CHEYENNE, Wyo., Dec. 1, 2011 /PRNewswire/ -- Black Hills Corp. (NYSE:BKH) utility subsidiary Cheyenne Light, Fuel & Power announced today that the utility filed requests for electric and natural gas revenue increases with the Public Service Commission of Wyoming. The requests will recover investments in infrastructure and other costs that will allow Cheyenne Light to continue to provide safe and reliable electric and natural gas service. The last base rate increase for Cheyenne Light electric and gas customers was effective Jan. 1, 2008. If approved by the PSC, the new rates could become effective as early as April 1, 2012.
In its requests, Cheyenne Light is seeking a $5.9 million, or approximately 5.9 percent, increase in annual electric revenues and a $2.6 million, or approximately 6.7 percent, increase in annual natural gas revenues. Cheyenne Light is requesting a 10.9 percent return on equity and a capital structure of 54 percent equity and 46 percent debt.
If the PSC approves the proposed rate requests, a typical Cheyenne Light residential electric customer using an average of 627 kilowatt hours each month can expect an increase of $4.33 per month. A typical Cheyenne Light residential natural gas customer using an average of 6.61 dekatherms a month can expect an increase of $5.14 per month. The increase experienced by Cheyenne Light's commercial, industrial and governmental customers 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 39,600 electric and 34,600 natural gas customers.
"We work hard to operate our electric and natural gas systems as efficiently as possible," said Mark Stege, vice president of operations for Cheyenne Light. "It's been nearly four years since our last rate increase; however, capital expenditures we have made to support the growing energy needs of our customers, combined with inflation, necessitate a rate increase at this time."Since 1882, Cheyenne Light has been dedicated to providing the Cheyenne area with safe, reliable electricity and natural gas. The utility offers customers a variety of programs to help pay and manage their bills, including eBill, budget billing and energy-efficiency programs. For more information about these programs, please call Cheyenne Light at 866-264-8003 or go to www.cheyennelighthowto.com. Filing information: You can view Cheyenne Light's complete rate request at the Public Service Commission of Wyoming's Web site in the near future, or go to www.cheyennelight.com. Cheyenne Light, Fuel & Power CompanyCheyenne Light, Fuel and Power Company, a subsidiary of Black Hills Corp. (NYSE: BKH), serves 39,000 electric customers and 34,000 natural gas customers in the greater Cheyenne, Wyo., area. Black Hills CorporationBlack Hills Corp. — 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., with corporate offices in Denver and Papillion, Neb. The company serves 762,000 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, produce natural gas, oil and coal, and market energy. Black Hills' 2,100 employees partner to produce results that improve 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 statements regarding providing our customers with safe, reliable service at a reasonable cost, 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 2010 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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