x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Incorporated in South Dakota | 625 Ninth Street | IRS Identification Number |
Rapid City, South Dakota 57701 | 46-0458824 | |
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 |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Class | Outstanding at January 31, 2017 | ||
Common stock, $1.00 par value | 53,384,259 | shares |
Page | ||||
GLOSSARY OF TERMS AND ABBREVIATIONS | ||||
WEBSITE ACCESS TO REPORTS | ||||
FORWARD-LOOKING INFORMATION | ||||
Part I | ||||
ITEMS 1. and 2. | BUSINESS AND PROPERTIES | |||
ITEM 1A. | RISK FACTORS | |||
ITEM 1B. | UNRESOLVED STAFF COMMENTS | |||
ITEM 3. | LEGAL PROCEEDINGS | |||
ITEM 4. | MINE SAFETY DISCLOSURES | |||
Part II | ||||
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | |||
ITEM 6. | SELECTED FINANCIAL DATA | |||
ITEMS 7. and 7A. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS AND QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | |||
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | |||
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | |||
ITEM 9A. | CONTROLS AND PROCEDURES | |||
ITEM 9B. | OTHER INFORMATION | |||
Part III | ||||
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE | |||
ITEM 11. | EXECUTIVE COMPENSATION | |||
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | |||
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE | |||
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES | |||
Part IV | ||||
ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES | |||
ITEM 16. | FORM 10-K SUMMARY | |||
SIGNATURES | ||||
INDEX TO EXHIBITS |
AC | Alternating Current |
AFUDC | Allowance for Funds Used During Construction |
AltaGas | AltaGas Renewable Energy Colorado LLC, a subsidiary of AltaGas Ltd. |
AOCI | Accumulated Other Comprehensive Income |
APSC | Arkansas Public Service Commission |
Aquila Transaction | Our July 14, 2008 acquisition of five utilities from Aquila, Inc. |
ARO | Asset Retirement Obligations |
ASC | Accounting Standards Codification |
ASU | Accounting Standards Update as issued by the FASB |
ATM | At-the-market equity offering program |
Baseload plant | A power generation facility used to meet some or all of a given region’s continuous energy demand, producing energy at a constant rate. |
Basin Electric | Basin Electric Power Cooperative |
Bbl | Barrel |
Bcf | Billion cubic feet |
Bcfe | Billion cubic feet equivalent |
BHC | Black Hills Corporation; the Company |
BHEP | Black Hills Exploration and Production, Inc., a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings, includes Black Hills Gas Resources, Inc. and Black Hills Plateau Production LLC, direct wholly-owned subsidiaries of Black Hills Exploration and Production, Inc. |
Black Hills Colorado IPP | Black Hills Colorado IPP, LLC a 50.1% owned subsidiary of Black Hills Electric Generation |
Black Hills Gas | Black Hills Gas, LLC, a subsidiary of Black Hills Gas Holdings, which was previously named SourceGas LLC. |
Black Hills Gas Holdings | Black Hills Gas Holdings, LLC, a subsidiary of Black Hills Utility Holdings, which was previously named SourceGas Holdings LLC |
Black Hills Electric Generation | Black Hills Electric Generation, LLC, a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings |
Black Hills Energy | The name used to conduct the business of our utility companies |
Black Hills Energy Arkansas Gas | Includes the acquired SourceGas utility Black Hills Energy Arkansas, Inc. utility operations |
Black Hills Energy Colorado Electric | Includes Colorado Electric’s utility operations |
Black Hills Energy Colorado Gas | Includes Black Hills Energy Colorado Gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Colorado gas operations and RMNG |
Black Hills Energy Iowa Gas | Includes Black Hills Energy Iowa gas utility operations |
Black Hills Energy Kansas Gas | Includes Black Hills Energy Kansas gas utility operations |
Black Hills Energy Nebraska Gas | Includes Black Hills Energy Nebraska gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Nebraska gas operations |
Black Hills Energy Services | A Choice Gas supplier acquired in the SourceGas Acquisition |
Black Hills Energy South Dakota Electric | Includes Black Hills Power’s operations in South Dakota, Wyoming and Montana |
Black Hills Energy Wyoming Electric | Includes Cheyenne Light’s electric utility operations |
Black Hills Energy Wyoming Gas | Includes Cheyenne Light’s natural gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Wyoming gas operations |
Black Hills Gas Distribution | Black Hills Gas Distribution, LLC, a company acquired in the SourceGas Acquisition that conducts the gas distribution operations in Colorado, Nebraska and Wyoming. It was formerly named SourceGas Distribution LLC. |
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 (doing business as Black Hills Energy) |
BHSC | Black Hills Service Company LLC, 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 (doing business as Black Hills Energy) |
Black Hills Wyoming | Black Hills Wyoming, LLC, a direct, wholly-owned subsidiary of Black Hills Electric Generation |
BLM | United States Bureau of Land Management |
Btu | British thermal unit |
Busch Ranch | Busch Ranch Wind Farm is a 29 MW wind farm near Pueblo, Colorado, jointly owned by Colorado Electric and AltaGas. Colorado Electric has a 50% ownership interest in the wind farm. |
Ceiling Test | Related to our Oil and Gas subsidiary, capitalized costs, less accumulated amortization and related deferred income taxes, are subject to a ceiling test which limits the pooled costs to the aggregate of the discounted value of future net revenue attributable to proved natural gas and crude oil reserves using a discount rate defined by the SEC plus the lower of cost or market value of unevaluated properties. |
CAPP | Customer Appliance Protection Plan - acquired in the SourceGas Acquisition |
CFTC | United States Commodity Futures Trading Commission |
CG&A | Cawley, Gillespie & Associates, Inc., an independent consulting and engineering firm |
Cheyenne Light | Cheyenne Light, Fuel and Power Company, a direct, wholly-owned subsidiary of Black Hills Corporation (doing business as Black Hills Energy) |
Cheyenne Prairie | Cheyenne Prairie Generating Station is a 132 MW natural-gas fired generating facility jointly owned by Black Hills Power and Cheyenne Light in Cheyenne, Wyoming. Cheyenne Prairie was placed into commercial service on October 1, 2014. |
Choice Gas Program | The unbundling of the natural gas service from the distribution component, which opens up the gas supply for competition allowing customers to choose from different natural gas suppliers. Black Hills Gas Distribution distributes the gas and Black Hills Energy Service is one of the Choice Gas suppliers. |
City of Gillette | Gillette, Wyoming |
CO2 | Carbon dioxide |
Colorado Electric | Black Hills Colorado Electric Utility Company, LP, an indirect, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
Colorado Gas | Black Hills Colorado Gas Utility Company, LP, an indirect, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
Colorado Interstate Gas (CIG) | Colorado Interstate Natural Gas Pricing Index |
Colorado IPP | Black Hills Colorado IPP, LLC a 50.1% owned subsidiary of Black Hills Electric Generation |
Consolidated Indebtedness to Capitalization Ratio | Any Indebtedness outstanding at such time, divided by Capital at such time. Capital being Consolidated Net-Worth (excluding noncontrolling interest and including the aggregate outstanding amount of RSNs) plus Consolidated Indebtedness (including letters of credit, certain guarantees issued and excluding RSNs) as defined within the current Credit Agreement. |
Cooling Degree Day | A cooling degree day is equivalent to each degree that the average of the high and low temperature for a day is above 65 degrees. The warmer the climate, the greater the number of cooling degree days. Cooling degree days are used in the utility industry to measure the relative warmth of weather and to compare relative temperatures between one geographic area and another. Normal degree days are based on the National Weather Service data for selected locations over a 30-year average. |
Cost of Service Gas Program (COSG) | Proposed Cost of Service Gas Program designed to provide long-term natural gas price stability for the Company’s utility customers, along with a reasonable expectation of customer savings over the life of the program. |
CPCN | Certificate of Public Convenience and Necessity |
CPP | Clean Power Plan |
CP Program | Commercial Paper Program |
CPUC | Colorado Public Utilities Commission |
CT | Combustion turbine |
CTII | The 40 MW Gillette CT, a simple-cycle, gas-fired combustion turbine owned by the City of Gillette. |
CVA | Credit Valuation Adjustment |
DART | Days Away Restricted Transferred (number of cases with days away from work or job transfer or restrictions multiplied by 200,000 then divided by total hours worked for all employees during the year covered) |
DC | Direct current |
Dodd-Frank | Dodd-Frank Wall Street Reform and Consumer Protection Act |
DSM | Demand Side Management |
DRSPP | Dividend Reinvestment and Stock Purchase Plan |
Dth | Dekatherm. A unit of energy equal to 10 therms or one million British thermal units (MMBtu) |
EBITDA | Earnings before interest, taxes, depreciation and amortization, a non-GAAP measurement |
ECA | Energy Cost Adjustment -- adjustments that allow us to pass the prudently-incurred cost of fuel and purchased energy through to customers. |
Economy Energy | Electricity purchased by one utility from another utility to take the place of electricity that would have cost more to produce on the utility’s own system |
Energy West | Energy West Wyoming, Inc., a subsidiary of Gas Natural, Inc. Energy West is an acquisition we closed on July 1, 2015. |
Enserco | Enserco Energy Inc., a former wholly-owned subsidiary of Black Hills Non-regulated Holdings, which is presented in discontinued operations in this Annual Report filed on Form 10-K |
EPA | United States Environmental Protection Agency |
EPA Region VIII | EPA Region VIII (Mountains and Plains) located in Denver serving Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming and 27 Tribal Nations |
Equity Unit | Each Equity Unit has a stated amount of $50, consisting of a purchase contract issued by BHC to purchase shares of BHC common stock and a 1/20, or 5% undivided beneficial ownership interest in $1,000 principal amount of BHC RSNs due 2028. |
EWG | Exempt Wholesale Generator |
FASB | Financial Accounting Standards Board |
FDIC | Federal Depository Insurance Corporation |
FERC | United States Federal Energy Regulatory Commission |
Fitch | Fitch Ratings |
GAAP | Accounting principles generally accepted in the United States of America |
GADS | Generation Availability Data System |
GCA | Gas Cost Adjustment -- adjustments that allow us to pass the prudently-incurred cost of gas and certain services through to customers. |
GHG | Greenhouse gases |
Global Settlement | Settlement with a utilities commission where the dollar figure is agreed upon, but the specific adjustments used by each party to arrive at the figure are not specified in public rate orders |
Happy Jack | Happy Jack Wind Farm, LLC, owned by Duke Energy Generation Services |
Heating Degree Day | A heating degree day is equivalent to each degree that the average of the high and the low temperatures for a day is below 65 degrees. The colder the climate, the greater the number of heating degree days. Heating degree days are used in the utility industry to measure the relative coldness of weather and to compare relative temperatures between one geographic area and another. Normal degree days are based on the National Weather Service data for selected locations over a 30 year average. |
IEEE | Institute of Electrical and Electronics Engineers |
Iowa Gas | Black Hills Iowa Gas Utility Company, LLC, a direct, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
IPP | Independent power producer |
IPP Transaction | The July 11, 2008 sale of seven of our IPP plants |
IRS | United States Internal Revenue Service |
KCC | Kansas Corporation Commission |
Kansas Gas | Black Hills Kansas Gas Utility Company, LLC, a direct, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
kV | Kilovolt |
LIBOR | London Interbank Offered Rate |
LOE | Lease Operating Expense |
Loveland Area Project | Part of the Western Area Power Association transmission system |
MACT | Maximum Achievable Control Technology |
MAPP | Mid-Continent Area Power Pool |
MATS | Utility Mercury and Air Toxics Rules under the United States EPA National Emissions Standards for Hazardous Air Pollutants from Coal and Oil Fired Electric Utility Steam Generating Units |
Mbbl | Thousand barrels of oil |
Mcf | Thousand cubic feet |
Mcfd | Thousand cubic feet per day |
Mcfe | Thousand cubic feet equivalent |
MDU | Montana Dakota Utilities Co., a regulated utility division of MDU Resources Group, Inc. |
MEAN | Municipal Energy Agency of Nebraska |
MGP | Manufactured Gas Plant |
MMBtu | Million British thermal units |
MMcf | Million cubic feet |
MMcfe | Million cubic feet equivalent |
Moody’s | Moody’s Investors Service, Inc. |
MSHA | Mine Safety and Health Administration |
MTPSC | Montana Public Service Commission |
MW | Megawatts |
MWh | Megawatt-hours |
N/A | Not Applicable |
Native load | Energy required to serve customers within our service territory |
NAV | Net Asset Value |
Nebraska Gas | Black Hills Nebraska Gas Utility Company, LLC, a direct, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
NERC | North American Electric Reliability Corporation |
NGL | Natural Gas Liquids (1 barrel equals 6 Mcfe) |
NOAA | National Oceanic and Atmospheric Administration |
NOAA Climate Normals | This dataset is produced once every 10 years. This dataset contains daily and monthly normals of temperature, precipitation, snowfall, heating and cooling degree days, frost/freeze dates, and growing degree days calculated from observations at approximately 9,800 stations operated by NOAA’s National Weather Service. |
NOx | Nitrogen oxide |
NOL | Net operating loss |
NPDES | National Pollutant Discharge Elimination System |
NPSC | Nebraska Public Service Commission |
NWPL | Northwest Interstate Natural Gas Pricing Index |
NYMEX | New York Mercantile Exchange |
NYSE | New York Stock Exchange |
OCI | Other Comprehensive Income |
OPEB | Other Post-Employment Benefits |
OSHA | Occupational Safety & Health Administration |
OSM | U.S. Department of the Interior’s Office of Surface Mining |
OTC | Over-the-counter |
PCA | Power Cost Adjustment |
PCCA | Power Capacity Cost Adjustment |
Peak View | $109 million 60 MW wind generating project owned by Colorado Electric, placed in service on November 7, 2016 and adjacent to Busch Ranch Wind Farm |
PPA | Power Purchase Agreement |
PPACA | Patient Protection and Affordable Care Act of 2010 |
PPB | Parts per billion |
PUD | Proved undeveloped reserves |
PUHCA 2005 | Public Utility Holding Company Act of 2005 |
Quad O Regulation | 40 CFR 60 Subpart OOOO - Standards of performance for crude oil and natural gas production, transmission and distribution |
RCRA | Resource Conservation and Recovery Act |
RICE | Reciprocating Internal Combustion Engines |
REPA | Renewable Energy Purchase Agreement |
Revolving Credit Facility | Our $750 million credit facility used to fund working capital needs, letters of credit and other corporate purposes, which matures in 2021 |
RMNG | Rocky Mountain Natural Gas, a regulated gas utility acquired in the SourceGas Acquisition that provides regulated transmission and wholesale natural gas service to Black Hills Gas Distribution in western Colorado (doing business as Black Hills Energy) |
RSNs | Remarketable junior subordinated notes, issued on November 23, 2015 |
SAIDI | System Average Interruption Duration Index |
SDPUC | South Dakota Public Utilities Commission |
SEC | U. S. Securities and Exchange Commission |
Service Guard | Home appliance repair product offering for both natural gas and electric. |
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. |
SourceGas | SourceGas Holdings LLC and its subsidiaries, a gas utility owned by funds managed by Alinda Capital Partners and GE Energy Financial Services, a unit of General Electric Co. (NYSE:GE) that was acquired on February 12, 2016, and is now named Black Hills Gas Holdings, LLC (doing business as Black Hills Energy) |
SourceGas Acquisition | The acquisition of SourceGas Holdings, LLC by Black Hills Utility Holdings |
SourceGas Transaction | On February 12, 2016, Black Hills Utility Holdings acquired SourceGas pursuant to a purchase and sale agreement executed on July 12, 2015 for approximately $1.89 billion, which included the assumption of $760 million in debt at closing. |
Spinning Reserve | Generation capacity that is on-line but unloaded and that can respond within 10 minutes to compensate for generation or transmission outages |
SSIR | System Safety and Integrity Rider |
SSTAR-TEXOK | Natural gas price index tied to the Southern Star Central gas pipeline |
System Peak Demand | Represents the highest point of customer usage for a single hour for the system in total. Our system peaks include demand loads for 100% of plants regardless of joint ownership. |
TCA | Transmission Cost Adjustment -- adjustments passed through to the customer based on transmission costs that are higher or lower than the costs approved in the rate case. |
TCIR | Total Case Incident Rate (average number of work-related injuries incurred by 100 workers during a one-year period) |
VEBA | Voluntary Employee Benefit Association |
VIE | Variable Interest Entity |
VOC | Volatile Organic Compound |
WDEQ | Wyoming Department of Environmental Quality |
WECC | Western Electricity Coordinating Council |
WPSC | Wyoming Public Service Commission |
WRDC | Wyodak Resources Development Corp., a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings |
WTI | West Texas Intermediate crude oil, an oil index benchmark price as quoted by NYMEX |
Wyodak Plant | Wyodak, a 362 MW mine-mouth coal-fired plant in Gillette, Wyoming, owned 80% by PacifiCorp and 20% by Black Hills Energy South Dakota. Our WRDC mine supplies all of the fuel for the plant. |
ITEMS 1 AND 2. | BUSINESS AND PROPERTIES |
Net income (loss) available for common stock for the year ended December 31, 2016 | Total Assets as of December 31, 2016 | |
(in thousands) | ||
Electric Utilities | $85,827 | $2,859,559 |
Gas Utilities | $59,624 | $3,307,967 |
Power Generation | $25,930 | $73,445 |
Mining | $10,053 | $67,347 |
Oil and Gas | ($71,054) | $96,435 |
• | Black Hills Energy South Dakota Electric - includes all Black Hills Power utility operations in South Dakota, Wyoming and Montana. |
• | Black Hills Energy Wyoming Electric - includes all Cheyenne Light electric utility operations. |
• | Black Hills Energy Colorado Electric - includes all Colorado Electric utility operations. |
• | Black Hills Energy Arkansas Gas - includes the acquired SourceGas utility Black Hills Energy Arkansas operations. |
• | Black Hills Energy Colorado Gas - includes Black Hills Energy Colorado Gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Colorado operations and RMNG operations. |
• | Black Hills Energy Nebraska Gas - includes Black Hills Energy Nebraska gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Nebraska operations. |
• | Black Hills Energy Iowa Gas - includes Black Hills Energy Iowa gas utility operations. |
• | Black Hills Energy Kansas Gas - includes Black Hills Energy Kansas gas utility operations. |
• | Black Hills Energy Wyoming Gas - includes Cheyenne Light’s natural gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Wyoming operations. |
• | Black Hills Energy Services - includes the acquired SourceGas Utility Black Hills Energy Services operations. |
System Peak Demand (in MW) | |||||||||
2016 | 2015 | 2014 | |||||||
Summer | Winter | Summer | Winter | Summer | Winter | ||||
South Dakota Electric | 438 | 389 | 424 | 369 | 410 | 389 | |||
Wyoming Electric (a) | 236 | 230 | 212 | 202 | 198 | 197 | |||
Colorado Electric (b) | 412 | 302 | 392 | 303 | 384 | 298 | |||
Total Electric Utilities Peak Demands | 1,086 | 921 | 1,028 | 874 | 992 | 884 |
(a) | Both 2016 summer and winter peaks are records set in July and December, respectively, replacing summer and winter record peaks set in July and December of 2015. |
(b) | New summer peak load for Colorado Electric achieved in July 2016, replacing the previous all-time summer peak of 406 set in June 2016, and of 400 set in June 2012. |
Unit | Fuel Type | Location | Ownership Interest % | Owned Capacity (MW) | Year Installed |
South Dakota Electric: | |||||
Cheyenne Prairie (a) | Gas | Cheyenne, Wyoming | 58% | 55.0 | 2014 |
Wygen III (b) | Coal | Gillette, Wyoming | 52% | 57.2 | 2010 |
Neil Simpson II | Coal | Gillette, Wyoming | 100% | 90.0 | 1995 |
Wyodak (c) | Coal | Gillette, Wyoming | 20% | 72.4 | 1978 |
Neil Simpson CT | Gas | Gillette, Wyoming | 100% | 40.0 | 2000 |
Lange CT | Gas | Rapid City, South Dakota | 100% | 40.0 | 2002 |
Ben French Diesel #1-5 | Oil | Rapid City, South Dakota | 100% | 10.0 | 1965 |
Ben French CTs #1-4 | Gas/Oil | Rapid City, South Dakota | 100% | 80.0 | 1977-1979 |
Wyoming Electric: | |||||
Cheyenne Prairie (a) | Gas | Cheyenne, Wyoming | 42% | 40.0 | 2014 |
Cheyenne Prairie CT (a) | Gas | Cheyenne, Wyoming | 100% | 37.0 | 2014 |
Wygen II | Coal | Gillette, Wyoming | 100% | 95.0 | 2008 |
Colorado Electric: | |||||
Busch Ranch Wind Farm (d) | Wind | Pueblo, Colorado | 50% | 14.5 | 2012 |
Peak View Wind Farm (e) | Wind | Pueblo, Colorado | 100% | 60.0 | 2016 |
Pueblo Airport Generation | Gas | Pueblo, Colorado | 100% | 180.0 | 2011 |
Pueblo Airport Generation CT (f) | Gas | Pueblo, Colorado | 100% | 40.0 | 2016 |
AIP Diesel | Oil | Pueblo, Colorado | 100% | 10.0 | 2001 |
Diesel #1-5 | Oil | Pueblo, Colorado | 100% | 10.0 | 1964 |
Diesel #1-5 | Oil | Rocky Ford, Colorado | 100% | 10.0 | 1964 |
Total MW Capacity | 941.1 |
(a) | Cheyenne Prairie, a 132 MW natural gas-fired power generation facility was placed into commercial operation on October 1, 2014 to support the customers of South Dakota Electric and Wyoming Electric. The facility includes one simple-cycle, 37 MW combustion turbine that is wholly-owned by Wyoming Electric and one combined-cycle, 95 MW unit that is jointly-owned by Wyoming Electric (40 MW) and South Dakota Electric (55 MW). |
(b) | Wygen III, a 110 MW mine-mouth coal-fired power plant, is operated by South Dakota Electric. South Dakota Electric has a 52% ownership interest, MDU owns 25% and the City of Gillette owns the remaining 23% interest. Our WRDC coal mine supplies all of the fuel for the plant. |
(c) | Wyodak, a 362 MW mine-mouth coal-fired power plant, is owned 80% by PacifiCorp and 20% by South Dakota Electric. This baseload plant is operated by PacifiCorp and our WRDC coal mine supplies all of the fuel for the plant. |
(d) | Busch Ranch Wind Farm, a 29 MW wind farm, is operated by Colorado Electric. Colorado Electric has a 50% ownership interest in the wind farm and AltaGas owns the remaining 50%. Colorado Electric has a 25-year REPA with AltaGas for their 14.5 MW of power from the wind farm. |
(e) | Peak View Wind Farm achieved commercial operation on November 7, 2016. |
(f) | Colorado Electric’s newly constructed LM 6000, which achieved commercial operation on December 29, 2016. |
Fuel Source (dollars per MWh) | 2016 | 2015 | 2014 | ||||||
Coal | $ | 11.27 | $ | 10.89 | $ | 10.92 | |||
Natural Gas (a) | $ | 30.59 | $ | 51.14 | $ | 77.31 | |||
Diesel Oil (b) | $ | 149.13 | $ | 303.16 | $ | 174.04 | |||
Total Average Fuel Cost | $ | 12.99 | $ | 14.62 | $ | 14.82 | |||
Purchased Power - Coal, Gas and Oil | $ | 48.36 | $ | 47.81 | $ | 35.21 | |||
Purchased Power - Renewable Sources | $ | 51.95 | $ | 50.92 | $ | 50.27 |
(a) | Decrease is driven by lower 2016 natural gas costs than the prior year. |
(b) | Decrease is due to combination of lower fuel costs in 2016 and the efficiencies at which the diesel units performed compared to the prior year. |
Power Supply | 2016 | 2015 | 2014 | |||
Coal | 33 | % | 33 | % | 34 | % |
Gas, Oil and Wind | 7 | 4 | 4 | |||
Total Generated | 40 | 37 | 38 | |||
Purchased (a) | 60 | 63 | 62 | |||
Total | 100 | % | 100 | % | 100 | % |
(a) | Wind represents approximately 7% of our purchased power in 2016, and approximately 5% of our purchased power in 2015 and 2014. |
• | South Dakota Electric’s PPA with PacifiCorp expiring on December 31, 2023, which provides for the purchase of 50 MW of coal-fired baseload power; |
• | Colorado Electric’s PPA with Black Hills Colorado IPP expiring on December 31, 2031, which provides 200 MW of energy and capacity to Colorado Electric from Black Hills Colorado IPP’s combined-cycle turbines. This PPA is reported and accounted for as a capital lease within our business segments and is eliminated on the accompanying Consolidated Financial Statements; |
• | Colorado Electric’s PPA with AltaGas expiring on October 16, 2037, which provides up to 14.5 MW of wind energy from AltaGas’ owned interest in the Busch Ranch Wind Farm; |
• | Wyoming Electric’s PPA with Black Hills Wyoming expiring on December 31, 2022, whereby Black Hills Wyoming provides 60 MW of unit-contingent capacity and energy from its Wygen I facility. The PPA includes an option for Wyoming Electric to purchase Black Hills Wyoming’s ownership interest in the Wygen I facility through 2019, subject to WPSC and FERC approval in order to obtain regulatory treatment. The purchase price related to the option is $2.6 million per MW adjusted for capital additions and reduced by depreciation over a 35-year life beginning January 1, 2009 (approximately $5 million per year); |
• | Wyoming Electric’s 20-year PPA with Duke Energy expiring on September 3, 2028, which provides up to 29.4 MW of wind energy from the Happy Jack Wind Farm to Wyoming Electric. Under a separate inter-company agreement, Wyoming Electric sells 50% of the facility’s output to South Dakota Electric; |
• | Wyoming Electric’s 20-year PPA with Duke Energy expiring on September 30, 2029, which provides up to 30 MW of wind energy from the Silver Sage wind farm to Wyoming Electric. Under a separate inter-company agreement, Wyoming Electric sells 20 MW of the facility’s output to South Dakota Electric; and |
• | Wyoming Electric and South Dakota Electric’s Generation Dispatch Agreement requires South Dakota Electric to purchase all of Wyoming Electric’s excess energy. |
• | MDU owns a 25% interest in Wygen III’s net generating capacity for the life of the plant. During periods of reduced production at Wygen III, or during periods when Wygen III is off-line, South Dakota Electric will provide MDU with 25 MW from its other generation facilities or from system purchases with reimbursement of costs by MDU; |
• | South Dakota Electric has an agreement through December 31, 2023 to provide MDU capacity and energy up to a maximum of 50 MW; |
• | The City of Gillette owns a 23% interest in Wygen III’s net generating capacity for the life of the plant. During periods of reduced production at Wygen III, or during periods when Wygen III is off-line, South Dakota Electric will provide the City of Gillette with its first 23 MW from its other generation facilities or from system purchases with reimbursement of costs by the City of Gillette. Under this agreement, South Dakota Electric will also provide the City of Gillette its operating component of spinning reserves; and |
• | South Dakota Electric has an agreement to supply up to 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 decreasing capacity purchased over the term of the agreement. The unit-contingent capacity amounts from Wygen III and Neil Simpson II are as follows: |
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 |
Utility | State | Transmission (in Line Miles) | Distribution (in Line Miles) | ||
South Dakota Electric | South Dakota, Wyoming | 1,260 | 2,497 | ||
South Dakota Electric - Jointly Owned (a) | South Dakota, Wyoming | 44 | — | ||
Wyoming Electric | South Dakota, Wyoming | 44 | 1,279 | ||
Colorado Electric | Colorado | 590 | 3,092 |
(a) | South Dakota Electric owns 35% of a DC 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. The transfer capacity of the tie is 200 MW from West to East, and 200 MW from East to West. South Dakota Electric’s electric system is located in the WECC region. 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 power price differentials between the two grids. |
• | Shared Services Agreements - |
◦ | South Dakota Electric, Wyoming Electric, and Black Hills Wyoming are parties to a shared facilities agreement, whereby each entity charges for the use of assets by the affiliate entity. |
◦ | Black Hills Colorado IPP and Colorado Electric are also parties to a facility fee agreement, whereby Colorado Electric charges Black Hills Colorado IPP for the use of Colorado Electric assets. |
◦ | South Dakota Electric and Wyoming Electric receive certain staffing and management services from BHSC for Cheyenne Prairie. |
• | Jointly Owned Facilities - |
◦ | South Dakota Electric, the City of Gillette and MDU are parties to a shared joint ownership agreement, whereby South Dakota Electric charges the City of Gillette and MDU for administrative services, plant operations and maintenance for their share of the Wygen III generating facility for the life of the plant. |
◦ | Colorado Electric and AltaGas are parties to a shared joint ownership agreement whereby Colorado Electric charges AltaGas for operations and maintenance for their share of the Busch Ranch Wind Farm. |
Degree Days | 2016 | 2015 | 2014 | ||||||||
Actual | Variance from Prior Year | Variance from 30-Year Average (b) | Actual | Variance from Prior Year | Variance from 30-Year Average (b) | Actual | Variance from 30-Year Average (b) | ||||
Heating Degree Days: | |||||||||||
South Dakota Electric | 6,402 | (2)% | (10)% | 6,521 | (12)% | (8)% | 7,373 | 4% | |||
Wyoming Electric | 6,363 | (1)% | (14)% | 6,404 | (10)% | (10)% | 7,100 | —% | |||
Colorado Electric | 4,658 | (4)% | (16)% | 4,846 | (12)% | (12)% | 5,534 | —% | |||
Combined (a) | 5,595 | (2)% | (13)% | 5,729 | (11)% | (10)% | 6,473 | 2% | |||
Cooling Degree Days: | |||||||||||
South Dakota Electric | 646 | 12% | (4)% | 577 | 20% | (14)% | 481 | (28)% | |||
Wyoming Electric | 460 | 13% | 31% | 407 | 21% | 16% | 336 | (5)% | |||
Colorado Electric | 1,358 | 7% | 42% | 1,270 | 38% | 32% | 919 | (4)% | |||
Combined (a) | 935 | 9% | 26% | 861 | 32% | 16% | 654 | (12)% |
(a) | The combined heating degree days are calculated based on a weighted average of total customers by state. |
(b) | 30-Year Average is from NOAA Climate Normals. |
Revenue - Electric (in thousands) | 2016 | 2015 | 2014 | ||||||
Residential: | |||||||||
South Dakota Electric | $ | 72,084 | $ | 72,659 | $ | 69,712 | |||
Wyoming Electric | 39,553 | 39,587 | 36,634 | ||||||
Colorado Electric | 97,088 | 97,418 | 94,391 | ||||||
Total Residential | 208,725 | 209,664 | 200,737 | ||||||
Commercial: | |||||||||
South Dakota Electric | 97,579 | 100,511 | 91,882 | ||||||
Wyoming Electric | 64,042 | 64,207 | 59,758 | ||||||
Colorado Electric | 97,147 | 93,821 | 90,909 | ||||||
Total Commercial | 258,768 | 258,539 | 242,549 | ||||||
Industrial: | |||||||||
South Dakota Electric | 33,409 | 33,336 | 28,451 | ||||||
Wyoming Electric (a) | 45,498 | 36,594 | 29,066 | ||||||
Colorado Electric | 39,274 | 42,325 | 39,219 | ||||||
Total Industrial | 118,181 | 112,255 | 96,736 | ||||||
Municipal: | |||||||||
South Dakota Electric | 3,705 | 3,626 | 3,409 | ||||||
Wyoming Electric | 2,122 | 2,179 | 1,930 | ||||||
Colorado Electric | 11,994 | 12,058 | 13,312 | ||||||
Total Municipal | 17,821 | 17,863 | 18,651 | ||||||
Subtotal Retail Revenue - Electric | 603,495 | 598,321 | 558,673 | ||||||
Contract Wholesale: | |||||||||
Total Contract Wholesale - South Dakota Electric | 17,037 | 17,537 | 21,206 | ||||||
Off-system/Power Marketing Wholesale: | |||||||||
South Dakota Electric (b) | 15,431 | 23,241 | 28,002 | ||||||
Wyoming Electric | 5,471 | 5,215 | 8,179 | ||||||
Colorado Electric | 1,453 | 1,270 | 5,726 | ||||||
Total Off-system/Power Marketing Wholesale | 22,355 | 29,726 | 41,907 | ||||||
Other Revenue: (c) | |||||||||
South Dakota Electric | 28,387 | 26,954 | 25,826 | ||||||
Wyoming Electric | 920 | 2,374 | 2,253 | ||||||
Colorado Electric | 5,087 | 4,931 | 7,691 | ||||||
Total Other Revenue | 34,394 | 34,259 | 35,770 | ||||||
Total Revenue - Electric | $ | 677,281 | $ | 679,843 | $ | 657,556 |
(a) | Increase is driven primarily by load growth supporting data centers in Cheyenne, Wyoming. |
(b) | Decrease is due to lower commodity prices that reduced gross sales. |
(c) | Other revenue primarily consists of transmission revenue. |
Quantities Generated and Purchased (MWh) | 2016 | 2015 | 2014 | |||
Generated: | ||||||
Coal-fired: | ||||||
South Dakota Electric (a)(b) | 1,467,403 | 1,537,744 | 1,591,061 | |||
Wyoming Electric (c) | 734,354 | 690,633 | 697,220 | |||
Total Coal - fired | 2,201,757 | 2,228,377 | 2,288,281 | |||
Natural Gas and Oil: | ||||||
South Dakota Electric (a)(d) | 118,467 | 80,944 | 44,984 | |||
Wyoming Electric (a)(d) | 70,997 | 48,644 | 12,534 | |||
Colorado Electric (e) | 153,537 | 100,732 | 140,942 | |||
Total Natural Gas and Oil | 343,001 | 230,320 | 198,460 | |||
Wind: | ||||||
Colorado Electric (f) | 80,582 | 41,043 | 48,318 | |||
Total Wind | 80,582 | 41,043 | 48,318 | |||
Total Generated: | ||||||
South Dakota Electric | 1,585,870 | 1,618,688 | 1,636,045 | |||
Wyoming Electric | 805,351 | 739,277 | 709,754 | |||
Colorado Electric | 234,119 | 141,775 | 189,260 | |||
Total Generated | 2,625,340 | 2,499,740 | 2,535,059 | |||
Purchased: | ||||||
South Dakota Electric | 1,181,445 | 1,422,015 | 1,446,630 | |||
Wyoming Electric | 872,070 | 791,351 | 766,475 | |||
Colorado Electric (e) | 1,911,537 | 1,952,625 | 1,898,232 | |||
Total Purchased (g) | 3,965,052 | 4,165,991 | 4,111,337 | |||
Total Generated and Purchased | 6,590,392 | 6,665,731 | 6,646,396 |
(a) | Natural gas-fired generation from Cheyenne Prairie increased in 2016 primarily due to lower coal fired generation driven by 2016 outages at the coal-fired Wyodak plant. |
(b) | Neil Simpson I was retired on March 21, 2014. |
(c) | Increase in 2016 was due to a 2015 planned annual outage at Wygen II. |
(d) | Cheyenne Prairie was placed into commercial service on October 1, 2014. |
(e) | Lower commodity prices drove an increase in generation and a corresponding decrease in purchased power. |
(f) | Increase in 2016 is due to the addition of the Peak View Wind Project in November 2016. |
(g) | Includes wind power of 269,552 MWh, 227,396 MWh and 224,229 MWh in 2016, 2015 and 2014, respectively. |
Quantities Sold (MWh) | 2016 | 2015 | 2014 | |||
Residential: | ||||||
South Dakota Electric | 520,798 | 521,828 | 542,008 | |||
Wyoming Electric | 257,593 | 256,964 | 261,038 | |||
Colorado Electric | 616,706 | 621,109 | 598,872 | |||
Total Residential | 1,395,097 | 1,399,901 | 1,401,918 | |||
Commercial: | ||||||
South Dakota Electric | 783,319 | 792,466 | 782,238 | |||
Wyoming Electric | 531,446 | 532,218 | 528,689 | |||
Colorado Electric | 752,721 | 706,872 | 685,094 | |||
Total Commercial | 2,067,486 | 2,031,556 | 1,996,021 | |||
Industrial: | ||||||
South Dakota Electric | 429,912 | 429,140 | 399,648 | |||
Wyoming Electric (a) | 650,810 | 498,141 | 382,306 | |||
Colorado Electric | 434,831 | 472,360 | 432,167 | |||
Total Industrial | 1,515,553 | 1,399,641 | 1,214,121 | |||
Municipal: | ||||||
South Dakota Electric | 33,591 | 31,924 | 32,076 | |||
Wyoming Electric | 9,400 | 9,714 | 9,425 | |||
Colorado Electric | 119,392 | 117,858 | 122,247 | |||
Total Municipal | 162,383 | 159,496 | 163,748 | |||
Subtotal Retail Quantity Sold | 5,140,519 | 4,990,594 | 4,775,808 | |||
Contract Wholesale: | ||||||
Total Contract Wholesale - South Dakota Electric (b) | 246,630 | 260,893 | 340,871 | |||
Off-system Wholesale: | ||||||
South Dakota Electric (c) | 597,695 | 837,120 | 808,257 | |||
Wyoming Electric | 110,621 | 121,659 | 191,069 | |||
Colorado Electric | 61,527 | 41,306 | 119,315 | |||
Total Off-system Wholesale | 769,843 | 1,000,085 | 1,118,641 | |||
Total Quantity Sold: | ||||||
South Dakota Electric | 2,611,945 | 2,873,371 | 2,905,098 | |||
Wyoming Electric | 1,559,870 | 1,418,696 | 1,372,527 | |||
Colorado Electric | 1,985,177 | 1,959,505 | 1,957,695 | |||
Total Quantity Sold | 6,156,992 | 6,251,572 | 6,235,320 | |||
Other Uses, Losses or Generation, net (d): | ||||||
South Dakota Electric | 155,370 | 167,332 | 177,577 | |||
Wyoming Electric | 117,551 | 111,932 | 103,702 | |||
Colorado Electric | 160,479 | 134,895 | 129,797 | |||
Total Other Uses, Losses and Generation, net | 433,400 | 414,159 | 411,076 | |||
Total Energy Sold | 6,590,392 | 6,665,731 | 6,646,396 |
(a) | Year over year increases since 2014 are driven by new load supporting data centers in Cheyenne, Wyoming. |
(b) | Decrease in 2015 is primarily due to the expiration in March 2015 of a 5 MW unit contingent capacity contract with MEAN. |
(c) | Decrease in 2016 is driven by weaker market conditions. |
(d) | Includes Company uses, line losses, test energy and excess exchange production. |
Customers at End of Year | 2016 | 2015 | 2014 | |||
Residential: | ||||||
South Dakota Electric | 57,712 | 57,178 | 56,511 | |||
Wyoming Electric | 36,748 | 36,438 | 36,253 | |||
Colorado Electric | 83,873 | 83,285 | 82,710 | |||
Total Residential | 178,333 | 176,901 | 175,474 | |||
Commercial: | ||||||
South Dakota Electric | 13,278 | 13,197 | 13,173 | |||
Wyoming Electric | 4,560 | 4,760 | 4,489 | |||
Colorado Electric | 11,248 | 11,215 | 11,156 | |||
Total Commercial | 29,086 | 29,172 | 28,818 | |||
Industrial: | ||||||
South Dakota Electric | 21 | 20 | 23 | |||
Wyoming Electric | 5 | 4 | 4 | |||
Colorado Electric | 62 | 63 | 66 | |||
Total Industrial | 88 | 87 | 93 | |||
Other Electric Customers: | ||||||
South Dakota Electric | 340 | 335 | 325 | |||
Wyoming Electric | 218 | 220 | 224 | |||
Colorado Electric | 441 | 469 | 469 | |||
Total Other Electric Customers | 999 | 1,024 | 1,018 | |||
Subtotal Retail Customers | 208,506 | 207,184 | 205,403 | |||
Contract Wholesale: | ||||||
Total Contract Wholesale - South Dakota Electric | 2 | 3 | 3 | |||
Total Customers: | ||||||
South Dakota Electric | 71,353 | 70,733 | 70,035 | |||
Wyoming Electric | 41,531 | 41,422 | 40,970 | |||
Colorado Electric | 95,624 | 95,032 | 94,401 | |||
Total Electric Customers at End of Year | 208,508 | 207,187 | 205,406 |
State | Working Capacity (Mcf) | Cushion Gas (Mcf) (a) | Total Capacity (Mcf) | Maximum Daily Withdrawal Capability (Mcfd) | |||||
Arkansas | 8,442,700 | 12,950,000 | 21,392,700 | 196,000 | |||||
Colorado | 2,168,721 | 6,063,249 | 8,231,970 | 30,000 | |||||
Wyoming | 6,813,400 | 17,270,200 | 24,083,600 | 32,950 | |||||
Total | 17,424,821 | 36,283,449 | 53,708,270 | 258,950 |
(a) | Cushion gas represents the volume of gas that must be retained in a facility to maintain reservoir pressure. |
System Infrastructure (in line miles) as of | Intrastate Gas Transmission Pipelines | Gas Distribution Mains | Gas Distribution Service Lines | |||
December 31, 2016 | ||||||
Arkansas | 886 | 4,572 | 906 | |||
Colorado | 678 | 6,481 | 2,323 | |||
Nebraska | 1,249 | 8,330 | 3,319 | |||
Iowa | 180 | 2,740 | 2,639 | |||
Kansas | 293 | 2,826 | 1,328 | |||
Wyoming | 1,299 | 3,372 | 1,208 | |||
Total | 4,585 | 28,321 | 11,723 |
2016 | 2015 | 2014 | |||||||||||
Actual | Variance From Prior Year | Variance From 30-Year Average (d) | Actual | Variance From Prior Year | Variance From 30-Year Average (d) | Actual | Variance From 30-Year Average (d) | ||||||
Heating Degree Days: | |||||||||||||
Arkansas (a) | 2,397 | —% | (10)% | — | —% | —% | — | —% | |||||
Colorado | 5,762 | 4% | (9)% | 5,527 | (10)% | (12)% | 6,108 | (3)% | |||||
Nebraska | 5,457 | 2% | (12)% | 5,350 | (14)% | (12)% | 6,193 | 2% | |||||
Iowa | 5,997 | (10)% | (12)% | 6,629 | (16)% | (2)% | 7,875 | 16% | |||||
Kansas (b) | 4,307 | (3)% | (12)% | 4,432 | (13)% | (9)% | 5,099 | 4% | |||||
Wyoming | 6,750 | 5% | (8)% | 6,404 | (10)% | (10)% | 7,100 | —% | |||||
Combined (c) | 5,823 | (1)% | (10)% | 5,890 | (13)% | (8)% | 6,805 | 6% |
(a) | Arkansas has a weather normalization mechanism in effect during the months of November through April for those customers with residential and business rate schedules. The weather normalization mechanism in Arkansas only uses one location to calculate the weather, minimizing, but not eliminating weather impact. |
(b) | Kansas Gas has an approved weather normalization mechanism within its rate structure, which minimizes weather impact on gross margins, using multiple locations. |
(c) | The combined heating degree days are calculated based on a weighted average of total customers by state excluding Kansas Gas due to its weather normalization mechanism. |
(d) | 30-Year Average is from NOAA climate normals. |
Gas Utilities Revenue (in thousands) | 2016 | 2015 | 2014 | ||||||
Residential: | |||||||||
Arkansas | $ | 59,675 | $ | — | $ | — | |||
Colorado | 102,468 | 55,216 | 58,439 | ||||||
Nebraska | 98,300 | 111,090 | 135,052 | ||||||
Iowa | 80,480 | 90,865 | 124,145 | ||||||
Kansas | 56,284 | 61,420 | 74,128 | ||||||
Wyoming | 35,899 | 23,554 | 24,426 | ||||||
Total Residential | 433,106 | 342,145 | 416,190 | ||||||
Commercial: | |||||||||
Arkansas | 29,460 | — | — | ||||||
Colorado | 36,431 | 10,744 | 12,233 | ||||||
Nebraska | 27,742 | 32,798 | 39,947 | ||||||
Iowa | 33,119 | 39,314 | 60,640 | ||||||
Kansas | 18,241 | 21,802 | 24,966 | ||||||
Wyoming | 17,554 | 12,916 | 11,279 | ||||||
Total Commercial | 162,547 | 117,574 | 149,065 | ||||||
Industrial: | |||||||||
Arkansas | 4,904 | — | — | ||||||
Colorado | 1,837 | 1,433 | 1,909 | ||||||
Nebraska | 458 | 1,339 | 830 | ||||||
Iowa | 1,777 | 2,633 | 4,386 | ||||||
Kansas | 8,892 | 12,887 | 16,963 | ||||||
Wyoming | 3,377 | 4,106 | 2,945 | ||||||
Total Industrial | 21,245 | 22,398 | 27,033 | ||||||
Other: | |||||||||
Arkansas | 2,644 | — | — | ||||||
Colorado | 1,006 | 464 | 118 | ||||||
Nebraska | 3,479 | 2,271 | 2,440 | ||||||
Iowa | 506 | 580 | 724 | ||||||
Kansas | 4,177 | 4,475 | 2,836 | ||||||
Wyoming | 882 | 275 | 267 | ||||||
Total Other | 12,694 | 8,065 | 6,385 | ||||||
Distribution Revenue: | |||||||||
Arkansas | 96,683 | — | — | ||||||
Colorado | 141,742 | 67,857 | 72,699 | ||||||
Nebraska | 129,979 | 147,498 | 178,269 | ||||||
Iowa | 115,882 | 133,392 | 189,895 | ||||||
Kansas | 87,594 | 100,584 | 118,893 | ||||||
Wyoming | 57,712 | 40,851 | 38,917 | ||||||
Total Distribution Revenue | 629,592 | 490,182 | 598,673 | ||||||
Transportation: | |||||||||
Arkansas | 8,348 | — | — | ||||||
Colorado | 3,752 | 1,037 | 968 | ||||||
Nebraska (a) | 66,241 | 13,427 | 14,272 | ||||||
Iowa | 4,844 | 4,762 | 4,934 | ||||||
Kansas | 6,611 | 7,280 | 7,448 | ||||||
Wyoming (a) | 21,962 | 3,310 | 838 | ||||||
Total Transportation | 111,758 | 29,816 | 28,460 |
Transmission: | |||||||||
Arkansas | 1,339 | — | — | ||||||
Colorado | 21,713 | — | — | ||||||
Wyoming | 4,680 | — | — | ||||||
Total Transmission | 27,732 | — | — | ||||||
Total Regulated Revenue | 769,082 | 519,998 | 627,133 | ||||||
Non-regulated Services | 69,261 | 31,302 | 30,390 | ||||||
Total Revenue | $ | 838,343 | $ | 551,300 | $ | 657,523 |
Gas Utilities Gross Margin (in thousands) | 2016 | 2015 | 2014 | ||||||
Residential: | |||||||||
Arkansas | $ | 39,324 | $ | — | $ | — | |||
Colorado | 42,853 | 18,153 | 18,100 | ||||||
Nebraska | 51,953 | 51,168 | 54,996 | ||||||
Iowa | 42,030 | 41,638 | 44,134 | ||||||
Kansas | 30,794 | 31,789 | 32,809 | ||||||
Wyoming | 21,558 | 13,011 | 11,615 | ||||||
Total Residential | 228,512 | 155,759 | 161,654 | ||||||
Commercial: | |||||||||
Arkansas | 16,119 | — | — | ||||||
Colorado | 13,128 | 2,921 | 3,048 | ||||||
Nebraska | 10,942 | 10,822 | 11,708 | ||||||
Iowa | 11,620 | 11,662 | 13,206 | ||||||
Kansas | 7,419 | 8,409 | 8,115 | ||||||
Wyoming | 8,147 | 4,678 | 3,582 | ||||||
Total Commercial | 67,375 | 38,492 | 39,659 | ||||||
Industrial: | |||||||||
Arkansas | 1,776 | — | — | ||||||
Colorado | 670 | 395 | 464 | ||||||
Nebraska | 194 | 393 | 239 | ||||||
Iowa | 215 | 253 | 294 | ||||||
Kansas | 2,020 | 2,529 | 2,336 | ||||||
Wyoming | 726 | 733 | 525 | ||||||
Total Industrial | 5,601 | 4,303 | 3,858 | ||||||
Other: | |||||||||
Arkansas | 2,644 | — | — | ||||||
Colorado | 1,006 | 464 | 118 | ||||||
Nebraska | 3,479 | 2,271 | 2,441 | ||||||
Iowa | 506 | 580 | 724 | ||||||
Kansas | 4,177 | 4,405 | 1,990 | ||||||
Wyoming | 882 | 275 | 266 | ||||||
Total Other | 12,694 | 7,995 | 5,539 | ||||||
Distribution Gross Margin: | |||||||||
Arkansas | 59,863 | — | — | ||||||
Colorado | 57,657 | 21,933 | 21,730 | ||||||
Nebraska | 66,568 | 64,654 | 69,384 | ||||||
Iowa | 54,371 | 54,133 | 58,358 | ||||||
Kansas | 44,410 | 47,132 | 45,250 | ||||||
Wyoming | 31,313 | 18,697 | 15,988 | ||||||
Total Distribution Gross Margin | 314,182 | 206,549 | 210,710 | ||||||
Transportation: | |||||||||
Arkansas | 8,348 | — | — | ||||||
Colorado | 3,752 | 1,037 | 968 | ||||||
Nebraska (a) | 66,241 | 13,427 | 14,272 | ||||||
Iowa | 4,844 | 4,762 | 4,934 | ||||||
Kansas | 6,611 | 7,280 | 7,448 | ||||||
Wyoming (a) | 21,962 | 3,310 | 838 | ||||||
Total Transportation | 111,758 | 29,816 | 28,460 | ||||||
Transmission: | |||||||||
Arkansas | 1,339 | — | — | ||||||
Colorado | 21,504 | — | — | ||||||
Wyoming | 4,681 | — | — | ||||||
Total Transmission | 27,524 | — | — | ||||||
Total Regulated Gross Margin: | |||||||||
Arkansas | 69,550 | — | — | ||||||
Colorado | 82,913 | 22,970 | 22,698 | ||||||
Nebraska | 132,809 | 78,081 | 83,656 | ||||||
Iowa | 59,215 | 58,895 | 63,292 | ||||||
Kansas | 51,021 | 54,412 | 52,698 | ||||||
Wyoming | 57,956 | 22,007 | 16,826 | ||||||
Total Regulated Gross Margin | 453,464 | 236,365 | 239,170 | ||||||
Non-regulated Services | 32,714 | 15,290 | 14,572 | ||||||
Total Gross Margin | $ | 486,178 | $ | 251,655 | $ | 253,742 |
Gas Utilities Quantities Sold and Transported (in Dth) | 2016 | 2015 | 2014 | |||
Residential: | ||||||
Arkansas | 6,052,792 | — | — | |||
Colorado | 12,634,407 | 6,575,261 | 6,718,508 | |||
Nebraska | 10,676,153 | 10,751,376 | 13,068,132 | |||
Iowa | 9,567,386 | 9,648,973 | 12,172,281 | |||
Kansas | 5,866,246 | 6,091,041 | 7,313,273 | |||
Wyoming | 4,593,467 | 2,583,049 | 2,515,243 | |||
Total Residential | 49,390,451 | 35,649,700 | 41,787,437 | |||
Commercial: | ||||||
Arkansas | 4,111,136 | — | — | |||
Colorado | 4,676,332 | 1,404,624 | 1,537,704 | |||
Nebraska | 3,986,531 | 4,026,689 | 4,644,645 | |||
Iowa | 5,425,789 | 5,492,230 | 7,182,173 | |||
Kansas | 2,564,759 | 2,768,486 | 3,043,685 | |||
Wyoming | 3,273,314 | 2,073,213 | 1,482,904 | |||
Total Commercial | 24,037,861 | 15,765,242 | 17,891,111 | |||
Industrial: | ||||||
Arkansas | 983,881 | — | — | |||
Colorado | 440,174 | 288,212 | 354,630 | |||
Nebraska | 86,905 | 246,184 | 122,662 | |||
Iowa | 398,871 | 481,760 | 630,912 | |||
Kansas | 2,914,538 | 3,346,525 | 3,384,797 | |||
Wyoming | 913,061 | 845,774 | 539,848 | |||
Total Industrial | 5,737,430 | 5,208,455 | 5,032,849 | |||
Wholesale and Other: | ||||||
Kansas | — | 14,902 | 150,014 | |||
Total Wholesale and Other | — | 14,902 | 150,014 | |||
Distribution Quantities Sold: | ||||||
Arkansas | 11,147,809 | — | — | |||
Colorado | 17,750,913 | 8,268,097 | 8,610,842 | |||
Nebraska | 14,749,589 | 15,024,249 | 17,835,439 | |||
Iowa | 15,392,046 | 15,622,963 | 19,985,366 | |||
Kansas | 11,345,543 | 12,220,954 | 13,891,769 | |||
Wyoming | 8,779,842 | 5,502,036 | 4,537,995 | |||
Total Distribution Quantities Sold | 79,165,742 | 56,638,299 | 64,861,411 | |||
Transportation: | ||||||
Arkansas | 7,292,299 | — | — | |||
Colorado | 2,552,756 | 1,019,933 | 950,819 | |||
Nebraska (a) | 53,046,432 | 28,968,737 | 30,669,764 | |||
Iowa | 19,991,944 | 19,867,265 | 19,959,462 | |||
Kansas | 15,117,771 | 15,865,783 | 15,883,098 | |||
Wyoming (a) | 19,870,602 | 11,672,057 | 9,970,123 | |||
Total Transportation | 117,871,804 | 77,393,775 | 77,433,266 | |||
Transmission: | ||||||
Arkansas | 737,330 | — | — | |||
Colorado (b) | 3,353,222 | — | — | |||
Wyoming | 4,965,209 | — | — | |||
Total Transmission | 9,055,761 | — | — | |||
Total Quantities Sold and Transportation: | ||||||
Arkansas | 19,177,438 | — | — | |||
Colorado | 23,656,891 | 9,288,030 | 9,561,661 | |||
Nebraska | 67,796,021 | 43,992,986 | 48,505,203 | |||
Iowa | 35,383,990 | 35,490,228 | 39,944,828 | |||
Kansas | 26,463,314 | 28,086,737 | 29,774,867 | |||
Wyoming | 33,615,653 | 17,174,093 | 14,508,118 | |||
Total Quantities Sold and Transportation | 206,093,307 | 134,032,074 | 142,294,677 |
(a) | Increased transportation in Nebraska and parts of Wyoming is due to Choice Gas Program customers acquired in the SourceGas Acquisition. |
(b) | Intercompany volumes from RMNG’s transmission system to Black Hills Gas Distribution are not included. |
Customers at End of Year | 2016 | 2015 | 2014 | |||
Residential: | ||||||
Arkansas | 148,513 | — | — | |||
Colorado | 160,153 | 74,345 | 72,360 | |||
Nebraska | 184,794 | 180,897 | 180,014 | |||
Iowa | 140,007 | 139,205 | 138,503 | |||
Kansas | 99,748 | 99,013 | 99,359 | |||
Wyoming | 67,765 | 39,953 | 32,962 | |||
Total Residential | 800,980 | 533,413 | 523,198 | |||
Commercial: | ||||||
Arkansas | 17,638 | — | — | |||
Colorado | 16,777 | 3,825 | 3,788 | |||
Nebraska | 16,147 | 15,948 | 15,900 | |||
Iowa | 15,435 | 15,433 | 15,303 | |||
Kansas | 10,747 | 10,813 | 10,547 | |||
Wyoming | 7,305 | 4,156 | 3,052 | |||
Total Commercial | 84,049 | 50,175 | 48,590 | |||
Industrial: | ||||||
Arkansas | 213 | — | — | |||
Colorado | 275 | 224 | 205 | |||
Nebraska | 126 | 145 | 147 | |||
Iowa | 94 | 98 | 90 | |||
Kansas | 1,324 | 1,377 | 1,277 | |||
Wyoming | 18 | 15 | 7 | |||
Total Industrial | 2,050 | 1,859 | 1,726 | |||
Transportation: | ||||||
Arkansas | 148 | — | — | |||
Colorado | 189 | 40 | 34 | |||
Nebraska (a) | 88,586 | 4,271 | 4,151 | |||
Iowa | 478 | 460 | 418 | |||
Kansas | 1,138 | 1,161 | 1,145 | |||
Wyoming (a) | 53,134 | 30 | 12 | |||
Total Transportation | 143,673 | 5,962 | 5,760 | |||
Wholesale: | ||||||
Kansas (b) | — | — | 8 | |||
Total Wholesale | — | — | 8 | |||
Total Customers: | ||||||
Arkansas | 166,512 | — | — | |||
Colorado | 177,394 | 78,434 | 76,387 | |||
Nebraska | 289,653 | 201,261 | 200,212 | |||
Iowa | 156,014 | 155,196 | 154,314 | |||
Kansas | 112,957 | 112,364 | 112,336 | |||
Wyoming | 128,222 | 44,154 | 36,033 | |||
Total Customers at End of Year | 1,030,752 | 591,409 | 579,282 |
(a) | Increased transportation in Nebraska and parts of Wyoming is due to Choice Gas Program customers acquired in the SourceGas Acquisition. |
(b) | Change in customers is due to classification change to Commercial billing in 2015 based on customer’s business type. |
Subsidiary | Jurisdic-tion | Authorized Rate of Return on Equity | Authorized Return on Rate Base | Authorized Capital Structure Debt/Equity | Authorized Rate Base (in millions) | Effective Date | Tariff and Rate Matters | Percentage of Power Marketing Profit Shared with Customers |
Electric Utilities: | ||||||||
South Dakota Electric | WY | 9.9% | 8.13% | 46.7%/53.3% | $46.8 | 10/2014 | ECA | 65% |
SD | Global Settlement | 7.76% | Global Settlement | $543.9 | 10/2014 | ECA, TCA, Energy Efficiency Cost Recovery/DSM, Vegetation Management | 70% | |
SD | 7.76% |