News Column


May 2, 2014

ENP Newswire - 02 May 2014

Release date- 01052014 - PUEBLO, Colo. - Black Hills Corp. (NYSE: BKH) electric utility subsidiary Black Hills Energy today filed a rate request with the Colorado Public Utilities Commission to increase electric revenues by 3.7 percent to recover cost increases related to new infrastructure investments and operating expenses, including those for the Busch Ranch Wind Project.

Pursuant to the Colorado Clean Air-Clean Jobs Act, Black Hills Energy also seeks to implement a rider to recover a return on the construction costs of building the new natural gas-fired generating turbine that will replace the W.N. Clark Power Plant.

'We are committed to making investments in our infrastructure to comply with Environmental Protection Agency regulations and state mandates, including the Colorado Clean Air-Clean Jobs Act and the Renewable Energy Standard,' said Linn Evans, Black Hills Corp.'s president and chief operating officer of utilities. 'Our ultimate goal through these investments is to provide reliable, safe and cost-effective energy for our customers while earning an appropriate return on our capital investments for our investors.'

The utility expects to start construction of the new turbine in the third quarter of 2014. It's expected to be operational by the first quarter of 2017, and it will replace the coal-fired W.N. Clark plant, which was retired in December 2013 to comply with the Colorado Clean Air-Clean Jobs Act. If approved as filed, Black Hills Energy's new electric rates will generate an estimated $8 million per year in additional revenue, based on a capital structure of approximately 50.54 percent equity and 49.46 percent debt. The filing seeks a return on equity of 10.30 percent for investments that Black Hills Energy has made in its electric system.

The PUC and its staff will thoroughly review the rate plans, consider public comments, and review testimony from utility representatives and other interested parties. Black Hills Energy expects new rates to be implemented by the end of 2014.

Black Hills Energy will provide rate request information and information about the company and its services at and and through the utility's Facebook page and Twitter feed.

Black Hills/Colorado Electric Utility Company, LP d/b/a Black Hills Energy Black Hills Energy serves 94,000 electric customers in 21 southeastern Colorado communities. Black Hills Energy is a subsidiary of Black Hills Corp. (NYSE:BKH).

Black Hills Corporation

Black Hills Corp. (NYSE: BKH) is a growth-oriented, vertically-integrated energy company with a tradition of exemplary service and a vision to be the energy partner of choice. Black Hills Corp. is based in Rapid City, S.D., and serves 777,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company generates wholesale electricity and produces natural gas, oil and coal. Black Hills Corp.'s 1,948 employees partner to produce results that are improving life with energy. More information is available at

Caution Regarding Forward Looking Statements

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 our ability and the timing of receiving regulatory approval to recover our operating costs and a return on our investments.

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, the risk factors described in Item 1A of Part I of our 2013 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:

Jerome E. Nichols

Tel: 605-721-1171

Media Contact:

Julie Rodriguez

Tel: 719-924-4103

Mobile: 719-546-5802

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Source: ENP Newswire

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