Black Hills files rate review app with Arkansas Public Service Commission

Black Hills announced that its Arkansas natural gas utility, Black Hills Energy Arkansas, doing business as Black Hills Energy, filed a rate review application with the Arkansas Public Service Commission requesting $44.1M in new annual revenue. Black Hills Energy has invested approximately $130 M in safety, system integrity and reliability for more than 7,200 miles of natural gas pipeline infrastructure in Arkansas since its last general rate filing in 2021. These critical investments were required to support and extend service to approximately 7,500 new customers in the rapidly growing communities in the state, to ensure the safe and reliable delivery of natural gas to all customers’ homes and businesses, and to meet compliance requirements of state and federal regulations. “We are committed to safe and reliable service as we support the vibrant economic growth in our Arkansas communities,” said Linn Evans, president and CEO of Black Hills Corp. “This rate review request consists of the critical investments we have made to maintain system integrity and serve growth and reflects the increased costs of serving our customers driven by inflation and higher interest rates.” As proposed, the rate review is requesting a capital structure of 48% equity and 52% debt and a return of equity of 10.5% for investments the company has made in its natural gas system in Arkansas. Black Hills Energy is seeking to implement new rates in the fourth quarter of 2024.