CHEYENNE LIGHT, FUEL & POWER RECEIVES APPROVAL FROM THE WYOMING PUBLIC SERVICE COMMISSION TO IMPLEMENT ELECTRIC AND NATURAL GAS REVENUE INCREASES
Cheyenne, Wyo., June 20, 2012 - Black Hills Corp. (NYSE:BKH) utility subsidiary Cheyenne Light, Fuel & Power announced today that the Wyoming Public Service Commission issued a bench decision approving settlement agreements increasing base rates for Cheyenne Light's electric and natural gas customers effective July 1, 2012.
The PSC approved a $2.7 million, or approximately 2.7 percent, increase in annual electric revenues and a $1.6 million, or approximately 4.9 percent, increase in annual natural gas revenues. The commission also approved a 9.6 percent return on equity and a capital structure of 54 percent equity. The last base rate increase for Cheyenne Light electric and gas customers was effective Jan. 1, 2008.
"Cheyenne Light is committed to providing safe, reliable and low-cost electric and natural gas service to our customers," said Mark Stege, vice president of operations for Cheyenne Light. "These rate request settlements allow appropriate cost recovery for our utility and associated transmission investments, which have been made to continue to provide our customers with a safe, reliable and secure energy supply."
Cheyenne Light and intervening parties, including Office of Consumer Advocate and industrial interveners, filed settlement agreements with the commission on May 25, 2012.
With the implementation of new rates on July 1, a typical Cheyenne Light residential electric customer using an average of 627 kilowatt hours each month can expect an increase of $3.17 per month. A typical Cheyenne Light residential natural gas customer using an average of 6.61 dekatherms a month can expect an increase of $3.72 per month. The increase commercial, industrial and governmental customers experience will vary depending on rate class, load factor and the level of their natural gas and electricity demand and usage. Cheyenne Light currently serves approximately 39,000 electric and 35,000 natural gas customers.
Cheyenne Light has been dedicated to providing the Cheyenne area with safe, reliable electricity and natural gas service for 130 years. The utility offers customers a variety of programs to help customers pay and manage their bills, including online bill payment, budget billing and energy-efficiency programs. For more information about these programs, please call Cheyenne Light at 866-264-8003 or go to www.cheyennelight.com.
Filing Information: You can view Cheyenne Light's complete rate request at the Public Service Commission of Wyoming's website, or go to www.cheyennelight.com.
About Cheyenne Light, Fuel & Power Company
Cheyenne Light, Fuel & Power Company, a subsidiary of Black Hills Corp., serves 39,000 electric customers and 35,000 natural gas customers in the greater Cheyenne, Wyo., area.
About Black Hills Corp.
Black Hills Corp. (NYSE: BKH), a diversified energy company with a tradition of exemplary service and a vision to be the energy partner of choice, is based in Rapid City, S.D., and has corporate offices in Denver and Papillion, Neb. The company serves 765,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company's non-regulated businesses generate wholesale electricity and produce natural gas, oil and coal. Black Hills' 2,000 employees partner to produce results that are improving life with energy. More information is available at www.blackhillscorp.com.
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, including the statement that the rate increase allows cost recovery for investments in utility and associated transmission and statements regarding the projected monthly rate increases for residential electric and natural gas customers, are forward looking statements. 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 2011 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.
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Source: Black Hills Corporation via Thomson Reuters ONE