Black Hills Corp. filed a rate review application with the Colorado Public Utilities Commission to recover $184 million in critical infrastructure investments made since its last review. The utility is seeking $26.7 million in new annual revenue to support the delivery of safe and reliable electric service to over 102,000 customers in Southern Colorado. The request aims to fund grid improvements and generation infrastructure additions completed in 2024.

The filing outlines a capital structure consisting of 51.02% equity and 48.98% debt, with a proposed return on equity of 10.5%. Black Hills Corp. intends to implement the new rates in the first quarter of 2027. The application cites necessary capital infrastructure and operational costs required to maintain the electric system.

Linn Evans, president and CEO of Black Hills Corp., stated that the request supports the company's ability to make required investments. Evans noted that investments to replace aging infrastructure have resulted in fewer interruptions for customers in Colorado. The proposed rate increase is designed to ensure continued reliability and service quality.

Key Financial Details of the Filing

Black Hills Corp. serves 1.37 million natural gas and electric utility customers across eight states, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. The company is headquartered in Rapid City, South Dakota.

B of A Securities analyst Ross Fowler has upgraded Black Hills from Neutral to Buy, raising the price target to $78 from $76. The revised rating reflects increased confidence in the company's performance prospects.

Rating and Price Target Changes

The upgrade moves the stock from a Neutral stance to a Buy recommendation. Concurrently, the price objective was increased by $2, setting a new target of $78.