This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Black Hills Energy Receives Approval From The Colorado PUC To Implement New Electric Service Rates

Stocks in this article: BKH

PUEBLO, Colo., Dec. 22, 2011 /PRNewswire/ -- Black Hills Corp. (NYSE: BKH) utility subsidiary Black Hills Energy – Colorado Electric today announced that the Colorado Public Utilities Commission issued an order approving a base rate increase resulting in a $10.49 million, or 4.91 percent, increase in annual utility revenues with remaining costs, which have yet to be incurred, being recouped through Black Hills Energy's normal Energy Cost Adjustment and Transmission Cost Adjustment filings. The Commission authorized a range of 9.8 percent to 10.2 percent for a reasonable return on equity and a capital structure of 49.1 percent equity with new rates effective for service on and after Jan. 1, 2012. 

"This rate decision ensures appropriate cost recovery for the new Pueblo Airport Generation Station and its associated transmission investments which are needed to provide our customers with long-term rate stability, a secure energy supply, a base from which to integrate a growing renewable resource portfolio, and a hedge against the impact of uncertain future carbon legislation. It is important to remember that the circumstances calling for the construction of these assets—a utility facing the loss of three-quarters of the energy needed to supply its customers with electricity over a very short period of time—were unprecedented in the history of Colorado utility regulation," said Christopher Burke, vice president of Colorado utility operations – Black Hills Energy.

Black Hills Energy's original rate request, for a $40.2 million, or 18.84 percent, increase in electric utility revenues was filed on April 28, 2011. Over the course of the normal stakeholder participation process associated with rate proceedings, Black Hills Energy filed rebuttal testimony Oct. 14, 2011. The rebuttal testimony proposed an alternative cost recovery approach, enabling the utility to mitigate some of the immediate bill impact for its customers and phase in the recovery of other expenses through normal rate adjustment mechanisms as they are incurred in 2012. Specifically, Black Hills Energy's rebuttal testimony requested an increase of $18.3 million in base rates, with approximately $17.5 million of additional annualized costs to be recovered in 2012 through the company's rate adjustment mechanisms. With the Commission-approved base rate increase, the company expects to recover nearly three-quarters of the $40.2 million revenue increase originally requested.

"We fully understand the difficulties experienced by some of our customers working hard to make ends meet. Black Hills Energy has worked diligently with community and governmental stakeholders this year to establish improved payment assistance processes, payment alternatives and focused communications designed to assist those facing such hardships. When in doubt, we encourage our customers to contact our customer service center 24/7 whenever they need us," said Burke.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs