RAPID CITY, S.D. - July 16, 2018 - Black Hills Corp. (BKH) today announced the Wyoming Public Service Commission has approved a settlement agreement for a general rate increase to recover safety, reliability and system integrity investments for natural gas service for 7,200 customers in northwest Wyoming.
Since acquiring the system in 2015, Black Hills Corp. has invested $6 million to replace, upgrade and maintain 620 miles of natural gas transmission and distribution pipelines - critical infrastructure needed to ensure the safe and reliable delivery of natural gas to customer homes and businesses in northwest Wyoming. The approved request is the first rate increase for the company`s northwest Wyoming customers in 15 years.
"This approval allows us to continue safely and reliably providing natural gas to our customers in northwest Wyoming. As we responsibly invest in maintaining and improving our systems, we will continue to deliver a strong long-term value to our customers and shareholders," said Linn Evans, president and chief operating officer of Black Hills.
As approved by the Wyoming Public Service Commission, the settlement includes an increase of $1.0 million in annual natural gas revenues based on a return on equity of 9.6 percent and a capital structure of 54 percent equity. The new rates, inclusive of customer benefits related to 2017 Federal tax reform, will take effect Sept. 1, 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
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Source: Black Hills Corporation via GlobeNewswire