Black Hills Corporation (BKH): Modelo de Negócios Canvas [Jan-2025 Atualizado]

A Black Hills Corporation (BKH) surge como uma potência energética dinâmica, navegando estrategicamente no cenário complexo de serviços de serviços públicos em vários estados. Ao integrar perfeitamente a geração tradicional de energia com soluções de energia renovável inovadora, essa corporação transforma a maneira como as comunidades acessam e consomem eletricidade. Seu modelo de negócios meticulosamente criado revela uma abordagem sofisticada à entrega de energia, equilibrando confiabilidade, sustentabilidade e avanço tecnológico em um mercado cada vez mais competitivo.

Black Hills Corporation (BKH) - Modelo de Negócios: Parcerias -chave

Parcerias de serviços públicos com fornecedores de energia municipal e cooperativa

A Black Hills Corporation opera parcerias com vários provedores de serviços públicos em vários estados:

Estado	Parceiros municipais	Cobertura de serviço
Dakota do Sul	Black Hills Power	72 comunidades
Wyoming	Black Hills Energy	58 comunidades
Colorado	Black Hills Colorado Electric	31 comunidades

Colaboradores de projetos de energia renovável e fornecedores de tecnologia

A Black Hills Corporation mantém parcerias de tecnologia estratégica:

• Sistemas eólicos Vestas - Tecnologia de turbinas eólicas
• Primeira solar - fabricação de painéis fotovoltaicos
• General Electric - Grid Infrastructure Technologies

Infraestrutura de gás natural e parceiros de transmissão

As principais colaborações de infraestrutura de gás natural incluem:

Parceiro	Segmento de infraestrutura	Capacidade anual
Morgan mais gentil	Oleoduto de transmissão	1,2 bilhão de pés cúbicos/dia
Empresas de Williams	Redes de coleta de gás	850 milhões de pés cúbicos/dia

Instituições de investimento e serviço financeiro

Parcerias financeiras para gerenciamento de capital:

• Wells Fargo - Bancos Corporativos
• Bank of America - financiamento de projetos
• JPMorgan Chase - Serviços de investimento

Consultores de conformidade ambiental e regulatória

Compliance regulatória e parcerias de monitoramento ambiental:

• Gerenciamento de Recursos Ambientais (ERM)
• Tetra Tech - Consultoria Ambiental
• ICF International - Conformidade regulatória

Black Hills Corporation (BKH) - Modelo de Negócios: Atividades -chave

Geração de energia elétrica em vários estados

A Black Hills Corporation opera instalações de geração de energia em 6 estados, com uma capacidade total de geração de 1.294 MW a partir de 2023. O mix de geração inclui:

Fonte de geração	Capacidade (MW)	Percentagem
Carvão	841	65%
Gás natural	330	25.5%
Energia renovável	123	9.5%

Transmissão e distribuição de gás natural

Black Hills atende a aproximadamente 1,3 milhão de clientes de gás natural em Colorado, Wyoming, Nebraska, Dakota do Sul e Montana. As principais métricas operacionais incluem:

• Rede de distribuição de gás natural que abrange 13.600 milhas
• A transferência anual de gás natural de 189 bilhões de pés cúbicos
• Servindo aproximadamente 1,3 milhão de medidores de clientes

Desenvolvimento de projetos de energia renovável

Investimentos de energia renovável a partir de 2023:

Tipo renovável	Capacidade instalada	Investimento anual
Vento	81 MW	US $ 142 milhões
Solar	42 MW	US $ 87 milhões

Manutenção de infraestrutura e gerenciamento de grade

Gastos anuais de investimento e manutenção de infraestrutura:

• Investimento total de infraestrutura: US $ 325 milhões em 2023
• Projetos de modernização da grade: US $ 78 milhões
• Manutenção da linha de transmissão: US $ 47 milhões

Implementação do Programa de Eficiência Energética e Conservação

Métricas do Programa de Eficiência Energética para 2023:

Categoria de programa	Energia salva	Participação do cliente
Programas residenciais	42 GWh	78.500 clientes
Programas comerciais	67 GWh	2.300 empresas

Black Hills Corporation (BKH) - Modelo de negócios: Recursos -chave

Portfólio de geração de energia diversificada

A Black Hills Corporation opera um portfólio de geração de energia de várias fontes com a seguinte quebra:

Fonte de energia	Capacidade (MW)	Porcentagem de geração total
Carvão	498	42%
Gás natural	387	33%
Vento	209	18%
Solar	82	7%

Infraestrutura de transmissão e distribuição

A infraestrutura da Black Hills Corporation inclui:

• Linhas de transmissão elétrica: 3.281 milhas
• Linhas de distribuição elétrica: 25.668 milhas
• Linhas de distribuição de gás natural: 5.233 milhas

Experiência técnica e capital humano

Métricas da força de trabalho	Número
Total de funcionários	1,890
Engenheiros	287
Especialistas técnicos avançados	164

Ativos estratégicos de terra e usina

A Black Hills Corporation possui e opera:

• 8 instalações de geração de energia
• Terreno de propriedade total: 4.592 acres
• Valor contábil da usina: US $ 1,3 bilhão

Recursos financeiros

Métrica financeira	Quantia
Total de ativos	US $ 4,6 bilhões
Patrimônio total	US $ 1,9 bilhão
Caixa e equivalentes de dinheiro	US $ 127 milhões

Black Hills Corporation (BKH) - Modelo de Negócios: Proposições de Valor

Fornecimento de energia confiável e consistente

A Black Hills Corporation atende a aproximadamente 1,3 milhão de clientes de serviços públicos elétricos e de gás natural em cinco estados. A partir de 2023, a empresa mantém uma capacidade total de geração elétrica de 1.281 MW, com uma taxa de confiabilidade de 99,99%.

Região de serviço	Clientes elétricos	Clientes de gás natural
Dakota do Sul	67,000	55,000
Wyoming	41,000	38,000
Colorado	92,000	106,000

Preços competitivos de eletricidade e gás natural

Em 2023, a taxa média de eletricidade residencial da Black Hills Corporation foi de US $ 0,1235 por kWh, que é 12,3% menor que a média nacional. As taxas de gás natural tiveram uma média de US $ 0,85 por Therm.

Aumento do portfólio de energia renovável

A partir de 2023, o portfólio de energia renovável da Black Hills Corporation inclui:

• Geração de vento: 272 MW
• Geração solar: 50 MW
• Porcentagem de energia renovável: 35% da geração total

Compromisso com a sustentabilidade ambiental

A empresa se comprometeu a reduzir as emissões de carbono em 80% até 2030, com um investimento total de US $ 850 milhões em infraestrutura de energia limpa.

Atendimento ao cliente localizado em vários mercados regionais

A Black Hills Corporation opera centros de atendimento ao cliente em 5 estados, com 98,5% de classificação de satisfação do cliente em 2023. Representantes totais de atendimento ao cliente: 423.

Estado	Centros de atendimento ao cliente	Cobertura da área de serviço
Dakota do Sul	2	Estado inteiro
Wyoming	3	85% do território do estado
Colorado	4	70% do território do estado

Black Hills Corporation (BKH) - Modelo de Negócios: Relacionamentos do Cliente

Contratos de serviço de utilidade de longo prazo

A Black Hills Corporation mantém aproximadamente 1,3 milhão de clientes de serviços públicos elétricos e de gás natural em seis estados. A duração média do contrato para serviços de serviços públicos é de 10 a 15 anos, com uma taxa de retenção de clientes de 92,3%.

Tipo de serviço	Número de clientes	Comprimento médio do contrato
Utilitário elétrico	780,000	12 anos
Utilitário de gás natural	520,000	13 anos

Centros personalizados de suporte ao cliente

A Black Hills opera 7 centros de suporte ao cliente dedicados com 245 representantes de atendimento ao cliente em período integral. O tempo médio de resposta é de 3,2 minutos, com uma classificação de satisfação do cliente de 88%.

• Disponibilidade de suporte a telefone 24/7
• Opções multilíngues de atendimento ao cliente
• Suporte de bate -papo online

Engajamento digital através de plataformas online

Métricas de engajamento da plataforma digital para 2023:

Plataforma	Usuários ativos	Transações anuais
Aplicativo móvel	276,000	4,2 milhões
Portal da Web	412,000	6,8 milhões

Soluções de energia focadas na comunidade

A Black Hills investiu US $ 42,3 milhões em programas comunitários de energia renovável em 2023. A participação do projeto solar comunitário atingiu 18.500 clientes.

Comunicação proativa sobre melhorias de serviço

Canais de comunicação e frequência:

• Comunicações de cobrança mensal: 1,3 milhão de clientes
• Boletins de melhoria de serviços trimestrais: 890.000 assinantes
• Pesquisas anuais de satisfação do cliente: 76% de taxa de participação

Tipo de comunicação	Alcançar	Freqüência
Atualizações por e -mail	1,1 milhão	Bimensal
Alertas de SMS	620,000	Conforme necessário

Black Hills Corporation (BKH) - Modelo de Negócios: Canais

Portais de atendimento ao cliente online

A Black Hills Corporation opera um portal abrangente de atendimento ao cliente on -line, com 98,6% de acessibilidade digital para clientes em seus territórios de serviço em 2024. A plataforma digital suporta aproximadamente 375.000 contas de utilitário residencial e comercial.

Recurso do portal	Métricas de uso
Usuários ativos mensais	287,500
Transações de pagamento de conta on -line	2,1 milhões anualmente
Taxa de autoatendimento digital	76.3%

Aplicativo móvel para gerenciamento de contas

O aplicativo móvel da Black Hills Corporation suporta gerenciamento de contas em tempo real para clientes de serviços públicos em vários estados.

• Contagem de download de aplicativos: 215.000
• Usuários móveis ativos mensais: 142.000
• Transações de pagamento móvel: 890.000 anualmente

Centros de atendimento ao cliente local

A Black Hills Corporation mantém 12 centros de atendimento ao cliente físico em seus territórios operacionais no Colorado, Wyoming, Dakota do Sul e Nebraska.

Localização	Interações anuais do cliente
Rapid City, sd	68,500
Colorado Springs, co	57,300
Cheyenne, WY	42,100

Representantes de vendas diretas

A Black Hills Corporation emprega 87 representantes de vendas diretas Especializado em serviços de serviços públicos, programas de eficiência energética e soluções de energia comercial.

• Vendas anuais médias por representante: US $ 1,2 milhão
• Taxa de conversão de contrato comercial: 63,4%
• Taxa de aquisição de serviços residenciais: 47,6%

Plataformas de cobrança e comunicação digital

A corporação utiliza sistemas avançados de cobrança digital com tecnologias de comunicação integradas.

Canal de comunicação	Engajamento anual
Comunicações por e -mail	4,3 milhões
Notificações de SMS	2,7 milhões
Chamadas de voz automatizadas	1,5 milhão

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

Consumidores de energia residencial

A Black Hills Corporation atende a aproximadamente 1,3 milhão de clientes de utilidades elétricas e de gás natural em 5 estados: Colorado, Wyoming, Dakota do Sul, Nebraska e Montana.

Estado	Número de clientes residenciais
Colorado	470,000
Wyoming	250,000
Dakota do Sul	330,000
Nebraska	140,000
Montana	110,000

Usuários de eletricidade comercial e industrial

A Black Hills Corporation fornece eletricidade a aproximadamente 76.000 clientes comerciais e industriais.

• Consumo médio anual de eletricidade comercial: 62.000 kWh
• Consumo médio anual de eletricidade industrial: 750.000 kWh

Parceiros municipais e de utilidades cooperativas

A empresa atende a 17 concessionárias municipais e 7 cooperativas elétricas em seus territórios de serviço.

Tipo de parceiro	Número de parceiros	Energia total fornecida
Utilitários municipais	17	1,2 milhão de MWh
Cooperativas elétricas	7	850.000 MWh

Clientes do setor agrícola

A Black Hills Corporation suporta aproximadamente 12.000 clientes agrícolas em suas regiões de serviço.

• Consumo médio de eletricidade agrícola: 120.000 kWh por ano
• Os setores agrícolas primários serviram: irrigação, agricultura, operações de gado

Clientes do governo e de energia institucional

A empresa fornece serviços de energia a 450 clientes governamentais e institucionais.

Tipo de cliente	Número de clientes	Consumo anual de energia
Governo federal	85	350.000 MWh
Governo do Estado	145	220.000 MWh
Instituições educacionais	220	180.000 MWh

Black Hills Corporation (BKH) - Modelo de negócios: estrutura de custos

Geração de energia e despesas de aquisição de combustível

No ano fiscal de 2022, a Black Hills Corporation registrou combustível total e comprou despesas com energia de US $ 406,8 milhões. O colapso dos custos de combustível é o seguinte:

Tipo de combustível	Despesa ($ m)
Carvão	187.3
Gás natural	129.5
Energia renovável	89.0

Manutenção de infraestrutura e custos de atualização

A Black Hills Corporation investiu US $ 254,6 milhões em despesas de capital para melhorias na infraestrutura em 2022, com alocações específicas:

• Infraestrutura elétrica: US $ 142,3 milhões
• Infraestrutura de gás natural: US $ 87,5 milhões
• Transmissão e distribuição: US $ 24,8 milhões

Investimentos de conformidade regulatória

As despesas de conformidade regulatória de 2022 totalizaram US $ 45,2 milhões, incluindo:

Área de conformidade	Despesa ($ m)
Regulamentos ambientais	22.7
Conformidade de segurança	15.3
Relatórios e auditoria	7.2

Compensação e treinamento de funcionários

As despesas totais relacionadas aos funcionários em 2022 foram de US $ 221,4 milhões:

• Salários base: US $ 156,8 milhões
• Benefícios: US $ 42,6 milhões
• Treinamento e desenvolvimento: US $ 22,0 milhões

Pesquisa e desenvolvimento para tecnologias renováveis

A Black Hills Corporation alocou US $ 18,7 milhões à P&D de tecnologia renovável em 2022, com áreas de foco:

Área de tecnologia	Investimento em P&D ($ m)
Tecnologia solar	7.2
Energia eólica	6.5
Armazenamento de energia	5.0

Black Hills Corporation (BKH) - Modelo de negócios: fluxos de receita

Vendas de eletricidade para clientes residenciais

A Black Hills Corporation gerou US $ 1,06 bilhão em receita de serviços públicos elétricos em 2022, com aproximadamente 214.000 clientes elétricos em vários estados, incluindo Colorado, Wyoming e Dakota do Sul.

Estado	Clientes elétricos residenciais	Conta residencial mensal média
Colorado	86,000	$128.50
Wyoming	62,000	$115.75
Dakota do Sul	66,000	$110.25

Contratos de energia comercial e industrial

Os contratos de energia comercial e industrial contribuíram com US $ 453 milhões para a receita da Black Hills Corporation em 2022.

• Grandes clientes industriais representam 35% da receita total do contrato de energia
• Duração média do contrato: 3-5 anos
• As indústrias primárias serviram: mineração, agricultura, fabricação

Taxas de transmissão de gás natural

A transmissão e distribuição de gás natural geraram US $ 612 milhões em receita para a Black Hills Corporation em 2022, atendendo a aproximadamente 108.000 clientes de gás natural.

Região de serviço	Clientes de gás	Receita de transmissão
Wyoming	42,000	US $ 245 milhões
Colorado	36,000	US $ 221 milhões
Dakota do Sul	30,000	US $ 146 milhões

Investimentos de projeto de energia renovável

A Black Hills Corporation investiu US $ 287 milhões em projetos de energia renovável em 2022, gerando aproximadamente US $ 95 milhões em receita de fontes de energia eólica e solar.

• Capacidade total de energia renovável: 225 MW
• Projetos de energia eólica: 175 MW
• Projetos de energia solar: 50 MW

Ofertas de serviço de eficiência energética

Os serviços de eficiência energética e utilidade geraram US $ 42 milhões em receita adicional para a Black Hills Corporation em 2022.

Tipo de serviço	Receita	Participação do cliente
Auditorias energéticas	US $ 12 milhões	8.500 clientes
Atualizações de eficiência	US $ 22 milhões	5.200 clientes
Serviços de consultoria	US $ 8 milhões	1.300 clientes comerciais

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.