July 26, 2016 - 4:15 PM EDT
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Black Hills Corp. Reviews Cost of Service Gas Regulatory Approval Strategy

BHC tag_1K

RAPID CITY, S.D. - July 26, 2016 - Black Hills Corp. (NYSE: BKH) (the "Company") today announced it requested a withdrawal of proceedings for its cost of service gas application in Wyoming, which was scheduled for hearing on August 2-5. The Company will also be seeking to withdraw its applications in Iowa, Kansas and South Dakota.

The Company's initial cost of service gas applications were developed during a two-year period with input from state regulatory commissioners, staff and consumer advocates to structure the program using a two phase approach. The first phase would establish the criteria for how the program would work and the second phase would seek approval for a specific gas reserves property.

Black Hills recently received a dismissal of its application in Colorado and denial of its application in Nebraska. Orders from these two states indicated that the initial phase filings contained insufficient information and data to support customer benefits. Based on pre-hearing discovery and commission orders, the Company is evaluating its options on how best to proceed, including the possibility of filing a single phase application for approval of a specific gas reserve property.  

Black Hills continues to believe that a cost of service gas program is in the best long-term interest of its utility customers. The program proposes to reduce our customers' exposure to long-term natural gas price increases and volatility, with a reasonable expectation of lower long-term natural gas costs for customers. Both are worthy objectives considering the historical volatility of natural gas prices, particularly during critical winter heating months. 

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented, vertically-integrated energy company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.2 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company also generates wholesale electricity and produces natural gas, oil and coal. More information is available at www.blackhillscorp.com.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
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Source: Black Hills Corporation via Globenewswire

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Source: Thomson Reuters ONE (July 26, 2016 - 4:15 PM EDT)

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