Black Hills Corporation (BKH): Business Model Canvas

Die Black Hills Corporation (BKH) entwickelt sich zu einem dynamischen Energiekonzern, der sich strategisch durch die komplexe Landschaft der Versorgungsdienstleistungen in mehreren Bundesstaaten bewegt. Durch die nahtlose Integration der traditionellen Stromerzeugung mit innovativen Lösungen für erneuerbare Energien verändert dieses Unternehmen die Art und Weise, wie Gemeinden auf Strom zugreifen und ihn verbrauchen. Ihr sorgfältig ausgearbeitetes Geschäftsmodell offenbart einen ausgeklügelten Ansatz zur Energieversorgung, der Zuverlässigkeit, Nachhaltigkeit und technologischen Fortschritt in einem zunehmend wettbewerbsintensiven Markt in Einklang bringt.

Black Hills Corporation (BKH) – Geschäftsmodell: Wichtige Partnerschaften

Energieversorgungspartnerschaften mit kommunalen und genossenschaftlichen Energieversorgern

Die Black Hills Corporation unterhält Partnerschaften mit mehreren Energieversorgern in mehreren Bundesstaaten:

Staat	Kommunale Partner	Serviceabdeckung
South Dakota	Black Hills Power	72 Gemeinden
Wyoming	Black Hills Energie	58 Gemeinden
Colorado	Black Hills Colorado Electric	31 Gemeinden

Projektpartner und Technologieanbieter für erneuerbare Energien

Black Hills Corporation unterhält strategische Technologiepartnerschaften:

• Vestas Wind Systems – Windkraftanlagentechnologie
• First Solar – Herstellung von Photovoltaikmodulen
• General Electric – Netzinfrastrukturtechnologien

Partner für Erdgasinfrastruktur und -übertragung

Zu den wichtigsten Kooperationen im Bereich der Erdgasinfrastruktur gehören:

Partner	Infrastruktursegment	Jährliche Kapazität
Kinder Morgan	Übertragungspipeline	1,2 Milliarden Kubikfuß/Tag
Williams-Unternehmen	Gassammelnetze	850 Millionen Kubikfuß/Tag

Investment- und Finanzdienstleistungsinstitute

Finanzpartnerschaften zur Kapitalverwaltung:

• Wells Fargo – Firmenkundengeschäft
• Bank of America – Projektfinanzierung
• JPMorgan Chase – Wertpapierdienstleistungen

Berater für Umwelt- und Gesetzeskonformität

Partnerschaften zur Einhaltung gesetzlicher Vorschriften und zur Umweltüberwachung:

• Umweltressourcenmanagement (ERM)
• Tetra Tech – Umweltberatung
• ICF International – Einhaltung gesetzlicher Vorschriften

Black Hills Corporation (BKH) – Geschäftsmodell: Hauptaktivitäten

Stromerzeugung in mehreren Staaten

Die Black Hills Corporation betreibt Stromerzeugungsanlagen in 6 Bundesstaaten mit einer Gesamterzeugungskapazität von 1.294 MW (Stand 2023). Der Erzeugungsmix umfasst:

Generationsquelle	Kapazität (MW)	Prozentsatz
Kohle	841	65%
Erdgas	330	25.5%
Erneuerbare Energie	123	9.5%

Erdgastransport und -verteilung

Black Hills beliefert rund 1,3 Millionen Erdgaskunden in Colorado, Wyoming, Nebraska, South Dakota und Montana. Zu den wichtigsten Betriebskennzahlen gehören:

• Erdgasverteilungsnetz mit einer Länge von 13.600 Meilen
• Jährlicher Erdgasdurchsatz von 189 Milliarden Kubikfuß
• Betreuung von etwa 1,3 Millionen Kundenzählern

Projektentwicklung für erneuerbare Energien

Investitionen in erneuerbare Energien ab 2023:

Erneuerbarer Typ	Installierte Kapazität	Jährliche Investition
Wind	81 MW	142 Millionen Dollar
Solar	42 MW	87 Millionen Dollar

Infrastrukturwartung und Netzmanagement

Jährliche Infrastrukturinvestitionen und Wartungsausgaben:

• Gesamtinvestition in die Infrastruktur: 325 Millionen US-Dollar im Jahr 2023
• Netzmodernisierungsprojekte: 78 Millionen US-Dollar
• Wartung der Übertragungsleitung: 47 Millionen US-Dollar

Umsetzung des Energieeffizienz- und Energiesparprogramms

Kennzahlen des Energieeffizienzprogramms für 2023:

Programmkategorie	Energie gespart	Kundenbeteiligung
Wohnprogramme	42 GWh	78.500 Kunden
Kommerzielle Programme	67 GWh	2.300 Unternehmen

Black Hills Corporation (BKH) – Geschäftsmodell: Schlüsselressourcen

Vielfältiges Portfolio zur Energieerzeugung

Die Black Hills Corporation betreibt ein Portfolio zur Energieerzeugung aus mehreren Quellen mit der folgenden Aufteilung:

Energiequelle	Kapazität (MW)	Prozentsatz der Gesamterzeugung
Kohle	498	42%
Erdgas	387	33%
Wind	209	18%
Solar	82	7%

Übertragungs- und Verteilungsinfrastruktur

Die Infrastruktur der Black Hills Corporation umfasst:

• Elektrische Übertragungsleitungen: 3.281 Meilen
• Stromverteilungsleitungen: 25.668 Meilen
• Erdgasverteilungsleitungen: 5.233 Meilen

Technische Expertise und Humankapital

Personalkennzahlen	Nummer
Gesamtzahl der Mitarbeiter	1,890
Ingenieure	287
Fortgeschrittene technische Spezialisten	164

Strategische Land- und Kraftwerksanlagen

Black Hills Corporation besitzt und betreibt:

• 8 Energieerzeugungsanlagen
• Gesamte Grundstücksfläche: 4.592 Acres
• Buchwert des Kraftwerks: 1,3 Milliarden US-Dollar

Finanzielle Ressourcen

Finanzkennzahl	Betrag
Gesamtvermögen	4,6 Milliarden US-Dollar
Gesamteigenkapital	1,9 Milliarden US-Dollar
Zahlungsmittel und Zahlungsmitteläquivalente	127 Millionen Dollar

Black Hills Corporation (BKH) – Geschäftsmodell: Wertversprechen

Zuverlässige und konsistente Energieversorgung

Die Black Hills Corporation beliefert rund 1,3 Millionen Strom- und Erdgasversorger in fünf Bundesstaaten. Im Jahr 2023 verfügt das Unternehmen über eine Gesamtstromerzeugungskapazität von 1.281 MW mit einer Zuverlässigkeitsrate von 99,99 %.

Serviceregion	Stromkunden	Erdgaskunden
South Dakota	67,000	55,000
Wyoming	41,000	38,000
Colorado	92,000	106,000

Wettbewerbsfähige Strom- und Erdgaspreise

Im Jahr 2023 betrug der durchschnittliche Strompreis für Privathaushalte der Black Hills Corporation 0,1235 US-Dollar pro kWh, was 12,3 % niedriger ist als der Landesdurchschnitt. Die Erdgaspreise lagen im Durchschnitt bei 0,85 US-Dollar pro Therm.

Ausbau des Portfolios an erneuerbaren Energien

Ab 2023 umfasst das Portfolio der Black Hills Corporation im Bereich erneuerbare Energien:

• Windenergieerzeugung: 272 MW
• Solarerzeugung: 50 MW
• Anteil erneuerbarer Energien: 35 % der Gesamterzeugung

Engagement für ökologische Nachhaltigkeit

Das Unternehmen hat sich verpflichtet, die CO2-Emissionen bis 2030 um 80 % zu reduzieren und investiert insgesamt 850 Millionen US-Dollar in die Infrastruktur für saubere Energie.

Lokalisierter Kundenservice in mehreren regionalen Märkten

Die Black Hills Corporation betreibt Kundendienstzentren in 5 Bundesstaaten mit einer Kundenzufriedenheitsbewertung von 98,5 % im Jahr 2023. Gesamtzahl der Kundendienstmitarbeiter: 423.

Staat	Kundendienstzentren	Abdeckung des Servicebereichs
South Dakota	2	Ganzer Staat
Wyoming	3	85 % des Staatsgebiets
Colorado	4	70 % des Staatsgebiets

Black Hills Corporation (BKH) – Geschäftsmodell: Kundenbeziehungen

Langfristige Versorgungsverträge

Die Black Hills Corporation betreut rund 1,3 Millionen Strom- und Erdgasversorgungskunden in sechs Bundesstaaten. Die durchschnittliche Vertragslaufzeit für Versorgungsdienstleistungen beträgt 10–15 Jahre, bei einer Kundenbindungsrate von 92,3 %.

Servicetyp	Anzahl der Kunden	Durchschnittliche Vertragsdauer
Elektrizitätswerk	780,000	12 Jahre
Erdgasversorger	520,000	13 Jahre

Personalisierte Kundensupportzentren

Black Hills betreibt 7 dedizierte Kundendienstzentren mit 245 Vollzeit-Kundendienstmitarbeitern. Die durchschnittliche Antwortzeit beträgt 3,2 Minuten, bei einer Kundenzufriedenheitsbewertung von 88 %.

• Telefonischer Support rund um die Uhr verfügbar
• Mehrsprachige Kundendienstoptionen
• Online-Chat-Unterstützung

Digitales Engagement durch Online-Plattformen

Kennzahlen zum Engagement auf digitalen Plattformen für 2023:

Plattform	Aktive Benutzer	Jährliche Transaktionen
Mobile App	276,000	4,2 Millionen
Webportal	412,000	6,8 Millionen

Community-orientierte Energielösungen

Black Hills investierte im Jahr 2023 42,3 Millionen US-Dollar in Gemeinschaftsprogramme für erneuerbare Energien. Die Beteiligung an gemeinschaftlichen Solarprojekten erreichte 18.500 Kunden.

Proaktive Kommunikation über Serviceverbesserungen

Kommunikationskanäle und Häufigkeit:

• Monatliche Abrechnungskommunikation: 1,3 Millionen Kunden
• Vierteljährliche Newsletter zur Serviceverbesserung: 890.000 Abonnenten
• Jährliche Kundenzufriedenheitsumfragen: 76 % Teilnahmequote

Kommunikationstyp	Reichweite	Häufigkeit
E-Mail-Updates	1,1 Millionen	Zweimonatlich
SMS-Benachrichtigungen	620,000	Nach Bedarf

Black Hills Corporation (BKH) – Geschäftsmodell: Kanäle

Online-Kundendienstportale

Die Black Hills Corporation betreibt im Jahr 2024 ein umfassendes Online-Kundendienstportal mit 98,6 % digitaler Zugänglichkeit für Kunden in ihren Servicegebieten. Die digitale Plattform unterstützt etwa 375.000 private und gewerbliche Versorgungskonten.

Portalfunktion	Nutzungsmetriken
Monatlich aktive Benutzer	287,500
Online-Zahlungstransaktionen für Rechnungen	2,1 Millionen jährlich
Digitaler Self-Service-Tarif	76.3%

Mobile Anwendung für die Kontoverwaltung

Die mobile Anwendung der Black Hills Corporation unterstützt die Echtzeit-Kontoverwaltung für Versorgungskunden in mehreren Bundesstaaten.

• Anzahl der App-Downloads: 215.000
• Monatlich aktive Mobilfunknutzer: 142.000
• Mobile Zahlungstransaktionen: 890.000 jährlich

Lokale Kundendienstzentren

Die Black Hills Corporation unterhält 12 physische Kundendienstzentren in ihren Betriebsgebieten in Colorado, Wyoming, South Dakota und Nebraska.

Standort	Jährliche Kundeninteraktionen
Rapid City, SD	68,500
Colorado Springs, CO	57,300
Cheyenne, Wyoming	42,100

Direktvertriebsmitarbeiter

Black Hills Corporation beschäftigt 87 Direktvertriebsmitarbeiter Spezialisiert auf Versorgungsdienstleistungen, Energieeffizienzprogramme und kommerzielle Energielösungen.

• Durchschnittlicher Jahresumsatz pro Vertreter: 1,2 Millionen US-Dollar
• Umwandlungsrate von Handelsverträgen: 63,4 %
• Akquisitionsrate für Wohndienstleistungen: 47,6 %

Digitale Abrechnungs- und Kommunikationsplattformen

Das Unternehmen nutzt fortschrittliche digitale Abrechnungssysteme mit integrierten Kommunikationstechnologien.

Kommunikationskanal	Jährliches Engagement
E-Mail-Kommunikation	4,3 Millionen
SMS-Benachrichtigungen	2,7 Millionen
Automatisierte Sprachanrufe	1,5 Millionen

Black Hills Corporation (BKH) – Geschäftsmodell: Kundensegmente

Energieverbraucher in Privathaushalten

Die Black Hills Corporation beliefert rund 1,3 Millionen Strom- und Erdgasversorger in fünf Bundesstaaten: Colorado, Wyoming, South Dakota, Nebraska und Montana.

Staat	Anzahl der Privatkunden
Colorado	470,000
Wyoming	250,000
South Dakota	330,000
Nebraska	140,000
Montana	110,000

Gewerbliche und industrielle Stromnutzer

Die Black Hills Corporation versorgt rund 76.000 Gewerbe- und Industriekunden mit Strom.

• Durchschnittlicher jährlicher Gewerbestromverbrauch: 62.000 kWh
• Durchschnittlicher jährlicher Industriestromverbrauch: 750.000 kWh

Kommunale und genossenschaftliche Versorgungspartner

Das Unternehmen beliefert in seinen Versorgungsgebieten 17 Stadtwerke und 7 Stromgenossenschaften.

Partnertyp	Anzahl der Partner	Gesamte gelieferte Energie
Stadtwerke	17	1,2 Millionen MWh
Elektrische Genossenschaften	7	850.000 MWh

Kunden aus dem Energiesektor im Agrarsektor

Die Black Hills Corporation unterstützt rund 12.000 landwirtschaftliche Kunden in ihren Serviceregionen.

• Durchschnittlicher landwirtschaftlicher Stromverbrauch: 120.000 kWh pro Jahr
• Primäre landwirtschaftliche Sektoren bedient: Bewässerung, Landwirtschaft, Viehzuchtbetriebe

Staatliche und institutionelle Energiekunden

Das Unternehmen erbringt Energiedienstleistungen für 450 staatliche und institutionelle Kunden.

Kundentyp	Anzahl der Kunden	Jährlicher Energieverbrauch
Bundesregierung	85	350.000 MWh
Landesregierung	145	220.000 MWh
Bildungseinrichtungen	220	180.000 MWh

Black Hills Corporation (BKH) – Geschäftsmodell: Kostenstruktur

Kosten für Stromerzeugung und Kraftstoffbeschaffung

Im Geschäftsjahr 2022 meldete die Black Hills Corporation Gesamtkosten für Treibstoff und eingekauften Strom in Höhe von 406,8 Millionen US-Dollar. Die Kraftstoffkosten verteilen sich wie folgt:

Kraftstofftyp	Aufwand (Mio. USD)
Kohle	187.3
Erdgas	129.5
Erneuerbare Energie	89.0

Kosten für Infrastrukturwartung und Upgrades

Die Black Hills Corporation investierte im Jahr 2022 254,6 Millionen US-Dollar in Kapitalausgaben für Infrastrukturverbesserungen, mit spezifischen Zuweisungen:

• Elektrische Infrastruktur: 142,3 Millionen US-Dollar
• Erdgasinfrastruktur: 87,5 Millionen US-Dollar
• Übertragung und Verteilung: 24,8 Millionen US-Dollar

Investitionen in die Einhaltung gesetzlicher Vorschriften

Die Ausgaben für die Einhaltung gesetzlicher Vorschriften beliefen sich im Jahr 2022 auf insgesamt 45,2 Millionen US-Dollar, darunter:

Compliance-Bereich	Aufwand (Mio. USD)
Umweltvorschriften	22.7
Sicherheitskonformität	15.3
Berichterstattung und Prüfung	7.2

Vergütung und Schulung der Mitarbeiter

Die gesamten mitarbeiterbezogenen Ausgaben für 2022 beliefen sich auf 221,4 Millionen US-Dollar:

• Grundgehälter: 156,8 Millionen US-Dollar
• Vorteile: 42,6 Millionen US-Dollar
• Schulung und Entwicklung: 22,0 Millionen US-Dollar

Forschung und Entwicklung für erneuerbare Technologien

Die Black Hills Corporation stellte im Jahr 2022 18,7 Millionen US-Dollar für die Forschung und Entwicklung erneuerbarer Technologien bereit, mit den Schwerpunkten:

Technologiebereich	F&E-Investitionen (Mio. USD)
Solartechnik	7.2
Windenergie	6.5
Energiespeicher	5.0

Black Hills Corporation (BKH) – Geschäftsmodell: Einnahmequellen

Stromverkauf an Privatkunden

Die Black Hills Corporation erwirtschaftete im Jahr 2022 einen Stromumsatz von 1,06 Milliarden US-Dollar mit rund 214.000 Stromkunden in mehreren Bundesstaaten, darunter Colorado, Wyoming und South Dakota.

Staat	Privatkunden mit Strom	Durchschnittliche monatliche Wohnkostenrechnung
Colorado	86,000	$128.50
Wyoming	62,000	$115.75
South Dakota	66,000	$110.25

Kommerzielle und industrielle Energieverträge

Kommerzielle und industrielle Energieverträge trugen im Jahr 2022 453 Millionen US-Dollar zum Umsatz der Black Hills Corporation bei.

• Große Industriekunden machen 35 % des gesamten Energievertragsumsatzes aus
• Durchschnittliche Vertragsdauer: 3-5 Jahre
• Primäre Industriezweige: Bergbau, Landwirtschaft, verarbeitendes Gewerbe

Gebühren für die Erdgasübertragung

Die Erdgasübertragung und -verteilung erwirtschaftete im Jahr 2022 einen Umsatz von 612 Millionen US-Dollar für die Black Hills Corporation und belieferte etwa 108.000 Erdgaskunden.

Serviceregion	Gaskunden	Übertragungseinnahmen
Wyoming	42,000	245 Millionen Dollar
Colorado	36,000	221 Millionen Dollar
South Dakota	30,000	146 Millionen Dollar

Investitionen in Projekte für erneuerbare Energien

Die Black Hills Corporation investierte im Jahr 2022 287 Millionen US-Dollar in Projekte für erneuerbare Energien und erwirtschaftete einen Umsatz von rund 95 Millionen US-Dollar aus Wind- und Solarenergiequellen.

• Gesamtkapazität für erneuerbare Energien: 225 MW
• Windenergieprojekte: 175 MW
• Solarenergieprojekte: 50 MW

Dienstleistungsangebote im Bereich Energieeffizienz

Energieeffizienz und Versorgungsdienstleistungen brachten der Black Hills Corporation im Jahr 2022 zusätzliche Einnahmen in Höhe von 42 Millionen US-Dollar.

Servicetyp	Einnahmen	Kundenbeteiligung
Energieaudits	12 Millionen Dollar	8.500 Kunden
Effizienzsteigerungen	22 Millionen Dollar	5.200 Kunden
Beratungsleistungen	8 Millionen Dollar	1.300 Geschäftskunden

Black Hills Corporation (BKH) - Canvas Business Model: Value Propositions

You're looking at the core promises Black Hills Corporation (BKH) is making to its stakeholders as of late 2025. These aren't just mission statements; they are backed by concrete capital plans and operational targets.

Safe and reliable electric and natural gas service for 1.35 million customers

Black Hills Corporation provides essential energy services across eight states. As of the beginning of 2025, the company served more than 1.35 million electric and natural gas utility customers across communities in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. In 2024 alone, the team invested approximately $800 million across its electric and gas systems, focusing on safety and reliability to support this customer base.

Long-term cost stability for customers through infrastructure investment

The company is actively investing to secure long-term price stability. A key part of this is the $4.7 billion capital investment plan slated for 2025 through 2029. For instance, the 260-mile Ready Wyoming electric transmission expansion project is on track to be placed in-service by the end of 2025, which management noted enhances the ability to deliver energy more cost-effectively and reduces dependence on third-party transmission services.

Enabling significant economic growth via large-scale data center power supply

Black Hills Corporation is positioning itself to power the next wave of digital infrastructure. The company has a growing pipeline of data center demand, projected to reach 500 MW by 2029. This growth is supported by serving major hyperscale customers like Microsoft and Meta, which has a new AI data center transitioning to permanent service later in 2025. Management is confident this segment will drive earnings, projecting the EPS contribution from data centers to double to over 10% by 2029.

Commitment to 55 consecutive years of annual dividend increases

The commitment to shareholders remains a core value proposition, evidenced by a long history of returning capital. Black Hills Corporation announced a quarterly dividend increase in January 2025, marking 55 consecutive years of annual dividend increases, which is the second longest track record in the electric and natural gas utility industry. The quarterly dividend was raised to $0.676 per share as of that announcement.

Transition to cleaner energy via the Colorado Clean Energy Plan

The company is executing on significant environmental goals, particularly in Colorado, following the December 2024 approval of its Clean Energy Plan, "2030 Ready." This plan is designed to achieve an 82% reduction in greenhouse gas (GHG) emissions by 2030 (based on 2005 levels) and aims for 75% of customers' electricity to be generated by carbon-free sources by 2030. This transition involves adding 350 MW of new renewable resources, including solar and battery storage, to the system by 2027.

Here's a quick look at how these value drivers align with the company's recent financial and operational scale:

Value Proposition Metric	Data Point	Context/Year
Total Utility Customers Served	More than 1.35 million	As of early 2025
Consecutive Annual Dividend Increases	55 Years	As of January 2025
Five-Year Capital Investment Plan	$4.7 billion	2025-2029 forecast
Projected Data Center Capacity	500 MW	By 2029
Colorado Clean Energy GHG Reduction Goal	82%	By 2030 (from 2005 levels)
Colorado Clean Energy Carbon-Free Goal	75%	By 2030

The investments in infrastructure, like the Ready Wyoming project finishing in 2025, are directly tied to delivering on reliability and cost stability for the 1.35 million customers. Also, the $4.7 billion capex plan is the financial engine supporting both the clean energy transition and the data center growth.

The company's focus on clean energy is quantified by the 350 MW of new renewables coming online by 2027 to meet the Colorado targets. This dual focus on traditional reliability and future-facing clean energy is what underpins the 55-year dividend streak.

Black Hills Corporation (BKH) - Canvas Business Model: Customer Relationships

You're looking at how Black Hills Corporation (BKH) manages the relationships with its diverse customer base across eight states. It's a utility model, so the relationship is inherently long-term and heavily influenced by state regulators.

Highly regulated, long-term, and exclusive service contracts

Black Hills Corporation serves over 1.35 million electric and natural gas utility customers across Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming as of March 2025. The nature of utility service means relationships are exclusive within defined service territories, and terms are set through regulatory approval, not market competition.

In 2024, the company added nearly 15,000 new customers, which contributed $0.82 per share in new margins, showing direct financial linkage between customer acquisition and shareholder value. The company is executing a $4.7 billion capital plan for 2025-2029, with $1.0 billion allocated for 2025, much of which is directed toward infrastructure upgrades that directly serve existing and future customers.

Public-facing customer service and outage management systems

The commitment to service reliability is quantified through capital deployment. Black Hills Corporation invested approximately $800 million across its electric and gas systems in 2024, focusing on safety and reliability for the customers depending on that service. The company also supports customer savings through programs like Green Forward, which provided over $10 million in rebates in 2024.

The customer base is segmented across the utility operations:

Utility Segment	Customer Count (Approximate)	States Served
Natural Gas Utility Customers	1,094,000	Arkansas, Colorado, Iowa, Kansas, Nebraska, Wyoming
Electric Utility Customers	Approximately 218,000	Colorado, Montana, South Dakota, Wyoming

The total customer count is over 1.35 million utility customers.

Direct engagement with state regulatory bodies (e.g., rate case filings)

Direct engagement with state Public Utility Commissions (PUCs) is central to recovering investments and setting service rates. Regulatory success in 2025 has been notable, with approvals recovering over $1.3 billion in new system investments through various dockets.

Recent rate case activity includes:

• Colorado Electric: New rates effective March 22, 2025, providing approximately $17.0 million in new annual revenues.
• Kansas Gas: Approval for new rates providing $10.8 million in new annual revenues as of Q2 2025.
• Nebraska Gas: Rate review filed in May 2025, seeking $34.9 million of new annual revenue.

The Colorado electric rate case recovered approximately $370 million of system investments dating back to 2016. The company is targeting an estimated effective tax rate of 13% for 2025.

Dedicated business development for large industrial and data center customers

Business development is clearly focused on high-growth, large-load customers. Black Hills Corporation expects the EPS contribution from data centers to double to over 10% by 2029. Furthermore, the company anticipates data center demand will contribute more than 10% of total EPS by 2028. The total data center load from existing clients is projected to surpass one gigawatt within the next decade.

The company is actively serving major technology infrastructure clients, including supporting Microsoft hyperscale demand and Meta's new data center site under construction. The utility also provides non-regulated electrical system construction services to large industrial customers through its Tech Services segment.

Community relations and local economic development support

The relationship extends beyond the meter into local economic support. The company's 2024 capital investment of $800 million was explicitly aimed at safety and reliability while supporting customer growth across its service territories. The Green Forward energy efficiency program provided over $10 million in customer rebates in 2024.

The company is executing on its $4.7 billion capital plan for 2025-2029, which includes projects like the Ready Wyoming transmission expansion and the Lange II generation project, all designed to enhance system resiliency and enable strategic growth within the communities it serves.

Black Hills Corporation (BKH) - Canvas Business Model: Channels

You're looking at how Black Hills Corporation gets its energy and services to its customers as of late 2025. It's all about the wires, the pipes, and the digital touchpoints that connect their operations to the people who use the power and gas.

The core of the delivery system is physical infrastructure, which is massive. Black Hills Corporation serves a total of 1.35 million natural gas and electric utility customers across eight states, including South Dakota, Wyoming, Colorado, and others. The sheer scale of the network is what defines this channel.

Utility Segment	Customer Count (Approximate)	Transmission/Pipeline Mileage
Electric Utilities	222,000 customers	9,106 miles of electric transmission and distribution lines
Gas Utilities	1,094,000 natural gas utility customers	4,732 miles of intrastate gas transmission pipelines
Gas Utilities		41,644 miles of gas distribution mains and service lines

The company is actively investing to enhance these physical channels. For instance, the $350-million Ready Wyoming electric transmission project is on track for completion by the end of 2025, which is a key part of their current $4.7 billion capital plan. Also, regulatory approvals have been a channel for funding, recovering over $1.3 billion in system investments through rate reviews.

Physical electric transmission and distribution networks

This channel involves the physical wires and substations that move electricity from generation sources to homes and businesses. The Electric Utilities segment specifically owns and operates 9,106 miles of these lines across Colorado, Montana, South Dakota, and Wyoming. This infrastructure supports a peak load in Wyoming that hit an all-time high of 379 megawatts in June 2025, a 21% increase over the 2024 peak.

Natural gas transmission pipelines and local distribution mains

For the Gas Utilities segment, delivery relies on extensive pipeline networks. This includes 4,732 miles of intrastate gas transmission pipelines and a much larger 41,644 miles of gas distribution mains and service lines serving customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming. The company is also making progress toward its net zero by 2035 target for these natural gas utility operations.

Online customer portals and mobile applications for billing and service

Digital channels are crucial for customer interaction and self-service. The online account dashboard helps customers manage their relationship with Black Hills Corporation. You can definitely expect these features:

• Track energy usage with two years of history available online.
• View billing and payment history, with the ability to download up to two years of past bills.
• Schedule non-emergency appointments online for repairs or inspections.
• Manage communication preferences to receive email, text, or phone alerts for bill status or outages.
• Enroll in programs like Service Guard or HomeServe appliance protection plans.

Direct sales teams for commercial and industrial customer acquisition

While much of the utility business is regulated, direct engagement is necessary for larger customers. The revenue reporting structure shows distinct categories for Commercial & Industrial - Small and Commercial & Industrial - Large sales, indicating dedicated attention or specialized service structures for these segments. Furthermore, the company has an energy subscription program for large commercial, industrial, and governmental customers in South Dakota and Wyoming.

Public safety and emergency communication programs

A critical channel for risk mitigation and regulatory compliance involves public safety communication. In the second quarter of 2025, Black Hills Corporation established its Emergency Public Safety Power Shutoff (PSPS) program across all three of its electric utilities. This program is designed to promote customer safety and mitigate wildfire risk. The company also provides charitable giving through programs like Black Hills Cares, which totaled $346,000 in energy assistance in 2024.

Black Hills Corporation (BKH) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Black Hills Corporation as of late 2025. The company is a holding company serving a diverse set of energy users across its Electric Utilities and Gas Utilities segments.

The overall customer base is substantial, totaling more than 1.35 million electric and natural gas utility customers across over 800 communities in eight states.

Residential electric and natural gas utility customers (the largest volume)

This group forms the bedrock of the volume Black Hills Corporation handles. In 2024, the company safely and reliably delivered more than 7,200 gigawatt hours of electricity and 250 million dekatherms of natural gas to these customers.

The customer base is split between the two utility segments:

• The Electric Utilities segment serves approximately 225,000 customers.
• The Gas Utilities segment serves around 1,128,000 customers.

Commercial and industrial customers across eight states

These customers, along with the residential base, span Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. The utility rates for these business classes vary by state, reflecting different regulatory environments. For instance, in Wyoming, the average retail electric rate for industrial customers was reported at $0.0873/kWh in a recent filing.

Here's a look at the customer distribution across the states where Black Hills Corporation operates its utility services:

State	Utility Customers (Approximate Total)	Electric Generation Capacity (MW)
Arkansas	189,300	N/A
Colorado	316,700	617
Iowa	164,100	N/A
Kansas	120,200	N/A
Montana	42	N/A
Nebraska	304,400	N/A
South Dakota	77,900	150
Wyoming	180,800	627

High-growth, large-load data center and blockchain customers (projected to contribute >10% of EPS by 2028)

This is where things get interesting; Black Hills Corporation is actively positioning itself to serve the massive power needs of the digital economy. Management expects contributions from data center customers to more than double to over 10% of total EPS by 2028, up from 5% in 2023.

This growth is anchored by major technology partnerships, including serving Microsoft and Meta. The company has a pipeline projecting total data center load exceeding one gigawatt (GW) within the next decade. Specifically, the five-year capital plan includes serving 500 megawatts (MW) of data center demand by the end of 2029, much of which is expected to be served through an innovative tariff requiring minimal capital.

Municipalities and government entities

These entities are included within the total customer count of over 1.35 million homes and businesses served across the eight states. The company's infrastructure investments, like the $350 million Ready Wyoming electric transmission expansion project, are designed to enhance system resiliency and support economic growth for all customers, including municipal partners.

Wholesale energy markets (secondary)

While the primary focus is on regulated utility service, wholesale markets play a role. The Ready Wyoming project, for instance, is intended to expand access to power markets, which supports the overall energy delivery framework for all customer segments.

Black Hills Corporation (BKH) - Canvas Business Model: Cost Structure

The Cost Structure for Black Hills Corporation is heavily influenced by its capital-intensive utility operations and ongoing infrastructure modernization. You see significant upfront investment required to maintain and grow the asset base that generates regulated returns.

High capital expenditures are a defining feature. Black Hills Corporation has a substantial $4.7 billion capital plan projected for the 2025 through 2029 period. For the current year, the allocation is set at $1.0 billion for 2025 capital investments to support key projects like the Ready Wyoming transmission expansion. To help fund this, the company completed planned equity issuances, receiving net proceeds of $219.6 million year-to-date in 2025, fulfilling the targeted range of $215 million to $235 million.

Operations and Maintenance (O&M) expenses are managed with a long-term view. The projection for O&M expenses, which excludes depreciation and amortization and income taxes, is set to grow at a compounded annual growth rate of approximately 3.5% from 2023 levels, which were $552 million. Still, operational costs can fluctuate; for instance, in the second quarter of 2025, higher operating expenses, including increased insurance premiums and the impact of unplanned outages, were noted.

Significant interest expense from debt financing reflects the reliance on debt to fund a portion of the capital program. For the nine months ended September 30, 2025, interest expense, net, increased by $17.7 million compared to the prior year period. This increase was driven by higher interest rates on long-term debt and higher Commercial Paper Program borrowings, although partially offset by higher Allowance for Funds Used During Construction (AFUDC) debt related to construction work-in-progress. The company proactively managed its debt structure in late 2025 by completing a $450 million debt offering at a 4.550% interest rate in October 2025 to repay $300 million of notes due in January 2026.

Costs related to energy supply are material, covering fuel and purchased power costs for generation and gas supply. Looking at the first quarter of 2025, the combined cost for Fuel, purchased power and cost of natural gas sold for the three months ended March 31, 2025, totaled $359.7 million. Black Hills Corporation relies on regulatory proceedings to ensure adequate cost recovery for these fluctuating costs.

Regulatory compliance and depreciation/amortization costs are inherent to utility operations. Depreciation and amortization expenses are rising directly because of the higher asset base resulting from capital expenditures. For the second quarter of 2025, the impact of higher depreciation expense from new assets placed in service was noted as $0.04 per share. Proactive engagement with regulators is key to recovering costs associated with capital additions and plant retirements.

Here's a look at some of the key cost drivers and related figures for Black Hills Corporation as of late 2025:

Cost Category	Specific Metric/Period	Amount/Rate
Capital Expenditures (2025 Plan)	Total Planned for 2025	$1.0 billion
Operations & Maintenance (O&M)	Projected CAGR (from 2023)	3.5%
O&M Base (2023)	Starting Point for CAGR	$552 million
Interest Expense, Net	Increase YTD Q3 2025	$17.7 million
Fuel, Purchased Power & Gas Sold	Year-to-Date Q1 2025 (Total)	$359.7 million
Debt Refinancing	New Debt Offering Size (Oct 2025)	$450 million
Debt Refinancing	Interest Rate on New Notes	4.550%
Equity Issuance (2025)	Net Proceeds Received YTD Q3 2025	$219.6 million

You should track the following elements closely as they directly impact the bottom line:

• The pace of capital project completion, especially Ready Wyoming.
• Regulatory outcomes for rate reviews in Nebraska and other jurisdictions.
• The impact of higher interest rates on floating-rate debt and new issuances.
• The realized cost recovery for fuel and purchased power through regulatory riders.
• The actual year-over-year increase in O&M expenses versus the 3.5% CAGR target.

Black Hills Corporation (BKH) - Canvas Business Model: Revenue Streams

The revenue streams for Black Hills Corporation (BKH) are fundamentally anchored in its regulated utility operations, supplemented by growth from strategic infrastructure investments, notably in data centers.

The core utility business generates revenue from regulated electric utility sales to approximately 225,000 customers and regulated natural gas utility sales to approximately 1,128,000 customers across its service territories. Overall, Black Hills Corporation serves over 1.35 million electric and natural gas utility customers.

A key 2025 growth driver is revenue secured through new rates and rider recovery mechanisms. These mechanisms are crucial for recovering system investments and inflationary costs in a timely manner. The company has been successful in advancing its regulatory strategy.

Here's a look at the specific annual revenue impacts secured or sought through recent regulatory actions:

Regulatory Action/Mechanism	New Annual Revenue Amount	Effective/Filing Date Context
Colorado Electric Utility New Rates	$17.0 million	Effective March 22, 2025
Kansas Gas Rate Review Settlement	$10.8 million	New rates effective August 1, 2025
Nebraska Gas Rate Review Settlement	$23.9 million	Pending commission approval, final rates expected Jan. 1, 2026

Collectively, rate reviews since the beginning of 2024 represent the recovery of over $1.3 billion of new system investments. On a per-share basis, new rates and rider recovery contributed $0.68 per share to year-to-date adjusted Earnings Per Share (EPS) through the third quarter of 2025.

The Earnings Per Share (EPS) guidance for 2025 remains reaffirmed in the range of $4.00 to $4.20 per share available for common stock. At the midpoint, this implies a 5% year-over-year growth rate over 2024 EPS.

The growing, defintely high-margin stream from large-scale data center power sales is a significant component of the long-term outlook. Black Hills Corporation anticipates data center demand will contribute more than 10% of its total EPS by 2028. The company's five-year capital investment forecast includes serving 500 MW of data center demand by the end of 2029. This demand is evidenced by the Wyoming Electric segment serving a new all-time peak load in June 2025, up 21% from the prior year, driven by data center and blockchain growth.

The revenue composition is supported by these key operational metrics:

• Regulated electric utility customers: approximately 225,000.
• Regulated natural gas utility customers: approximately 1,128,000.
• Data center EPS contribution target: more than 10% by 2028.
• 2025 full-year EPS guidance midpoint growth: 5% over 2024.
• Total capital investment planned for 2025-2029: $4.7 billion.