Black Hills Corp. Colorado Electric Utility Proposes First Electric Rate Review in 8 Years

Core Viewpoint - Black Hills Corp. is seeking to update its electric rates due to rising operational costs, marking its first rate request in eight years, while emphasizing its commitment to minimizing customer impact and supporting those in need [1][2]. Company Overview - Black Hills Corp. is a growth-oriented utility company based in Rapid City, South Dakota, serving 1.34 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming [1]. Rate Update Request - The company has filed a request with the Colorado Public Utilities Commission to update electric rates for its Colorado electric utility, Black Hills Colorado Electric, LLC, which serves over 100,000 customers in Southern Colorado [2]. - The proposed rate review seeks additional annual revenues of $36.7 million, with a capital structure of 52.75% equity and 47.25% long-term debt, and a return on equity of 10.5% [6]. Capital Investments - Since the last general rate filing in 2016, Black Hills Energy has invested approximately $371 million in strategic capital to enhance the safety and reliability of its electric service, with plans to invest an additional $98 million in 2024 [5]. - The investments include upgrades to the transmission and distribution system, which spans over 3,700 line miles [5]. Timeline for New Rates - New rates are expected to be implemented in the first quarter of 2025 following the rate review process [6].