RAPID CITY, S.D. - Sept. 30, 2015 - Black Hills Corp.`s (BKH) utility subsidaries today submitted applications with respective state utility regulators seeking approval for a Cost of Service Gas Program in Iowa, Kansas, Nebraska, South Dakota and Wyoming. An application will be submitted in Colorado in October.
The Cost of Service Gas Program is designed to provide long-term natural gas price stability for the company`s utility customers, along with a reasonable expectation of customer savings over the life of the program. If approved, Black Hills will acquire natural gas reserves and/or drill wells to produce natural gas for the program. Based on historical performance, the cost of production is expected to be more stable and predictable than the spot market price of natural gas.
"Our goal is to provide cost-effective energy for our customers, while mitigating the volatility of natural gas prices," said Linn Evans, Black Hills Corp.`s president and chief operating officer of utilities. "The Cost of Service Gas Program will be a long-term mechanism to support lower and more stable natural gas prices for our customers by leveraging our natural gas exploration and production expertise. The program will also provide our investors with new earnings growth opportunities. This program is a win-win for customers and shareholders alike."
The filings were made with the Iowa Utilities Board, Kansas Corporation Commission, Nebraska Public Service Commission, South Dakota Public Utilities Commission and Wyoming Public Service Commission. Details on the Cost of Service Gas Program can be found in the respective filings with each state commission.
The program will be discussed in more detail during the company`s Analyst Day presentation, scheduled for Oct. 8, 2015. Information on the Analyst Day event can be found at www.blackhillscorp.com under the "Investor Relations" heading. Select "Events & Presentations" and click "2015 BKH Analyst Day."
Black Hills Corporation
Black Hills Corp. (BKH) is a growth-oriented, vertically-integrated energy company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, S.D., the company serves 792,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company also generates wholesale electricity and produces natural gas, oil and coal. Black Hills Corp.`s more than 2,000 employees form partnerships and produce positive results for our customers, communities and shareholders. More information is available at www.blackhillscorp.com.
Caution Regarding Forward-Looking Statement
This news release includes "forward-looking statements" as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements, including receiving regulatory approval and providing our investors with new earnings growth opportunities. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including the factors discussed above, the risk factors described in Item 1A of Part I of our 2014 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.
Investor Relations
Jerome E. Nichols
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jerome.nichols@blackhillscorp.com
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Source: Black Hills Corporation via GlobeNewswireHUG#1955794