Black Hills Corp. Natural Gas Utility Receives Approval for New Rates in Arkansas

Black Hills Corp. (NYSE: BKH) today announced that its Arkansas natural gas utility, Black Hills Energy Arkansas, Inc., doing business as Black Hills Energy, received approval from the Arkansas Public Service Commission of a unanimous settlement agreement for new rates effective with October billing cycles. The new rates are designed to recover approximately $130 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 long-term commitment to our Arkansas customers and communities to deliver safe and reliable natural gas service,” said Linn Evans, president and CEO of Black Hills Corp. “The critical infrastructure investments made on behalf of our customers are essential to meeting the growing demand for energy while also supporting continued resilience of our Arkansas natural gas system.”

The approved settlement agreement will generate approximately $25.4 million of new annual revenues and migrates approximately $3.7 million in annual rider revenue to base rates for a total annual base rate revenue increase of $29.1 million. The approval allows a 9.85% return on equity and a capital structure of 46% equity and 54% debt.

Black Hills Corp.Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.34 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

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Caution Regarding Forward-Looking StatementsThis 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 anticipated revenues from the new rate increase. 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 2023 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

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