Black Hills receives Kansas rate approval for $15.2 million increase

Black Hills Corp. (NYSE: BKH) announced its Kansas natural gas utility subsidiary received approval from the Kansas Corporation Commission for new rates generating $15.2 million in annual base rate revenue increases.

The unanimous settlement agreement allows recovery of approximately $118 million in system investments made since the utility's last general rate filing in 2021, along with inflationary cost impacts for natural gas service delivery. The new rates take effect Aug. 1, 2025.

The approved settlement will generate approximately $10.8 million in new annual revenues and migrate $4.4 million in annual rider revenue to base rates. The utility serves 120,000 customers in Kansas.

"This approval will support our ability to safely and reliably serve our customers and communities in Kansas," said Linn Evans, president and CEO of Black Hills Corp.

The settlement permits continued use of the Gas System Reliability Surcharge to fund pipeline replacement projects across Kansas and includes approval of a new insurance tracker with deferred accounting treatment. The company received approval to file an abbreviated case later that includes capital placed in service through Dec. 31, 2025.

Black Hills Corp., based in Rapid City, South Dakota, serves 1.35 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming.

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