gas pipeline infrastructure serving over 300 communities in Nebraska. 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.
“We are committed to serving our customers with the safe and reliable natural gas service they depend on,” said Linn Evans, president and CEO of Black Hills Corp. “We are prudently managing our costs in an inflationary environment as we make critical infrastructure investments in operating, maintaining, and upgrading our Nebraska natural gas system.”
The application requests $34.9 million per year in new revenue and rolls in an additional $18.5 million of rider revenue for a total annual base rate revenue increase of $53.4 million. The request is based on a capital structure of 50.52% equity and 49.48% debt and a return on equity of 10.50%. The company is seeking interim rates to be effective Aug. 1, 2025, with new rates anticipated in the first quarter of 2026.
This rate application also includes a request to renew the System Safety and Integrity Rider (SSIR) to support accelerated, safety-focused pipeline replacement across the state.
Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.35 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.
Investor Relations
Sal Diaz
605-399-5079
[email protected]
24-Hour Media Relations Line
888-242-3969
