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RAPID CITY, S.D. – Black Hills Corp (NYSE:BKH), a utility company based in South Dakota with a market capitalization of $4.26 billion, has received approval from the Colorado Public Utilities Commission to implement new electric utility rates in Colorado. The new rates, which became effective on March 22, 2025, will allow the company to recover approximately $370 million in system investments since its last general rate filing in 2016, as well as adjustments for inflationary impacts on operational costs.
The approved rate adjustment is expected to generate an additional $17.0 million in annual revenue for Black Hills Corp. The revenue is based on a weighted average cost of capital of 6.90%, with a capital structure comprising 47% to 49% equity and 51% to 53% debt. The return on equity will range from 9.3% to 9.5%.
Black Hills Corp. serves 1.35 million natural gas and electric utility customers across eight states, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. The company emphasizes its commitment to being a customer-focused and growth-oriented utility with the goal of improving life with energy and striving to be the preferred energy partner. According to InvestingPro data, the company has raised its dividend for 54 consecutive years and currently offers a 4.57% dividend yield. Get access to more detailed analysis and 12+ additional ProTips with an InvestingPro subscription.
The rate approval process allows Black Hills Corp. the option to file for a rehearing, reargument, or reconsideration with the commission until April 7, 2025, if desired.
This announcement is based on a press release statement from Black Hills Corp. and includes forward-looking statements that are subject to risks and uncertainties. The company cautions that actual results may differ materially from those projected due to various factors, including those outlined in their SEC filings. With a debt-to-equity ratio of 1.25 and InvestingPro indicating the stock is fairly valued, investors should carefully consider these factors. Black Hills Corp. does not undertake any obligation to update forward-looking statements as a result of new information or future events.
In other recent news, Black Hills Corporation announced a quarterly dividend increase to $0.676 per share, up from the previous $0.65. This marks the 55th consecutive year of annual dividend hikes, reflecting the company’s confidence in its strategic direction and growth potential. Shareholders on record as of February 18, 2025, will be eligible for the dividend, which is scheduled for payment on March 1, 2025. Additionally, Black Hills Corporation disclosed the resignation of its Senior Vice President and Chief Information Officer, Erik Keller, effective February 28, 2025. The company has not yet named a successor for Mr. Keller, and the reasons for his resignation were not disclosed. This executive change was reported in a recent SEC filing, fulfilling regulatory requirements and ensuring transparency with shareholders. These developments highlight Black Hills Corporation’s ongoing commitment to shareholder value and corporate governance.
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