Financial Data and Key Metrics Changes - The company reported adjusted earnings of $5.27 per share for 2025, an increase of $0.39 per share compared to 2024 adjusted earnings [3][15] - Weather positively impacted utility earnings by approximately $0.35 relative to last year, with a favorable impact of $0.10 in 2025 compared to a $0.25 unfavorable impact in 2024 [15][16] - The company expects long-term earnings per share growth of 7%-8% annually from 2026 to 2030, with acceleration to the upper half of the range starting in 2028 [9][22] Business Line Data and Key Metrics Changes - Adjusted earnings from utility operations increased by $0.63 in 2025 compared to 2024, driven by rate-based growth and weather impacts [15] - Earnings from the American Transmission Company increased by $0.02 due to continued capital investment [17] - The energy infrastructure segment saw a $0.10 increase in earnings from higher production tax credits associated with solar generation projects [17] Market Data and Key Metrics Changes - Retail electric deliveries in Wisconsin increased by 1.1% year-over-year, with projections for 2026 indicating a growth of 1.6% from 2025 levels [16] - The company is projecting a total of 3.9 gigawatts of electric demand growth in its five-year plan, driven by expansions from Microsoft and Vantage Data Centers [8][21] Company Strategy and Development Direction - The company is focused on executing a $37.5 billion capital plan over the next five years to meet growing energy needs [9][10] - Investments include $7.4 billion in natural gas generation and LNG storage, and $12.6 billion in renewable energy projects [10] - The company aims to maintain a reliable generation mix while expanding its renewable energy capacity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the capital plan and continue growth, citing strong economic growth in the region [4][22] - The company is addressing regulatory matters, including a proposed settlement in Illinois that would resolve several pending cases [12][20] - Management highlighted the importance of transparency and community engagement in attracting new customers, particularly in the data center sector [43] Other Important Information - The board increased the dividend by 6.7% to an annualized $3.81 per share, marking the 23rd consecutive year of dividend increases [20] - The company plans to issue between $900 million and $1.1 billion of common equity in 2026 [19] Q&A Session Summary Question: Can you elaborate on the 500 megawatts related to Microsoft and the additional capital expenditures? - Management indicated that Microsoft is expanding its data center operations, which is expected to add 500 MW of customer demand and $1 billion to the capital plan [24][25] Question: Are there other hyperscaler customers showing interest? - Management confirmed ongoing discussions with other potential customers and emphasized the importance of transparency in addressing community concerns [41][43] Question: What is the status of the very large customer tariff and general rate case? - Management stated that the tariff is undergoing a thorough vetting process and that the general rate case filing is on track for April [55][56] Question: How will the Microsoft ramp impact customer rates? - Management noted that as data center activity increases, it could lead to a reduction in the burden on other customers, but quantifying this impact will take time [74][90] Question: What are the plans for replacing the Point Beach PPA? - Management indicated that they are evaluating options for replacement generation and are confident in their ability to meet future energy needs [80][81]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $5.27 per share for 2025, an increase of $0.39 per share compared to 2024 [3][15] - Adjusted earnings from utility operations increased by $0.63 per share, with weather positively impacting utility earnings by approximately $0.35 [15][16] - Overall, the company achieved an 8% year-over-year growth in adjusted EPS [18] Business Line Data and Key Metrics Changes - Adjusted earnings from the energy infrastructure segment increased by $0.10 due to higher production tax credits from solar projects [17] - The investment in American Transmission Company saw earnings increase by $0.02, driven by capital investments [17] - Retail electric deliveries in Wisconsin increased by 1.1% year-over-year, with projections for a 1.6% growth in 2026 [16] Market Data and Key Metrics Changes - The company is projecting a total of 3.9 GW of electric demand growth in the I-94 corridor and north of Milwaukee over the next five years [8][9] - The capital plan has been updated to $37.5 billion over the next five years, driven by increased demand from data centers [9][21] - The company expects long-term earnings per share growth of 7%-8% annually from 2026 to 2030 [9][22] Company Strategy and Development Direction - The company is focused on executing its capital plan, which includes significant investments in natural gas generation and renewable energy [9][10] - The strategy includes maintaining a balanced generation mix and investing in modern, efficient energy solutions [9] - The company aims to enhance transparency and protect other customers through the proposed Very Large Customer tariff [11][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its capital plan and continue its growth trajectory [10][22] - The economic growth in the region is driving demand, with significant investments from partners like Microsoft and Vantage Data Centers [4][6] - Management highlighted the importance of addressing affordability in light of upcoming rate cases and political considerations [62][64] Other Important Information - The company plans to issue between $900 million and $1.1 billion of common equity in 2026 [19] - A proposed settlement in Illinois is expected to resolve approximately $2.3 billion of open dockets, including a $130 million rate-based reduction [12][86] - The board approved a 6.7% increase in dividends, marking the 23rd consecutive year of dividend increases [20] Q&A Session Summary Question: Can you elaborate on the 500 MW related to Microsoft and the additional CapEx? - Management indicated that Microsoft is expanding its data center operations, which is expected to add 500 MW of demand and $1 billion to the capital plan [24][25] Question: How are negotiations for Point Beach progressing? - Management stated that they are in communication with NextEra and are considering options for replacement power as contracts end in 2030 and 2033 [32] Question: Are there additional interests from other hyperscaler customers? - Management confirmed ongoing discussions with other potential customers and emphasized the importance of transparency and community engagement [41][43] Question: What is the expected impact of the Very Large Customer tariff on general customers? - Management explained that the tariff aims to ensure large customers pay their fair share, which could help mitigate rate increases for other customers [54][87] Question: How does the Microsoft ramp impact customer rates? - Management noted that as data centers grow, corporate allocations will spread across a larger rate base, potentially benefiting other customers in the long term [90]

Core Viewpoint - Black Hills Corp. has filed a rate review application with the Arkansas Public Service Commission, seeking $29.4 million in new annual revenue to cover capital infrastructure and operational costs for its natural gas utility serving over 189,000 customers in Arkansas [1][2]. Summary by Sections Rate Review Application - The company is requesting $29.4 million in new annual revenue to recover necessary costs for safe and reliable natural gas service [1]. - This request is based on a capital structure of 50.2% equity and 49.8% debt, with a targeted return on equity of 10.5% [3]. Infrastructure Investments - Black Hills Corp. aims to recover approximately $147 million invested in safety, reliability, and system integrity for its natural gas pipeline infrastructure since the last general rate filing in 2023 [2]. - These investments are essential for system growth and compliance with state and federal regulations [2]. Company Overview - Black Hills Corp. serves 1.35 million natural gas and electric utility customers across eight states, including Arkansas, Colorado, and South Dakota [4]. - The company emphasizes its commitment to providing safe and reliable natural gas service while supporting growth through critical infrastructure investments and prudent cost management [3].

Financial Data and Key Metrics Changes - The company reported GAAP diluted EPS of $1.25 and non-GAAP diluted EPS of $1.22 for Q1 2025, compared to $1.06 in Q1 2024, reflecting a solid earnings improvement driven by rate recovery and colder weather [6][9][10] - The company affirmed its long-term rate base and earnings per share growth rate targets of 4% to 6% [6][20] - A dividend of $0.66 per share was declared, payable on June 30, 2025, to shareholders of record as of June 13, 2025 [6] Business Line Data and Key Metrics Changes - The Electric and Gas segments contributed strong margins, with new rates driving a $0.20 margin improvement across all jurisdictions [10][12] - Favorable loads contributed an additional $0.13 to margins due to colder weather, customer growth, and increased usage [10] - Transition revenues added approximately $0.05 to the quarter's earnings [10] Market Data and Key Metrics Changes - The Montana rate review is nearing completion, with a full natural gas settlement and a partial electric settlement reached [7][19] - The average bill impact from the gas case is approximately 9%, maintaining rates below the national average [19] Company Strategy and Development Direction - The company aims to achieve greater than 6% EPS growth through opportunities with data centers and new large load customers, alongside FERC regional transmission and incremental generating capacity [8][20] - Legislative successes include a wildfire bill providing legal protections and a transmission bill facilitating the approval process for large transmission projects [23][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on earnings and rate-based growth commitments over the long term, despite not providing specific 2025 earnings guidance until the conclusion of the Montana rate review [20][72] - The company anticipates a lower contribution to overall earnings in Q2 2025, estimating it to be approximately 10% of the full year due to the timing of rate implementations [21] Other Important Information - The company successfully priced $500 million of long-term debt in March 2025, addressing its financing needs for the year [14][15] - The company is focused on maintaining reliability and affordability for customers while supporting long-term growth [20][22] Q&A Session Summary Question: How long do you think the tariff proceeding could go for? - Management indicated that there are five levels of process for data centers, with various parties at different stages, and they expect to finalize contracts with two parties by the end of Q2 or early July [40][43] Question: Do you still see yourself within the 4% to 6% EPS range for 2025? - Management acknowledged the question regarding 2025 guidance, indicating they expect to stay within the 4% to 6% range long-term, but noted that it may not be entirely linear [50] Question: Did you change the electric average customer counts? - Management confirmed that the change was due to the way street lighting districts were counted, but overall customer growth remained around 1.5% [54] Question: Is there adequate space at Colstrip for replacement capacity? - Management stated that there is adequate land for potential gas or nuclear plants near Colstrip, with ongoing discussions about nuclear options [61][63]