Black Hills granted new Iowa utility rate approval, backing $100 million in pipeline investments
Black Hills Energy, the Iowa natural gas utility of Black Hills Corp. has received approval from the Iowa Utilities Commission for new rates. The rates are designed to recover approx. $100 million of pipeline system investments.
Black Hills Corp. announced that its Iowa natural gas utility, Black Hills/Iowa Gas Utility Company, LLC, doing business as Black Hills Energy, received approval from the Iowa Utilities Commission of a settlement agreement for new rates. The new rates are designed to recover approximately $100 million of pipeline system investments since the utility’s last general rate filing in 2021.
“We are pleased to receive approval of a settlement that supports our commitment to our Iowa customers and communities to deliver safe and reliable natural gas service,” said Linn Evans, president and CEO of Black Hills Corp. “Our investments made on behalf of our customers are essential to supporting continued resilience of our Iowa natural gas system.”
The approved black box settlement agreement will generate approximately $15 million of new annual revenues based on a weighted average cost of capital of 7.21%. In January 2025, final approved rates will replace interim rates in place since May 11, 2024.
Based in Rapid City, South Dakota, Black Hills Corp. serves 1.34 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming.
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