GlobeNewswire Inc | Dec 6, 2021 08:30PM EST

December 07, 2021

RAPID CITY, S.D., Dec. 06, 2021 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) is providing a regulatory update for its Winter Storm Uri cost recovery applications and the finalization of three rate reviews in preparation for upcoming investor meetings. Leadership from Black Hills will be visiting with investors during the Bank of America Gas Utility Conference and the Wells Fargo 20th Annual Virtual Midstream, Utility & Renewable Symposium on Dec. 7 and Dec. 8, respectively.

Our team successfully executed a productive regulatory calendar in 2021, said Linn Evans, president and CEO of Black Hills Corp. We are nearing completion of our Storm Uri applications and expect full recovery of costs incurred to safely and reliably serve customers during this extreme winter event. We also settled three rate reviews this year and anticipate final decisions by year-end. I want to extend my gratitude to our employee team, state regulators and other counterparties in reaching constructive outcomes.

Winter Storm Uri Cost Recovery Applications

Black Hills filed cost recovery applications with seven state utility commissions earlier this year seeking recovery of $546 million in incremental energy costs for its electric and natural gas utilities. The applications continue to advance productively, and the status of each application is included in the table below. We anticipate resolution of all Storm Uri recovery applications no later than the first quarter of 2022.

State Electric or Status Recovery Amount Recovery Start Gas (in millions) Term DateArkansas Gas Interim rates $138 5 years* 6-1-21Colorado Gas Settlement** $73 3 years 4-1-22Colorado Electric Settlement** $23 2 years 4-1-22Iowa Gas Approved $95 2 years 4-9-21Kansas Gas Settlement** $88 5 years 2-1-22Nebraska Gas Approved $80 3 years 7-1-21South Dakota Electric Approved $20 1 year 6-1-21Wyoming Gas Settlement** $29 3 years 9-1-21Total Recovery Costs Proposed in Applications $546

* Proposed recovery term in application. ** Settlements are pending final regulatory approval.

Regulatory Rate Reviews

Black Hills filed three rate reviews in 2021 for its gas utilities in Colorado, Iowa, and Kansas. Settlements were reached for all three rate reviews and filed with the respective state utility commissions, the outcomes of which are included in the table below. We anticipate final resolution of these rate reviews by year-end.

Utility Filing Date Revenue ROE Debt/Equity New Rates Increase Ratio Effective Date Colorado Gas June 1, 2021 $6.5 million 9.2% 49.74%/50.26% Jan. 1, 2022 Iowa Gas June 1, 2021 $3.7 million* 9.6% 50%/50% Jan. 1, 2022 Kansas Gas May 7, 2021 Global Settlement Jan. 1, 2022

* Does not include $2.2 million of rider revenue rolled into base rates.

Additional details regarding the Storm Uri applications and the three rate reviews can be found in the latest investor presentation on the Black Hills Corp. website at www.blackhillscorp.com under the Investor Relations section.

2022 Rate Reviews

Black Hills intends to file rate reviews for Arkansas Gas in December 2021, Wyoming Electric in the second quarter of 2022 and Rocky Mountain Natural Gas in the third quarter of 2022.

Black Hills CorporationBlack Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented utility 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 1.3 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

Investor RelationsJerome E. Nichols605-721-1171jerome.nichols@blackhillscorp.com

24-Hour Media Relations Line888-242-3969

Caution Regarding Forward Looking StatementThis 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 are forward looking statements, including future approvals for the settlement agreements and regulatory applications. 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, the risk factors described in Item 1A of Part I of our 2020 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.