form10k-bhcform10k2009.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
Form 10-K

x           ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2009

o           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________________ to __________________

Commission File Number 001-31303

BLACK HILLS CORPORATION
Incorporated in South Dakota
  
IRS Identification Number 46-0458824
 
625 Ninth Street
Rapid City, South Dakota  57701
  
     
Registrant's telephone number, including area code
(605) 721-1700
     
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
  
Name of each exchange
on which registered
Common stock of $1.00 par value
  
New York Stock Exchange

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes           x           No           o

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes           o           No           x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes           x           No           o

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).
Yes           o           No           o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.x

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated filer    x            Accelerated filer    o              Non-accelerated filer   o    Smaller reporting company o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes           o           No           x

State the aggregate market value of the voting stock held by non-affiliates of the Registrant.

At June 30, 2009                                   $883,231,314

 
 
 

Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date.

Class
Outstanding at January 31, 2010
Common stock, $1.00 par value
38,961,358 shares

Documents Incorporated by Reference
Portions of the Registrant's Definitive Proxy Statement being prepared for the solicitation of proxies in connection with the 2010 Annual Meeting of Stockholders to be held on May 25, 2010, are incorporated by reference in Part III of this Form 10-K.


 
 
 

TABLE OF CONTENTS

        Page
   
GLOSSARY OF TERMS AND ABBREVIATIONS
3
       
   
ACCOUNTING PRONOUNCEMENTS
6
       
   
WEBSITE ACCESS TO REPORTS
7
       
   
FORWARD-LOOKING INFORMATION
7
Part I
      
 
ITEMS 1. and 2.
BUSINESS AND PROPERTIES
10
       
 
ITEM 1A.
RISK FACTORS
49
       
 
ITEM 1B.
UNRESOLVED STAFF COMMENTS
62
       
 
ITEM 3.
LEGAL PROCEEDINGS
62
       
 
ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
62
       
 
ITEM 4A.
EXECUTIVE OFFICERS OF THE REGISTRANT
62
Part II
      
 
ITEM 5.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
64
       
 
ITEM 6.
SELECTED FINANCIAL DATA
66
       
 
ITEMS 7. and 7A.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS AND QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
68
       
 
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
127
       
 
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
212
       
 
ITEM 9A.
CONTROLS AND PROCEDURES
212
       
 
ITEM 9B.
OTHER INFORMATION
212
Part III
      
 
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
213
       
 
ITEM 11.
EXECUTIVE COMPENSATION
213
       
 
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
213
       
 
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
214
       
 
ITEM 14.
PRINCIPAL ACCOUNTING FEES AND SERVICES
214
       
 
ITEM 15.
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
215
       
   
SIGNATURES
226
       
   
INDEX TO EXHIBITS
227
 
 
2
 

GLOSSARY OF TERMS AND ABBREVIATIONS

The following terms and abbreviations appear in the text of this report and have the definitions described below:

Acquisition Facility
Our $1.0 billion single-draw, senior unsecured facility from which a $383 million draw was used to provide part of the funding for our Aquila Transaction
AFUDC
Allowance for Funds Used During Construction
AOCI
Accumulated Other Comprehensive Income
Aquila
Aquila, Inc.
Aquila Transaction
Our July 14, 2008 acquisition of five utilities from Aquila
ARO
Asset Retirement Obligations
Basin Electric
Basin Electric Power Cooperative
Bbl
Barrel
Bcf
Billion cubic feet
Bcfe
Billion cubic feet equivalent
BHC Pension Plan
The Pension Plan of Black Hills Corporation
BHCCP
Black Hills Corporation Credit Policy
BHCRPP
Black Hills Corporation Risk Policies and Procedures
BHEP
Black Hills Exploration and Production, Inc., a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings
Black Hills Colorado IPP
Black Hills Colorado IPP, LLC a direct wholly-owned subsidiary of Black Hills Electric Generation
Black Hills Corporation Plan
Black Hills Corporation Retirement Savings Plan
Black Hills Energy
The name used to conduct the business of Black Hills Utility Holdings, Inc.
Black Hills Electric Generation
Black Hills Electric Generation, LLC, a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings
Black Hills Non-regulated Holdings
Black Hills Non-regulated Holdings, LLC, a direct, wholly-owned subsidiary of Black Hills Corporation
Black Hills Power
Black Hills Power, Inc., a direct, wholly-owned subsidiary of Black Hills Corporation
Black Hills Utility Holdings
Black Hills Utility Holdings, Inc., a direct, wholly-owned subsidiary of Black Hills Corporation formed to acquire and own the utility properties acquired in the Aquila Transaction, all which are now doing business as Black Hills Energy
Black Hills Wyoming
Black Hills Wyoming, LLC, a direct, wholly-owned subsidiary of Black Hills Electric Generation
Btu
British thermal unit
CAIR
Clean Air Interstate Rule
CAMR
Clean Air Mercury Rule
CFTC
Commodity Futures Trading Commission
Cheyenne Light
Cheyenne Light, Fuel and Power Company, a direct, wholly-owned subsidiary of Black Hills Corporation
Cheyenne Light Pension Plan
The Cheyenne Light, Fuel and Power Company Pension Plan
Cheyenne Light Plan
Cheyenne Light, Fuel and Power Company Retirement Savings Plan
CO2
Carbon Dioxide
Colorado Electric
Black Hills Colorado Electric Utility Company, LP, (doing business as Black Hills Energy), an indirect, wholly-owned subsidiary of Black Hills Utility Holdings
Colorado Gas
Black Hills Colorado Gas Utility Company, LP, (doing business as Black Hills Energy), an indirect, wholly-owned subsidiary of Black Hills Utility Holdings
CPUC
Colorado Public Utilities Commission
CT
Combustion turbine

 
3
 


Dth
Dekatherms
EBITDA
Earnings before interest, taxes, depreciation and amortization
Enserco
Enserco Energy Inc., a wholly-owned subsidiary of Black Hills Non-regulated Holdings
Enserco Facility
The $300 million committed stand alone credit facility that supports Enserco's marketing and trading operations, which currently expires May 7, 2010
EPA
U. S. Environmental Protection Agency
ERISA
Employee Retirement Income Security Act
EWG
Exempt Wholesale Generator
FASB
Financial Accounting Standards Board
FERC
Federal Energy Regulatory Commission
Fitch
Fitch Ratings
GAAP
Accounting principles generally accepted in the United States of America
GCA
Gas Cost Adjustment
GHG
Greenhouse gases
Great Plains
Great Plains Energy Incorporated
GSRS
Gas System Reliability Surcharge
Happy Jack
Happy Jack Wind Farm, LLC, owned by Duke Energy Generation Services
Hastings
Hastings Fund Management Ltd
ICE
Intercontinental Exchange
IGCC
Integrated Gasification Combined Cycle
IIF
IIF BH Investment LLC, a subsidiary of an investment entity advised by JPMorgan Asset Management
Indeck
Indeck Capital, Inc.
Iowa Gas
Black Hills Iowa Gas Utility Company, LLC, (doing business as Black Hills Energy), a direct, wholly-owned subsidiary of Black Hills Utility Holdings
IPP
Independent power production
IPP Transaction
The July 11, 2008 sale of seven of our IPP plants to affiliates of Hastings and IIF
IRS
Internal Revenue Service
IUB
Iowa Utilities Board
Kansas Gas
Black Hills Kansas Gas Utility Company, LLC, (doing business as Black Hills Energy), a direct, wholly-owned subsidiary of Black Hills Utility Holdings
KCC
Kansas Corporation Commission
KW
Kilowatt
KWh
Kilowatt-hour
LIBOR
London Interbank Offered Rate
LOE
Lease Operating Expense
Las Vegas II
Las Vegas II gas-fired power plant
MAPP
Mid-Continent Area Power Pool
Mbbl
Thousand barrels of oil
Mcf
Thousand cubic feet
Mcfe
Thousand cubic feet equivalent
MDU
Montana Dakota Utilities Co., a public utility division of MDU Resources Group, Inc.
MEAN
Municipal Energy Agency of Nebraska
MMBtu
Million British thermal units
MMcf
Million cubic feet
MMcfe
Million cubic feet equivalent
Moody's
Moody's Investors Service, Inc.
MTPSC
Montana Public Service Commission

 
4
 


MW
Megawatts
MWh
Megawatt-hours
NCREIF
National Council of Real Estate Investment Fiduciaries
Nebraska Gas
Black Hills Nebraska Gas Utility Company, LLC (doing business as Black Hills Energy), a direct, wholly-owned subsidiary of Black Hills Utility Holdings
NERC
North American Electric Reliability Corporation
NOx
Nitrogen Oxide
NOL
Net operating loss
NPA
Nebraska Power Association
NPDES
National Pollutant Discharge Elimination System
NPSC
Nebraska Public Service Commission
NQDC
Non-Qualified Deferred Compensation Plan
NYMEX
New York Mercantile Exchange
PCA
Power Cost Adjustment
PGA
Purchase Gas Adjustment
PPA
Purchase Power Agreement
PSCo
Public Service Company of Colorado
PUD
Proved undeveloped reserves
PUHCA 2005
Public Utility Holding Company Act of 2005
PURPA
Public Utility Regulatory Policies Act of 1978
QF
Qualifying Facility
RCRA
Resource Conservation and Recovery Act
RMSA
Retiree Medical Savings Account
RTO
Regional Transmission Organization
SDPUC
South Dakota Public Utilities Commission
SEC
U. S. Securities and Exchange Commission
Silver Sage
Silver Sage Windpower, LLC, owned by Duke Energy Generation Services
SO2
Sulfur Dioxide
S&P
Standard & Poor's, a division of The McGraw-Hill Companies, Inc.
Valencia
Valencia Power, LLC, a former subsidiary of Black Hills Non-regulated Holdings that was sold as part of our IPP Transaction
VEBA
Voluntary Employee Benefit Association
VIE
Variable Interest Entity
WDEQ
Wyoming Department of Environmental Quality
WECC
Western Electricity Coordinating Council
WPSC
Wyoming Public Service Commission
WRDC
Wyodak Resources Development Corporation, a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings

 
5
 

ACCOUNTING PRONOUNCEMENTS

ASC
Accounting Standards Codification
ASC 105
ASC 105, "FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles - a replacement of FASB Standard No. 162"
ASC 260
ASC 260, "Earnings Per Share"
ASC 715
ASC 715, "Compensation – Retirement Benefits"
ASC 805
ASC 805, "Business Combinations"
ASC 810
ASC 810, "Consolidations"
ASC 810-10-15
ASC 810-10-15, "Consolidation of Variable Interest Entities"
ASC 815
ASC 815, "Derivatives and Hedging"
ASC 820
ASC 820, "Fair Value Measurements and Disclosures"
ASC 825
ASC 825, "Financial Instruments"
ASC 855
ASC 855, "Subsequent Events"
ASC 932-10-S99
ASC 932-10-S99, "Extractive Activities – Oil and Gas, SEC Materials"

 
6
 

Website Access to Reports

The reports we file with the SEC are available free of charge at our website www.blackhillscorp.com as soon as reasonably practicable after they are filed.  In addition, the charters of our Audit, Governance and Compensation Committees are located on our website along with our Code of Business Conduct, Code of Ethics for our Chief Executive Officer and Senior Finance Officers, Corporate Governance Guidelines of the Board of Directors and Policy for Director Independence.  The information contained on our website is not part of this document.

Our Chief Executive Officer and Chief Financial Officer have filed with the SEC, as exhibits to our Annual Report on Form 10-K, the certifications required by Section 302 of the Sarbanes Oxley Act regarding the quality of our public disclosure.  Our Chief Executive Officer certified to the New York Stock Exchange following our 2009 annual shareholder meeting that he was not aware of violations by us of the New York Stock Exchange corporate governance listing standards.

Each of the foregoing documents is available in print to any of our shareholders upon request by writing to Black Hills Corporation, Attention:  Investor Relations, 625 Ninth Street, Rapid City, South Dakota 57701.

Forward-Looking Information

This Annual Report on Form 10-K includes "forward-looking statements" as defined by the 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 Form 10-K that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements.  These forward-looking statements are based on assumptions that we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business.  Forward-looking statements involve risks and uncertainties, and certain important factors can cause actual results to differ materially from those anticipated.  In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "should," "expects," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "potentials," or "continue" or the negative of these terms or other similar terminology.  There are various factors that could cause actual results to differ materially from those suggested by the forward-looking statements; accordingly, there can be no assurances that such indicated results will be realized.  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, including without limitation, the Risk Factors set forth in Item 1A of this Form 10-K and the following:

 
·
Our ability to successfully integrate and profitably operate any recent and future acquisitions;

 
·
Macro- and micro-economic changes in the economy and energy industry, including the impact of (i) consolidations and changes in competition, (ii) changing conditions in the capital and credit markets, which affect our ability to raise capital on favorable terms, and (iii) general economic and political conditions, including tax rates or policies and inflation rates;

 
·
Our ability to successfully maintain our corporate credit rating;

 
·
Our ability to access revolving credit capacity and comply with loan covenants;

 
·
Capital market conditions and market uncertainties related to interest rates, which may affect our ability to raise capital on favorable terms;

 
·
The amount and timing of capital deployment in new investment opportunities or for the repurchase of debt or stock;

 
·
Our ability to obtain permanent financing for capital expenditures on reasonable terms either through long-term debt or issuance of equity;

 
7
 


 
·
The outcome of any ongoing or future litigation or similar disputes and the impact of any such outcome or related settlements on our financial condition or results of operations;

 
·
Price risk due to marketable securities held as investments in employee benefit plans;

 
·
The effect of accounting policies issued periodically by accounting standard-setting bodies;

 
·
The accounting treatment and earnings impact associated with interest rate swaps;

 
·
Our ability to comply, or to make expenditures required to comply, with changes in laws and regulations, particularly those relating to energy markets, taxation, safety and protection of the environment, and our ability to recover those expenditures in customer rates, where applicable;

 
·
Federal and state laws concerning climate change and air emissions, including emission reduction mandates, carbon emissions and renewable energy portfolio standards, may materially increase our generation and production costs and could render some of our generating units uneconomical to operate and maintain;

 
·
Changes in business, regulatory compliance and financial reporting practices arising from the enactment of the Energy Policy Act of 2005 and subsequent rules and regulations promulgated thereunder;

 
·
Additional liabilities for environmental conditions, including remediation and reclamation obligations, under environmental laws;

 
·
Our ability to minimize losses related to defaults on amounts due from customers and counterparties, including counterparties to trading and other commercial transactions;

 
·
The timing, volatility and extent of changes in energy and commodity prices, supply or volume, the cost and availability of transportation of commodities, changes in interest or foreign exchange rates, and the demand for our services, any of which can affect our earnings, our financial liquidity and the underlying value of our assets;

 
·
The cost and effects on our business, including insurance, resulting from terrorist actions or responses to such actions or events;

 
·
Our ability to obtain adequate cost recovery for our utility operations through regulatory proceedings and receive favorable rulings in periodic applications to recover costs for fuel, transportation, transmission and purchased power in our regulated utilities;

 
·
Our ability to receive regulatory approval in rate base for new power generation facilities;

 
·
Our ability to recover our borrowing costs, including debt service costs, in our customer rates;

 
·
The timing and extent of scheduled and unscheduled outages of power generation facilities;

 
·
The possibility that we may be required to take impairment charges to reduce the carrying value of some of our long-lived assets when indicators of impairment emerge;

 
·
Our ability to complete the permitting, construction, start-up and operation of power generating facilities in a cost-effective and timely manner;

 
·
Our ability to successfully complete labor negotiations with four of the six unions currently or soon to be in contract renewal negotiations;

 
8
 


 
·
Our ability to accurately estimate demand from our customers for natural gas;

 
·
Weather and other natural phenomena;

 
·
Changes in state laws or regulations that could cause us to curtail our independent power production or exploration and production activities;

 
·
Our ability to meet production targets for our oil and gas properties, which may be dependent upon issuance by federal, state and tribal governments, or agencies thereof, of drilling, environmental and other permits, and the availability of specialized contractors, work force and equipment, or the possibility of reductions in our drilling program resulting from the current economic climate and commodity prices, which also may prevent us from maintaining production rates and replacing reserves for our oil and gas properties;

 
·
The amount of collateral required to be posted from time to time in our transactions;

 
·
Our ability to effectively use derivative financial instruments to hedge commodity, currency exchange rate and interest rate risks;

 
·
The possibility that we may be required to take impairment charges under the SEC's full cost ceiling test for the accumulated costs of our natural gas and oil reserves;

 
·
The extent of our success in connecting natural gas supplies to gathering, processing and pipeline systems;

 
·
Our ability to provide accurate estimates of proved oil and gas reserves, coal reserves and future production rates and associated costs; and

 
·
The cost and effect on our business, including insurance, resulting from terrorist actions or responses to such actions or events.

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.

 
9
 

PART I

ITEMS 1 AND 2.
BUSINESS AND PROPERTIES

History and Organization

Black Hills Corporation, a South Dakota corporation (the "Company," "we," "us," "our"), is a diversified energy company headquartered in Rapid City, South Dakota.  Our predecessor company, Black Hills Power and Light Company, was incorporated and began providing electric utility service in 1941.  It was formed through the purchase and combination of several existing electric utilities and related assets, some of which had served customers in the Black Hills region since 1883.  In 1956, the Company began producing, selling and marketing various forms of energy through its non-regulated business.

We operate principally in the United States with two major business groups: Utilities and Non-regulated Energy.  Our Utilities Group is comprised of our regulated Electric Utilities and regulated Gas Utilities segments, and our Non-regulated Energy Group is comprised of our Oil and Gas, Power Generation, Coal Mining, and Energy Marketing segments, as shown below.  At December 31, 2009, we had 2,171 employees, 749 of which were represented by union locals.

Business Group
Financial Segment
   
Utilities
Electric Utilities
 
Gas Utilities
   
Non-regulated Energy
Oil and Gas
 
Power Generation
 
Coal Mining
 
Energy Marketing

Our regulated Electric Utilities segment generates, transmits and distributes electricity to approximately 201,100 customers in South Dakota, Wyoming, Colorado and Montana and includes the operations of Cheyenne Light, a combination electric and gas utility, and its approximately 33,900 gas utility customers in Wyoming.  Our regulated Gas Utilities segment serves approximately 528,300 natural gas utility customers in Colorado, Nebraska, Iowa and Kansas.  Our regulated Electric Utilities own 630 MWs of generation and 8,182 miles of electric transmission and distribution lines, and our regulated Gas Utilities own 626 miles of intrastate gas transmission pipelines and 19,638 miles of gas distribution mains and service lines.  Our regulated Electric and regulated Gas Utilities generated earnings from continuing operations of $57.1 million in the year ended December 31, 2009 and had total assets of $2.3 billion at December 31, 2009.

Our Oil and Gas segment engages in the exploration, development and production of crude oil and natural gas, primarily in the Rocky Mountain region.  Our Coal Mining segment produces coal at our coal mine near Gillette, Wyoming, and our Energy Marketing segment markets natural gas, crude oil and related services, primarily in the Unites States and Canada.  Our Power Generation segment produces electric power from our generating plants and sells the electric capacity and energy primarily under long-term contracts.  In 2008, we sold seven IPP plants previously reported in our Power Generation segment, which resulted in the operations of these plants being reported as discontinued operations.  Our Non-regulated Energy Group generated earnings from continuing operations of $0.6 million in the year ended December 31, 2009 and had total assets of $1.0 billion at December 31, 2009.

Segment Financial Information

We discuss our business strategy and other prospective information in Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations.  Financial information regarding our business segments is incorporated herein by reference to Item 8 - Financial Statements and Supplementary Data, particularly Note 17 to the Consolidated Financial Statements in this Annual Report on Form 10-K.

 
10
 

Business Group Overview

Utilities Group

We conduct regulated electric utility operations and combination electric and gas utility operations through three subsidiaries:  Black Hills Power (South Dakota, Wyoming and Montana), Cheyenne Light (Wyoming), and Colorado Electric (Colorado).  Our regulated Electric Utilities generate, transmit and distribute electricity to approximately 201,100 customers in South Dakota, Wyoming, Colorado and Montana.  Additionally, they also distribute natural gas to approximately 33,900 natural gas utility customers served by Cheyenne Light in Wyoming.  Our electric generating facilities and purchased power contracts supply electricity principally to our own distribution systems.  Additionally, we sell excess power to other utilities and marketing companies, including affiliates.

We conduct natural gas utility operations on a state-by-state basis through our Colorado Gas, Iowa Gas, Kansas Gas and Nebraska Gas subsidiaries.  Our regulated Gas Utilities distribute and transport natural gas to our customers through our distribution network to approximately 528,300 customers in Colorado, Iowa, Kansas and Nebraska.  We also provide related services that include appliance repairs, gas technical services and the sale of temporarily-available, contractual pipeline capacity from our suppliers.

Since our three regulated electric utilities and our four regulated natural gas utilities have similar economic characteristics, we aggregate our electric utility operations into the regulated Electric Utilities segment and our gas utility operations into the regulated Gas Utilities segment.

Electric Utilities Segment

Capacity and Demand

Uninterrupted system peak demands for the regulated Electric Utilities for each of the last three years are listed below:

By Entity
   
System Peak Demand (in MW)
  
                                     
   
2009
    
2008
    
2007
  
   
Summer
    
Winter
    
Summer
    
Winter
    
Summer
    
Winter
  
                                     
Black Hills Power
     387       392       409       407       430       361  
Cheyenne Light
     169       171       166       168       163       152  
Colorado Electric
     365       296       306 (a)     298 (a)     -       -  
Total Electric Utilities
     921       859       881       873       593       513  
__________________________
(a)
For the period July 14, 2008 to December 31, 2008.

 
11
 

Regulated Power Plants

As of December 31, 2009, our regulated Electric Utilities' ownership interests in electric generation plants were as follows:

Unit
Fuel
Type
Location
  
Ownership
Interest
%
    
Gross
Capacity
(MW)
    
Year
Installed
  
                       
Black Hills Power(1):
                      
Neil Simpson II
Coal
Gillette, WY
     100       90.0       1995  
Wyodak(2)
Coal
Gillette, WY
     20       72.4       1978  
Osage
Coal
Osage, WY
     100       34.5       1948-1952  
Ben French
Coal
Rapid City, SD
     100       25.0       1960  
Neil Simpson I
Coal
Gillette, WY
     100       21.8       1969  
Neil Simpson CT
Gas
Gillette, WY
     100       40.0       2000  
Lange CT
Gas
Rapid City, SD
     100       40.0       2002  
Ben French Diesel #1-5
Oil
Rapid City, SD
     100       10.0       1965  
Ben French CTs #1-4
Gas/Oil
Rapid City, SD
     100       100.0       1977-1979  
Cheyenne Light:
                            
Wygen II
Coal
Gillette, WY
     100       95.0       2008  
Colorado Electric(3):
                            
W.N. Clark #1-2
Coal
Canon City, CO
     100       42.0       1955, 1959  
Pueblo #6
Gas
Pueblo, CO
     100       20.0       1949  
Pueblo #5
Gas
Pueblo, CO
     100       9.0       1941, 2001  
AIP Diesel
Oil
Pueblo, CO
     100       10.0       2001  
Diesel #1-5
Oil
Pueblo, CO
     100       10.0       1964  
Diesel #1-5
Oil
Rocky Ford, CO
     100       10.0       1964  
________________________
(1)
During 2008, we mobilized for the construction of Wygen III, a 110 MW mine-mouth coal-fired power plant.  The plant is scheduled to be completed in April 2010.  Black Hills Power will operate the plant and owns a 75% interest in the facility and MDU owns the remaining 25%.  Our WRDC coal mine will furnish all of the coal fuel supply for the plant.
(2)
Wyodak is a 362 MW mine-mouth coal-fired plant owned 80% by PacifiCorp and 20% (or 72.4 MW) by Black Hills Power.  The baseload plant is operated by PacifiCorp and our WRDC coal mine furnishes all of the coal fuel supply for the plant.
(3)
During 2009, we began the preparation to construct two 90 MW gas-fired power generation facilities to support the customers of Colorado Electric. These facilities are expected to be completed by December 31, 2011.


 
12
 

The following table shows the regulated Electric Utilities' annual average cost of fuel utilized to generate electricity and the average price paid for purchased power (excluding contracted capacity) per MWh during the last three years (dollars per MWh):

Fuel Source

   
2009
    
2008(1)
    
2007(2)
  
                   
Coal
   $ 13.99     $ 11.41     $ 8.94  
                         
Gas and Oil
   $ 85.52     $ 88.60     $ 68.04  
                         
Total Average Fuel Cost
   $ 15.22     $ 13.18     $ 11.84  
                         
Purchased Power(3)
   $ 28.93     $ 38.06     $ 29.87  
________________________
(1)
2008 includes Colorado Electric from July 14, 2008 through December 31, 2008.
(2)
Excludes Colorado Electric, which we did not acquire until July 14, 2008.
(3)
Includes Colorado Electric acquired on July 14, 2008, Happy Jack commencing in October 2008, and Silver Sage commencing in October 2009.

Power Supply

The following table shows the power supply, by resource as a percent of the total power supply, for our regulated Electric Utilities:

   
2009
    
2008
    
2007
  
                   
Coal-fired
     39 %     44 %     42 %
                         
Gas and Oil
     1       1       2  
Total Generated
     40 %     45 %     44 %
                         
Purchased
     60       55       56  
                         
Total
     100 %     100 %     100 %


 
13
 

Purchased Power.  Various agreements have been executed to support our regulated Electric Utilities' capacity and energy needs beyond our regulated power plants' generation.  Key contracts include:

 
·
Black Hills Power's PPA with PacifiCorp expiring in 2023, which provides for the purchase of 50 MW of coal-fired baseload power;

 
·
Black Hills Power's reserve capacity integration agreement with PacifiCorp expiring in 2012, which makes available 100 MW of reserve capacity in connection with the utilization of the Ben French CT units;

 
·
Colorado Electric's PPA with PSCo expiring at the end of 2011, whereby Colorado Electric purchases a majority of its power.  The contract provides for 290 MW of capacity and energy in 2010, increasing to 300 MW in 2011;

 
·
Black Hills Wyoming provides Cheyenne Light with 40 MW of energy and capacity from their Gillette CT and 60 MW of unit-contingent capacity and energy from their Wygen I facility under purchase power agreements.  The 10-year PPA for the Gillette CT expires in August 2011.  The PPA for the 60 MW of unit-contingent capacity and energy from the Wygen I facility had an extension approved by FERC in September 2009 and expires December 31, 2022.  The Wygen I PPA includes an option for Cheyenne Light to purchase Black Hills Wyoming's ownership interest in the Wygen I facility during years one through seven during the term of the agreement.  The purchase price related to the option is $2.55 million per MW which is equivalent of the estimated initial per MW price of new construction of the Wygen III facility.  This price is reduced annually by an amount of annual depreciation assuming a facility life of 35 years;

 
·
Cheyenne Light's 20-year PPA with Duke Energy, expiring in 2028, provides up to 29.4 MW of renewable energy from the Happy Jack Wind Farm to Cheyenne Light.  Under separate intercompany agreements, Cheyenne Light sells 50% of the facility's output to Black Hills Power;

 
·
Cheyenne Light and Black Hills Power's Generation Dispatch Agreement requires Black Hills Power to purchase all of Cheyenne Light's excess energy;

 
·
Cheyenne Light's 20-year PPA with Duke Energy's Silver Sage wind farm, expiring in 2029, provides 30 MW of wind energy.  Silver Sage commenced commercial operation in October 2009.  Under separate intercompany agreements, Cheyenne Light sells 20 MW of energy from Silver Sage to Black Hills Power; and

 
·
Colorado Electric's 20-year PPA with Black Hills Colorado IPP, expiring in 2031, will provide 200 MW of power to Colorado Electric from Black Hills Colorado IPP's combined-cycle turbines beginning on January 1, 2012


 
14
 

Power Sales Agreements.  Our regulated Electric Utilities have various long-term power sales agreements.  Key agreements include:

 
·
Black Hills Power's agreement to supply up to 74 MW of capacity and energy to MDU for the Sheridan, Wyoming electric service territory through 2016.  The sales to MDU have been integrated into Black Hills Power's control area and are considered part of our firm native load.  This agreement permitted MDU the option to participate in the ownership of the Wygen III plant that is currently being constructed.  In April 2009, MDU exercised this option and purchased a 25% ownership interest in Wygen III.  In conjunction with the ownership interest transaction, the agreement to supply capacity and energy through 2016 was modified.  The agreement now provides that once in commercial operation, the first 25 MW of the required 74 MW will be supplied from MDU's ownership interest in Wygen III.  During periods of reduced production at Wygen III, or during periods when Wygen III is offline, MDU will be provided with its 25 MW from our other generation facilities or from system purchases;

 
·
Black Hills Power's agreement with the City of Gillette, Wyoming, to provide the City its first 23 MW of capacity and energy annually.  The sales to the City of Gillette have been integrated into Black Hills Power's control area and are considered part of our firm native load.  The agreement renews automatically and requires a seven year notice of termination.  As of December 31, 2009, neither party to the agreement had given a notice of termination;

 
·
Black Hills Power's agreement to supply 20 MW of energy and capacity to MEAN under a contract that expires in 2023.  This contract is unit-contingent based on the availability of our Neil Simpson II and Wygen III plants, with capacity purchase decreasing to 15 MW in 2018, 12 MW in 2020 and 10 MW in 2022.  The unit-contingent capacity amounts from Wygen III and Neil Simpson II are as follows:

2010-2017
20 MW - 10 MW contingent on Wygen III and 10 MW contingent on Neil Simpson II
2018-2019
15 MW - 10 MW contingent on Wygen III and 5 MW contingent on Neil Simpson II
2020-2021
12 MW - 6 MW contingent on Wygen III and 6 MW contingent on Neil Simpson II
2022-2023
10 MW - 5 MW contingent on Wygen III and 5 MW contingent on Neil Simpson II; and

 
·
Black Hills Power's five-year PPA with MEAN executed in July 2009, which commences the month following the onset of commercial operations of Wygen III.  Under this contract, MEAN will purchase 5 MW of unit-contingent capacity from Neil Simpson II and 5 MW of unit-contingent capacity from Wygen III.

 
·
We have a purchase agreement with Basin Electric for the supply of 80 MW of capacity and energy through 2012 and a separate agreement to receive 80 MW of capacity and energy through 2012.  The agreements were entered into with Basin Electric to accommodate delivery of electricity to Cheyenne Light's service territory.

Transmission and Distribution.  Through our regulated electric utilities, we own electric transmission systems composed of high voltage transmission lines (greater than 69 KV) and low voltage lines (69 or fewer KV).  We also jointly own high voltage lines with Basin Electric and Powder River Energy Corporation.


 
15
 

At December 31, 2009, our regulated Electric Utilities owned or leased the electric transmission and distribution lines shown below:

Utility
State
  
Transmission
(in Line Miles)
    
Distribution
(in Line Miles)
  
               
Black Hills Power
SD, WY
     1,007       2,403  
Black Hills Power - Jointly Owned
SD, WY
     47       -  
Cheyenne Light
SD, WY
     25       1,172  
Colorado Electric
CO
     509       3,019  

Through Black Hills Power, we own 35% of a transmission tie that interconnects the Western and Eastern transmission grids, which are independently-operated transmission grids serving the western United States and eastern United States, respectively.  This transmission tie, which is 65% owned by Basin Electric, provides transmission access to both the WECC region in the West and the MAPP region in the East.  Black Hills Power's electric system is located in the WECC region, and the total transfer capacity of the tie is 400 MW - 200 MW from West to East, and 200 MW from East to West.  This transmission tie allows us to buy and sell energy in the Eastern grid without having to isolate and physically reconnect load or generation between the two transmission grids, thus enhancing the reliability of our system.  It accommodates scheduling transactions in both directions simultaneously, provides additional opportunities to sell excess generation or to make economic purchases to serve our native load and contract obligations, and enables us to take advantage of the power price differentials between the two grids.  Additionally, Black Hills Power's system is capable of directly interconnecting up to 80 MW of generation or load to the Eastern transmission grid.

Black Hills Power has firm point-to-point transmission access to deliver up to 50 MW of power on PacifiCorp's transmission system to wholesale customers in the Western region through 2023.

Black Hills Power also has firm network transmission access to deliver power on PacifiCorp's system to Sheridan, Wyoming to serve our power sales contract with MDU through 2016, with the right to renew pursuant to the terms of PacifiCorp's transmission tariff.

 
16
 

Operating Statistics

The following tables summarize regulated sales revenues, sales quantities and customers for our regulated Electric Utilities segment.  2008 reported amounts include Colorado Electric from its July 14, 2008 acquisition date through December 31, 2008, whereas 2007 amounts do not include Colorado Electric:

Sales Revenues (in thousands)

   
2009
    
2008
    
2007
  
Residential:
                  
Black Hills Power
   $ 48,586     $ 46,854     $ 45,657  
Cheyenne Light
     29,198       31,394       24,060  
Colorado Electric
     66,548       32,620       -  
Total Residential
     144,332       110,868       69,717  
                         
Commercial:
                        
Black Hills Power
     59,897       58,289       55,991  
Cheyenne Light
     51,280       51,609       38,871  
Colorado Electric
     56,002       28,531       -  
Total Commercial
     167,179       138,429       94,862  
                         
Industrial:
                        
Black Hills Power
     20,014       21,432       21,974  
Cheyenne Light
     11,121       9,716       7,306  
Colorado Electric
     31,067       16,280       -  
Total Industrial
     62,202       47,428       29,280  
                         
Municipal:
                        
Black Hills Power
     2,735       2,734       2,697  
Cheyenne Light
     932       973       797  
Colorado Electric
     4,408       2,289       -  
Total Municipal
     8,075       5,996       3,494  
                         
Contract Wholesale:
                        
Black Hills Power
     25,358       26,643       25,240  
                         
Off-system Wholesale:
                        
Black Hills Power
     32,212       63,770       35,210  
Cheyenne Light
     8,565       6,105       -  
Colorado Electric
     14,008       11,194       -  
Total Off-system Wholesale
     54,785       81,069       35,210  
                         
Other Sales Revenue:
                        
Black Hills Power
     18,277       12,950       12,932  
Cheyenne Light
     718       394       208  
Colorado Electric
     4,226       1,346       -  
Total Other Sales Revenue
     23,221       14,690       13,140  
                         
Total Sales Revenues
   $ 485,152     $ 425,123     $ 270,943  


 
17
 


Quantities Generated and Purchased (MWh)

   
2009
    
2008
    
2007
  
Generated -
                  
Coal-fired:
                  
Black Hills Power
     1,721,074       1,731,838       1,758,280  
Cheyenne Light(1)
     766,943       740,051       -  
Colorado Electric
     252,603       138,424       -  
Total Coal
     2,740,620       2,610,313       1,758,280  
                         
Gas and Oil-fired:
                        
Black Hills Power
     46,723       61,801       90,618  
Cheyenne Light
     -       -       -  
Colorado Electric
     2,705       306       -  
Total Gas and Oil
     49,428       62,107       90,618  
                         
Total Generated:
                        
Black Hills Power
     1,767,797       1,793,639       1,848,898  
Cheyenne Light
     766,943       740,051       -  
Colorado Electric
     255,308       138,730       -  
Total Generated
     2,790,048       2,672,420       1,848,898  
                         
Purchased:
                        
Black Hills Power
     1,686,455       1,703,088       1,279,005  
Cheyenne Light
     651,201       590,622       1,047,782  
Colorado Electric
     1,991,058       1,028,029       -  
Total Purchased
     4,328,714       3,321,739       2,326,787  
                         
Total Generated and Purchased
     7,118,762       5,994,159       4,175,685  
__________________________
(1)
Represents the Wygen II plant that began providing electricity to Cheyenne Light customers on January 1, 2008.

 
18
 

Quantity Sold (MWh)

   
2009
    
2008
    
2007
  
Residential:
                  
Black Hills Power
     529,825       524,413       518,148  
Cheyenne Light
     255,134       255,345       251,313  
Colorado Electric
     589,526       284,294       -  
Total Residential
     1,374,485       1,064,052       769,461  
                         
Commercial:
                        
Black Hills Power
     723,360       699,734       690,702  
Cheyenne Light
     583,986       586,151       561,963  
Colorado Electric
     666,563       330,870       -  
Total Commercial
     1,973,909       1,616,755       1,252,665  
                         
Industrial:
                        
Black Hills Power
     353,041       414,421       434,627  
Cheyenne Light
     174,792       144,179       141,353  
Colorado Electric
     452,584       235,218       -  
Total Industrial
     980,417       793,818       575,980  
                         
Municipal:
                        
Black Hills Power
     33,948       34,368       34,661  
Cheyenne Light
     3,456       3,669       3,658  
Colorado Electric
     37,244       19,740       -  
Total Municipal
     74,648       57,777       38,319  
                         
Contract Wholesale:
                        
Black Hills Power
     645,297       665,795       652,931  
                         
Off-system Wholesale:
                        
Black Hills Power
     1,009,574       1,074,398       678,581  
Cheyenne Light
     309,122       246,542       -  
Colorado Electric
     373,495       230,333       -  
Total Off-system Wholesale
     1,692,191       1,551,273       678,581  
                         
Total Quantity Sold:
                        
Black Hills Power
     3,295,045       3,413,129       3,009,650  
Cheyenne Light
     1,326,490       1,235,886       958,287  
Colorado Electric
     2,119,412       1,100,455       -  
Total Quantity Sold
     6,740,947       5,749,470       3,967,937  
                         
Losses and Company Use:
                        
Black Hills Power
     159,207       83,598       118,253  
Cheyenne Light
     91,654       94,787       89,495  
Colorado Electric
     126,954       66,304       -  
Total Losses and Company Use
     377,815       244,689       207,748  
                         
Total Energy
     7,118,762       5,994,159       4,175,685  


 
19
 

Degree Days
   
2009
    
2008
    
2007
  
                                     
Heating Degree Days:
  
Actual
    
Variance from
30-Year Average
    
Actual
    
Variance from
30-Year Average
    
Actual
    
Variance from
30-Year Average
  
Actual -
                                    
Black Hills Power
     7,753       8 %     7,676       6 %     6,627       (7 )%
Cheyenne Light
     7,411       -       7,435       1 %     6,964       (6 )%
Colorado Electric
     5,546       (1 )%     2,204       (5 )%     -       -  
                                                 
Cooling Degree Days:
                                                
Actual -
                                                
Black Hills Power
     354       (41 )%     482       (19 )%     1,033       74 %
Cheyenne Light
     203       (26 )%     372       36 %     536       96 %
Colorado Electric
     804       (13 )%     500       (12 )%     -       -  


Electric Customers at Year-End
   
2009
    
2008
    
2007
  
Residential:
                  
Black Hills Power
     54,470       53,765       53,057  
Cheyenne Light
     35,943       35,205       35,175  
Colorado Electric
     81,622       81,561       -  
Total Residential
     172,035       170,531       88,232  
                         
Commercial:
                        
Black Hills Power
     12,261       12,213       12,073  
Cheyenne Light
     4,932       4,563       4,381  
Colorado Electric
     11,101       11,155       -  
Total Commercial
     28,294       27,931       16,454  
                         
Industrial:
                        
Black Hills Power
     38       40       41  
Cheyenne Light
     2       2       2  
Colorado Electric
     90       93       -  
Total Industrial
     130       135       43  
                         
Contract Wholesale:
                        
Black Hills Power
     3       3       3  
                         
Other Electric Customers:
                        
Black Hills Power
     143       3,010       3,012  
Cheyenne Light
     13       6       6  
Colorado Electric
     499       480       -  
Total Other Electric Customers
     655       3,496       3,018  
                         
Total Customers:
                        
Black Hills Power
     66,915       69,031       68,186  
Cheyenne Light
     40,890       39,776       39,564  
Colorado Electric
     93,312       93,289       -  
Total Customers
     201,117       202,096       107,750  

 
20
 

Cheyenne Light Natural Gas Distribution

Cheyenne Light's natural gas distribution system serves approximately 33,900 natural gas customers in Cheyenne and other portions of Laramie County, Wyoming.  Our peak capacity was approximately 38,700 Dth during the year ending December 31, 2009.  The following table summarizes certain operating information:

   
2009
    
2008
    
2007
  
                   
Sales Revenues (in thousands):
                  
Residential
   $ 21,495     $ 28,059     $ 18,985  
Commercial
     9,821       13,751       9,437  
Industrial
     3,537       5,668       3,340  
Other Sales Revenues
     760       818       706  
Total Sales Revenues
   $ 35,613     $ 48,296     $ 32,468  
                         
Sales Margins (in thousands):
                        
Residential
   $ 10,219     $ 10,083     $ 6,408  
Commercial
     3,266       3,177       2,268  
Industrial
     509       483       436  
Other Sales Margins
     760       818       707  
Total Sales Margins
   $ 14,754     $ 14,561     $ 9,819  
                         
Volumes Sold (Dth):
                        
Residential
     2,516,699       2,582,248       2,380,945  
Commercial
     1,502,002       1,501,025       1,382,150  
Industrial
     722,776       689,945       664,807  
Total Volumes Sold
     4,741,477       4,773,218       4,427,902  

Gas Utilities Segment

At December 31, 2009, our Gas Utilities owned gas transmission and distribution lines by state shown below (in line miles):

   
Intrastate Gas
Transmission Pipelines
    
Gas Distribution
Mains
    
Gas Distribution
Service Lines
  
                   
Colorado
     122       2,967       871  
Nebraska
     51       3,406       3,462  
Iowa
     170       2,753       2,313  
Kansas
     283       2,578       1,288  
Total
     626       11,704       7,934  


 
21
 

The following table summarizes the regulated Gas Utilities' sales revenues for December 31, 2009 and 2008 (in thousands):

Sales Revenues
  
2009
    
2008(1)
  
             
Residential:
            
Colorado
   $ 62,732     $ 27,928  
Nebraska
     127,120       60,624  
Iowa
     113,781       47,338  
Kansas
     70,848       31,456  
Total Residential
     374,481       167,346  
                 
Commercial:
                
Colorado
     13,357       6,356  
Nebraska
     43,472       20,705  
Iowa
     54,587       26,003  
Kansas
     22,629       10,092  
Total Commercial
     134,045       63,156  
                 
Industrial:
                
Colorado
     1,348       1,495  
Nebraska
     3,425       1,640  
Iowa
     2,191       1,581  
Kansas
     11,057       14,667  
Total Industrial
     18,021       19,383  
                 
Transportation:
                
Colorado
     732       278  
Nebraska
     10,569       4,703  
Iowa
     3,876       1,609  
Kansas
     5,389       2,409  
Total Transportation
     20,566       8,999  
                 
Other Sales Revenue:
                
Colorado
     100       39  
Nebraska
     2,077       907  
Iowa
     1,073       457  
Kansas
     3,213       1,600  
Total Other Sales Revenue
     6,463       3,003  
                 
Total Regulated:
                
Colorado
     78,269       36,096  
Nebraska
     186,663       88,579  
Iowa
     175,508       76,988  
Kansas
     113,136       60,224  
Total Regulated
     553,576       261,887  
                 
Non-regulated Services
     26,736       15,189  
                 
Total Sales Revenues
   $ 580,312     $ 277,076  
__________________________
(1)
2008 reported amounts include the regulated Gas Utilities for the period July 14, 2008 to December 31, 2008.

 
22
 

The following table summarizes the regulated Gas Utilities' sales margins for December 31, 2009 and 2008 (in thousands):

Sales Margins
  
2009
    
2008(1)
  
             
Residential:
            
Colorado
   $ 17,443     $ 5,984  
Nebraska
     44,638       19,460  
Iowa
     42,734       16,335  
Kansas
     28,999       12,436  
Total Residential
     133,814       54,215  
                 
Commercial:
                
Colorado
     3,176       1,131  
Nebraska
     11,785       4,952  
Iowa
     12,749       5,210  
Kansas
     6,484       2,693  
Total Commercial
     34,194       13,986  
                 
Industrial:
                
Colorado
     375       232  
Nebraska
     431       173  
Iowa
     244       105  
Kansas
     1,766       1,041  
Total Industrial
     2,816       1,551  
                 
Transportation:
                
Colorado
     732       278  
Nebraska
     10,569       4,703  
Iowa
     3,876       1,609  
Kansas
     5,389       2,409  
Total Transportation
     20,566       8,999  
                 
Other Sales Margins:
                
Colorado
     101       39  
Nebraska
     2,077       907  
Iowa
     1,073       457  
Kansas
     2,312       1,177  
Total Other Sales Margins
     5,563       2,580  
                 
Total Regulated:
                
Colorado
     21,827       7,664  
Nebraska
     69,500       30,195  
Iowa
     60,676       23,716  
Kansas
     44,950       19,756  
Total Regulated
     196,953       81,331  
                 
Non-regulated Services
     11,643       3,895  
                 
Total Sales Margins
   $ 208,596     $ 85,226  
__________________________
(1)
2008 reported amounts include the regulated Gas Utilities for the period July 14, 2008 to December 31, 2008.

 
23
 

The following table summarizes the regulated Gas Utilities' volumes for December 31, 2009 and 2008 (in Dth):

Volumes
  
2009
    
2008(1)
  
             
Residential:
            
Colorado
     6,355,275       2,344,549  
Nebraska
     12,619,682       5,115,805  
Iowa
     10,976,268       4,126,150  
Kansas
     6,878,243       2,682,850  
Total Residential
     36,829,468       14,269,354  
                 
Commercial:
                
Colorado
     1,444,360       563,169  
Nebraska
     5,189,630       2,133,433  
Iowa
     6,597,035       2,749,234  
Kansas
     2,696,870       1,063,356  
Total Commercial
     15,927,895       6,509,192  
                 
Industrial:
                
Colorado
     263,134       164,112  
Nebraska
     581,892       248,256  
Iowa
     333,324       196,841  
Kansas
     2,524,126       1,586,306  
Total Industrial
     3,702,476       2,195,515  
                 
Transportation:
                
Colorado
     807,999       347,822  
Nebraska
     25,311,501       12,930,165  
Iowa
     14,915,602       6,312,050  
Kansas
     14,069,182       7,215,038  
Total Transportation
     55,104,284       26,805,075  
                 
Other Volumes:
                
Colorado
     -       -  
Nebraska
     1,400       320  
Iowa
     68,290       18,301  
Kansas
     141,909       60,917  
Total Other Volumes
     211,599       79,538  
                 
Total Volumes:
                
Colorado
     8,870,768       3,419,652  
Nebraska
     43,704,105       20,427,979  
Iowa
     32,890,519       13,402,576  
Kansas
     26,310,330       12,608,467  
Total Volumes
     111,775,722       49,858,674  
__________________________
(1)
2008 reported amounts include the regulated Gas Utilities for the period July 14, 2008 to December 31, 2008.

 
24
 


Degree Days
   
2009
    
2008
  
Heating Degree Days:
  
Actual
    
Variance From
30-Year Average
    
Actual
    
Variance From
30-Year Average
  
                         
Colorado
     6,299       2 %     2,376       (7 )%
Nebraska
     6,238       5 %     2,458       -  
Iowa
     7,279       6 %     2,909       3 %
Kansas
     4,989       -       1,897       (3 )%

The following table summarizes the quantities of natural gas in storage at our regulated Gas Utilities at December 31, (in MMBtu):

   
2009
    
2008
  
             
Natural gas in storage
     6,866,550       7,317,931  


 
25
 

The following table summarizes the regulated Gas Utilities' customers as of December 31, 2009 and 2008:

Customers
  
December 31,
2009
    
December 31,
2008
  
             
Residential:
            
Colorado
     65,586       64,601  
Nebraska
     179,873       177,432  
Iowa
     133,712       133,442  
Kansas
     97,446       96,593  
Total Residential
     476,617       472,068  
                 
Commercial:
                
Colorado
     3,590       3,579  
Nebraska
     15,218       15,034  
Iowa
     15,403       15,467  
Kansas
     9,510       9,463