Black Hills Corp. Natural Gas Utility Files Consolidated Rate Review Proposal in Wyoming

Globe Newswire 4-Jun-2019 10:54 PM

CHEYENNE, Wyo., June 04, 2019 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) yesterday filed a rate review application with the Wyoming Public Service Commission for its proposed natural gas utility, Black Hills Wyoming Gas, LLC, doing business as Black Hills Energy, to consolidate the tariffs, rates, and terms and conditions of its four natural gas utilities in Wyoming. The rate review also requests $16.1 million in new revenue to recover the company's investments in safety, reliability and system integrity for service to its 129,500 Wyoming customers, including $49 million invested in 2018 and $106 million planned investment in 2019, which includes the $54 million Natural Bridge pipeline project.

In March 2019, Black Hills continued its simplification efforts with a request to the WPSC to approve the consolidation of Black Hills' four Wyoming natural gas utilities into a new company called Black Hills Wyoming Gas, LLC. This request is pending review by the WPSC and a final decision is expected in June. The Black Hills Wyoming Gas rate review filing and revenue request is subject to approval of the proposed consolidation request by the WPSC.

Over the past year, Black Hills has embarked on a simplification process to consolidate the natural gas utility operations in each of the three states where it owns multiple gas utilities, including Colorado, Nebraska and Wyoming.  

This consolidated rate review proposal is the next step in the simplification process for Wyoming. The filing proposes to consolidate, to the extent possible, the base rates, general tariffs, gas cost adjustments, policies and services and existing rate riders. In addition, Black Hills Wyoming Gas is proposing an integrity adjustment rider to recover the costs of investments related to integrity programs designed to improve system reliability and safety through replacement of higher risk pipe, including certain customer-owned service lines on its distribution, transmission and storage systems.

"This consolidated rate review filing is an important step toward simplifying how we operate our natural gas utilities in Wyoming," said Linn Evans, president and CEO of Black Hills Corp. "This effort, if approved, will improve customer service and safety and reduce the complexity and number of rate reviews and other regulatory filings."

Black Hills operates and maintains nearly 6,000 miles of transmission and distribution pipeline throughout its Wyoming systems.

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 1.27 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
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com

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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 obtain required approvals for the legal consolidation of our natural gas distribution utilities in Wyoming, consolidation of tariffs, rates, and terms and conditions of services for our natural gas utility operations in Wyoming, and approval of a revenue increase to recover operating expenses and infrastructure investments. 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 2018 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.