1. BKH's Nebraska utility approved new rates recovering $453 million in investments. 2. New rates will generate approximately $42.4 million in annual base rate revenue. 3. Rates effective Jan. 1, 2026, support safe gas service for 304,000 customers. 4. Approval facilitates a five-year pipeline replacement and other safety initiatives. 5. BKH maintains focus on delivering reliable energy to its customers.
FAQ
Why Bullish?
The approval of new rates improves revenue outlook, enhancing financial stability. Historical precedence shows rate approvals generally correlate with positive stock performance.
How important is it?
The developments in Nebraska are crucial to BKH's overall revenue and service reliability, significantly impacting future earnings.
Why Long Term?
The new rates provide sustained revenue increases, positively impacting long-term financial growth.
Black Hills Corp. Receives Approval for New Gas Utility Rates in Nebraska
RAPID CITY, S.D., Dec. 09, 2025 (GLOBE NEWSWIRE) — Black Hills Corp. (NYSE: BKH) proudly announces that its Nebraska gas utility subsidiary has gained approval from the Nebraska Public Service Commission for a unanimous settlement agreement authorizing new rates. This agreement is designed to facilitate the recovery of over $453 million in system investments made since the utility's last general rate filing in 2020, along with the operational costs necessary to provide safe and reliable natural gas service to more than 304,000 customers in Nebraska.
Details of the Approved Rate Increase
The recently approved rates will generate approximately $23.9 million in new annual revenues and will transfer around $18.5 million in annual rider revenue to base rates. This results in a total increase of $42.4 million in annual base rate revenue. The new rates, which are based on a return on equity of 9.85%, will come into effect on January 1, 2026, replacing interim rates that have been in place since August 1, 2025.
Investment in Safety and Infrastructure
The settlement agreement also outlines significant enhancements aimed at safety and service reliability. Key components include:
- Renewal of a five-year System Safety and Integrity Rider for accelerated pipeline replacement across Nebraska.
- Introduction of a new insurance tracker.
- Implementation of a manufactured gas plant tracker.
- A new weather normalization pilot program.
Statement from Leadership
Linn Evans, president and CEO of Black Hills Corp. (NYSE: BKH), remarked, “These new rates will support our ability to safely and reliably serve our customers and communities in Nebraska. We are proud of our solid track record of delivering for the needs of our customers and remain diligently focused on maintaining dependable natural gas service.”
About Black Hills Corp.
Founded on a commitment to customer service and growth, Black Hills Corp. (NYSE: BKH) operates as a utility company dedicated to enhancing lives through energy solutions. Based in Rapid City, South Dakota, the company serves approximately 1.35 million natural gas and electric utility customers across eight states including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. For more information, visit www.blackhillscorp.com.
Contact Information
Investor Relations:
Sal Diaz
Email: investorrelations@blackhillscorp.com
24-Hour Media Relations Line: 888-242-3969
Caution Regarding Forward-Looking Statements
This announcement may contain “forward-looking statements” as defined by the Securities and Exchange Commission (SEC). These statements reflect management’s beliefs and assumptions about future events. They are subject to various risks and uncertainties, which could cause actual results to differ materially from those anticipated. For a complete list of risk factors, please refer to Item 1A of Part I of our 2024 Annual Report on Form 10-K filed with the SEC.