1. BKH filed for $29.4M in new revenue in Arkansas. 2. The utility seeks to recover $147M for infrastructure investments. 3. Rate changes are intended to support system reliability and compliance. 4. New rates are planned for implementation in late 2026. 5. CEO emphasizes commitment to safe and reliable gas service.
FAQ
Why Bullish?
The rate increase signals potential for improved revenues, similar to past successful rate filings.
How important is it?
The revenue request directly relates to BKH’s operational costs and future profitability.
Why Long Term?
Revenue enhancements from approved rate increases will reflect positively over time, particularly when implemented.
Black Hills Corp. Seeks Rate Review in Arkansas to Support Infrastructure Investments
RAPID CITY, S.D., Dec. 08, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) has announced its Arkansas natural gas utility's official request for a rate review application with the Arkansas Public Service Commission. The company is seeking an increase of $29.4 million in annual revenue, aimed at covering the essential capital infrastructure and operational costs necessary for delivering safe and reliable natural gas to over 189,000 customers across more than 100 communities in Arkansas.
Reasons Behind the Rate Review Application
Black Hills Corp. is looking to recover approximately $147 million in investments made to enhance safety, reliability, and system integrity within its natural gas pipeline infrastructure since its last general rate filing in 2023. These investments are crucial to support system growth and ensure compliance with both state and federal regulations.
Linn Evans, president and CEO of Black Hills Corp., emphasized the company's commitment to providing dependable service: “We are committed to serving our customers with the safe and reliable natural gas service they depend on. Our critical infrastructure investments and prudent cost management enable us to operate, maintain, and upgrade our Arkansas natural gas system while supporting growth.”
Financial Structure and Future Plans
The request for new rates is based on a capital structure comprised of 50.2% equity and 49.8% debt, with an anticipated return on equity of 10.5%. Black Hills Corp. plans to implement these new rates in the second half of 2026, positioning the utility to continue meeting rising demand and operational responsibilities.
About Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a growth-oriented utility company focused on enhancing lives through energy. Based in Rapid City, South Dakota, BKH 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 further details, visit the official website at www.blackhillscorp.com.
Contact Information
- Investor Relations: Sal Diaz
- Phone: 605-399-5079
- Email: Investorrelations@blackhillscorp.com
- 24-Hour Media Relations Line: 888-242-3969