Black Hills
Black Hills serves 1.3 million natural gas and electric utility customers across eight states and is based in Rapid City, South Dakota. The company has filed a natural gas utility rate review in Iowa, seeking $20.7 million in new annual revenue and has invested approximately $100 million in its natural gas pipeline infrastructure in the state since 2021.
Services
Black Hills serves 1.3 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. The company is involved in delivering reliable energy services, including the distribution of natural gas and provision of electric utilities to residential, commercial, and industrial customers.
Headquarters
Black Hills is based in Rapid City, South Dakota. This strategic location allows the company to manage its widespread operations effectively and maintain close proximity to several of the states it serves.
Natural Gas Utility Rate Review
Black Hills filed a natural gas utility rate review in Iowa, requesting $20.7 million in new annual revenue. The proposed rate increase aims to support the company's continued investments in safety, system integrity, and reliability for its natural gas pipeline infrastructure. Interim rates are planned to be implemented within 10 days of the application, subject to adjustment or refund, with final rates targeted by the first quarter of 2025.
Infrastructure Investments
Since its last general rate filing in 2021, Black Hills has invested approximately $100 million in safety, system integrity, and reliability for its natural gas pipeline infrastructure in Iowa. These investments underline the company's commitment to enhancing the safety and reliability of its natural gas delivery systems.
Capital Structure Proposal
In its rate review application, Black Hills is proposing a capital structure comprising 51.38% equity and 48.62% debt. The company also seeks a return on equity of 10.5% for the investments made in its natural gas system in Iowa. This proposal is designed to balance financial stability and investor returns with the need for continued infrastructure improvements.