Black Hills Corporation (BKH) filed a rate‑review application with the Arkansas Public Service Commission on December 8, 2025, requesting $29.4 million in new annual revenue to cover capital infrastructure and operating costs for its Arkansas natural gas utility, which serves more than 189,000 customers in over 100 communities.
The application also seeks recovery of approximately $147 million in safety, reliability, and system‑integrity investments made since the last general rate filing in 2023. In that earlier filing, the company requested $44.1 million in new revenue and $130 million in investment recovery; the commission approved the request in October 2024, granting a $29.1 million increase in base‑rate revenue and a 9.85% return on equity. The current request is slightly larger in both revenue ($29.4 million vs. $29.1 million) and investment recovery ($147 million vs. $130 million), reflecting continued capital spending on pipeline upgrades, compressor stations, and safety systems.
If approved, the new rates are expected to take effect in the second half of 2026. Based on the 2023 filing, customers in Arkansas could see an average monthly increase of roughly $15, a figure that the company has used to estimate the impact of the current request. The rate increase is intended to fund ongoing system growth, meet regulatory requirements, and maintain service reliability across the state’s growing customer base.
Black Hills CEO Linn Evans emphasized that the rate review is a standard mechanism for recovering the costs of essential infrastructure. “We are committed to serving our customers with the safe and reliable natural gas service they depend on,” Evans said. “Our critical infrastructure investments and prudent cost management enable us to operate, maintain, and upgrade our Arkansas natural gas system while supporting growth.” The company’s capital structure for the filing is 50.2% equity and 49.8% debt, with a requested 10.5% return on equity, a slight shift from the 48/52 equity/debt split and 10.5% ROE in the 2023 filing.
The Arkansas Public Service Commission will review the application, assess the proposed revenue and investment recovery, and determine the appropriate rate schedule. The commission’s decision will shape the company’s revenue trajectory for the next two years and influence the cost base for future rate filings. The outcome will also affect the company’s ability to fund additional projects, such as the planned merger with NorthWestern Energy Group, which is expected to close within 12–15 months and will inherit the regulatory obligations of the Arkansas utility.
The rate‑review filing underscores Black Hills’ ongoing investment strategy in its Arkansas operations and its reliance on regulatory mechanisms to finance infrastructure upgrades. The company’s ability to secure the requested revenue and investment recovery will be a key factor in maintaining service quality and supporting future growth in the region.
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