CHEYENNE, Wyo. – June 4, 2019 – Black Hills Corp. (NYSE: BKH) yesterday filed a rate review application with the Wyoming Public Service Commission for its proposed natural gas utility, Black Hills Wyoming Gas, LLC, doing business as Black Hills Energy, to consolidate the tariffs, rates, and terms and conditions of its four natural gas utilities in Wyoming. The rate review also requests $16.1 million in new revenue to recover the company’s investments in safety, reliability and system integrity for service to its 129,500 Wyoming customers, including $49 million invested in 2018 and $106 million planned investment in 2019, which includes the $54 million Natural Bridge pipeline project.
In March 2019, Black Hills continued its simplification efforts with a request to the WPSC to approve the consolidation of Black Hills’ four Wyoming natural gas utilities into a new company called Black Hills Wyoming Gas, LLC. This request is pending review by the WPSC and a final decision is expected in June. The Black Hills Wyoming Gas rate review filing and revenue request is subject to approval of the proposed consolidation request by the WPSC.
Over the past year, Black Hills has embarked on a simplification process to consolidate the natural gas utility operations in each of the three states where it owns multiple gas utilities, including Colorado, Nebraska and Wyoming.
This consolidated rate review proposal is the next step in the simplification process for Wyoming. The filing proposes to consolidate, to the extent possible, the base rates, general tariffs, gas cost adjustments, policies and services and existing rate riders. In addition, Black Hills Wyoming Gas is proposing an integrity adjustment rider to recover the costs of investments related to integrity programs designed to improve system reliability and safety through replacement of higher risk pipe, including certain customerowned service lines on its distribution, transmission and storage systems.
“This consolidated rate review filing is an important step toward simplifying how we operate our natural gas utilities in Wyoming,” said Linn Evans, president and CEO of Black Hills Corp. “This effort, if approved, will improve customer service and safety and reduce the complexity and number of rate reviews and other regulatory filings.”
Black Hills operates and maintains nearly 6,000 miles of transmission and distribution pipeline throughout its Wyoming systems.