Black Hills Energy Arkansas receives approval for new rates

Black Hills announced that its Arkansas natural gas utility, Black Hills Energy Arkansas, 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. 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.