Black Hills Corp. Gas Utility Receives Approval for New Rates in Nebraska

Core Viewpoint - Black Hills Corp. has received approval for new natural gas rates in Nebraska, which will support the recovery of over $453 million in system investments and operational costs, benefiting over 304,000 customers [1][2]. Financial Impact - The new rates will generate approximately $23.9 million in new annual revenues and will migrate about $18.5 million in annual rider revenue to base rates, resulting in a total annual base rate revenue increase of $42.4 million [2]. - The rates are based on a return on equity of 9.85% and a capitalization structure of 50.5% equity and 49.5% debt [2]. Implementation Details - The new rates will take effect on January 1, 2026, replacing interim rates that have been in place since August 1, 2025 [2]. - The approved settlement includes a five-year System Safety and Integrity Rider for accelerated pipeline replacement, a new insurance tracker, a manufactured gas plant tracker, and a weather normalization pilot program [3]. Company Overview - Black Hills Corp. is a growth-oriented utility company serving 1.35 million natural gas and electric utility customers across eight states, including Nebraska [4].