Black Hills Corp. to Deliver Tax Reform Benefits to Arkansas Utility Customers
FAYEYETTEVILLE, Ark. - Oct. 9, 2018 - Black Hills Corp. (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," 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.
|State|| Approximate 2018 |
Benefit for Customers
| Start Date for |
|Arkansas||$9.7 million||Oct. 2018|
|Colorado||$10.8 million||July 2018|
|Iowa||$2.4 million||June 2018|
|Kansas||$1.9 million||April 2018|
|Nebraska||$3.8 million||July 2018|
|South Dakota||$7.7 million||Oct. 2018|
Black Hills Corporation
Black Hills Corp. (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 1.25 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, www.blackhillscorp.com/corporateresponsibility and www.blackhillsenergy.com.
Jerome E. Nichols
24-Hour Media Relations Line
Caution Regarding Forward Looking Statement
This news release includes "forward-looking statements" as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements. This includes our ability to acquire utility commission approvals for delivering benefits to customers related to federal income tax reform. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, the risk factors described in Item 1A of Part I of our 2017 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.
New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.
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Source: Black Hills Corporation via GlobeNewswire