Black Hills Corporation (BKH): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Black Hills Corporation (BKH) emerge como una potencia energética dinámica, navegando estratégicamente el complejo panorama de los servicios de servicios públicos en múltiples estados. Al integrar a la perfección la generación de energía tradicional con soluciones innovadoras de energía renovable, esta corporación transforma la forma en que las comunidades acceden y consumen electricidad. Su modelo de negocio meticulosamente elaborado revela un enfoque sofisticado para la entrega de energía, el equilibrio de confiabilidad, sostenibilidad y avance tecnológico en un mercado cada vez más competitivo.

Black Hills Corporation (BKH) - Modelo de negocios: asociaciones clave

Asociaciones de servicios eléctricos con proveedores de energía municipales y cooperativos

Black Hills Corporation opera asociaciones con múltiples proveedores de servicios eléctricos en varios estados:

Estado	Socios municipales	Cobertura de servicio
Dakota del Sur	Poder de Black Hills	72 comunidades
Wyoming	Energía de Black Hills	58 comunidades
Colorado	Black Hills Colorado Electric	31 comunidades

Colaboradores de proyectos de energía renovable y proveedores de tecnología

Black Hills Corporation mantiene asociaciones de tecnología estratégica:

• Vestas Wind Systems - Tecnología de turbinas eólicas
• Primero fabricación de paneles solares - fotovoltaicos
• General Electric - Tecnologías de infraestructura de cuadrícula

Infraestructura de gas natural y socios de transmisión

Las colaboraciones clave de la infraestructura de gas natural incluyen:

Pareja	Segmento de infraestructura	Capacidad anual
Kinder Morgan	Tubería de transmisión	1.200 millones de pies cúbicos/día
Compañías de Williams	Redes de recolección de gas	850 millones de pies cúbicos/día

Instituciones de inversión y servicios financieros

Asociaciones financieras para la gestión de capital:

• Wells Fargo - Banca corporativa
• Bank of America - Financiamiento de proyectos
• JPMorgan Chase - Servicios de inversión

Consultores de cumplimiento ambiental y regulatorio

Cumplimiento regulatorio y asociaciones de monitoreo ambiental:

• Gestión de recursos ambientales (ERM)
• Tetra Tech - Consultoría ambiental
• ICF International - Cumplimiento regulatorio

Black Hills Corporation (BKH) - Modelo de negocio: actividades clave

Generación de energía eléctrica en múltiples estados

Black Hills Corporation opera instalaciones de generación de energía en 6 estados, con una capacidad de generación total de 1,294 MW a partir de 2023. La mezcla de generación incluye:

Fuente de generación	Capacidad (MW)	Porcentaje
Carbón	841	65%
Gas natural	330	25.5%
Energía renovable	123	9.5%

Transmisión y distribución de gas natural

Black Hills sirve a aproximadamente 1.3 millones de clientes de gas natural en Colorado, Wyoming, Nebraska, Dakota del Sur y Montana. Las métricas operativas clave incluyen:

• Red de distribución de gas natural que abarca 13,600 millas
• Rendimiento anual de gas natural de 189 mil millones de pies cúbicos
• Atender aproximadamente 1.3 millones de medidores de clientes

Desarrollo del proyecto de energía renovable

Inversiones de energía renovable a partir de 2023:

Tipo renovable	Capacidad instalada	Inversión anual
Viento	81 MW	$ 142 millones
Solar	42 MW	$ 87 millones

Mantenimiento de infraestructura y gestión de la red

Gastos anuales de inversión y mantenimiento de infraestructura:

• Inversión total de infraestructura: $ 325 millones en 2023
• Proyectos de modernización de cuadrícula: $ 78 millones
• Mantenimiento de la línea de transmisión: $ 47 millones

Implementación del programa de eficiencia energética y de conservación

Métricas del programa de eficiencia energética para 2023:

Categoría de programa	Energía ahorrada	Participación del cliente
Programas residenciales	42 GWH	78,500 clientes
Programas comerciales	67 GWH	2.300 empresas

Black Hills Corporation (BKH) - Modelo de negocios: recursos clave

Cartera diversa de generación de energía

Black Hills Corporation opera una cartera de generación de energía de varias fuentes con el siguiente desglose:

Fuente de energía	Capacidad (MW)	Porcentaje de generación total
Carbón	498	42%
Gas natural	387	33%
Viento	209	18%
Solar	82	7%

Infraestructura de transmisión y distribución

La infraestructura de Black Hills Corporation incluye:

• Líneas de transmisión eléctrica: 3,281 millas
• Líneas de distribución eléctrica: 25,668 millas
• Líneas de distribución de gas natural: 5,233 millas

Experiencia técnica y capital humano

Métricas de la fuerza laboral	Número
Total de empleados	1,890
Ingenieros	287
Especialistas técnicos avanzados	164

Activos estratégicos de tierras y plantas de energía

Black Hills Corporation posee y opera:

• 8 instalaciones de generación de energía
• Total de tierra propiedad: 4.592 acres
• Valor en libros de la planta de energía: $ 1.3 mil millones

Recursos financieros

Métrica financiera	Cantidad
Activos totales	$ 4.6 mil millones
Equidad total	$ 1.9 mil millones
Equivalentes de efectivo y efectivo	$ 127 millones

Black Hills Corporation (BKH) - Modelo de negocio: propuestas de valor

Suministro de energía confiable y consistente

Black Hills Corporation atiende a aproximadamente 1.3 millones de clientes de servicios eléctricos y de gas natural en cinco estados. A partir de 2023, la compañía mantiene una capacidad de generación eléctrica total de 1.281 MW, con una tasa de confiabilidad del 99.99%.

Región de servicio	Clientes eléctricos	Clientes de gas natural
Dakota del Sur	67,000	55,000
Wyoming	41,000	38,000
Colorado	92,000	106,000

Precios competitivos de electricidad y gas natural

En 2023, la tasa de electricidad residencial promedio de Black Hills Corporation fue de $ 0.1235 por kWh, que es 12.3% más baja que el promedio nacional. Las tasas de gas natural promediaron $ 0.85 por término.

Aumento de la cartera de energía renovable

A partir de 2023, la cartera de energía renovable de Black Hills Corporation incluye:

• Generación de viento: 272 MW
• Generación solar: 50 MW
• Porcentaje de energía renovable: 35% de la generación total

Compromiso con la sostenibilidad ambiental

La compañía se ha comprometido a reducir las emisiones de carbono en un 80% para 2030, con una inversión total de $ 850 millones en infraestructura de energía limpia.

Servicio al cliente localizado en múltiples mercados regionales

Black Hills Corporation opera centros de servicio al cliente en 5 estados, con una calificación de satisfacción del cliente 98.5% en 2023. Representantes de servicio al cliente total: 423.

Estado	Centros de servicio al cliente	Cobertura del área de servicio
Dakota del Sur	2	Estado completo
Wyoming	3	85% del territorio estatal
Colorado	4	70% del territorio estatal

Black Hills Corporation (BKH) - Modelo de negocios: relaciones con los clientes

Contratos de servicio de servicios públicos a largo plazo

Black Hills Corporation mantiene aproximadamente 1.3 millones de clientes de servicios eléctricos y de gas natural en seis estados. La duración promedio del contrato para los servicios de servicios públicos es de 10-15 años, con una tasa de retención de clientes del 92.3%.

Tipo de servicio	Número de clientes	Longitud promedio del contrato
Utilidad eléctrica	780,000	12 años
Utilidad de gas natural	520,000	13 años

Centros de atención al cliente personalizados

Black Hills opera 7 centros de atención al cliente dedicados con 245 representantes de servicio al cliente a tiempo completo. El tiempo de respuesta promedio es de 3.2 minutos, con una calificación de satisfacción del cliente del 88%.

• Disponibilidad de soporte telefónico 24/7
• Opciones de servicio al cliente multilingüe
• Soporte de chat en línea

Participación digital a través de plataformas en línea

Métricas de participación de la plataforma digital para 2023:

Plataforma	Usuarios activos	Transacciones anuales
Aplicación móvil	276,000	4.2 millones
Portal web	412,000	6.8 millones

Soluciones de energía centradas en la comunidad

Black Hills invirtió $ 42.3 millones en programas comunitarios de energía renovable en 2023. La participación del proyecto solar comunitario alcanzó los 18,500 clientes.

Comunicación proactiva sobre mejoras en el servicio

Canales de comunicación y frecuencia:

• Comunicaciones mensuales de facturación: 1.3 millones de clientes
• Boletines de mejora de servicios trimestrales: 890,000 suscriptores
• Encuestas anuales de satisfacción del cliente: tasa de participación del 76%

Tipo de comunicación	Alcanzar	Frecuencia
Actualizaciones por correo electrónico	1.1 millones	Bimensual
Alertas de SMS	620,000	Como es necesario

Black Hills Corporation (BKH) - Modelo de negocios: canales

Portales de servicio al cliente en línea

Black Hills Corporation opera un portal integral de servicio al cliente en línea con un 98.6% de accesibilidad digital para clientes en sus territorios de servicio en 2024. La plataforma digital admite aproximadamente 375,000 cuentas de servicios residenciales y comerciales.

Característica de portal	Métricas de uso
Usuarios activos mensuales	287,500
Transacciones de pago de facturas en línea	2.1 millones anualmente
Tasa de autoservicio digital	76.3%

Aplicación móvil para la gestión de cuentas

La aplicación móvil Black Hills Corporation admite la administración de cuentas en tiempo real para clientes de servicios públicos en múltiples estados.

• Conteo de descarga de la aplicación: 215,000
• Usuarios móviles activos mensuales: 142,000
• Transacciones de pago móvil: 890,000 anuales

Centros de servicio al cliente local

Black Hills Corporation mantiene 12 centros físicos de servicio al cliente en sus territorios operativos en Colorado, Wyoming, Dakota del Sur y Nebraska.

Ubicación	Interacciones anuales del cliente
Rapid City, SD	68,500
Colorado Springs, CO	57,300
Cheyenne, WY	42,100

Representantes de ventas directas

Black Hills Corporation emplea 87 representantes de ventas directas Especializado en servicios de servicios públicos, programas de eficiencia energética y soluciones de energía comercial.

• Ventas anuales promedio por representante: $ 1.2 millones
• Tasa de conversión del contrato comercial: 63.4%
• Tasa de adquisición de servicios residenciales: 47.6%

Plataformas de facturación y comunicación digital

La corporación utiliza sistemas de facturación digital avanzados con tecnologías de comunicación integradas.

Canal de comunicación	Compromiso anual
Comunicaciones por correo electrónico	4.3 millones
Notificaciones de SMS	2.7 millones
Llamadas de voz automatizadas	1.5 millones

Black Hills Corporation (BKH) - Modelo de negocios: segmentos de clientes

Consumidores de energía residencial

Black Hills Corporation atiende a aproximadamente 1.3 millones de clientes de servicios eléctricos y de gas natural en 5 estados: Colorado, Wyoming, Dakota del Sur, Nebraska y Montana.

Estado	Número de clientes residenciales
Colorado	470,000
Wyoming	250,000
Dakota del Sur	330,000
Nebraska	140,000
Montana	110,000

Usuarios de electricidad comercial e industrial

Black Hills Corporation ofrece electricidad a aproximadamente 76,000 clientes comerciales e industriales.

• Consumo promedio de electricidad comercial anual: 62,000 kWh
• Consumo promedio de electricidad industrial anual: 750,000 kWh

Socios de servicios públicos municipales y cooperativos

La compañía atiende a 17 servicios municipales y 7 cooperativas eléctricas en sus territorios de servicio.

Tipo de socio	Número de socios	Energía total suministrada
Servicios públicos municipales	17	1.2 millones de MWh
Cooperativas eléctricas	7	850,000 MWh

Clientes de energía del sector agrícola

Black Hills Corporation apoya a aproximadamente 12,000 clientes agrícolas en sus regiones de servicio.

• Consumo promedio de electricidad agrícola: 120,000 kWh por año
• Sectores agrícolas primarios servidos: riego, agricultura, operaciones de ganado

Clientes gubernamentales e institucionales de energía

La compañía brinda servicios de energía a 450 clientes gubernamentales e institucionales.

Tipo de cliente	Número de clientes	Consumo anual de energía
Gobierno federal	85	350,000 MWh
Gobierno estatal	145	220,000 MWH
Instituciones educativas	220	180,000 MWh

Black Hills Corporation (BKH) - Modelo de negocio: Estructura de costos

Gastos de generación de energía y adquisición de combustible

En el año fiscal 2022, Black Hills Corporation reportó combustible total y compró gastos de energía de $ 406.8 millones. El desglose de los costos de combustible es el siguiente:

Tipo de combustible	Gasto ($ M)
Carbón	187.3
Gas natural	129.5
Energía renovable	89.0

Costos de mantenimiento y actualización de infraestructura

Black Hills Corporation invirtió $ 254.6 millones en gastos de capital para mejoras de infraestructura en 2022, con asignaciones específicas:

• Infraestructura eléctrica: $ 142.3 millones
• Infraestructura de gas natural: $ 87.5 millones
• Transmisión y distribución: $ 24.8 millones

Inversiones de cumplimiento regulatorio

Los gastos de cumplimiento regulatorio para 2022 totalizaron $ 45.2 millones, que incluyen:

Área de cumplimiento	Gasto ($ M)
Regulaciones ambientales	22.7
Cumplimiento de seguridad	15.3
Informes y auditorías	7.2

Compensación y capacitación de empleados

Los gastos totales relacionados con los empleados para 2022 fueron de $ 221.4 millones:

• Salarios base: $ 156.8 millones
• Beneficios: $ 42.6 millones
• Capacitación y desarrollo: $ 22.0 millones

Investigación y desarrollo de tecnologías renovables

Black Hills Corporation asignó $ 18.7 millones a I + D de tecnología renovable en 2022, con áreas de enfoque:

Área tecnológica	Inversión de I + D ($ M)
Tecnología solar	7.2
Energía eólica	6.5
Almacenamiento de energía	5.0

Black Hills Corporation (BKH) - Modelo de negocios: flujos de ingresos

Ventas de electricidad a clientes residenciales

Black Hills Corporation generó $ 1.06 mil millones en ingresos de servicios eléctricos en 2022, con aproximadamente 214,000 clientes eléctricos en múltiples estados, incluidos Colorado, Wyoming y Dakota del Sur.

Estado	Clientes eléctricos residenciales	Factura residencial mensual promedio
Colorado	86,000	$128.50
Wyoming	62,000	$115.75
Dakota del Sur	66,000	$110.25

Contratos de energía comercial e industrial

Los contratos de energía comercial e industrial contribuyeron con $ 453 millones a los ingresos de Black Hills Corporation en 2022.

• Los grandes clientes industriales representan el 35% de los ingresos por contrato de energía total
• Duración promedio del contrato: 3-5 años
• Industrias primarias atendidas: minería, agricultura, fabricación

Tarifas de transmisión de gas natural

La transmisión y distribución de gas natural generó $ 612 millones en ingresos para Black Hills Corporation en 2022, atendiendo a aproximadamente 108,000 clientes de gas natural.

Región de servicio	Clientes de gas	Ingresos por transmisión
Wyoming	42,000	$ 245 millones
Colorado	36,000	$ 221 millones
Dakota del Sur	30,000	$ 146 millones

Inversiones de proyectos de energía renovable

Black Hills Corporation invirtió $ 287 millones en proyectos de energía renovable en 2022, generando aproximadamente $ 95 millones en ingresos de fuentes de energía eólica y solar.

• Capacidad total de energía renovable: 225 MW
• Proyectos de energía eólica: 175 MW
• Proyectos de energía solar: 50 MW

Ofertas de servicios de eficiencia energética

La eficiencia energética y los servicios de servicios públicos generaron $ 42 millones en ingresos adicionales para Black Hills Corporation en 2022.

Tipo de servicio	Ganancia	Participación del cliente
Auditorías energéticas	$ 12 millones	8.500 clientes
Actualizaciones de eficiencia	$ 22 millones	5.200 clientes
Servicios de consultoría	$ 8 millones	1.300 clientes comerciales

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.