Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-31303 | ||
Entity Registrant Name | BLACK HILLS CORPORATION | ||
Entity Incorporation, State or Country Code | SD | ||
Entity Tax Identification Number | 46-0458824 | ||
Entity Address, Address Line One | 7001 Mount Rushmore Road | ||
Entity Address, City or Town | Rapid City | ||
Entity Address, State or Province | SD | ||
Entity Address, Postal Zip Code | 57702 | ||
City Area Code | 605 | ||
Local Phone Number | 721-1700 | ||
Title of 12(b) Security | Common stock of $1.00 par value | ||
Trading Symbol | BKH | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,702,221,557 | ||
Entity Common Stock, Shares Outstanding | 66,103,478 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement being prepared for the solicitation of proxies in connection with the 2023 Annual Meeting of Stockholders to be held on April 26, 2023, are incorporated by reference in Part III of this Form 10-K | ||
Entity Central Index Key | 0001130464 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Minneapolis, Minnesota |
Auditor Firm ID | 34 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Revenue | $ 2,551,816 | $ 1,949,102 | $ 1,696,941 |
Operating expenses: | |||
Fuel, purchased power and cost of natural gas sold | 1,230,550 | 741,934 | 492,404 |
Operations and maintenance | 548,430 | 501,690 | 495,404 |
Depreciation, depletion and amortization | 250,909 | 235,953 | 224,457 |
Taxes - property and production | 66,683 | 60,096 | 56,373 |
Total operating expenses | 2,096,572 | 1,539,673 | 1,268,638 |
Operating income | 455,244 | 409,429 | 428,303 |
Other income (expense): | |||
Interest expense incurred net of amounts capitalized (including amortization of debt issuance costs, premiums and discounts) | (162,584) | (154,112) | (144,931) |
Interest income | 1,595 | 1,708 | 1,461 |
Impairment of investment | 0 | 0 | (6,859) |
Other income (expense), net | 1,708 | 1,404 | (2,293) |
Total other income (expense) | (159,281) | (151,000) | (152,622) |
Income before income taxes | 295,963 | 258,429 | 275,681 |
Income tax expense | (25,205) | (7,169) | (32,918) |
Net income | 270,758 | 251,260 | 242,763 |
Net income attributable to non-controlling interest | (12,371) | (14,516) | (15,155) |
Net income available for common stock | $ 258,387 | $ 236,744 | $ 227,608 |
Earnings per share of common stock: | |||
Earnings per share, Basic (usd per share) | $ 3.98 | $ 3.74 | $ 3.65 |
Earnings per share, Diluted (usd per share) | $ 3.97 | $ 3.74 | $ 3.65 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 64,858 | 63,219 | 62,378 |
Diluted (in shares) | 65,021 | 63,325 | 62,439 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 270,758 | $ 251,260 | $ 242,763 |
Other comprehensive income (loss), net of tax: | |||
Benefit plan liability adjustments - net gain (loss) (net of tax of $(1,505), $(664) and $191, respectively) | 4,604 | 1,959 | (1,062) |
Reclassification adjustment of benefit plan liability - net loss (net of tax of $(226), $(665) and $(958), respectively) | 525 | 1,726 | 1,429 |
Reclassification adjustment of benefit plan liability - prior service cost (net of tax of $28, $27 and $23, respectively) | (65) | (71) | (80) |
Net unrealized gains (losses) on commodity derivatives (net of tax of $193, $(980) and $14, respectively) | (631) | 3,023 | (47) |
Other comprehensive income (loss), net of tax | 4,517 | 7,262 | 3,309 |
Comprehensive income | 275,275 | 258,522 | 246,072 |
Less: comprehensive income attributable to non-controlling interest | (12,371) | (14,516) | (15,155) |
Comprehensive income available for common stock | 262,904 | 244,006 | 230,917 |
Interest rate swaps | |||
Other comprehensive income (loss), net of tax: | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 2,129 | 2,174 | 2,564 |
Commodity derivatives | |||
Other comprehensive income (loss), net of tax: | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | $ (2,045) | $ (1,549) | $ 505 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
(Tax) benefit on benefit plan liability adjustments - net gain (loss) | $ (1,505) | $ (664) | $ 191 |
(Tax) benefit on reclassification adjustment of benefit plan liability - net loss | (226) | (665) | (958) |
(Tax) benefit on reclassification adjustment of benefit plan liability - prior service cost | 28 | 27 | 23 |
Interest Rate Swap | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification,Tax (Benefit) | (721) | (677) | (287) |
Commodity Contract | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification,Tax (Benefit) | 663 | 502 | (96) |
(Tax) benefit on net unrealized gains (losses) on commodity derivatives | $ 193 | $ (980) | $ 14 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 21,430 | $ 8,921 |
Restricted cash and equivalents | 5,555 | 4,889 |
Accounts receivable, net | 508,192 | 321,652 |
Materials, supplies and fuel | 207,421 | 150,979 |
Derivative assets, current | 582 | 4,373 |
Income tax receivable, net | 17,637 | 18,017 |
Regulatory assets, current | 260,312 | 270,290 |
Other current assets | 50,579 | 29,012 |
Total current assets | 1,071,708 | 808,133 |
Property, plant and equipment | 8,374,790 | 7,856,573 |
Less accumulated depreciation and depletion | (1,576,842) | (1,407,397) |
Total property, plant and equipment, net | 6,797,948 | 6,449,176 |
Other assets: | ||
Goodwill | 1,299,454 | 1,299,454 |
Intangible assets, net | 9,589 | 10,770 |
Regulatory assets, non-current | 392,669 | 526,309 |
Other assets, non-current | 46,862 | 38,054 |
Total other assets, non-current | 1,748,574 | 1,874,587 |
TOTAL ASSETS | 9,618,230 | 9,131,896 |
Current liabilities: | ||
Accounts payable | 310,020 | 217,761 |
Accrued liabilities | 243,457 | 244,759 |
Derivative liabilities, current | 6,600 | 1,439 |
Regulatory liabilities, current | 46,013 | 17,574 |
Notes payable | 535,600 | 420,180 |
Current maturities of long-term debt | 525,000 | 0 |
Total current liabilities | 1,666,690 | 901,713 |
Long-term debt, net of current maturities | 3,607,340 | 4,126,923 |
Deferred credits and other liabilities: | ||
Deferred income tax liabilities, net | 508,941 | 465,388 |
Regulatory liabilities, non-current | 472,560 | 485,377 |
Benefit plan liabilities | 116,742 | 123,925 |
Other deferred credits and other liabilities | 156,062 | 141,447 |
Total deferred credits and other liabilities | 1,254,305 | 1,216,137 |
Commitments, contingencies and guarantees (Note 3) | ||
Equity: | ||
Common stock $1.00 par value; 100,000,000 shares authorized; issued: 66,140,396 and 64,793,095, respectively | 66,140 | 64,793 |
Additional paid-in capital | 1,882,653 | 1,783,436 |
Retained earnings | 1,064,122 | 962,458 |
Treasury stock at cost - 36,726 and 54,078, respectively | (2,435) | (3,509) |
Accumulated other comprehensive income (loss) | (15,567) | (20,084) |
Total stockholders’ equity | 2,994,913 | 2,787,094 |
Non-controlling interest | 94,982 | 100,029 |
Total equity | 3,089,895 | 2,887,123 |
TOTAL LIABILITIES AND TOTAL EQUITY | $ 9,618,230 | $ 9,131,896 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares, issued | 66,140,396 | 64,793,095 |
Treasury stock, shares | 36,726 | 54,078 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income | $ 270,758 | $ 251,260 | $ 242,763 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, depletion and amortization | 250,909 | 235,953 | 224,457 |
Deferred financing cost amortization | 9,843 | 6,968 | 7,883 |
Impairment of investment | 0 | 0 | 6,859 |
Stock compensation | 8,551 | 9,655 | 5,373 |
Deferred income taxes | 25,592 | 7,261 | 38,091 |
Employee benefit plans | 5,459 | 9,590 | 11,997 |
Other adjustments, net | (4,720) | 7,018 | 11,669 |
Change in certain operating assets and liabilities: | |||
Materials, supplies and fuel | (75,403) | (35,707) | 2,755 |
Accounts receivable and other current assets | (184,448) | (43,170) | (10,843) |
Accounts payable and other current liabilities | 89,405 | 10,660 | 24,659 |
Regulatory assets | 203,869 | (514,687) | (5,047) |
Regulatory liabilities | 0 | (9,533) | (10,706) |
Contributions to defined benefit pension plans | 0 | 0 | (12,700) |
Other operating activities, net | (15,014) | 167 | 4,653 |
Net cash provided by (used in) operating activities | 584,801 | (64,565) | 541,863 |
Investing activities: | |||
Property, plant and equipment additions | (604,365) | (677,492) | (767,404) |
Other investing activities | 485 | 13,262 | 5,740 |
Net cash (used in) investing activities | (603,880) | (664,230) | (761,664) |
Financing activities: | |||
Dividends paid on common stock | (156,723) | (145,023) | (135,439) |
Common stock issued | 90,044 | 118,979 | 99,278 |
Term Loan - borrowings | 0 | 800,000 | 0 |
Term Loan - repayments | 0 | (800,000) | 0 |
Net borrowings (payments) of Revolving Credit Facility and CP Program | 115,420 | 186,140 | (115,460) |
Long-term debt - issuance | 0 | 600,000 | 400,000 |
Long-term debt - repayments | 0 | (8,436) | (8,597) |
Distributions to non-controlling interests | (17,418) | (15,749) | (15,839) |
Other financing activities | 931 | (4,045) | (7,061) |
Net cash provided by financing activities | 32,254 | 731,866 | 216,882 |
Net change in cash, restricted cash and cash equivalents | 13,175 | 3,071 | (2,919) |
Cash, restricted cash and cash equivalents beginning of year | 13,810 | 10,739 | 13,658 |
Cash, restricted cash and cash equivalents end of year | 26,985 | 13,810 | 10,739 |
Supplemental cash flow information: | |||
Interest (net of amounts capitalized) | (152,546) | (142,685) | (136,549) |
Income taxes | 771 | 1,521 | 2,172 |
Accrued property, plant and equipment purchases at December 31 | 59,347 | 68,758 | 72,215 |
Increase in capitalized assets associated with asset retirement obligations | $ 14,032 | $ 2,109 | $ 4,774 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2019 | 61,480,658 | 3,956 | |||||||
Beginning balance at Dec. 31, 2019 | $ 2,464,069 | $ 61,481 | $ (267) | $ 1,552,788 | $ 778,776 | $ (30,655) | $ 101,946 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 242,763 | 227,608 | 15,155 | ||||||
Other comprehensive income, net of tax | 3,309 | 3,309 | |||||||
Dividends on common stock | (135,439) | (135,439) | |||||||
Share-based compensation (in shares) | 123,578 | 28,536 | |||||||
Share-based compensation | 5,194 | $ 123 | $ (1,852) | 6,923 | |||||
Issuance of common stock (in shares) | 1,222,943 | ||||||||
Issuance of common stock | 100,000 | $ 1,223 | 98,777 | ||||||
Issuance costs | (1,203) | (1,203) | |||||||
Distributions to non-controlling interest | (15,839) | (15,839) | |||||||
Ending balance (in shares) at Dec. 31, 2020 | 62,827,179 | 32,492 | |||||||
Ending balance at Dec. 31, 2020 | 2,662,647 | $ (207) | $ 62,827 | $ (2,119) | 1,657,285 | 870,738 | $ (207) | (27,346) | 101,262 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 251,260 | 236,744 | 14,516 | ||||||
Other comprehensive income, net of tax | 7,262 | 7,262 | |||||||
Dividends on common stock | (145,023) | (145,023) | |||||||
Share-based compensation (in shares) | 153,719 | 21,586 | |||||||
Share-based compensation | 8,020 | $ 154 | $ (1,390) | 9,256 | |||||
Issuance of common stock (in shares) | 1,812,197 | ||||||||
Issuance of common stock | 119,924 | $ 1,812 | 118,112 | ||||||
Issuance costs | (1,217) | (1,217) | |||||||
Other | (1) | (1) | |||||||
Distributions to non-controlling interest | (15,749) | (15,749) | |||||||
Ending balance (in shares) at Dec. 31, 2021 | 64,793,095 | 54,078 | |||||||
Ending balance at Dec. 31, 2021 | 2,887,123 | $ 64,793 | $ (3,509) | 1,783,436 | 962,458 | (20,084) | 100,029 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 270,758 | 258,387 | 12,371 | ||||||
Other comprehensive income, net of tax | 4,517 | 4,517 | |||||||
Dividends on common stock | (156,723) | (156,723) | |||||||
Share-based compensation (in shares) | 39,546 | (17,352) | |||||||
Share-based compensation | 11,594 | $ 39 | $ 1,074 | 10,481 | |||||
Issuance of common stock (in shares) | 1,307,755 | ||||||||
Issuance of common stock | 91,197 | $ 1,308 | 89,889 | ||||||
Issuance costs | (1,153) | (1,153) | |||||||
Distributions to non-controlling interest | (17,418) | (17,418) | |||||||
Ending balance (in shares) at Dec. 31, 2022 | 66,140,396 | 36,726 | |||||||
Ending balance at Dec. 31, 2022 | $ 3,089,895 | $ 66,140 | $ (2,435) | $ 1,882,653 | $ 1,064,122 | $ (15,567) | $ 94,982 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends on common stock (usd per share) | $ 2.41 | $ 2.29 | $ 2.17 |
Business Description And Signif
Business Description And Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Significant Accounting Policies | (1) BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES Business Description Black Hills Corporation is a customer-focused, growth-oriented utility company headquartered in Rapid City, South Dakota. We are a holding company that, through our subsidiaries, conducts our operations through the following reportable segments: Electric Utilities and Gas Utilities. Certain unallocated corporate expenses that support our operating segments are presented as Corporate and Other. Use of Estimates and Basis of Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Changes in facts and circumstances or additional information may result in revised estimates and actual results could differ materially from those estimates. COVID-19 Pandemic In March 2020, the World Health Organization categorized COVID-19 as a pandemic and the President of the United States declared the outbreak a national emergency. The U.S. government has deemed electric and natural gas utilities to be critical infrastructure sectors that provide essential services during this emergency. As a provider of essential services, the Company has an obligation to provide services to our customers. The Company remains focused on protecting the health of our customers, employees and the communities in which we operate while assuring the continuity of our business operations. The Company’s Consolidated Financial Statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenue and expenses during the reporting periods presented. The Company considered the impacts of COVID-19 on the assumptions and estimates used and determined that, for the years ended December 31, 2022, 2021 and 2020, there were no material adverse impacts on the Company’s results of operations. Principles of Consolidation The consolidated financial statements include the accounts of Black Hills Corporation and its wholly-owned and majority-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. For additional information on intercompany revenues, see Note 16 . Our Consolidated Statements of Income include operating activity of acquired companies beginning with their acquisition date. We use the proportionate consolidation method to account for our ownership interest in any jointly-owned electric utility generation facility, wind farm or transmission tie. See Note 6 for additional information. Variable Interest Entities We evaluate arrangements and contracts with other entities to determine if they are VIEs and if we are the primary beneficiary. GAAP provides a framework for identifying VIEs and determining when a company should include the assets, liabilities, non-controlling interest and results of activities of a VIE in its consolidated financial statements. A VIE should be consolidated if a party with an ownership, contractual or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities and non-controlling interests at fair value and subsequently account for the VIE as if it were consolidated. Our evaluation of whether our interest qualifies as the primary beneficiary of a VIE involves significant judgments, estimates and assumptions and includes a qualitative analysis of the activities that most significantly impact the VIE’s economic performance and whether the Company has the power to direct those activities, the design of the entity, the rights of the parties and the purpose of the arrangement. Black Hills Colorado IPP is a VIE. See additional information in Note 12 . Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. We maintain cash accounts for various specified purposes, which are classified as restricted cash. Revenue Recognition Our revenue contracts generally provide for performance obligations that are fulfilled and transfer control to customers over time, represent a series of distinct services that are substantially the same, involve the same pattern of transfer to the customer and provide a right to consideration from our customers in an amount that corresponds directly with the value to the customer for the performance completed to date. Therefore, we recognize revenue in the amount to which we have a right to invoice. Our primary types of revenue contracts are: • Regulated natural gas and electric utility services tariffs - Our Utilities have regulated operations, as defined by ASC 980, Regulated Operations, that provide services to regulated customers under tariff rates, charges, terms and conditions of service and prices determined by the jurisdictional regulators designated for our service territories. Our regulated services primarily encompass single performance obligations for delivery of either commodity natural gas, commodity electricity, natural gas transportation or electric transmission services. These service revenues are variable based on quantities delivered, influenced by seasonal business and weather patterns. Tariffs are only permitted to be changed through a rate-setting process involving the state or federal regulatory commissions to establish contractual rates between the utility and its customers. All of our Utilities’ regulated sales are subject to regulatory-approved tariffs. • Power sales agreements - Our Electric Utilities segment has long-term wholesale power sales agreements with other load-serving entities, including affiliates, for the sale of excess power from owned generating units. These agreements include a combination of “take or pay” arrangements, where the customer is obligated to pay for the energy regardless of whether it actually takes delivery, as well as “requirements only” arrangements, where the customer is only obligated to pay for the energy the customer needs. In addition to these long-term contracts, we also sell excess energy to other load-serving entities on a short-term basis. The pricing for all of these arrangements is included in the executed contracts or confirmations, reflecting the standalone selling price and is variable based on energy delivered. Certain energy sale and purchase transactions with the same counterparty and at the same delivery point are netted to reflect the economic substance of the arrangement. The majority of our revenue contracts are based on variable quantities delivered. Any fixed consideration contracts with an expected duration of one year or more are immaterial to our consolidated revenues. Variable consideration constraints in the form of discounts, rebates, credits, price concessions, incentives, performance bonuses, penalties or other similar items are not material for our revenue contracts. We are the principal in our revenue contracts, as we have control over the services prior to those services being transferred to the customer. Revenue Not in Scope of ASC 606 Other revenues included in the tables in Note 4 include our revenue accounted for under separate accounting guidance, including lease revenue under ASC 842, Leases, derivative revenue under ASC 815, Derivatives and Hedging, and alternative revenue programs revenue under ASC 980, Regulated Operations . Significant Judgments and Estimates Unbilled Revenue To the extent that deliveries have occurred, but a bill has not been issued, our Utilities accrue an estimate of the revenue since the latest billing. This estimate is calculated based upon several factors including billings through the last billing cycle in a month and prices in effect in our jurisdictions. Each month, the estimated unbilled revenue amounts are trued-up and recorded in Accounts receivable, net on the accompanying Consolidated Balance Sheets. Contract Balances The nature of our primary revenue contracts provides an unconditional right to consideration upon service delivery; therefore, no customer contract assets or liabilities exist. The unconditional right to consideration is represented by the balance in our Accounts receivable, which is further discussed below. Additional information is included in Note 4 . Accounts Receivable and Allowance for Credit Losses Accounts receivable for our Electric and Gas Utilities business segments primarily consists of sales to residential, commercial, industrial, transportation and other customers, all of which do not bear interest. These accounts receivable are stated at billed and estimated unbilled amounts, net of allowance for credit losses. Accounts receivable for our power generation and mining businesses consists of amounts due from sales of electric energy and capacity and coal primarily to affiliates or regional utilities. We maintain an allowance for credit losses which reflects our estimate of uncollectible trade receivables. We regularly review our trade receivable allowance by considering such factors as historical experience, credit worthiness, the age of the receivable balances and current economic conditions that may affect collectability. In specific cases where we are aware of a customer’s inability or reluctance to pay, we record an allowance for credit losses to reduce the net receivable balance to the amount we reasonably expect to collect. However, if circumstances change, our estimate of the recoverability of accounts receivable could be affected. Circumstances which could affect our estimates include, but are not limited to, customer credit issues, expected losses, the level of commodity prices, customer deposits and general economic conditions. Accounts are written off once they are deemed to be uncollectible or the time allowed for dispute under the contract has expired. We utilize master netting agreements which consist of an agreement between two parties who have multiple contracts with each other that provide for the net settlement of all contracts in the event of default on or termination of any one contract. When the right of offset exists, accounting standards permit the netting of receivables and payables under a legally enforceable master netting agreement between counterparties. Accounting standards also permit offsetting of fair value amounts recognized for the right to reclaim, or the obligation to return, cash collateral against fair value amounts recognized for derivative instruments executed with the same counterparty. Following is a summary of accounts receivable as of December 31 (in thousands): 2022 2021 Billed Accounts Receivable $ 267,571 $ 181,027 Unbilled Revenue 243,574 142,738 Less Allowance for Credit Losses ( 2,953 ) ( 2,113 ) Accounts Receivable, net $ 508,192 $ 321,652 Changes to allowance for credit losses for the years ended December 31, were as follows (in thousands): Balance at Additions Recoveries and Write-offs and Balance at 2022 $ 2,113 $ 9,110 $ 3,529 $ ( 11,799 ) $ 2,953 2021 $ 7,003 $ 2,444 $ 3,560 $ ( 10,894 ) $ 2,113 2020 $ 2,444 $ 8,927 $ 4,728 $ ( 9,096 ) $ 7,003 Materials, Supplies and Fuel The following amounts by major classification are included in Materials, supplies and fuel on the accompanying Consolidated Balance Sheets as of December 31 (in thousands): 2022 2021 Materials and supplies $ 99,734 $ 86,400 Fuel 3,115 1,267 Natural gas in storage 104,572 63,312 Total materials, supplies and fuel $ 207,421 $ 150,979 Materials and supplies represent parts and supplies for business segments. Fuel represents diesel oil and gas used by our Electric Utilities to produce power. Natural gas in storage primarily represents gas purchased for use by our gas customers. All of our Materials, supplies and fuel are recorded using the weighted-average cost method and are valued at the lower-of-cost or net realizable value. The value of our natural gas in storage fluctuates with seasonal volume requirements of our business and the commodity price of natural gas. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost. Included in the cost of regulated construction projects is AFUDC, when applicable, which represents the approximate composite cost of borrowed funds and a return on equity used to finance a regulated utility project. The following table presents AFUDC amounts (in thousands) for the years ended December 31: Income Statement Location 2022 2021 2020 AFUDC Borrowed Interest expense incurred net of amounts $ 5,638 $ 4,068 $ 5,617 AFUDC Equity Other income (expense), net 644 593 318 We also capitalize interest, when applicable, on undeveloped leasehold costs and certain non-regulated construction projects. In addition, asset retirement costs associated with tangible long-lived regulated utility assets are recognized as liabilities with an increase to the carrying amounts of the related long-lived regulated utility assets in the period incurred. The amounts capitalized are included in Property, plant and equipment on the accompanying Consolidated Balance Sheets. We also classify our Cushion Gas as Property, plant and equipment. The cost of regulated utility property, plant and equipment retired, or otherwise disposed in the ordinary course of business, less salvage plus retirement costs, is charged to accumulated depreciation. Estimated removal costs related to our regulated properties that do not have legal retirement obligations are reclassified from accumulated depreciation and reflected as regulatory liabilities. Retirement or disposal of all other assets result in gains or losses recognized as a component of operating income. Ordinary repairs and maintenance of property, except as allowed under rate regulations, are charged to operations as incurred. Depreciation provisions for property, plant and equipment are generally computed on a straight-line basis based on the applicable estimated service life of the various classes of property. The composite depreciation method is applied to regulated utility property. Capitalized mining costs and coal leases are amortized on a unit-of-production method based on volumes produced and estimated reserves. For certain non-regulated power plant components, depreciation is computed on a unit-of-production methodology based on plant hours run. See Note 5 for additional information. Asset Retirement Obligations Accounting standards for AROs associated with long-lived assets require that the present value of retirement costs for which we have a legal obligation be recorded as liabilities with an equivalent amount added to the asset cost and depreciated over an appropriate period. The associated ARO accretion expense for our non-regulated operations, and regulated operations without a corresponding recovery mechanism, is included within Depreciation, depletion and amortization on the accompanying Consolidated Statements of Income. The accounting for the obligation for regulated operations with a regulatory mechanism has no income statement impact due to the deferral of the adjustments through the establishment of a regulatory asset or a regulatory liability. We initially record liabilities for the present value of retirement costs for which we have a legal obligation, with an equivalent amount added to the asset cost. The asset is then depreciated or depleted over the appropriate useful life and the liability is accreted over time by applying an interest method of allocation. Any difference in the actual cost of the settlement of the liability and the recorded amount is recognized as a gain or loss in the results of operations at the time of settlement for our non-regulated operations. Additional information is included in Note 7 . Goodwill and Intangible Assets Goodwill and intangible assets with indefinite lives are not amortized, but the carrying values are reviewed upon an indicator of impairment or at least annually. Intangible assets with a finite life are amortized over their estimated useful lives. We perform a goodwill impairment test on an annual basis or upon the occurrence of events or changes in circumstances that indicate that the asset might be impaired. Our annual goodwill impairment testing date is as of October 1, which aligns our testing date with our financial planning process. The Company has determined that the reporting units for its goodwill impairment test are its operating segments, or components of an operating segment. Our goodwill impairment analysis includes an income approach and a market approach to estimate the fair value of our reporting units. This analysis requires the input of several critical assumptions, including future growth rates, cash flow projections, operating cost escalation rates, rates of return, a risk-adjusted discount rate, timing and level of success in regulatory rate proceedings, the cost of debt and equity capital, long-term earnings and merger multiples for comparable companies. We believe that goodwill reflects the inherent value of the relatively stable, long-lived cash flows of our Utilities businesses, considering the regulatory environment, and the long-lived cash flow and rate base growth opportunities at our Utilities, and those businesses vertically integrated. Goodwill amounts have not changed since 2016. As of December 31, 2022 and 2021, Goodwill balances were as follows (in thousands): Electric Utilities Gas Utilities Total Goodwill $ 257,244 $ 1,042,210 $ 1,299,454 Our intangible assets represent contract intangibles, easements, rights-of-way, customer listings and trademarks. The finite-lived intangible assets are amortized using a straight-line method based on estimated useful lives; these assets are currently being amortized from 3 years to 37 years . Changes to intangible assets for the years ended December 31, were as follows (in thousands): 2022 2021 2020 Intangible assets, net, beginning balance $ 10,770 $ 11,944 $ 13,266 Amortization expense (a) ( 1,181 ) ( 1,174 ) ( 1,322 ) Intangible assets, net, ending balance $ 9,589 $ 10,770 $ 11,944 (a) Amortization expense for existing intangible assets is expected to b e $ 1.2 million for each year of the next five years. Accrued Liabilities The following amounts by major classification are included in Accrued liabilities on the accompanying Consolidated Balance Sheets as of December 31 (in thousands): 2022 2021 Accrued employee compensation, benefits and withholdings $ 62,890 $ 74,387 Accrued property taxes 52,430 50,874 Customer deposits and prepayments 47,655 48,814 Accrued interest 33,798 33,680 Other (none of which is individually significant) 46,684 37,004 Total accrued liabilities $ 243,457 $ 244,759 Fair Value Measurements Financial Instruments We use the following fair value hierarchy for determining inputs for our financial instruments. Our assets and liabilities for financial instruments are classified and disclosed in one of the following fair value categories: Level 1 — Unadjusted quoted prices available in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 1 instruments primarily consist of highly liquid and actively traded financial instruments with quoted pricing information on an ongoing basis. Level 2 — Pricing inputs include quoted prices for identical or similar assets and liabilities in active markets other than quoted prices in Level 1, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Pricing inputs are generally less observable from objective sources. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. We record transfers, if necessary, between levels at the end of the reporting period for all of our financial instruments. Transfers into Level 3, if any, occur when significant inputs used to value the derivative instruments become less observable, such as a significant decrease in the frequency and volume in which the instrument is traded, negatively impacting the availability of observable pricing inputs. Transfers out of Level 3, if any, occur when the significant inputs become more observable, such as when the time between the valuation date and the delivery date of a transaction becomes shorter, positively impacting the availability of observable pricing inputs. Valuation Methodologies for Derivatives The wholesale electric energy and natural gas commodity contracts for our Utilities are valued using the market approach and include forward strip pricing at liquid delivery points, exchange-traded futures, options, basis swaps and over-the-counter swaps and options (Level 2). For exchange-traded futures, options and basis swap assets and liabilities, fair value was derived using broker quotes validated by the exchange settlement pricing for the applicable contract. For over-the-counter instruments, the fair value is obtained by utilizing a nationally recognized service that obtains observable inputs to compute the fair value, which we validate by comparing our valuation with the counterparty. The fair value of these swaps includes a CVA based on the credit spreads of the counterparties when we are in an unrealized gain position or on our own credit spread when we are in an unrealized loss position. Additional information on fair value measurements is included in Notes 10 and 13 . Derivatives and Hedging Activities All our derivatives are measured at fair value and recognized as either assets or liabilities on the Consolidated Balance Sheets, except for derivative contracts that qualify for and are elected under the normal purchase and normal sales exception. Normal purchases and normal sales are contracts where physical delivery is probable, quantities are expected to be used or sold in the normal course of business over a reasonable amount of time and pricing is clearly and closely related to the asset being purchased or sold. Normal purchase and sales contracts are recognized when the underlying physical transaction is completed under the accrual basis of accounting. In addition, certain derivative contracts approved by regulatory authorities are either recovered or refunded through customer rates. Any changes in the fair value of these approved derivative contracts are deferred as a regulatory asset or regulatory liability pursuant to ASC 980, Regulated Operations . We also have some derivatives that qualify for hedge accounting and are designated as cash flow hedges. The gain or loss on these designated derivatives is deferred in AOCI and reclassified into earnings when the corresponding hedged transaction is recognized in earnings. Changes in the fair value of all other derivative contracts are recognized in earnings. We utilize master netting agreements which consist of an agreement between two parties who have multiple contracts with each other that provide for the net settlement of all contracts in the event of default on or termination of any one contract. When the right of offset exists, accounting standards permit the netting of receivables and payables under a legally enforceable master netting agreement between counterparties. Accounting standards also permit offsetting of fair value amounts recognized for the right to reclaim, or the obligation to return, cash collateral against fair value amounts recognized for derivative instruments executed with the same counterparty. We reflect the offsetting of net derivative positions with fair value amounts for cash collateral with the same counterparty when a legal right of offset exists. Therefore, the gross amounts are not indicative of either our actual credit or net economic exposures. See additional information in Notes 9 , 10 and 11 . Deferred Financing Costs Deferred financing costs include loan origination fees, underwriter fees, legal fees and other costs directly attributable to the issuance of debt. Deferred financing costs are amortized over the estimated useful life of the related debt. These costs are presented on the balance sheet as an adjustment to the related debt liabilities. See additional information in Note 8 . Regulatory Accounting Our regulated Electric Utilities and Gas Utilities are subject to cost-of-service regulation and earnings oversight from federal and state regulatory commissions. Our Electric and Gas Utilities account for income and expense items in accordance with accounting standards for regulated operations. These accounting policies differ in some respects from those used by our non-regulated businesses. Under these regulated operations accounting standards: • Certain costs, which would otherwise be charged to expense or OCI, are deferred as regulatory assets based on the expected ability to recover the costs in future rates. • Certain credits, which would otherwise be reflected as income or OCI, are deferred as regulatory liabilities based on the expectation the amounts will be returned to customers in future rates, or because the amounts were collected in rates prior to the costs being incurred. Management continually assesses the probability of future recoveries and obligations associated with regulatory assets and liabilities. Factors such as the current regulatory environment, recently issued rate orders, and historical precedents are considered. As a result, we believe that the accounting prescribed under rate-based regulation remains appropriate and our regulatory assets are probable of recovery in current rates or in future rate proceedings. If changes in the regulatory environment occur, we may no longer be eligible to apply this accounting treatment and may be required to eliminate regulatory assets and liabilities from our balance sheet. Such changes could adversely affect our results of operations, financial position or cash flows. See Note 2 for further information. Income Taxes The Company and its subsidiaries file consolidated federal income tax returns. Each entity records both federal and state income taxes as if it were a separate taxpayer and consolidating expense adjustments are allocated to the subsidiaries based on separate company computations of taxable income or loss. We use the asset and liability method in accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized at currently enacted income tax rates, to reflect the tax effect of temporary differences between the financial and tax basis of assets and liabilities as well as operating loss and tax credit carryforwards. Such temporary differences are the result of provisions in the income tax law that either require or permit certain items to be reported on the income tax return in a different period than they are reported in the financial statements. It is our policy to apply the flow-through method of accounting for ITCs. Under the flow-through method, ITCs are reflected in net income as a reduction to income tax expense in the year they qualify. An exception to this general policy is the deferral method, which applies to our regulated businesses. Such a method results in the ITC being amortized as a reduction to income tax expense over the estimated useful lives of the underlying property that gave rise to the credit. We recognize interest income or interest expense and penalties related to income tax matters in Income tax expense on the Consolidated Statements of Income. We account for uncertainty in income taxes recognized in the financial statements in accordance with the accounting standards for income taxes. The unrecognized tax benefit is classified in Other deferred credits and other liabilities or in Deferred income tax liabilities, net on the accompanying Consolidated Balance Sheets. See Note 15 for additional information. Earnings per Share of Common Stock Basic earnings per share is computed by dividing Net income available for common stock by the weighted average number of common shares outstanding during each year. Diluted earnings per share is computed by including all dilutive common shares outstanding during each year. Diluted common shares are primarily due to equity units, outstanding stock options, restricted stock and performance shares under our equity compensation plans. A reconciliation of share amounts used to compute earnings per share is as follows for the years ended December 31 (in thousands): 2022 2021 2020 Net income available for common stock $ 258,387 $ 236,744 $ 227,608 Weighted average shares - basic 64,858 63,219 62,378 Dilutive effect of: Equity compensation 163 106 61 Weighted average shares - diluted 65,021 63,325 62,439 Net income available for common stock, per share - Diluted $ 3.97 $ 3.74 $ 3.65 The following securities were excluded from the diluted earnings per share computation for the years ended December 31 because of their anti-dilutive nature (in thousands): 2022 2021 2020 Equity compensation - 13 60 Anti-dilutive shares excluded from computation of earnings per share - 13 60 Non-controlling Interests We account for changes in our controlling interests of subsidiaries according to ASC 810 , Consolidation. ASC 810 requires that the Company record such changes as equity transactions, recording no gain or loss on such a sale. GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. In addition, the amounts attributable to the non-controlling interest net income (loss) of those subsidiaries are reported separately in the consolidated statements of income and comprehensive income. See Note 12 for additional detail on non-controlling interests. Share-Based Compensation We account for our share-based compensation arrangements in accordance with ASC 718, Compensation-Stock Compensation , by recognizing compensation costs for all share-based awards over the respective service period for employee services received in exchange for an award of equity or equity-based compensation. Awards that will be settled in stock are accounted for as equity and the compensation expense is based on the grant date fair value. Awards that are settled in cash are accounted for as liabilities and the compensation expense is re-measured each period based on the current market price and performance achievement measures. See additional information in Note 14 . Recently Issued Accounting Standards Facilitation of the Effects of Reference Rate Reform on Financial Reporting, ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which was subsequently amended by ASU 2021-01 and ASU 2022-06. The standard provides relief for companies preparing for discontinuation of interest rates, such as LIBOR, and allows optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are elective and are effective upon the ASU issuance through December 31, 2024. We are currently evaluating if we will apply the optional guidance as we assess the impact of the discontinuance of LIBOR on our current arrangements . We do not expect the ASU to have a material impact on our financial position, results of operations and cash flows. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Matters | (2) REGULATORY MATTERS We had the following regulatory assets and liabilities as of December 31 (in thousands): 2022 2021 Regulatory assets Winter Storm Uri (a) $ 347,980 $ 509,025 Deferred energy and fuel cost adjustments (b) 72,580 59,973 Deferred gas cost adjustments (b) 12,147 9,488 Gas price derivatives (b) 8,793 2,584 Deferred taxes on AFUDC (b) 7,333 7,457 Employee benefit plans and related deferred taxes (c) 89,259 88,923 Environmental (b) 1,343 1,385 Loss on reacquired debt (b) 19,213 21,011 Deferred taxes on flow-through accounting (b) 69,529 63,243 Decommissioning costs (b) 3,472 5,961 Other regulatory assets (b) 21,332 27,549 Total regulatory assets 652,981 796,599 Less current regulatory assets ( 260,312 ) ( 270,290 ) Regulatory assets, non-current $ 392,669 $ 526,309 Regulatory liabilities Deferred energy and gas costs (b) $ 24,030 $ 6,113 Employee benefit plan costs and related deferred taxes (c) 34,258 32,241 Cost of removal (b) 175,614 179,976 Excess deferred income taxes (c) 254,833 264,042 Other regulatory liabilities (c) 29,838 20,579 Total regulatory liabilities 518,573 502,951 Less current regulatory liabilities ( 46,013 ) ( 17,574 ) Regulatory liabilities, non-current $ 472,560 $ 485,377 (a) Timing of Winter Storm Uri incremental cost recovery and associated carrying costs vary by jurisdiction. See further information below. (b) Recovery of costs, but we are not allowed a rate of return. (c) In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base. Regulatory assets represent items we expect to recover from customers through probable future rates. Winter Storm Uri - See discussion below for Winter Storm Uri regulatory asset information. Deferred Energy and Fuel Cost Adjustments - Deferred energy and fuel cost adjustments represent the cost of electricity delivered to our Electric Utilities’ customers that is either higher or lower than the current rates and will be recovered or refunded in future rates. Deferred energy and fuel cost adjustments are recorded and recovered or amortized as approved by the appropriate state regulatory commission. Our Electric Utilities file periodic quarterly, semi-annual and/or annual filings to recover these costs based on the respective cost mechanisms approved by their applicable state regulatory commissions. Deferred Gas Cost Adjustment s - Our regulated Gas Utilities have GCA provisions that allow them to pass the cost of gas on to their customers. The GCA is based on forecasts of the upcoming gas costs and recovery or refund of prior under-recovered or over-recovered costs. To the extent that gas costs are under-recovered or over-recovered, they are recorded as a regulatory asset or liability, respectively. Our Gas Utilities file periodic monthly, quarterly, semi-annual and/or annual filings to recover these costs based on the respective cost mechanisms approved by their applicable state regulatory commissions. Gas Price Derivatives - Our regulated Gas Utilities, as allowed or required by state regulatory commissions, have entered into certain exchange-traded natural gas futures and options to reduce our customers’ underlying exposure to fluctuations in gas prices. Gas price derivatives represent our unrealized positions on our commodity contracts supporting our utilities. Gas price derivatives at December 31, 2022 are hedged over a maximum forward term of two years . Deferred Taxes on AFUDC - The equity component of AFUDC is considered a permanent difference for tax purposes with the tax benefit being flowed through to customers as prescribed or allowed by regulators. If, based on a regulator’s action, it is probable the utility will recover the future increase in taxes payable represented by this flow-through treatment through a rate revenue increase, a regulatory asset is recognized. This regulatory asset is a temporary difference for which a deferred tax liability must be recognized. Accounting standards for income taxes specifically address AFUDC-equity and require a gross-up of such amounts to reflect the revenue requirement associated with a rate-regulated environment. Employee Benefit Plans and Related Deferred Taxes - Employee benefit plans include the unrecognized prior service costs and net actuarial loss associated with our defined benefit pension plan and post-retirement benefit plans in regulatory assets rather than in AOCI. In addition, this regulatory asset includes the income tax effect of the adjustment required under accounting for compensation - defined benefit plans, to record the full pension and post-retirement benefit obligations. Such income tax effect has been grossed-up to account for the revenue requirement associated with a rate regulated environment. Environmental - Environmental costs associated with certain former manufactured gas plant sites. These costs are first offset by recognition of insurance proceeds and settlements with other third parties. Any remaining cost will be requested for recovery in future rate filings. Recovery for these specific environmental costs has not yet been approved by the applicable state regulatory commission and therefore, the recovery period is unknown at this time. Loss on Reacquired Debt - Loss on reacquired debt is recovered over the remaining life of the original issue or, if refinanced, over the life of the new issue. Deferred Taxes on Flow-Through Accounting - Under flow-through accounting, the income tax effects of certain tax items are reflected in our cost of service for the customer and result in lower utility rates in the year in which the tax benefits are realized. A regulatory asset was established to reflect that future increases in income taxes payable will be recovered from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record a tax benefit for costs considered currently deductible for tax purposes but are capitalized for book purposes. Decommissioning Costs - South Dakota Electric and Colorado Electric received approval in 2014 for recovery of the remaining net book values and decommissioning costs of their decommissioned coal plants. In 2018, Arkansas Gas received approval to record Liquefied Natural Gas Plant decommissioning costs as a regulatory asset and received approval in 2020 to begin recovering those costs over three years . Regulatory liabilities represent items we expect to refund to customers through probable future decreases in rates. Deferred Energy and Gas Costs - Deferred energy and gas costs that have been over-recovered through customer rates and will be returned to customers in future periods. Employee Benefit Plan Costs and Related Deferred Taxes - Employee benefit plans represent the cumulative excess of pension and retiree healthcare costs recovered in rates over pension expense recorded in accordance with ASC 715, Compensation-Retirement Benefits . In addition, this regulatory liability includes the income tax effect of the adjustment required under ASC 715, Compensation-Retirement Benefits , to record the full pension and post-retirement benefit obligations. Such income tax effect has been grossed-up to account for the revenue requirement associated with a rate regulated environment. Cost of Removal - Cost of removal represents the estimated cumulative net provisions for future removal costs for which there is no legal obligation for removal included in depreciation expense. Excess Deferred Income Taxes - The revaluation of the regulated utilities' deferred tax assets and liabilities due to the passage of the TCJA was recorded as an excess deferred income tax to be refunded to customers primarily using the normalization principles as prescribed in the TCJA. See Note 15 for additional information. Recent Regulatory Activity Winter Storm Uri In February 2021, Winter Storm Uri caused a substantial increase in heating and energy demand and contributed to unforeseeable and unprecedented market prices for natural gas and electricity. As a result, we incurred significant incremental fuel, purchased power and natural gas costs. 546 million of these incremental costs through separate tracking mechanisms over a weighted-average recovery period of 3.5 years. In these applications, we sought approval to recover carrying costs. We have received final commission approval for all of our Winter Storm Uri cost recovery applications, which will allow our Utilities to recover incremental fuel, purchased power and natural gas costs. For the years ended December 31, 2022 and 2021, our Utilities collected $ 174 million and $ 40 million, respectively, of Winter Storm Uri incremental costs and carrying costs from customers. As of December 31, 2022 , we estimate that our remaining Winter Storm Uri regulatory asset has a weighted-average recovery period of 2.6 years. For years ended December 31, 2022 and 2021, $ 22 million and $ 4.1 million, respectively, of carrying costs were accrued and recorded to a regulatory asset. The carrying costs accrued during the year ended December 31, 2022 included a one-time, $ 10 million true-up recorded in the second quarter to reflect commission authorized rates. TCJA On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the TCJA. The TCJA reduced the U.S. federal corporate tax rate from 35 % to 21 %. As such, the Company remeasured our deferred income taxes at the 21 % federal tax rate as of December 31, 2017. In 2018 and 2019, the Company successfully delivered several of these tax benefits from the TCJA to its utility customers. On December 30, 2020, an administrative law judge approved a settlement of Colorado Electric’s plan to provide $ 9.3 million of TCJA-related bill credits to its customers. The bill credits, which represent a disposition of excess deferred income tax benefits resulting from the TCJA, were delivered to customers in February 2021. On January 26, 2021, the NPSC approved Nebraska Gas’s plan to provide $ 2.9 million of TCJA-related bill credits to its customers. The bill credits, which represent a disposition of excess deferred income tax benefits resulting from the TCJA, were delivered to customers in June 2021. As part of Kansas Gas’ 2021 rate review settlement agreement, Kansas Gas will deliver $ 9.1 million, or approximately $ 3.0 million of TCJA and state tax reform benefits to customers annually, for three years starting in 2022. For the year ended December 31, 2022, Kansas Gas delivered TCJA and state tax reform benefits to customers of $ 2.9 million. These Colorado Electric, Kansas Gas and Nebraska Gas tax benefits delivered to customers, which resulted in a reduction in revenue, were offset by a reduction in income tax expense and resulted in a minimal impact to Net income for the years ended December 31, 2022 and 2021. Arkansas Gas On December 10, 2021, Arkansas Gas filed a rate review with the APSC seeking recovery of significant infrastructure investments in its 7,200 -mile natural gas pipeline system. On October 10, 2022, the APSC approved a partial settlement agreement with all intervening parties for a general rate increase and authorized a capital structure of 45 % equity and 55 % debt and a return on equity of 9.6 %. The APSC’s decision shifts approximately $ 10 million of rider revenue to base rates and is expected to generate $ 8.8 million of new annual revenue. The APSC also approved a new comprehensive safety and integrity rider which replaces three former riders. New rates were effective on October 21, 2022. Wyoming Electric On June 1, 2022, Wyoming Electric filed a rate review with the WPSC seeking recovery of significant infrastructure investments in its 1330 -mile electric distribution and 59 -mile electric transmission systems. On January 26, 2023, the WPSC approved a settlement agreement with intervening parties for a general rate increase. The settlement is expected to generate $ 8.7 million in new annual revenue with a capital structure of 52 % equity and 48 % debt and a return on equity of 9.75 %. New rates will be effective on March 1, 2023. The agreement also includes approval of a new rider that will be filed annually to recover transmission investment and expenses. Colorado Gas RMNG Rate Review On October 7, 2022, RMNG filed a rate review with the CPUC seeking recovery of significant infrastructure investments in its 600 -mile natural gas pipeline system. The rate review requests $ 12.3 million in new annual revenue based on a future test year with a capital structure of 52 % equity and 48 % debt and a return on equity of 12.3 %. The rate review also requests a $ 7.7 million shift of SSIR revenues to base rates. The request seeks to finalize rates in the third quarter of 2023. Colorado Gas Rate Reviews and SSIR On June 1, 2021, Colorado Gas filed a rate review with the CPUC seeking recovery of significant infrastructure investments in its 7,000 -mile natural gas pipeline system. In the fourth quarter of 2021, Colorado Gas reached a settlement agreement with the CPUC staff and various intervenors for a general rate increase, which was subsequently approved by an administrative law judge. N ew rates were effective January 1, 2022, and the settlement is expected to generate $ 6.5 million of new annual revenue. The new revenue is based on a return on equity of 9.2 % and a capital structure of 50.3 % equity and 49.7 % debt. On September 11, 2020, in accordance with the final Order from the rate review filed on February 1, 2019, Colorado Gas filed a SSIR proposal with the CPUC that would recover safety and integrity focused investments in its system for five years . On July 6, 2021, Colorado Gas received approval from the CPUC for its SSIR proposal to recover these investments for three years effective January 1, 2022. The return on SSIR investments will be the current weighted-average cost of long-term debt. Iowa Gas Rate Review On June 1, 2021, Iowa Gas filed a rate review with the IUB seeking recovery of significant infrastructure investments in its 5,000 -mile natural gas pipeline system. On December 28, 2021, the IUB approved a settlement agreement with all intervening parties for a general rate increase. The settlement shifted $ 2.2 million of rider revenue to base rates and is expected to generate $ 3.7 million in new annual revenue with a capital structure of 50 % equity and 50 % debt and a return on equity of 9.6 %. Final rates were enacted on January 1, 2022 and replaced interim rates effective June 11, 2021. Kansas Gas Rate Review On May 7, 2021, Kansas Gas filed a rate review and rider renewal with the KCC seeking recovery of significant infrastructure investments in its 4,600 -mile natural gas pipeline system. On December 30, 2021, Kansas Gas received approval from the KCC on its Global Settlement agreement with KCC staff and various intervenors for a general rate increase and renewal of its safety and integrity rider. The settlement shifted $ 6.6 million of rider revenue to base rates, effective January 1, 2022, and also allowed rider renewal for at least five more years. South Dakota Electric FERC Formula Rate The annual rate determination process is governed by the FERC formula rate protocols established in the filed FERC joint-access transmission tariff. Effective January 1, 2022, the annual revenue requirement for the FERC Transmission Formula Rate was $ 30 million and included estimated weighted average capital additions of $ 30 million for 2021 and 2022 combined. Black Hills Wyoming and Wyoming Electric Wygen I FERC Filing On October 15, 2020, the FERC approved a settlement agreement that represents a resolution of all issues in the joint application filed by Wyoming Electric and Black Hills Wyoming on August 2, 2019 for approval of a new 60 MW PPA. Under the terms of the settlement, Wyoming Electric will continue to receive 60 MW of capacity and energy from the Wygen I power plant. The new agreement commenced on January 1, 2022, replaced the existing PPA and will expire after 11 years . |
Commitment, Contingencies And G
Commitment, Contingencies And Guarantees | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | (3) COMMITMENTS, CONTINGENCIES AND GUARANTEES Unconditional Purchase Obligations We have various PPAs and transmission service agreements, which extend to 2030, to support our Electric Utilities' capacity and energy needs beyond our regulated power plants' generation. Our Utilities purchase natural gas, including transportation and storage capacity, to meet customers' needs under short-term and long-term purchase contracts. These contracts extend to 2044. The following is a schedule of unconditional purchase obligations required under the power purchase, transmission services and natural gas transportation and storage agreements (in thousands): PPAs (a) Transmission Services Agreements Natural gas supply, transportation and storage agreements (b) Future commitments for the year ending December 31, 2023 $ 11,175 $ 12,320 $ 130,031 2024 2,738 - 98,881 2025 - - 72,662 2026 - - 45,102 2027 - - 14,862 Thereafter - - 56,595 Total future commitments $ 13,913 $ 12,320 $ 418,133 ___________________________ (a) This schedule does not reflect renewable energy PPA future obligations since these agreements vary based on weather conditions. (b) Our Gas Utilities have commitments to purchase physical quantities of natural gas under contracts indexed to various forward natural gas price curves. A portion of our gas purchases are purchased under evergreen contracts and are therefore, for purposes of this disclosure, carried out for 60 days . Lease Agreements Lessee We lease from third parties certain office and operation ce nter facilities, communication tower sites, equipment and materials storage. Our leases have remaining terms ranging from less than one year to 33 years , including options to extend that are reasonably certain to be exercised. Our operating and finance leases were not material to the Company’s Consolidated Financial statements. Lessor We lease to third parties certain generating station ground leases, communication tower sites and a natural gas pipeline. These leases have remaining terms ranging from less than one year to 34 years . Le ase revenue was not material for the years ended December 31, 2022, 2021 and 2020. As of December 31, 2022, scheduled maturities of operating lease payments to be received in future years were as follows (in thousands): Operating Leases 2023 $ 2,381 2024 2,125 2025 2,070 2026 1,881 2027 1,845 Thereafter 49,387 Total lease receivables $ 59,689 Environmental Matters We are subject to costs resulting from a number of federal, state and local laws and regulations which affect future planning and existing operations. Laws and regulations can result in increased capital expenditures, operating and other costs as a result of compliance, remediation and monitoring obligations. Due to the environmental issues discussed below, we may be required to modify, curtail, replace or cease operating certain facilities or operations to comply with statutes, regulations and other requirements of regulatory bodies. Reclamation Liability For our Pueblo Airport Generation site, we posted a bond of $ 4.1 million with the State of Colorado to cover the costs of remediation for a waste water containment pond permitted to provide wastewater storage and processing for this zero-discharge facility. The reclamation liability is recorded at the present value of the estimated future cost to reclaim the land. Under our land leases for our wind generation facilities, we are required to reclaim land where we have placed wind turbines. The reclamation liabilities are recorded at the present value of the estimated future cost to reclaim the land. Under its mining permit, WRDC is required to reclaim all land where it has mined reserves. The reclamation liability is recorded at the present value of the estimated future cost to reclaim the land. See Note 7 for additional information. Manufactured Gas Processing In 20 08, we acquired whole and partial liabilities for former manufactured gas processing sites in Nebraska and Iowa, which were previously used to convert coal to natural gas. The acquisition provided for an insurance recovery, now valued at $ 1.3 million recorded in Other assets, non-current on our Consolidated Balance Sheets, which will be used to help offset remediation costs. We also have a $ 1.3 million regulatory asset for manufactured gas processing sites; see Note 2 for additional information. As of December 31, 2022 , we had $ 2.6 million accrued for remediation of Iowa’s manufactured gas processing site as the landowner. As of December 31, 2022 , we had $ 0.6 million accrued for remediation of Nebraska’s manufactured gas processing site as the land owner. These liabilities are included in Other deferre d credits and other liabilities on our Consolidated Balance Sheets. The remediation cost estimate could change materially due to results of further investigations, actions of environmental agencies or the financial viability of other responsible parties. Legal Proceedings In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in the consolidated financial statements to satisfy alleged liabilities are adequate in light of the probable and estimable contingencies. However, there can be no assurance that the actual amounts required to satisfy alleged liabilities from various legal proceedings, claims and other matters discussed, and to comply with applicable laws and regulations will not exceed the amounts reflected in the consolidated financial statements. We record gain contingencies when realized and expected recoveries under applicable insurance contracts when we are assured of recovery. In the normal course of business, we enter into agreements that include indemnification in favor of third parties, such as information technology agreements, purchase and sale agreements and lease contracts. We have also agreed to indemnify our directors, officers and employees in accordance with our articles of incorporation, as amended. Certain agreements do not contain any limits on our liability and therefore, it is not possible to estimate our potential liability under these indemnifications. In certain cases, we have recourse against third parties with respect to these indemnities. Further, we maintain insurance policies that may provide coverage against certain claims under these indemnities. GT Resources, LLC v. Black Hills Corporation, Case No. 2020CV30751 (U.S. District Court for the City and County of Denver, Colorado) On April 13, 2022, a jury awarded $ 41 million for claims made by GT Resources, LLC (“GTR”) against BHC and two of its subsidiaries (Black Hills Exploration and Production, Inc. and Black Hills Gas Resources, Inc.), which ceased oil and natural gas operations in 2018 as part of BHC’s decision to exit the exploration and production business. The claims involved a dispute over a 2.3 million-acre concession award in Costa Rica which was acquired by a BHC subsidiary in 2003. GTR retained rights to receive a royalty interest on any hydrocarbon production from the concession upon the occurrence of contingent events. GTR contended that BHC and its subsidiaries failed to adequately pursue the opportunity and failed to transfer the concession to GTR. We believe we have meritorious defenses to the verdict and have appealed the verdict. At this time, we believe that the liability related to this matter, if any, is not reasonably estimable. Guarantees We have entered into various parent company-level guarantees providing financial or performance assurance to third parties on behalf of certain of our subsidiaries. These guarantees do not represent incremental consolidated obligations, but rather, represent guarantees of subsidiary obligations to allow those subsidiaries to conduct business without posting other forms of assurance. The agreements, which are off-balance sheet commitments, include support for business operations, indemnification for reclamation and surety bonds. The guarantees were entered into in the normal course of business. To the extent liabilities are incurred as a result of activities covered by these guarantees, such liabilities are included in our Consolidated Balance Sheets. See Note 8 for additional information on our off-balance sheet Letters of Credit commitment. We had the following guarantees in place as of (in thousands): Maximum Exposure at Nature of Guarantee December 31, 2022 Indemnification for reclamation/surety bonds $ 107,314 Guarantees supporting business transactions $ 484,968 $ 592,282 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (4) REVENUE The following tables depict the disaggregation of revenue, including intercompany revenue, from contracts with customers by customer type and timing of revenue recognition for each of the reportable segments, for the years ended December 31, 2022, 2021 and 2020. Sales tax and other similar taxes are excluded from revenues. Year ended December 31, 2022 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 739,734 $ 1,453,266 $ — $ 2,193,000 Transportation — 173,275 ( 413 ) 172,862 Wholesale 44,832 — — 44,832 Market - off-system sales 48,578 829 — 49,407 Transmission/Other 61,470 37,879 ( 16,594 ) 82,755 Revenue from contracts with customers 894,614 1,665,249 ( 17,007 ) 2,542,856 Other revenues 5,548 3,841 ( 429 ) 8,960 Total revenues $ 900,162 $ 1,669,090 $ ( 17,436 ) $ 2,551,816 Timing of revenue recognition: Services transferred at a point in time $ 30,454 $ — $ — $ 30,454 Services transferred over time 864,160 1,665,249 ( 17,007 ) 2,512,402 Revenue from contracts with customers $ 894,614 $ 1,665,249 $ ( 17,007 ) $ 2,542,856 Year ended December 31, 2021 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 711,448 $ 913,725 $ — $ 1,625,173 Transportation — 158,053 ( 428 ) 157,625 Wholesale 30,848 — — 30,848 Market - off-system sales 41,682 396 — 42,078 Transmission/Other 52,945 39,365 ( 17,200 ) 75,110 Revenue from contracts with customers 836,923 1,111,539 ( 17,628 ) 1,930,834 Other revenues 5,335 13,326 ( 393 ) 18,268 Total revenues $ 842,258 $ 1,124,865 $ ( 18,021 ) $ 1,949,102 Timing of revenue recognition: Services transferred at a point in time $ 27,141 $ — $ — $ 27,141 Services transferred over time 809,782 1,111,539 ( 17,628 ) 1,903,693 Revenue from contracts with customers $ 836,923 $ 1,111,539 $ ( 17,628 ) $ 1,930,834 Year ended December 31, 2020 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 636,902 $ 765,922 $ — $ 1,402,824 Transportation — 154,581 ( 526 ) 154,055 Wholesale 24,845 — — 24,845 Market - off-system sales 15,512 260 — 15,772 Transmission/Other 55,422 43,658 ( 15,772 ) 83,308 Revenue from contracts with customers 732,681 964,421 ( 16,298 ) 1,680,804 Other revenues 6,176 10,249 ( 288 ) 16,137 Total revenues $ 738,857 $ 974,670 $ ( 16,586 ) $ 1,696,941 Timing of revenue recognition: Services transferred at a point in time $ 27,089 $ — $ — $ 27,089 Services transferred over time 705,592 964,421 ( 16,298 ) 1,653,715 Revenue from contracts with customers $ 732,681 $ 964,421 $ ( 16,298 ) $ 1,680,804 |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (5) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at December 31 consisted of the following (dollars in thousands): 2022 2021 Lives (in years) Electric Utilities Property, Plant and Equipment Weighted Average Useful Life (in years) Property, Plant and Equipment Weighted Average Useful Life (in years) Minimum Maximum Electric plant: Production $ 1,482,081 41 $ 1,452,055 41 32 46 Electric transmission 632,872 48 546,126 49 40 51 Electric distribution 1,082,535 47 1,000,619 47 45 50 Integrated Generation 713,519 31 720,490 30 19 38 Plant acquisition adjustment (a) 4,870 32 4,870 32 32 32 General 274,857 27 266,935 28 24 31 Total electric plant in service 4,190,734 3,991,095 Construction work in progress 152,953 181,451 Total electric plant 4,343,687 4,172,546 Less accumulated depreciation and depletion ( 1,104,056 ) ( 1,016,738 ) Electric plant net of accumulated depreciation and depletion $ 3,239,631 $ 3,155,808 ____________________ (a) The plant acquisition adjustment is included in rate base and is being recovered w ith 8 years rem aining. 2022 2021 Lives (in years) Gas Utilities Property, Plant and Equipment Weighted Average Useful Life (in years) Property, Plant and Equipment Weighted Average Useful Life (in years) Minimum Maximum Gas plant: Production $ 17,843 45 $ 14,841 40 24 47 Gas transmission 695,345 58 645,550 58 32 72 Gas distribution 2,620,174 57 2,394,352 53 48 60 Cushion gas - depreciable (a) — N/A 3,539 28 N/A N/A Cushion gas - not depreciable (a) 63,137 N/A 42,478 N/A N/A N/A Storage 65,781 41 56,289 38 36 48 General 497,407 23 474,964 21 3 25 Total gas plant in service 3,959,687 3,632,013 Construction work in progress 52,041 37,860 Total gas plant 4,011,728 3,669,873 Less accumulated depreciation ( 471,013 ) ( 389,115 ) Gas plant net of accumulated depreciation $ 3,540,715 $ 3,280,758 ____________________ (a) Depreciation of Cushion Gas is determined by the respective regulatory jurisdiction in which the Cushion Gas resides. In 2022, assets classified as Cushion gas - depreciable were fully depreciated and removed from gross plant in service and accumulated depreciation. 2022 2021 Lives (in years) Corporate Property, Plant and Equipment Weighted Average Useful Life (in years) Property, Plant and Equipment Weighted Average Useful Life (in years) Minimum Maximum Total plant in service $ 5,685 11 $ 5,694 10 4 24 Construction work in progress 13,690 8,460 Total gross property, plant and equipment 19,375 14,154 Less accumulated depreciation ( 1,773 ) ( 1,544 ) Total net of accumulated depreciation $ 17,602 $ 12,610 |
Jointly Owned Facilities
Jointly Owned Facilities | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Jointly Owned Facilities | (6) JOINTLY OWNED FACILITIES Our consolidated financial statements include our share of several jointly-owned facilities as described below. Our share of the facilities’ expenses is reflected in the appropriate categories of operating expenses in the Consolidated Statements of Income. Each owner of the facility is responsible for financing its investment in the jointly-owned facilities. At December 31, 2022, our interests in jointly-owned generating facilities and transmission systems were (in thousands): Ownership Interest Plant in Service Construction Work in Progress Less Accumulated Depreciation Plant Net of Accumulated Depreciation Wyodak Plant (a) 20 % $ 121,769 $ 93 $ ( 70,884 ) $ 50,978 Transmission Tie 35 % $ 24,482 $ 300 $ ( 7,375 ) $ 17,407 Wygen III (b) 52 % $ 143,818 $ 1,051 $ ( 29,634 ) $ 115,235 Wygen I (c) 76.5 % $ 114,811 $ 1,579 $ ( 56,553 ) $ 59,837 (a) In addition to supplying South Dakota Electric with coal for its share of the Wyodak Plant, our mine supplies PacifiCorp’s share of the coal under a separate long-term agreement. This coal supply agreement is collateralized by a mortgage on and a security interest in some of WRDC’s coal reserves. (b) South Dakota Electric retains responsibility for plant operations. Our mine supplies fuel to Wygen III for the life of the plant. (c) Black Hills Wyoming retains responsibility for plant operations. Our mine supplies fuel to Wygen I for the life of the plant. |
Asset Retirement Obligations_
Asset Retirement Obligations: | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | (7) ASSET RETIREMENT OBLIGATIONS We have identified legal obligations related to reclamation of mining sites; removal of fuel tanks, transformers containing polychlorinated biphenyls, an evaporation pond; and reclamation of wind turbine sites at our Electric Utilities segment. In addition, we have identified legal obligations related to retirement of gas pipelines, wells and compressor stations at our Gas Utilities and removal of asbestos at our Utilities. We periodically review and update estimated costs related to these AROs. The actual cost may vary from estimates due to regulatory requirements, changes in technology and increased labor, materials and equipment costs. The following tables present the details of AROs which are included on the accompanying Consolidated Balance Sheets in Other deferred credits and other liabilities (in thousands): December 31, 2021 Liabilities Incurred Liabilities Settled Accretion Revisions to Prior Estimates December 31, 2022 Electric Utilities $ 30,089 $ — $ ( 3,003 ) $ 1,353 $ ( 856 ) $ 27,583 Gas Utilities (a) 45,455 — ( 158 ) 2,016 14,032 61,345 Total $ 75,544 $ — $ ( 3,161 ) $ 3,369 $ 13,176 $ 88,928 December 31, 2020 Liabilities Incurred Liabilities Settled Accretion Revisions to Prior Estimates December 31, 2021 Electric Utilities $ 29,157 $ — $ ( 978 ) $ 1,315 $ 595 $ 30,089 Gas Utilities (a) 42,274 — ( 66 ) 1,733 1,514 45,455 Total $ 71,431 $ — $ ( 1,044 ) $ 3,048 $ 2,109 $ 75,544 (a) The Revisions to Prior Estimates were primarily driven by changes in estimates associated with natural gas wells and compressor stations. We also have legally required AROs related to certain assets within our electric transmission and distribution systems. These retirement obligations are pursuant to an easement or franchise agreement and are only required if we discontinue our utility service under such easement or franchise agreement. Accordingly, it is not possible to estimate a time period when these obligations could be settled, and therefore, a liability for the cost of these obligations cannot be measured at this time. |
Financing
Financing | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Financing | (8) FINANCING Short-term debt Revolving Credit Facility and CP Program On July 19, 2021, we amended and restated our corporate Revolving Credit Facility, maintaining total commitments of $ 750 million and extending the term through July 19, 2026 with two one year extension options (subject to consent from lenders). This Revolving Credit Facility is similar to the former revolving credit facility, which includes an accordion feature that allows us to increase total commitments up to $ 1.0 billion with the consent of the administrative agent, the issuing agents and each bank increasing or providing a new commitment. Borrowings continue to be available under a base rate or various Eurodollar rate options. The interest costs associated with the letters of credit or borrowings and the commitment fee under the Revolving Credit Facility are determined based upon our Corporate credit rating from S&P, Fitch and Moody's for our senior unsecured long-term debt. Based on our current credit ratings, the margins for base rate borrowings, Eurodollar borrowings and letters of credit were 0.125 %, 1.125 % and 1.125 %, respectively, at December 31, 2022 . Based on our credit ratings, a 0.175 % commitment fee was charged on the unused amount at December 31, 2022. We have a $ 750 million, unsecured CP Program that is backstopped by the Revolving Credit Facility. Amounts outstanding under the Revolving Credit Facility and the CP Program, either individually or in the aggregate, cannot exceed $ 750 million. The notes issued under the CP Program may have maturities not to exceed 397 days from the date of issuance and bear interest (or are sold at par less a discount representing an interest factor) based on, among other things, the size and maturity date of the note, the frequency of the issuance and our credit ratings. Under the CP Program, any borrowings rank equally with our unsecured debt. Notes under the CP Program are not registered and are offered and issued pursuant to a registration exemption. Our Revolving Credit Facility and CP Program, which are classified as Notes payable on the Consolidated Balance Sheets, had the following borrowings, outstanding letters of credit, and available capacity at December 31 (dollars in thousands): 2022 2021 Amount outstanding $ 535,600 $ 420,180 Letters of credit (a) 24,626 27,209 Available capacity 189,774 302,611 Weighted average interest rates 4.88 % 0.30 % (a) Letters of credit are off-balance sheet commitments that reduce the borrowing capacity available on our corporate Revolving Credit Facility. Revolving Credit Facility and CP Program borrowing activity for the years ended December 31 was as follows (in thousands): 2022 2021 Maximum amount outstanding (based on daily outstanding balances) $ 572,300 $ 440,000 Average amount outstanding (based on daily outstanding balances) 390,653 258,392 Weighted average interest rates 2.11 % 0.22 % Deferred Financing Costs on the Revolving Credit Facility Total accumulated deferred financing costs on the Revolving Credit Facility of $ 8.9 million a re being amortized over its estimated useful life and were included in Interest expense on the accompanying Consolidated Statements of Income. See below for additional details. Term Loan On February 24, 2021, we entered into a nine-month , $ 800 million unsecured term loan to provide additional liquidity and to meet our cash needs related to the incremental fuel, purchased power and natural gas costs from Winter Storm Uri. The term loan carried no prepayment penalty and was subject to the same covenant requirements as our Revolving Credit Facility. We repaid $ 200 million of this term loan in the first quarter of 2021. Proceeds from the August 26, 2021 public debt offering (discussed below) were used to repay the remaining balance on this term loan. Long-term debt Long-term debt outstanding was as follows (dollars in thousands): Interest Rate at Balance Outstanding Due Date December 31, 2022 December 31, 2022 December 31, 2021 Corporate Senior unsecured notes due 2023 November 30, 2023 4.25 % $ 525,000 $ 525,000 Senior unsecured notes due 2024 August 23, 2024 1.04 % 600,000 600,000 Senior unsecured notes due 2026 January 15, 2026 3.95 % 300,000 300,000 Senior unsecured notes due 2027 January 15, 2027 3.15 % 400,000 400,000 Senior unsecured notes, due 2029 October 15, 2029 3.05 % 400,000 400,000 Senior unsecured notes, due 2030 June 15, 2030 2.50 % 400,000 400,000 Senior unsecured notes due 2033 May 1, 2033 4.35 % 400,000 400,000 Senior unsecured notes, due 2046 September 15, 2046 4.20 % 300,000 300,000 Senior unsecured notes, due 2049 October 15, 2049 3.88 % 300,000 300,000 Total Corporate debt 3,625,000 3,625,000 Less unamortized debt discount ( 5,259 ) ( 6,125 ) Total Corporate debt, net 3,619,741 3,618,875 South Dakota Electric First Mortgage Bonds due 2032 August 15, 2032 7.23 % 75,000 75,000 First Mortgage Bonds due 2039 November 1, 2039 6.13 % 180,000 180,000 First Mortgage Bonds due 2044 October 20, 2044 4.43 % 85,000 85,000 Total South Dakota Electric debt 340,000 340,000 Less unamortized debt discount ( 69 ) ( 74 ) Total South Dakota Electric debt, net 339,931 339,926 Wyoming Electric Industrial development revenue bonds due 2027 (a) (b) March 1, 2027 3.68 % 10,000 10,000 First Mortgage Bonds due 2037 November 20, 2037 6.67 % 110,000 110,000 First Mortgage Bonds due 2044 October 20, 2044 4.53 % 75,000 75,000 Total Wyoming Electric debt 195,000 195,000 Less unamortized debt discount — — Total Wyoming Electric debt, net 195,000 195,000 Total long-term debt 4,154,672 4,153,801 Less current maturities ( 525,000 ) — Less unamortized deferred financing costs (c) ( 22,332 ) ( 26,878 ) Long-term debt, net of current maturities and deferred financing costs $ 3,607,340 $ 4,126,923 (a) Variable interest rate. (b) A reimbursement agreement is in place with Wells Fargo on behalf of Wyoming Electric for the 2009A bonds of $ 10 million due March 1, 2027. In the case of default, we hold the assumption of liability for drawings on Wyoming Electric’s Letter of Credit attached to these bonds. (c) Includes deferred financing costs associated with our Revolving Credit Facilit y of $ 1.8 million and $ 2.5 million as of December 31, 2022 and December 31, 2021 , respectively. Scheduled maturities of long-term debt and associated interest payments by year are shown below (in thousands): Payments Due by Period 2023 2024 2025 2026 2027 Thereafter Total Principal payments on Long-term debt including current maturities (a) $ 525,000 $ 600,000 $ — $ 300,000 $ 410,000 $ 2,325,000 $ 4,160,000 Interest payments on Long-term debt (a) 148,125 125,813 119,591 113,666 101,134 994,804 1,603,133 (a) Long-term debt amounts do not include deferred financing costs or discounts or premiums on debt. Estimated interest payments on variable rate debt are calculated by utilizing the applicable rates as of December 31, 2022. We plan to re-finance our $ 525 million, 4.25 %, senior unsecured notes due November 30, 2023, at or before maturity date. In the event we are unable to refinance these senior unsecured notes, we have sufficient alternative measures available to manage cash flows such that our current plans to manage liquidity would be sufficient to meet our obligations in the foreseeable future. Our debt securities contain certain restrictive financial covenants, all of which the Company and its subsidiaries were in compliance with at December 31, 2022. See below for additional information. Substantially all of the tangible utility property of South Dakota Electric and Wyoming Electric is subject to the lien of indentures securing their first mortgage bonds. First mortgage bonds of South Dakota Electric and Wyoming Electric may be issued in amounts limited by property, earnings and other provisions of the mortgage indentures. Debt Transactions On August 26, 2021, we completed a public debt offering which consisted of $ 600 million, 1.037 % three-year senior unsecured notes due August 23, 2024. The notes include an optional redemption provision and may be redeemed, in whole or in part, without premium, on or after February 23, 2022. The proceeds from the offering, which were net of $ 3.7 million of deferred financing costs, were used to repay amounts outstanding under our term loan entered into on February 24, 2021. On June 17, 2020, we completed a public debt offering which consisted of $ 400 million of 2.50 % 10-year senior unsecured notes due June 15, 2030. The proceeds were used to repay short-term debt and for working capital and general corporate purposes. Amortization of Deferred Financing Costs Our deferred financing costs and associated amortization expense included in Interest expense on the accompanying Consolidated Statements of Income were as follows (in thousands): Deferred Financing Costs Remaining at Amortization Expense for the years ended December 31, December 31, 2022 2022 2021 2020 $ 22,332 $ 4,549 $ 3,769 $ 3,272 Debt Covenants Revolving Credit Facility Under our Revolving Credit Facility, we are required to maintain a Consolidated Indebtedness to Capitalization Ratio not to exceed 0.65 to 1.00. Subject to applicable cure periods, a violation of any of these covenants would constitute an event of default that entitles the lenders to terminate their remaining commitments and accelerate all principal and interest outstanding. We were in compliance with our covenants at December 31, 2022 as shown below: As of December 31, 2022 Covenant Requirement Consolidated Indebtedness to Capitalization Ratio 60.9 % Less than 65 % Wyoming Electric Covenants within Wyoming Electric's financing agreements require Wyoming Electric to maintain a debt to capitalization ratio of no more than 0.60 to 1.00. As of December 31, 2022, we were in compliance with these financial covenants. Dividend Restrictions Our Revolving Credit Facility and other debt obligations contain restrictions on the payment of cash dividends when a default or event of default occurs. Due to our holding company structure, substantially all of our operating cash flows are provided by dividends paid or distributions made by our subsidiaries. The cash to pay dividends to our shareholders is derived from these cash flows. As a result, certain statutory limitations or regulatory or financing agreements could affect the levels of distributions allowed to be made by our subsidiaries. Our Utilities are generally limited to the amount of dividends allowed to be paid to our utility holding company under the Federal Power Act and settlement agreements with state regulatory jurisdictions. As of December 31, 2022, the amount of restricted net assets at our Utilities that may not be distributed to our utility holding company in the form of a loan or dividend was approximat ely $ 155 million. South Dakota Electric and Wyoming Electric are generally limited to the amount of dividends allowed to be paid to our utility holding company under certain financing agreements. Equity At-the-Market Equity Offering Program On August 3, 2020, we filed a shelf registration and DRSPP with the SEC. In conjunction with these shelf filings, we renewed the ATM. The renewed ATM program, which allows us to sell shares of our common stock, is the same as the prior program other than the aggregate value increased from $ 300 million to $ 400 million and a forward sales option was incorporated. This forward sales option allows us to sell our shares through the ATM program at the current trading price without actually issuing any shares to satisfy the sale until a future date. Under the ATM, shares may be offered from time to time pursuant to a sales agreement dated August 3, 2020. Shares of common stock are offered pursuant to our shelf registration statement filed with the SEC. ATM activity for the years ended December 31 was as follows (net proceeds and issuance costs in millions): December 31, 2022 December 31, 2021 December 31, 2020 Number of shares issued 1,307,755 1,812,197 - Average price per share $ 69.74 $ 66.18 $ - Proceeds, (net of issuance costs of $( 0.9 ), $( 1.1 ) and $ 0 respectively) $ 90.3 $ 118.8 $ - February 2020 Equity Issuance On February 27, 2020, we issued 1.2 million shares of common stock to a single investor through an underwritten registered transaction at a price of $ 81.77 per share for proceeds of $ 99 million, net of $ 1.0 million of issuance costs. The shares of common stock were offered pursuant to our shelf registration statement filed with the SEC. Shareholder Dividend Reinvestment and Stock Purchase Plan We have a DRSPP under which shareholders may purchase additional shares of common stock through dividend reinvestment and/or optional cash payments at 100 % of the recent average market price. We have the option of issuing new shares or purchasing the shares on the open market. We issued new shares until March 1, 2018, after which we began purchasing shares on the open market. At December 31, 2022 , there were 74,198 shares of unissued stock available for future offering under the DRSPP. Preferred Stock Our articles of incorporation authorize the issuance of 25 million shares of preferred stock of which we ha d no shares of preferred stock outstanding as of December 31, 2022 and 2021 . |
Risk Management And Derivatives
Risk Management And Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management And Derivatives | (9) RISK MANAGEMENT AND DERIVATIVES Market and Credit Risk Disclosures Our activities in the energy industry expose us to a number of risks in the normal operations of our businesses. Depending on the activity, we are exposed to varying degrees of market risk and credit risk. To manage and mitigate these identified risks, we have adopted the Black Hills Corporation Risk Policies and Procedures. Valuation methodologies for our derivatives are detailed within Note 1 . Market Risk Market risk is the potential loss that may occur as a result of an adverse change in market price, rate or supply. We are exposed, but not limited to, the following market risks: • Commodity price risk associated with our retail natural gas and wholesale electric power marketing activities and our fuel procurement for several of our gas-fired generation assets, which include market fluctuations due to unpredictable factors such as the COVID-19 pandemic, weather (e.g. Winter Storm Uri), geopolitical events, market speculation, recession, inflation, pipeline constraints, and other factors that may impact natural gas and electric supply and demand; and • Interest rate risk associated with future debt, including reduced access to liquidity during periods of extreme capital markets volatility, such as the 2008 financial crisis and the COVID-19 pandemic. Credit Risk Credit risk is the risk of financial loss resulting from non-performance of contractual obligations by a counterparty. We attempt to mitigate our credit exposure by conducting business primarily with high credit quality entities, setting tenor and credit limits commensurate with counterparty financial strength, obtaining master netting agreements and mitigating credit exposure with less creditworthy counterparties through parental guarantees, cash collateral requirements, letters of credit and other security agreements. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer’s current creditworthiness, as determined by review of their current credit information. We maintain a provision for estimated credit losses based upon historical experience, changes in current market conditions, expected losses and any specific customer collection issue that is identified. Our credit exposure at December 31, 2022 was concentrated primarily among retail utility customers, investment grade companies, cooperative utilities and federal agencies. Derivatives and Hedging Activity Our derivative and hedging activities included in the accompanying Consolidated Balance Sheets, Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Loss) are detailed below and within Note 10 . The operations of our Utilities, including natural gas sold by our Gas Utilities and natural gas used by our Electric Utilities’ generation plants or those plants under PPAs where our Electric Utilities must provide the generation fuel (tolling agreements), expose our utility customers to natural gas price volatility. Therefore, as allowed or required by state utility commissions, we have entered into commission approved hedging programs utilizing natural gas futures, options, over-the-counter swaps and basis swaps to reduce our customers’ underlying exposure to these fluctuations. These transactions are considered derivatives, and in accordance with accounting standards for derivatives and hedging, mark-to-market adjustments are recorded as Derivative assets or Derivative liabilities on the accompanying Consolidated Balance Sheets, net of balance sheet offsetting as permitted by GAAP. For our regulated Utilities’ hedging plans, unrealized and realized gains and losses, as well as option premiums and commissions on these transactions are recorded as Regulatory assets or Regulatory liabilities in the accompanying Consolidated Balance Sheets in accordance with state regulatory commission guidelines. When the related costs are recovered through our rates, the hedging activity is recognized in the Consolidated Statements of Income. We periodically have wholesale power purchase and sale contracts used to manage purchased power costs and load requirements associated with serving our electric customers that are considered derivative instruments due to not qualifying for the normal purchase and normal sales exception to derivative accounting. Changes in the fair value of these commodity derivatives are recognized in the Consolidated Statements of Income. To support our Choice Gas Program customers, we buy, sell and deliver natural gas at competitive prices by managing commodity price risk. As a result of these activities, this area of our business is exposed to risks associated with changes in the market price of natural gas. We manage our exposure to such risks using over-the-counter and exchange traded options and swaps with counterparties in anticipation of forecasted purchases and sales during time frames ranging from January 2023 through December 2024. A portion of our over-the-counter swaps have been designated as cash flow hedges to mitigate the commodity price risk associated with deliveries under fixed price forward contracts to deliver gas to our Choice Gas Program customers. The gain or loss on these designated derivatives is reported in AOCI in the accompanying Consolidated Balance Sheets and reclassified into earnings in the same period that the underlying hedged item is recognized in earnings. Effectiveness of our hedging position is evaluated at least quarterly. The contract or notional amounts and terms of the natural gas derivative commodity instruments held by our utilities are comprised of both short and long positions. We had the following net long positions as of: December 31, 2022 December 31, 2021 Units Notional Amounts Maximum Term (months) (a) Notional Amounts Maximum Term (months) (a) Natural gas futures purchased MMBtus 630,000 3 590,000 3 Natural gas options purchased, net MMBtus 1,790,000 3 3,100,000 3 Natural gas basis swaps purchased MMBtus 900,000 3 870,000 3 Natural gas over-the-counter swaps, net (b) MMBtus 4,460,000 24 4,570,000 34 Natural gas physical commitments, net (c) MMBtus 17,864,412 12 16,416,677 24 (a) Term reflects the maximum forward period hedged. (b) As of December 31, 2022, 1,646,200 MMBtus of natural gas over-the-counter swaps purchased were designated as cash flow hedges. (c) Volumes exclude derivative contracts that qualify for the normal purchase, normal sales exception permitted by GAAP. We have certain derivative contracts which contain credit provisions. These credit provisions may require the Company to post collateral when credit exposure to the Company is in excess of a negotiated line of unsecured credit. At December 31, 2022, the Company poste d $ 2.9 million related to such provisions, which is included in Other current assets on the Consolidated Balance Sheets. Derivatives by Balance Sheet Classification As required by accounting standards for derivatives and hedges, fair values within the following tables are presented on a gross basis aside from the netting of asset and liability positions. Netting of positions is permitted in accordance with accounting standards for offsetting and under terms of our master netting agreements that allow us to settle positive and negative positions. The following tables present the fair value and balance sheet classification of our derivative instruments as of December 31, (in thousands): Balance Sheet Location 2022 2021 Derivatives designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets - current $ 118 $ 2,017 Noncurrent commodity derivatives Other assets, non-current 198 18 Liability derivative instruments: Current commodity derivatives Derivative liabilities - current ( 1,703 ) — Total derivatives designated as hedges $ ( 1,387 ) $ 2,035 Derivatives not designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets - current $ 464 $ 2,356 Noncurrent commodity derivatives Other assets, non-current 337 804 Liability derivative instruments: Current commodity derivatives Derivative liabilities - current ( 4,897 ) ( 1,439 ) Noncurrent commodity derivatives Other deferred credits and other liabilities ( 18 ) ( 20 ) Total derivatives not designated as hedges $ ( 4,114 ) $ 1,701 Derivatives Designated as Hedge Instruments The impact of cash flow hedges on our Consolidated Statements of Comprehensive Income and Consolidated Statements of Income is presented below for the years ended December 31, 2022, 2021 and 2020. Note that this presentation does not reflect the gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled. 2022 2021 2020 2022 2021 2020 Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in OCI Income Statement Location Amount of Gain/(Loss) Reclassified from AOCI into Income (in thousands) (in thousands) Interest rate swaps $ 2,850 $ 2,851 $ 2,851 Interest expense $ ( 2,850 ) $ ( 2,851 ) $ ( 2,851 ) Commodity derivatives ( 3,532 ) 1,952 540 Fuel, purchased power and cost of natural gas sold 2,708 2,051 ( 601 ) Total $ ( 682 ) $ 4,803 $ 3,391 $ ( 142 ) $ ( 800 ) $ ( 3,452 ) As of December 31, 2022, $ 4.5 million of net losses related to our interest rate swaps and commodity derivatives are expected to be reclassified from AOCI into earnings within the next 12 months. As market prices fluctuate, estimated and actual realized gains or losses will change during future periods. Derivatives Not Designated as Hedge Instruments The following table summarizes the impacts of derivative instruments not designated as hedge instruments on our Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020. Note that this presentation does not reflect the expected gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic gross profit we realized when the underlying physical and financial transactions were settled. 2022 2021 2020 Derivatives Not Designated as Hedging Instruments Income Statement Location Amount of Gain/(Loss) on Derivatives Recognized in Income (in thousands) Commodity derivatives - Electric Fuel, purchased power and cost of natural gas sol d $ — $ ( 144 ) $ 144 Commodity derivatives - Natural Gas Fuel, purchased power and cost of natural gas sold ( 797 ) 2,599 1,640 $ ( 797 ) $ 2,455 $ 1,784 As discussed above, financial instruments used in our regulated Gas Utilities are not designated as cash flow hedges. However, there is no earnings impact because the unrealized gains and losses arising from the use of these financial instruments are recorded as Regulatory assets or Regulatory liabilities. The net unrealized losses included in a Regulatory asset related to these financial instruments used in our Gas Utilities were $ 8.8 million and $ 2.6 million at December 31, 2022 and 2021 , respectively. For our Electric Utilities, the unrealized gains and losses arising from these derivatives are recognized in the Consolidated Statements of Income. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements Derivatives The following tables set forth, by level within the fair value hierarchy, our gross assets and gross liabilities and related offsetting as permitted by GAAP that were accounted for at fair value on a recurring basis for derivative instruments. As of December 31, 2022 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Netting (a) Total (in thousands) Assets: Commodity derivatives - Gas Utilities $ — 5,407 $ — ( 4,290 ) $ 1,117 Total $ — $ 5,407 $ — $ ( 4,290 ) $ 1,117 Liabilities: Commodity derivatives - Gas Utilities $ — 11,455 $ — ( 4,837 ) $ 6,618 Total $ — $ 11,455 $ — $ ( 4,837 ) $ 6,618 (a) As of December 31, 2022, $ 4.3 million of our commodity derivative gross assets and $ 4.8 million of o ur commodity derivative gross liabilities, as well as related gross collateral amounts, were subject to master netting agreements. As of December 31, 2021 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Netting (a) Total Assets: Commodity derivatives - Gas Utilities $ — 7,569 $ — $ ( 2,374 ) $ 5,195 Total $ — $ 7,569 $ — $ ( 2,374 ) $ 5,195 Liabilities: Commodity derivatives - Gas Utilities $ — $ 3,273 $ — $ ( 1,814 ) $ 1,459 Total $ — $ 3,273 $ — $ ( 1,814 ) $ 1,459 (a) As of December 31, 2021, $ 2.4 million of our commodity derivative assets and $ 1.8 million of our commodity derivative liabilities, as well as related gross collateral amounts, were subject to master netting agreements. Pension and Postretirement Plan Assets A discussion of the fair value of our Pension and Postretirement Plan assets is included in Note 13 . Other Fair Value Measurements The carrying amount of cash and cash equivalents, restricted cash and equivalents and short-term borrowings approximates fair value due to their liquid or short-term nature. Cash, cash equivalents and restricted cash are classified in Level 1 in the fair value hierarchy. Notes payable consist of commercial paper borrowings and are not traded on an exchange; therefore, they are classified as Level 2 in the fair value hierarchy. The following table presents the carrying amounts and fair values of financial instruments not recorded at fair value on the Consolidated Balance Sheets at December 31 (in thousands): 2022 2021 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current maturities (a) $ 4,132,340 $ 3,760,848 $ 4,126,923 $ 4,570,619 (a) Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy. Carrying amount of long-term debt is net of deferred financing costs. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income | OTHER COMPREHENSIVE INCOME We record deferred gains (losses) in AOCI related to interest rate swaps designated as cash flow hedges, commodity contracts designated as cash flow hedges and the amortization of components of our defined benefit plans. Deferred gains (losses) for our commodity contracts designated as cash flow hedges are recognized in earnings upon settlement, while deferred gains (losses) related to our interest rate swaps are recognized in earnings as they are amortized. The following table details reclassifications out of AOCI and into Net income. The amounts in parentheses below indicate decreases to Net income in the Consolidated Statements of Income for the period, net of tax (in thousands): Location on the Consolidated Amount Reclassified from AOCI Statements of Income December 31, 2022 December 31, 2021 Gains and (losses) on cash flow hedges: Interest rate swaps Interest expense $ ( 2,850 ) $ ( 2,851 ) Commodity contracts Fuel, purchased power and cost of natural gas sold 2,708 2,051 ( 142 ) ( 800 ) Income tax Income tax benefit (expense) 58 175 Total reclassification adjustments related to cash flow hedges, net of tax $ ( 84 ) $ ( 625 ) Amortization of components of defined benefit plans: Prior service cost Operations and maintenance $ 93 $ 98 Actuarial gain (loss) Operations and maintenance ( 751 ) ( 2,391 ) ( 658 ) ( 2,293 ) Income tax Income tax benefit (expense) 198 638 Total reclassification adjustments related to defined benefit plans, net of tax $ ( 460 ) $ ( 1,655 ) Total reclassifications $ ( 544 ) $ ( 2,280 ) Balances by classification included within AOCI, net of tax on the accompanying Consolidated Balance Sheets were as follows (in thousands): Derivatives Designated as Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2021 $ ( 10,384 ) $ 1,476 $ ( 11,176 ) $ ( 20,084 ) Other comprehensive income (loss) before reclassifications — ( 631 ) 4,604 3,973 Amounts reclassified from AOCI 2,129 ( 2,045 ) 460 544 As of December 31, 2022 $ ( 8,255 ) $ ( 1,200 ) $ ( 6,112 ) $ ( 15,567 ) Derivatives Designated as Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2020 $ ( 12,558 ) $ 2 $ ( 14,790 ) $ ( 27,346 ) Other comprehensive income (loss) before reclassifications — 3,023 1,959 4,982 Amounts reclassified from AOCI 2,174 ( 1,549 ) 1,655 2,280 As of December 31, 2021 $ ( 10,384 ) $ 1,476 $ ( 11,176 ) $ ( 20,084 ) |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | (12) VARIABLE INTEREST ENTITY Black Hills Colorado IPP owns and operates a 200 MW, combined-cycle natural gas generating facility located in Pueblo, Colorado. In 2016, Black Hills Electric Generation sold a 49.9 %, non-controlling interest in Black Hills Colorado IPP to a third-party buyer. Black Hills Electric Generation is the operator of the facility, which is contracted to provide capacity and energy through 2031 to Colorado Electric. The accounting for a partial sale of a subsidiary in which control is maintained and the subsidiary continues to be consolidated is specified under ASC 810, Consolidation . The partial sale is required to be recorded as an equity transaction with no resulting gain or loss on the sale. GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. Net income available for common stock for the years ended December 31, 2022, 2021 and 2020 was reduced by $ 12 million, $ 15 million, and $ 15 million, respectively, attributable to this non-controlling interest. The net income allocable to the non-controlling interest holder is based on ownership interest with the exception of certain agreed upon adjustments. Distributions of net income attributable to this non-controlling interest are due within 30 days following the end of a quarter but may be withheld as necessary by Black Hills Electric Generation. Black Hills Colorado IPP has been determined to be a VIE in which the Company has a variable interest. Black Hills Electric Generation has been determined to be the primary beneficiary of the VIE as Black Hills Electric Generation is the operator and manager of the generation facility and, as such, has the power to direct the activities that most significantly impact Black Hills Colorado IPP’s economic performance. Black Hills Electric Generation, as the primary beneficiary, continues to consolidate Black Hills Colorado IPP. Black Hills Colorado IPP has not received financial or other support from the Company outside of pre-existing contractual arrangements during the reporting period. Black Hills Colorado IPP does not have any debt and its cash flows from operations are sufficient to support its ongoing operations. We have recorded the following assets and liabilities on our Consolidated Balance Sheets related to the VIE described above as of December 31 (in thousands): 2022 2021 Assets: Current assets $ 12,761 $ 13,220 Property, plant and equipment of variable interest entities, net $ 178,761 $ 189,079 Liabilities: Current liabilities $ 5,394 $ 5,841 |
Employee Benefits Plans
Employee Benefits Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | (13) EMPLOYEE BENEFIT PLANS Defined Contribution Plans We sponsor a 401(k) retirement savings plan (the 401(k) Plan). Participants in the 401(k) Plan may elect to invest a portion of their eligible compensation in the 401(k) Plan up to the maximum amounts established by the IRS. The 401(k) Plan provides employees the opportunity to invest up to 50 % of their eligible compensation on a pre-tax or after-tax basis. The 401(k) Plan provides a Company matching contribution for all eligible participants. Certain eligible participants who are not currently accruing a benefit in the Pension Plan also receive a Company retirement contribution based on the participant’s age and years of service. Vesting of all Company and matching contributions occurs at 20 % per year with 100 % vesting when the participant has 5 years of service with the Company. Defined Benefit Pension Plan We have one defined benefit pension plan, the Black Hills Retirement Plan (Pension Plan). The Pension Plan covers certain eligible employees of the Company. The benefits for the Pension Plan are based on years of service and calculations of average earnings during a specific time period prior to retirement. The Pension Plan is closed to new employees and frozen for certain employees who did not meet age and service-based criteria. The Pension Plan assets are held in a Master Trust. Our Board of Directors has approved the Pension Plan’s investment policy. The objective of the investment policy is to manage assets in such a way that will allow the eventual settlement of our obligations to the Pension Plan’s beneficiaries. To meet this objective, our pension assets are managed by an outside adviser using a portfolio strategy that will provide liquidity to meet the Pension Plan’s benefit payment obligations. The Pension Plan’s assets consist primarily of equity, fixed income and hedged investments. The expected rate of return on the Pension Plan assets is determined by reviewing the historical and expected returns of both equity and fixed income markets, taking into account asset allocation, the correlation between asset class returns and the mix of active and passive investments. The Pension Plan utilizes a dynamic asset allocation where the target range to return-seeking and liability-hedging assets is determined based on the funded status of the Plan. As of December 31, 2022, the expected rate of return on pensio n plan assets was based on the targeted asset allocation range of 20 % to 28 % return-seeking assets and 72 % to 80 % liability-he dging assets. Our Pension Plan is funded in compliance with the federal government’s funding requirements. Plan Assets The percentages of total plan asset by investment category for our Pension Plan at December 31 were as follows: Return-seeking Assets 2022 2021 Equity 14 % 15 % Real estate 7 % 7 % Fixed income 2 % 3 % Hedge funds 3 % 3 % Total 26 % 28 % Liability-hedging Assets 2022 2021 Fixed income 72 % 71 % Cash 2 % 1 % Total 74 % 72 % Total Assets 100 % 100 % Supplemental Non-qualified Defined Benefit Plans We have various supplemental retirement plans for key executives of the Company. The plans are non-qualified defined benefit and defined contribution plans (Supplemental Plans). The Supplemental Plans are subject to various vesting schedules and are funded on a cash basis as benefits are paid. Non-pension Defined Benefit Postretirement Healthcare Plan BHC sponsors a retiree healthcare plan (Healthcare Plan) for employees who meet certain age and service requirements at retirement. Healthcare Plan benefits are subject to premiums, deductibles, co-payment provisions and other limitations. A portion of the Healthcare Plan for participating business units are pre-funded via VEBA trusts. Pre-65 retirees as well as a grandfathered group of post-65 retirees receive their retiree medical benefits through the Black Hills self-insured retiree medical plans. Healthcare coverage for post-65 Medicare-eligible retirees is provided through an individual market healthcare exchange. We fund the Healthcare Plan on a cash basis as benefits are paid. The Healthcare Plan provides for partial pre-funding via VEBA trusts. Assets related to this pre-funding are held in trust and are for the benefit of the union and non-union employees located in the states of Arkansas, Iowa and Kansas. We do not pre-fund the Healthcare Plan for those employees outside Arkansas, Iowa and Kansas. Plan Contributions Contributions to the Pension Plan are cash contributions made directly to the Master Trust. Healthcare and Supplemental Plan contributions are made in the form of benefit payments. Healthcare benefits include company and participant paid premiums. Contributions for the years ended December 31 were as follows (in thousands): 2022 2021 Defined Contribution Plan Company retirement contributions $ 11,885 $ 11,332 Company matching contributions $ 16,187 $ 15,938 2022 2021 Defined Benefit Plans Defined Benefit Pension Plan $ - $ - Non-Pension Defined Benefit Postretirement Healthcare Plan $ 6,131 $ 6,432 Supplemental Non-Qualified Defined Benefit Plans $ 3,061 $ 2,576 We do not have any required contributions to our Pension Plan in 2023 and do not intend to make any contributions. Fair Value Measurements The following tables set forth, by level within the fair value hierarchy, the assets that were accounted for at fair value on a recurring basis (in thousands): Pension Plan December 31, 2022 Level 1 Level 2 Level 3 Total Investments Measured at Fair Value NAV (a) Total Investments Common Collective Trust - Cash and Cash Equivalents $ - $ 6,374 $ - $ 6,374 $ - $ 6,374 Common Collective Trust - Equity - 45,087 - 45,087 - 45,087 Common Collective Trust - Fixed Income - 242,025 - 242,025 - 242,025 Common Collective Trust - Real Estate - - - - 21,572 21,572 Hedge Funds - - - - 8,084 8,084 Total investments measured at fair value $ - $ 293,486 $ - $ 293,486 $ 29,656 $ 323,142 Pension Plan December 31, 2021 Level 1 Level 2 Level 3 Total Investments Measured at Fair Value NAV (a) Total Investments Common Collective Trust - Cash and Cash Equivalents $ - $ 6,009 $ - $ 6,009 $ - $ 6,009 Common Collective Trust - Equity - 70,262 - 70,262 - 70,262 Common Collective Trust - Fixed Income - 339,219 - 339,219 - 339,219 Common Collective Trust - Real Estate - - - - 30,407 30,407 Hedge Funds - - - - 12,490 12,490 Total investments measured at fair value $ - $ 415,490 $ - $ 415,490 $ 42,897 $ 458,387 (a) Certain investments that are measured at fair value using NAV per share (or its equivalent) for practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the reconciliation of changes in the plan’s benefit obligations and fair value of plan assets above. Non-pension Defined Benefit Postretirement Healthcare Plan December 31, 2022 Level 1 Level 2 Level 3 Total Investments Measured at Fair Value Total Investments Cash and Cash Equivalents $ 7,752 $ - $ - $ 7,752 $ 7,752 Total investments measured at fair value $ 7,752 $ - $ - $ 7,752 $ 7,752 Non-pension Defined Benefit Postretirement Healthcare Plan December 31, 2021 Level 1 Level 2 Level 3 Total Investments Measured at Fair Value Total Investments Cash and Cash Equivalents $ 7,972 $ - $ - $ 7,972 $ 7,972 Total investments measured at fair value $ 7,972 $ - $ - $ 7,972 $ 7,972 Additional information about assets of the benefit plans, including methods and assumptions used to estimate the fair value of these assets, is as follows: Pension Plan Common Collective Trust Funds: These funds are valued based upon the redemption price of units held by the Pension Plan, which is based on the current fair value of the common collective trust funds’ underlying assets. Unit values are determined by the financial institution sponsoring such funds by dividing the fund’s net assets at fair value by its units outstanding at the valuation dates. The Pension Plan’s investments in common collective trust funds, with the exception of shares of the common collective trust-real estate are categorized as Level 2. The following investments are measured at NAV and are not classified in the fair value hierarchy, in accordance with accounting guidance: Common Collective Trust-Real Estate Funds : These funds are valued based on various factors of the underlying real estate properties, including market rent, market rent growth, occupancy levels, etc. As part of the trustee’s valuation process, properties are externally appraised generally on an annual basis. The appraisals are conducted by reputable independent appraisal firms and signed by appraisers that are members of the Appraisal Institute, with professional designation of Member, Appraisal Institute. All external appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practices. We receive monthly statements from the trustee, along with the annual schedule of investments and rely on these reports for pricing the units of the fund. Hedge Funds: These funds represent investments in other investment funds that seek a return utilizing a number of diverse investment strategies. The strategies, when combined, aim to reduce volatility and risk while attempting to deliver positive returns under all market conditions. Amounts are reported on a one-month lag. The fair value of hedge funds is determined using net asset value per share based on the fair value of the hedge fund’s underlying investments. 10 % of the shares may be redeemed at the end of each month with a 15 -day notice and full redemptions are available at the end of each quarter with 60 -day notice and is limited to a percentage of the total net assets value of the fund. The net asset values are based on the fair value of each fund’s underlying investments. There are no unfunded commitments related to these hedge funds. Non-pension Defined Benefit Postretirement Healthcare Plan Cash and Cash Equivalents: This represents an investment in Northern Institutional Government Assets Portfolio, which is a government money market fund. As shares held reflect quoted prices in an active market, they are categorized as Level 1. Other Plan Information The following tables provide a reconciliation of the employee benefit plan obligations and fair value of employee benefit plan assets, amounts recognized in the Consolidated Balance Sheets, accumulated benefit obligation, and reconciliation of components of the net periodic expense and elements of AOCI (in thousands): Employee Benefit Plan Obligations Defined Benefit Pension Plan Supplemental Non-qualified Defined Non-pension Defined Benefit Postretirement Healthcare Plan As of December 31, 2022 2021 2022 2021 2022 2021 Change in benefit obligation: Projected benefit obligation at beginning of year $ 478,262 $ 514,008 $ 55,260 $ 55,054 $ 63,484 $ 70,238 Service cost (a) 3,927 5,038 ( 801 ) 3,149 1,968 2,237 Interest cost 10,819 9,313 834 706 1,285 1,058 Actuarial (gain) loss ( 97,960 ) ( 14,037 ) ( 7,007 ) ( 1,073 ) ( 12,300 ) ( 5,165 ) Amendments - ( 561 ) - - - - Benefits paid ( 36,663 ) ( 35,499 ) ( 3,061 ) ( 2,576 ) ( 6,131 ) ( 6,432 ) Plan participants’ contributions - - - - 1,419 1,548 Projected benefit obligation at end of year $ 358,385 $ 478,262 $ 45,225 $ 55,260 $ 49,725 $ 63,484 Fair Value Employee Benefit Plan Assets Defined Benefit Supplemental Non-qualified Defined Non-pension Defined Benefit Postretirement Healthcare Plan (a) As of December 31, 2022 2021 2022 2021 2022 2021 Change in fair value of plan assets: Beginning fair value of plan assets $ 458,387 $ 473,721 $ - $ - $ 7,972 $ 8,165 Investment income (loss) ( 98,585 ) 20,165 - - 4 ( 35 ) Employer contributions - - 3,061 2,576 4,488 4,726 Retiree contributions - - - - 1,419 1,548 Benefits paid ( 36,661 ) ( 35,499 ) ( 3,061 ) ( 2,576 ) ( 6,131 ) ( 6,432 ) Ending fair value of plan assets $ 323,141 $ 458,387 $ - $ - $ 7,752 $ 7,972 (a) Assets of VEBA trusts. In 2012, we froze our Pension Plan and closed it to new participants. Since then, we have implemented various de-risking strategies including lump sum buyouts, the purchase of annuities and the reduction of return-seeking assets over time to a more liability-hedged portfolio. As a result, capital markets volatility had a limited impact to our unfunded status. Amounts Recognized in the Consolidated Balance Sheets Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan As of December 31, 2022 2021 2022 2021 2022 2021 Regulatory assets $ 78,654 $ 67,403 $ - $ - $ 3,788 $ 11,660 Current liabilities $ - $ - $ 2,231 $ 2,156 $ 4,427 $ 4,584 Non-current assets $ - $ - $ - $ - $ 959 $ - Non-current liabilities $ 35,243 $ 19,872 $ 42,994 $ 53,104 $ 38,505 $ 50,949 Regulatory liabilities $ 2,804 $ 3,830 $ - $ - $ 6,198 $ 2,447 Accumulated Benefit Obligation Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan As of December 31, 2022 2021 2022 2021 2022 2021 Accumulated Benefit Obligation $ 350,187 $ 466,505 $ 45,225 $ 55,260 $ 49,725 $ 63,484 Components of Net Periodic Expense Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan For the years ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ 3,927 $ 5,038 $ 5,411 $ ( 801 ) $ 3,149 $ 1,579 $ 1,968 $ 2,237 $ 2,056 Interest cost 10,819 9,313 13,426 834 706 1,099 1,285 1,058 1,649 Expected return on assets ( 18,523 ) ( 20,876 ) ( 22,591 ) - - - ( 125 ) ( 136 ) ( 182 ) Net amortization of prior service cost ( 68 ) - - - - 2 ( 289 ) ( 434 ) ( 546 ) Recognized net actuarial loss (gain) 6,092 7,315 8,372 276 1,754 1,702 64 466 20 Net periodic expense $ 2,247 $ 790 $ 4,618 $ 309 $ 5,609 $ 4,382 $ 2,903 $ 3,191 $ 2,997 Service costs are recorded in Operations and maintenance expense while nonservice costs were recorded in Other expense on the Consolidated Statements of Income. Actuarial gains and losses are amortized using a straight-line method over the average remaining service period of active plan participants or over the average remaining lifetime of the remaining plan participants if the plan is viewed as “all or almost all” inactive participants. AOCI Amounts (After-Tax) Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan As of December 31, 2022 2021 2022 2021 2022 2021 Net (gain) loss $ 5,179 $ 4,398 $ 1,565 $ 7,159 $ ( 667 ) $ ( 308 ) Prior service cost (gain) ( 39 ) ( 46 ) - - 74 ( 27 ) Total amounts included in AOCI, after-tax not yet recognized as components of net periodic expense $ 5,140 $ 4,352 $ 1,565 $ 7,159 $ ( 593 ) $ ( 335 ) Assumptions Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan Weighted-average assumptions used to determine benefit obligations: 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 5.17 % 2.88 % 2.56 % 5.13 % 2.77 % 2.41 % 5.14 % 2.79 % 2.41 % Rate of increase in compensation levels 3.06 % 3.08 % 3.34 % — 5.00 % 5.00 % N/A N/A N/A Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan Weighted-average assumptions used to determine net periodic benefit cost for plan year: 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate (a) 2.88 % 2.56 % 3.27 % 2.77 % 2.41 % 3.14 % 2.79 % 2.41 % 3.15 % Expected long-term rate of return on assets (b) 4.25 % 4.50 % 5.25 % N/A N/A N/A 1.70 % 1.80 % 2.35 % Rate of increase in compensation levels 3.08 % 3.34 % 3.49 % — 5.00 % 5.00 % N/A N/A N/A (a) The estimated discount rate for the Defined Benefit Pension Plan is 5.2 % f or the calculation of the 2023 net periodic pension costs. (b) The expected rate of return on plan as sets for the Defined Benefit Pension Plan is 6.0 % for the calculation of the 2023 net periodic pension cost. The healthcare benefit obligation at December 31 was determined as follows: 2022 2021 Trend Rate - Medical Pre-65 for next year - All Plans 7.00 % 6.05 % Pre-65 Ultimate trend rate - Black Hills Corp 4.50 % 4.50 % Trend Year 2031 2030 Post-65 for next year - All Plans 6.00 % 5.10 % Post-65 Ultimate trend rate - Black Hills Corp 4.50 % 4.50 % Trend Year 2031 2030 The following benefit payments to employees, which reflect future service, are expected to be paid (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2023 $ 26,889 $ 2,231 $ 5,600 2024 $ 26,882 $ 2,417 $ 5,313 2025 $ 27,870 $ 2,764 $ 5,022 2026 $ 28,182 $ 2,790 $ 4,883 2027 $ 28,166 $ 2,727 $ 4,769 2028 -2032 $ 140,416 $ 12,184 $ 21,147 |
Share-based Compensation Plans
Share-based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation Plans | SHARE-BASED COMPENSATION PLANS On April 26, 2022, our shareholders approved the Amended and Restated 2015 Omnibus Incentive Plan (the "Amended Plan"), which was adopted by our Board of Directors and became effective on February 24, 2022. The Amended Plan increased the number of shares available for issuance under the 2015 Plan from 1,200,000 to a total of 2,900,000 . The Amended Plan allows for the granting of stock, restricted stock, restricted stock units, stock options, performance shares and performance share units. We had 2,213,716 shares available to grant at December 31, 2022. Compensation expense is determined using the grant date fair value estimated in accordance with the provisions of accounting standards for stock compensation and is recognized over the vesting periods of the individual awards. As of December 31, 2022, total unrecognized compensation expense related to non-vested stock awards was approxima tely $ 12 million an d is expected to be recognized over a weighted-average period of 1.7 years . Stock-based compensation expense, which is included in Operations and maintenance on the accompanying Consolidated Statements of Income, was as follows for the years ended December 31 (in thousands): 2022 2021 2020 Stock-based compensation expense $ 8,551 $ 9,655 $ 5,373 Restricted Stock The fair value of restricted stock and restricted stock unit awards equals the market price of our stock on the date of grant. The shares carry a restriction on the ability to sell the shares until the shares vest. The shares substantially vest over three years , contingent on continued employment. Compensation expense related to the awards is recognized over the vesting period. A summary of the status of the restricted stock and restricted stock units at December 31, 2022, was as follows: Restricted Stock Weighted-Average Grant Date Fair Value (in thousands) Balance at January 1, 2022 219 $ 67.64 Granted 70 69.03 Vested ( 94 ) 69.64 Forfeited ( 16 ) 66.03 Balance at December 31, 2022 179 $ 67.23 The weighted-average grant-date fair value of restricted stock granted, and the total fair value of shares vested during the years ended December 31, were as follows: Weighted-Average Grant Date Fair Value Total Fair Value of Shares Vested (in thousands) 2022 $ 69.03 $ 6,436 2021 $ 65.64 $ 5,400 2020 $ 69.49 $ 6,722 As of December 31, 2022, there was $ 7.5 million of un recognized compensation expense related to non-vested restricted stock that is expected to be recognized over a weighted-average period of 1.7 years. Performance Share Plan Prior to 2021, certain officers of the Company and its subsidiaries became participants in a market-based performance share award plan. Performance shares are awarded based on our total shareholder return over designated performance periods as measured against a selected peer group. In addition, certain stock price performance must be achieved for a payout to occur. The final value of the performance shares will vary according to the number of shares of common stock that are ultimately granted based upon the actual level of attainment of the performance criteria. These performance awards are paid 50 % in cash and 50 % in common stock. The cash portion accrued is classified as a liability and the stock portion is classified as equity. In the event of a change-in-control, performance awards are paid 100 % in cash. If it is determined that a change-in-control is probable, the equity portio n of $ 1.4 million at December 31, 2022 would be reclassified as a liability. The outstanding performance periods at December 31, 2022 were as follows (shares in thousands): Possible Payout Range of Target Grant Date Performance Period Target Grant of Shares Minimum Maximum January 1, 2020 January 1, 2020 - December 31, 2022 36 0 % 200 % A summary of the status of the Performance Share Plan at December 31, 2022 was as follows: Equity Portion Liability Portion Weighted-Average Grant Date Weighted-Average Fair Value at Shares Fair Value (a) Shares December 31, 2022 (in thousands) (in thousands) Performance Shares balance at beginning of period 36 $ 68.14 36 Granted — — — Forfeited — — — Vested ( 18 ) 68.72 ( 18 ) Performance Shares balance at end of period 18 $ 81.42 18 $ 32.74 (a) The grant date fair values for the performance shares granted in 2020 were determined by Monte Carlo simulation using a blended volatility o f 18 %, comprised of 50 % historical volatility and 50 % implied volatility and the average risk-free interest rate of the three-year United States Treasury security rate in effect as of the grant date. The weighted-average grant-date fair value of performance share awards granted was as follows in the years ended: Weighted Average Grant Date Fair Value December 31, 2020 $ 81.42 Performance plan payouts have been as follows (in thousands): Performance Period Year Paid Stock Issued Cash Paid Total Intrinsic Value January 1, 2019 to December 31, 2021 2022 8 $ 519 $ 1,038 January 1, 2018 to December 31, 2020 2021 28 $ 1,647 $ 3,294 January 1, 2017 to December 31, 2019 2020 14 $ 1,100 $ 2,199 On January 25, 2023, the Compensation Committee of our Board of Directors determined that the Company’s total shareholder return for the January 1, 2020 to December 31, 2022 performance period was at the 26 th percentile of its peer group and confirmed a payout equal to 27 % of target shares, valued at $ 0.7 million. The payout was fully accrued at December 31, 2022. Performance Share Units Beginning in 2021, certain officers of the Company, and its subsidiaries, were granted performance share units which have a three-year vesting period, do not have voting rights until vested, and are subject to three specified conditions. A market condition of relative total shareholder return, and two equally weighted performance metrics of average earnings per share and the average cost to serve. The units are paid 100 % in common stock should conditions be met and can range from 0 % to 200 % of the target award. Dividend equivalents are accrued during the vesting period and paid out based on the final number of shares awarded. In the event of participant’s death or retirement at age 55 or older, shares awarded vest on a pro-rata basis over the three-year period. Performance Share Units - Market Condition The fair value of each share unit is based on the Company’s closing price at December 31 of the year prior to the award and a Monte Carlo simulation. The Monte Carlo simulation is used to estimate expected share payout based on the Company’s TSR for a three-year performance period relative to the designated peer group beginning January 1 of the award year. 2022 2021 Fair value of share units award 74.48 64.97 Three-year risk-free rate 0.97 % 0.17 % Black Hills Corporation’s common stock volatility 30 % 33 % Volatility range for the peer group 22 - 67 % 25 - 76 % Performance Share Units - Performance Condition A performance condition share unit vests at the end of the three-year performance period if the specified performance conditions are achieved. The conditions are based on the Company’s average earnings per share and the average cost to serve. The grant-date fair value for an individual outcome of a performance condition is determined by the closing common share price on the grant date. The following table summarizes the performance share unit activity for the year ended December 31, 2022: Performance Share Units - Performance Share Units - Share Units Weighted-Average Fair Value per Share Unit Share Units Weighted-Average Fair Value per Share Unit Nonvested at January 1, 2022 32,903 $ 64.97 21,948 $ 61.45 Granted 35,571 74.48 23,718 70.57 Nonvested at December 31, 2022 68,474 $ 69.91 45,666 $ 66.19 As of December 31, 2022, there was $ 4.1 million of unrecognized compensation expense related to outstanding performance share/unit plans that is expected to be recognized over a weighted-average period of 1.7 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (15) INCOME TAXES Winter Storm Uri As discussed in Note 2 above, our Utilities received final commission approval for all of our Winter Storm Uri cost recovery applications, which will allow full recovery of our $ 546 million of incremental fuel, purchased power and natural gas costs. We will recover these costs from customers over several years, which will increase our taxable income on our tax returns by the amounts collected for each respective year. The incremental costs from Winter Storm Uri were deductible in our 2021 tax return and created a net deferred tax liability, which had balances as of December 31, 2022 and 2021 of $ 85 million and $ 124 million, respectively. The deferred tax liability is reversed with the same timing as the costs are recovered from our customers. The income tax deduction recognized from Winter Storm Uri created a $ 509 million NOL in our 2021 federal income tax return and a $ 375 million NOL in our state income tax returns. Our federal NOL carryforwards related to Winter Storm Uri and other recent adjustments no longer expire due to the TCJA; however, our state NOL carryforwards expire at various dates from 2023 to 2041. We do not anticipate material changes to our valuation allowance against the state NOL carryforwards from Winter Storm Uri. Therefore, we did not record an additional valuation allowance against the state NOL carryforwards as of December 31, 2022 and 2021. TCJA On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the TCJA. The TCJA reduced the U.S. federal corporate tax rate from 35 % to 21 %. As such, the Company remeasured the deferred income taxes at the 21 % federal tax rate as of December 31, 2017. The entities subject to regulatory construct have made their best estimate regarding the probability of settlements of net regulatory liabilities established pursuant to the TCJA. The amount of the settlements may change based on decisions and actions by the federal and state utility commissions, which could have a material impact on the Company’s future results of operations, cash flows or financial position. A majority of the excess deferred taxes are subject to the average rate assumption method, as prescribed by the IRS, and will generally be amortized as a reduction of customer rates over the remaining lives of the related assets. For the years ended December 31, 2022, 2021 and 2020, respectively, the Company has amortized, or provided bill credits for, $ 11 million, $ 23 million and $ 13 million of the regulatory liability. The portion that was eligible for amortization under the average rate assumption method in 2021 but is awaiting resolution of the treatment of these amounts in future regulatory proceedings has not been recognized and may be refunded in customer rates at any time in accordance with the resolution of pending or future regulatory proceedings. Beginning in 2022, the TJCA modified IRC 174 which changes how taxpayers account for research and development costs. After the IRC 174 modification, taxpayers must amortize specified research and experimental expenditures performed in the United States ratably over five years instead of deducting research and experimental expenditures. This modification did not have a material impact for the year ended December 31, 2022. Income Tax Expense (Benefit) Income tax expense (benefit) from continuing operations for the years ended December 31 was (in thousands): 2022 2021 2020 Current: Federal $ ( 467 ) $ 574 $ ( 6,020 ) State 80 ( 666 ) 847 Current income tax (benefit) ( 387 ) ( 92 ) ( 5,173 ) Deferred: Federal 23,205 2,170 35,672 State 2,387 5,091 2,419 Deferred income tax expense 25,592 7,261 38,091 Income tax expense $ 25,205 $ 7,169 $ 32,918 Effective Tax Rates The effective tax rate differs from the federal statutory rate for the years ended December 31, as follows: 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State income tax (net of federal tax effect) (a) 0.5 1.2 2.4 Non-controlling interest (b) ( 0.9 ) ( 1.2 ) ( 1.2 ) Tax credits ( 7.7 ) ( 8.4 ) ( 9.2 ) Flow-through adjustments (c) ( 1.4 ) ( 3.2 ) ( 1.6 ) Uncertain Tax Benefits — 0.3 1.5 Valuation Allowance — — 0.7 Other tax differences ( 0.1 ) ( 0.2 ) 0.6 Amortization of excess deferred income tax expense (d) ( 2.5 ) ( 3.1 ) ( 2.3 ) TCJA bill credits (e) ( 0.4 ) ( 3.6 ) — Effective Tax Rate 8.5 % 2.8 % 11.9 % (a) The state effective tax rate contains the tax expense attributable to multiple statutory state rate reductions in the Company's state jurisdictions. (b) The effective tax rate reflects the income attributable to the non-controlling interest in Black Hills Colorado IPP for which a tax provision was not recorded. (c) Flow-through adjustments related primarily to accounting method changes for tax purposes that allow us to take a current tax deduction for repair costs, certain indirect costs and gain deferral. We recorded a deferred income tax liability in recognition of the temporary difference created between book and tax treatment and flowed the tax benefit through to tax expense. A regulatory asset was established to reflect the recovery of future increases in taxes payable from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record tax benefits consistent with the flow-through method. (d) Primarily TCJA - see above. (e) Primarily related to one-time bill credits of TCJA benefits which were delivered to Colorado Electric and Nebraska Gas customers in 2021. These bill credits, which resulted in a reduction in revenue, were offset by a reduction in income tax expense and resulted in a minimal impact to Net income for the year ended December 31, 2021. Deferred Tax Assets and Liabilities The temporary differences, which gave rise to the net deferred tax liability, for the years ended December 31 were as follows (in thousands): 2022 2021 Deferred tax assets: Regulatory liabilities $ 74,728 $ 77,099 State tax credits 22,817 23,342 Federal NOL 191,992 227,535 State NOL 23,031 33,639 Partnership 12,755 13,395 Credit Carryovers 90,881 68,646 Other deferred tax assets 45,407 31,996 Less: Valuation allowance ( 15,476 ) ( 14,719 ) Total deferred tax assets 446,135 460,933 Deferred tax liabilities: Accelerated depreciation, amortization and other property-related differences ( 645,762 ) ( 597,284 ) Regulatory assets ( 94,433 ) ( 124,582 ) Goodwill ( 57,884 ) ( 45,471 ) State deferred tax liability ( 98,200 ) ( 109,136 ) Other deferred tax liabilities ( 58,797 ) ( 49,848 ) Total deferred tax liabilities ( 955,076 ) ( 926,321 ) Net deferred tax liability $ ( 508,941 ) $ ( 465,388 ) Net Operating Loss and Tax Credit Carryforwards At December 31, 2022, we have federal NOL and state NOL and tax credit carryforwards that will expire at various dates as follows (in thousands): Amounts Expiration Dates Federal NOL Carryforward $ 330,085 2023 to 2037 Federal NOL Carryforward $ 584,161 No expiration State NOL Carryforward (a) $ 408,269 2023 to 2041 State Tax Credit Carryforward $ 22,817 2023 to 2041 (a) The carryforward balance is reflected on the basis of apportioned tax losses to jurisdictions imposing state income taxes. As of December 31, 2022, we h ad a $ 1.1 million valuat ion allowance against the state NOL carryforwards. Our 2022 analysis of the ability to utilize such NOLs resulte d in no increa se in the valuation allowance. If the valuation allowance is adjusted due to higher or lower than anticipated utilization of the NOLs, the offsetting amount will affect tax expense. As of December 31, 2022 , we had a $ 14 million valuation allowance against the state ITC carryforwards. Our 2022 analysis of the ability to utilize such ITC resulted in a $ 0.8 million increase in the valuation allowance, which resulted in an increase to tax expense of $ 0.6 million. The remaining $ 0.2 million increase is attributable to our regulated business and is being accounted for under the deferral method whereby the credits are amortized to expense over the estimated useful life of the underlying asset that generated the credit. The valuation allowance adjustment was primarily attributable to expiring state ITC credits. Unrecognized Tax Benefits The following table reconciles the total amounts of unrecognized tax benefits, without interest, at the beginning and end of the period included in Other deferred credits and other liabilities on the accompanying Consolidated Balance Sheets (in thousands): Changes in Uncertain Tax Positions: 2022 2021 2020 Beginning balance $ 10,554 $ 8,383 $ 4,165 Additions for prior year tax positions 7 448 3,788 Reductions for prior year tax positions ( 773 ) ( 732 ) ( 1,313 ) Additions for current year tax positions 2,097 2,455 1,743 Ending balance $ 11,885 $ 10,554 $ 8,383 The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is approximately $ 5.7 million. We recognized no interest expense associated with income taxes for the years ended December 31, 2022, 2021 and 2020 . We had no accrued interest (before tax effect) associated with income taxes at December 31, 2022 and 2021. The Company is subject to federal income tax as well as income tax in various state and local jurisdictions. As of December 31, 2022, we do not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease on or before December 31, 2023 . |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting Information, Additional Information [Abstract] | |
Business Segment Information | (16) BUSINESS SEGMENT INFORMATION Our Chief Executive Officer, who is considered to be our CODM, reviews financial information presented on an operating segment basis for purposes of making decisions, allocating resources and assessing financial performance. Our operating segments are based on our method of internal reporting, which is generally segregated by differences in products and services. All of our operations and assets are located within the United States. Our Electric Utilities segment includes the operating results of the regulated electric utility operations of Colorado Electric, South Dakota Electric, and Wyoming Electric, which supply regulated electric utility services to areas in Colorado, Montana, South Dakota and Wyoming. We also own and operate non-regulated power generation and mining businesses that are vertically integrated with our Electric Utilities. Our Gas Utilities segment consists of the operating results of our regulated natural gas utility subsidiaries in Arkansas, Colorado, Iowa, Kansas, Nebraska and Wyoming. Corporate and Other represents certain unallocated expenses for administrative activities that support our operating segments. Corporate and Other also includes business development activities that are not part of our operating segments. Our CODM assesses the performance of our operating segments based on operating income. Our operating segments are equivalent to our reportable segments. Segment information was as follows (in thousands): Consolidating Income Statement Year ended December 31, 2022 Electric Utilities Gas Utilities Corporate Inter-Company Total Revenue - Contracts with customers $ 882,899 $ 1,659,957 $ — $ — $ 2,542,856 Other revenues 5,548 3,412 — — 8,960 888,447 1,663,369 — — 2,551,816 Inter-company operating revenue - Contracts with customers 11,715 5,292 538 ( 17,545 ) — Other revenues — 429 368,201 ( 368,630 ) — 11,715 5,721 368,739 ( 386,175 ) — Total revenue 900,162 1,669,090 368,739 ( 386,175 ) 2,551,816 Fuel, purchased power and cost of natural gas sold 266,284 965,108 ( 11 ) ( 831 ) 1,230,550 Operations and maintenance, including taxes 283,654 345,143 309,773 ( 323,457 ) 615,113 Depreciation, depletion and amortization 135,966 114,679 26,964 ( 26,700 ) 250,909 Operating income (loss) $ 214,258 $ 244,160 $ 32,013 $ ( 35,187 ) $ 455,244 Interest expense, net ( 160,989 ) Impairment of investment — Other income (expense), net 1,708 Income tax benefit (expense) ( 25,205 ) Net income 270,758 Net income attributable to non-controlling interest ( 12,371 ) Net income available for common stock $ 258,387 Consolidating Income Statement Year ended December 31, 2021 Electric Utilities Gas Utilities Corporate Inter-Company Eliminations Total Revenue - Contracts with customers $ 825,404 $ 1,105,430 $ — $ — $ 1,930,834 Other revenues 5,336 12,932 — — 18,268 830,740 1,118,362 — — 1,949,102 Inter-company operating revenue - Contracts with customers 11,518 6,110 196 ( 17,824 ) — Other revenues — 393 356,151 ( 356,544 ) — 11,518 6,503 356,347 ( 374,368 ) — Total revenue 842,258 1,124,865 356,347 ( 374,368 ) 1,949,102 Fuel, purchased power and cost of natural gas sold 248,018 494,738 96 ( 918 ) 741,934 Operations and maintenance, including taxes 260,036 314,810 293,265 ( 306,325 ) 561,786 Depreciation, depletion and amortization 131,528 104,160 26,838 ( 26,573 ) 235,953 Operating income (loss) $ 202,676 $ 211,157 $ 36,148 $ ( 40,552 ) $ 409,429 Interest expense, net ( 152,404 ) Impairment of investment — Other income (expense), net 1,404 Income tax benefit (expense) ( 7,169 ) Net income 251,260 Net income attributable to non-controlling interest ( 14,516 ) Net income available for common stock $ 236,744 Consolidating Income Statement Year ended December 31, 2020 Electric Utilities Gas Utilities Corporate Inter-Company Eliminations Total Revenue - Contracts with customers $ 721,108 $ 959,696 $ — $ — $ 1,680,804 Other revenues 6,175 9,962 — — 16,137 727,283 969,658 — — 1,696,941 Inter-company operating revenue - Contracts with customers 11,574 4,724 167 ( 16,465 ) — Other revenues — 288 352,976 ( 353,264 ) — 11,574 5,012 353,143 ( 369,729 ) — Total revenue 738,857 974,670 353,143 ( 369,729 ) 1,696,941 Fuel, purchased power and cost of natural gas sold 138,572 354,645 83 ( 896 ) 492,404 Operations and maintenance, including taxes 265,679 303,577 284,501 ( 301,980 ) 551,777 Depreciation, depletion and amortization 123,632 100,559 25,150 ( 24,884 ) 224,457 Operating income (loss) $ 210,974 $ 215,889 $ 43,409 $ ( 41,969 ) $ 428,303 Interest expense, net ( 143,470 ) Impairment of investment ( 6,859 ) Other income (expense), net ( 2,293 ) Income tax benefit (expense) ( 32,918 ) Net income 242,763 Net income attributable to non-controlling interest ( 15,155 ) Net income available for common stock $ 227,608 Total Assets (net of intercompany eliminations) as of December 31, 2022 2021 Electric Utilities $ 3,929,721 $ 3,796,662 Gas Utilities 5,578,282 5,246,370 Corporate and Other 110,227 88,864 Total assets $ 9,618,230 $ 9,131,896 Capital Expenditures (a) for the years ended December 31, 2022 2021 2020 Electric Utilities $ 243,133 $ 285,770 $ 288,683 Gas Utilities 349,438 383,320 449,209 Corporate and Other 5,097 10,500 17,500 Total capital expenditures $ 597,668 $ 679,590 $ 755,392 (a) Includes accruals for property, plant and equipment as disclosed in the Supplemental Cash Flow Information to the Consolidated Statement of Cash Flows . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | (17) SUBSEQUENT EVENTS Except as described in Note 2 , there have been no events subsequent to December 31, 2022 which would require recognition in the Consolidated Financial Statements or disclosures. |
Business Description And Sign_2
Business Description And Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates and Basis of Presentation | Use of Estimates and Basis of Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Changes in facts and circumstances or additional information may result in revised estimates and actual results could differ materially from those estimates. COVID-19 Pandemic In March 2020, the World Health Organization categorized COVID-19 as a pandemic and the President of the United States declared the outbreak a national emergency. The U.S. government has deemed electric and natural gas utilities to be critical infrastructure sectors that provide essential services during this emergency. As a provider of essential services, the Company has an obligation to provide services to our customers. The Company remains focused on protecting the health of our customers, employees and the communities in which we operate while assuring the continuity of our business operations. The Company’s Consolidated Financial Statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenue and expenses during the reporting periods presented. The Company considered the impacts of COVID-19 on the assumptions and estimates used and determined that, for the years ended December 31, 2022, 2021 and 2020, there were no material adverse impacts on the Company’s results of operations. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Black Hills Corporation and its wholly-owned and majority-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. For additional information on intercompany revenues, see Note 16 . Our Consolidated Statements of Income include operating activity of acquired companies beginning with their acquisition date. We use the proportionate consolidation method to account for our ownership interest in any jointly-owned electric utility generation facility, wind farm or transmission tie. See Note 6 for additional information. |
Variable Interest Entities | Variable Interest Entities We evaluate arrangements and contracts with other entities to determine if they are VIEs and if we are the primary beneficiary. GAAP provides a framework for identifying VIEs and determining when a company should include the assets, liabilities, non-controlling interest and results of activities of a VIE in its consolidated financial statements. A VIE should be consolidated if a party with an ownership, contractual or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities and non-controlling interests at fair value and subsequently account for the VIE as if it were consolidated. Our evaluation of whether our interest qualifies as the primary beneficiary of a VIE involves significant judgments, estimates and assumptions and includes a qualitative analysis of the activities that most significantly impact the VIE’s economic performance and whether the Company has the power to direct those activities, the design of the entity, the rights of the parties and the purpose of the arrangement. Black Hills Colorado IPP is a VIE. See additional information in Note 12 . |
Cash and Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. We maintain cash accounts for various specified purposes, which are classified as restricted cash. |
Revenue from Contract with Customer | Revenue Recognition Our revenue contracts generally provide for performance obligations that are fulfilled and transfer control to customers over time, represent a series of distinct services that are substantially the same, involve the same pattern of transfer to the customer and provide a right to consideration from our customers in an amount that corresponds directly with the value to the customer for the performance completed to date. Therefore, we recognize revenue in the amount to which we have a right to invoice. Our primary types of revenue contracts are: • Regulated natural gas and electric utility services tariffs - Our Utilities have regulated operations, as defined by ASC 980, Regulated Operations, that provide services to regulated customers under tariff rates, charges, terms and conditions of service and prices determined by the jurisdictional regulators designated for our service territories. Our regulated services primarily encompass single performance obligations for delivery of either commodity natural gas, commodity electricity, natural gas transportation or electric transmission services. These service revenues are variable based on quantities delivered, influenced by seasonal business and weather patterns. Tariffs are only permitted to be changed through a rate-setting process involving the state or federal regulatory commissions to establish contractual rates between the utility and its customers. All of our Utilities’ regulated sales are subject to regulatory-approved tariffs. • Power sales agreements - Our Electric Utilities segment has long-term wholesale power sales agreements with other load-serving entities, including affiliates, for the sale of excess power from owned generating units. These agreements include a combination of “take or pay” arrangements, where the customer is obligated to pay for the energy regardless of whether it actually takes delivery, as well as “requirements only” arrangements, where the customer is only obligated to pay for the energy the customer needs. In addition to these long-term contracts, we also sell excess energy to other load-serving entities on a short-term basis. The pricing for all of these arrangements is included in the executed contracts or confirmations, reflecting the standalone selling price and is variable based on energy delivered. Certain energy sale and purchase transactions with the same counterparty and at the same delivery point are netted to reflect the economic substance of the arrangement. The majority of our revenue contracts are based on variable quantities delivered. Any fixed consideration contracts with an expected duration of one year or more are immaterial to our consolidated revenues. Variable consideration constraints in the form of discounts, rebates, credits, price concessions, incentives, performance bonuses, penalties or other similar items are not material for our revenue contracts. We are the principal in our revenue contracts, as we have control over the services prior to those services being transferred to the customer. Revenue Not in Scope of ASC 606 Other revenues included in the tables in Note 4 include our revenue accounted for under separate accounting guidance, including lease revenue under ASC 842, Leases, derivative revenue under ASC 815, Derivatives and Hedging, and alternative revenue programs revenue under ASC 980, Regulated Operations . Significant Judgments and Estimates Unbilled Revenue To the extent that deliveries have occurred, but a bill has not been issued, our Utilities accrue an estimate of the revenue since the latest billing. This estimate is calculated based upon several factors including billings through the last billing cycle in a month and prices in effect in our jurisdictions. Each month, the estimated unbilled revenue amounts are trued-up and recorded in Accounts receivable, net on the accompanying Consolidated Balance Sheets. Contract Balances The nature of our primary revenue contracts provides an unconditional right to consideration upon service delivery; therefore, no customer contract assets or liabilities exist. The unconditional right to consideration is represented by the balance in our Accounts receivable, which is further discussed below. Additional information is included in Note 4 . |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Accounts receivable for our Electric and Gas Utilities business segments primarily consists of sales to residential, commercial, industrial, transportation and other customers, all of which do not bear interest. These accounts receivable are stated at billed and estimated unbilled amounts, net of allowance for credit losses. Accounts receivable for our power generation and mining businesses consists of amounts due from sales of electric energy and capacity and coal primarily to affiliates or regional utilities. We maintain an allowance for credit losses which reflects our estimate of uncollectible trade receivables. We regularly review our trade receivable allowance by considering such factors as historical experience, credit worthiness, the age of the receivable balances and current economic conditions that may affect collectability. In specific cases where we are aware of a customer’s inability or reluctance to pay, we record an allowance for credit losses to reduce the net receivable balance to the amount we reasonably expect to collect. However, if circumstances change, our estimate of the recoverability of accounts receivable could be affected. Circumstances which could affect our estimates include, but are not limited to, customer credit issues, expected losses, the level of commodity prices, customer deposits and general economic conditions. Accounts are written off once they are deemed to be uncollectible or the time allowed for dispute under the contract has expired. We utilize master netting agreements which consist of an agreement between two parties who have multiple contracts with each other that provide for the net settlement of all contracts in the event of default on or termination of any one contract. When the right of offset exists, accounting standards permit the netting of receivables and payables under a legally enforceable master netting agreement between counterparties. Accounting standards also permit offsetting of fair value amounts recognized for the right to reclaim, or the obligation to return, cash collateral against fair value amounts recognized for derivative instruments executed with the same counterparty. Following is a summary of accounts receivable as of December 31 (in thousands): 2022 2021 Billed Accounts Receivable $ 267,571 $ 181,027 Unbilled Revenue 243,574 142,738 Less Allowance for Credit Losses ( 2,953 ) ( 2,113 ) Accounts Receivable, net $ 508,192 $ 321,652 Changes to allowance for credit losses for the years ended December 31, were as follows (in thousands): Balance at Additions Recoveries and Write-offs and Balance at 2022 $ 2,113 $ 9,110 $ 3,529 $ ( 11,799 ) $ 2,953 2021 $ 7,003 $ 2,444 $ 3,560 $ ( 10,894 ) $ 2,113 2020 $ 2,444 $ 8,927 $ 4,728 $ ( 9,096 ) $ 7,003 |
Materials, Supplies and Fuel | Materials, Supplies and Fuel The following amounts by major classification are included in Materials, supplies and fuel on the accompanying Consolidated Balance Sheets as of December 31 (in thousands): 2022 2021 Materials and supplies $ 99,734 $ 86,400 Fuel 3,115 1,267 Natural gas in storage 104,572 63,312 Total materials, supplies and fuel $ 207,421 $ 150,979 Materials and supplies represent parts and supplies for business segments. Fuel represents diesel oil and gas used by our Electric Utilities to produce power. Natural gas in storage primarily represents gas purchased for use by our gas customers. All of our Materials, supplies and fuel are recorded using the weighted-average cost method and are valued at the lower-of-cost or net realizable value. The value of our natural gas in storage fluctuates with seasonal volume requirements of our business and the commodity price of natural gas. |
Property, Plant and Equipment | Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost. Included in the cost of regulated construction projects is AFUDC, when applicable, which represents the approximate composite cost of borrowed funds and a return on equity used to finance a regulated utility project. The following table presents AFUDC amounts (in thousands) for the years ended December 31: Income Statement Location 2022 2021 2020 AFUDC Borrowed Interest expense incurred net of amounts $ 5,638 $ 4,068 $ 5,617 AFUDC Equity Other income (expense), net 644 593 318 We also capitalize interest, when applicable, on undeveloped leasehold costs and certain non-regulated construction projects. In addition, asset retirement costs associated with tangible long-lived regulated utility assets are recognized as liabilities with an increase to the carrying amounts of the related long-lived regulated utility assets in the period incurred. The amounts capitalized are included in Property, plant and equipment on the accompanying Consolidated Balance Sheets. We also classify our Cushion Gas as Property, plant and equipment. The cost of regulated utility property, plant and equipment retired, or otherwise disposed in the ordinary course of business, less salvage plus retirement costs, is charged to accumulated depreciation. Estimated removal costs related to our regulated properties that do not have legal retirement obligations are reclassified from accumulated depreciation and reflected as regulatory liabilities. Retirement or disposal of all other assets result in gains or losses recognized as a component of operating income. Ordinary repairs and maintenance of property, except as allowed under rate regulations, are charged to operations as incurred. Depreciation provisions for property, plant and equipment are generally computed on a straight-line basis based on the applicable estimated service life of the various classes of property. The composite depreciation method is applied to regulated utility property. Capitalized mining costs and coal leases are amortized on a unit-of-production method based on volumes produced and estimated reserves. For certain non-regulated power plant components, depreciation is computed on a unit-of-production methodology based on plant hours run. See Note 5 for additional information. |
Asset Retirement Obligations | Asset Retirement Obligations Accounting standards for AROs associated with long-lived assets require that the present value of retirement costs for which we have a legal obligation be recorded as liabilities with an equivalent amount added to the asset cost and depreciated over an appropriate period. The associated ARO accretion expense for our non-regulated operations, and regulated operations without a corresponding recovery mechanism, is included within Depreciation, depletion and amortization on the accompanying Consolidated Statements of Income. The accounting for the obligation for regulated operations with a regulatory mechanism has no income statement impact due to the deferral of the adjustments through the establishment of a regulatory asset or a regulatory liability. We initially record liabilities for the present value of retirement costs for which we have a legal obligation, with an equivalent amount added to the asset cost. The asset is then depreciated or depleted over the appropriate useful life and the liability is accreted over time by applying an interest method of allocation. Any difference in the actual cost of the settlement of the liability and the recorded amount is recognized as a gain or loss in the results of operations at the time of settlement for our non-regulated operations. Additional information is included in Note 7 . |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets with indefinite lives are not amortized, but the carrying values are reviewed upon an indicator of impairment or at least annually. Intangible assets with a finite life are amortized over their estimated useful lives. We perform a goodwill impairment test on an annual basis or upon the occurrence of events or changes in circumstances that indicate that the asset might be impaired. Our annual goodwill impairment testing date is as of October 1, which aligns our testing date with our financial planning process. The Company has determined that the reporting units for its goodwill impairment test are its operating segments, or components of an operating segment. Our goodwill impairment analysis includes an income approach and a market approach to estimate the fair value of our reporting units. This analysis requires the input of several critical assumptions, including future growth rates, cash flow projections, operating cost escalation rates, rates of return, a risk-adjusted discount rate, timing and level of success in regulatory rate proceedings, the cost of debt and equity capital, long-term earnings and merger multiples for comparable companies. We believe that goodwill reflects the inherent value of the relatively stable, long-lived cash flows of our Utilities businesses, considering the regulatory environment, and the long-lived cash flow and rate base growth opportunities at our Utilities, and those businesses vertically integrated. Goodwill amounts have not changed since 2016. Our intangible assets represent contract intangibles, easements, rights-of-way, customer listings and trademarks. The finite-lived intangible assets are amortized using a straight-line method based on estimated useful lives; these assets are currently being amortized from 3 years to 37 years . |
Fair Value Measurements | Fair Value Measurements Financial Instruments We use the following fair value hierarchy for determining inputs for our financial instruments. Our assets and liabilities for financial instruments are classified and disclosed in one of the following fair value categories: Level 1 — Unadjusted quoted prices available in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 1 instruments primarily consist of highly liquid and actively traded financial instruments with quoted pricing information on an ongoing basis. Level 2 — Pricing inputs include quoted prices for identical or similar assets and liabilities in active markets other than quoted prices in Level 1, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Pricing inputs are generally less observable from objective sources. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. We record transfers, if necessary, between levels at the end of the reporting period for all of our financial instruments. Transfers into Level 3, if any, occur when significant inputs used to value the derivative instruments become less observable, such as a significant decrease in the frequency and volume in which the instrument is traded, negatively impacting the availability of observable pricing inputs. Transfers out of Level 3, if any, occur when the significant inputs become more observable, such as when the time between the valuation date and the delivery date of a transaction becomes shorter, positively impacting the availability of observable pricing inputs. Valuation Methodologies for Derivatives The wholesale electric energy and natural gas commodity contracts for our Utilities are valued using the market approach and include forward strip pricing at liquid delivery points, exchange-traded futures, options, basis swaps and over-the-counter swaps and options (Level 2). For exchange-traded futures, options and basis swap assets and liabilities, fair value was derived using broker quotes validated by the exchange settlement pricing for the applicable contract. For over-the-counter instruments, the fair value is obtained by utilizing a nationally recognized service that obtains observable inputs to compute the fair value, which we validate by comparing our valuation with the counterparty. The fair value of these swaps includes a CVA based on the credit spreads of the counterparties when we are in an unrealized gain position or on our own credit spread when we are in an unrealized loss position. Additional information on fair value measurements is included in Notes 10 and 13 . |
Derivatives and Hedging Activities | Derivatives and Hedging Activities All our derivatives are measured at fair value and recognized as either assets or liabilities on the Consolidated Balance Sheets, except for derivative contracts that qualify for and are elected under the normal purchase and normal sales exception. Normal purchases and normal sales are contracts where physical delivery is probable, quantities are expected to be used or sold in the normal course of business over a reasonable amount of time and pricing is clearly and closely related to the asset being purchased or sold. Normal purchase and sales contracts are recognized when the underlying physical transaction is completed under the accrual basis of accounting. In addition, certain derivative contracts approved by regulatory authorities are either recovered or refunded through customer rates. Any changes in the fair value of these approved derivative contracts are deferred as a regulatory asset or regulatory liability pursuant to ASC 980, Regulated Operations . We also have some derivatives that qualify for hedge accounting and are designated as cash flow hedges. The gain or loss on these designated derivatives is deferred in AOCI and reclassified into earnings when the corresponding hedged transaction is recognized in earnings. Changes in the fair value of all other derivative contracts are recognized in earnings. We utilize master netting agreements which consist of an agreement between two parties who have multiple contracts with each other that provide for the net settlement of all contracts in the event of default on or termination of any one contract. When the right of offset exists, accounting standards permit the netting of receivables and payables under a legally enforceable master netting agreement between counterparties. Accounting standards also permit offsetting of fair value amounts recognized for the right to reclaim, or the obligation to return, cash collateral against fair value amounts recognized for derivative instruments executed with the same counterparty. We reflect the offsetting of net derivative positions with fair value amounts for cash collateral with the same counterparty when a legal right of offset exists. Therefore, the gross amounts are not indicative of either our actual credit or net economic exposures. See additional information in Notes 9 , 10 and 11 . |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs include loan origination fees, underwriter fees, legal fees and other costs directly attributable to the issuance of debt. Deferred financing costs are amortized over the estimated useful life of the related debt. These costs are presented on the balance sheet as an adjustment to the related debt liabilities. See additional information in Note 8 . |
Regulatory Accounting | Regulatory Accounting Our regulated Electric Utilities and Gas Utilities are subject to cost-of-service regulation and earnings oversight from federal and state regulatory commissions. Our Electric and Gas Utilities account for income and expense items in accordance with accounting standards for regulated operations. These accounting policies differ in some respects from those used by our non-regulated businesses. Under these regulated operations accounting standards: • Certain costs, which would otherwise be charged to expense or OCI, are deferred as regulatory assets based on the expected ability to recover the costs in future rates. • Certain credits, which would otherwise be reflected as income or OCI, are deferred as regulatory liabilities based on the expectation the amounts will be returned to customers in future rates, or because the amounts were collected in rates prior to the costs being incurred. Management continually assesses the probability of future recoveries and obligations associated with regulatory assets and liabilities. Factors such as the current regulatory environment, recently issued rate orders, and historical precedents are considered. As a result, we believe that the accounting prescribed under rate-based regulation remains appropriate and our regulatory assets are probable of recovery in current rates or in future rate proceedings. If changes in the regulatory environment occur, we may no longer be eligible to apply this accounting treatment and may be required to eliminate regulatory assets and liabilities from our balance sheet. Such changes could adversely affect our results of operations, financial position or cash flows. See Note 2 for further information. |
Income Taxes | Income Taxes The Company and its subsidiaries file consolidated federal income tax returns. Each entity records both federal and state income taxes as if it were a separate taxpayer and consolidating expense adjustments are allocated to the subsidiaries based on separate company computations of taxable income or loss. We use the asset and liability method in accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized at currently enacted income tax rates, to reflect the tax effect of temporary differences between the financial and tax basis of assets and liabilities as well as operating loss and tax credit carryforwards. Such temporary differences are the result of provisions in the income tax law that either require or permit certain items to be reported on the income tax return in a different period than they are reported in the financial statements. It is our policy to apply the flow-through method of accounting for ITCs. Under the flow-through method, ITCs are reflected in net income as a reduction to income tax expense in the year they qualify. An exception to this general policy is the deferral method, which applies to our regulated businesses. Such a method results in the ITC being amortized as a reduction to income tax expense over the estimated useful lives of the underlying property that gave rise to the credit. We recognize interest income or interest expense and penalties related to income tax matters in Income tax expense on the Consolidated Statements of Income. We account for uncertainty in income taxes recognized in the financial statements in accordance with the accounting standards for income taxes. The unrecognized tax benefit is classified in Other deferred credits and other liabilities or in Deferred income tax liabilities, net on the accompanying Consolidated Balance Sheets. See Note 15 for additional information. |
Earnings per Share of Common Stock | Earnings per Share of Common Stock Basic earnings per share is computed by dividing Net income available for common stock by the weighted average number of common shares outstanding during each year. Diluted earnings per share is computed by including all dilutive common shares outstanding during each year. Diluted common shares are primarily due to equity units, outstanding stock options, restricted stock and performance shares under our equity compensation plans. |
Noncontrolling Interest | Non-controlling Interests We account for changes in our controlling interests of subsidiaries according to ASC 810 , Consolidation. ASC 810 requires that the Company record such changes as equity transactions, recording no gain or loss on such a sale. GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. In addition, the amounts attributable to the non-controlling interest net income (loss) of those subsidiaries are reported separately in the consolidated statements of income and comprehensive income. See Note 12 for additional detail on non-controlling interests. |
Share-Based Compensation | Share-Based Compensation We account for our share-based compensation arrangements in accordance with ASC 718, Compensation-Stock Compensation , by recognizing compensation costs for all share-based awards over the respective service period for employee services received in exchange for an award of equity or equity-based compensation. Awards that will be settled in stock are accounted for as equity and the compensation expense is based on the grant date fair value. Awards that are settled in cash are accounted for as liabilities and the compensation expense is re-measured each period based on the current market price and performance achievement measures. See additional information in Note 14 . |
Recently Issued and Adopted Accounting Standards | Recently Issued Accounting Standards Facilitation of the Effects of Reference Rate Reform on Financial Reporting, ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which was subsequently amended by ASU 2021-01 and ASU 2022-06. The standard provides relief for companies preparing for discontinuation of interest rates, such as LIBOR, and allows optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are elective and are effective upon the ASU issuance through December 31, 2024. We are currently evaluating if we will apply the optional guidance as we assess the impact of the discontinuance of LIBOR on our current arrangements . We do not expect the ASU to have a material impact on our financial position, results of operations and cash flows. |
Business Description And Sign_3
Business Description And Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable and Allowance for Doubtful Accounts | Following is a summary of accounts receivable as of December 31 (in thousands): 2022 2021 Billed Accounts Receivable $ 267,571 $ 181,027 Unbilled Revenue 243,574 142,738 Less Allowance for Credit Losses ( 2,953 ) ( 2,113 ) Accounts Receivable, net $ 508,192 $ 321,652 |
Financing Receivable, Current, Allowance for Credit Loss | Changes to allowance for credit losses for the years ended December 31, were as follows (in thousands): Balance at Additions Recoveries and Write-offs and Balance at 2022 $ 2,113 $ 9,110 $ 3,529 $ ( 11,799 ) $ 2,953 2021 $ 7,003 $ 2,444 $ 3,560 $ ( 10,894 ) $ 2,113 2020 $ 2,444 $ 8,927 $ 4,728 $ ( 9,096 ) $ 7,003 |
Materials, Supplies and Fuel | The following amounts by major classification are included in Materials, supplies and fuel on the accompanying Consolidated Balance Sheets as of December 31 (in thousands): 2022 2021 Materials and supplies $ 99,734 $ 86,400 Fuel 3,115 1,267 Natural gas in storage 104,572 63,312 Total materials, supplies and fuel $ 207,421 $ 150,979 |
Property, Plant and Equipment (AFUDC) | The following table presents AFUDC amounts (in thousands) for the years ended December 31: Income Statement Location 2022 2021 2020 AFUDC Borrowed Interest expense incurred net of amounts $ 5,638 $ 4,068 $ 5,617 AFUDC Equity Other income (expense), net 644 593 318 |
Goodwill | As of December 31, 2022 and 2021, Goodwill balances were as follows (in thousands): Electric Utilities Gas Utilities Total Goodwill $ 257,244 $ 1,042,210 $ 1,299,454 |
Intangible Assets | Changes to intangible assets for the years ended December 31, were as follows (in thousands): 2022 2021 2020 Intangible assets, net, beginning balance $ 10,770 $ 11,944 $ 13,266 Amortization expense (a) ( 1,181 ) ( 1,174 ) ( 1,322 ) Intangible assets, net, ending balance $ 9,589 $ 10,770 $ 11,944 (a) Amortization expense for existing intangible assets is expected to b e $ 1.2 million for each year of the next five years. |
Schedule of Accrued Liabilities | The following amounts by major classification are included in Accrued liabilities on the accompanying Consolidated Balance Sheets as of December 31 (in thousands): 2022 2021 Accrued employee compensation, benefits and withholdings $ 62,890 $ 74,387 Accrued property taxes 52,430 50,874 Customer deposits and prepayments 47,655 48,814 Accrued interest 33,798 33,680 Other (none of which is individually significant) 46,684 37,004 Total accrued liabilities $ 243,457 $ 244,759 |
Earnings Per Share of Common Stock | A reconciliation of share amounts used to compute earnings per share is as follows for the years ended December 31 (in thousands): 2022 2021 2020 Net income available for common stock $ 258,387 $ 236,744 $ 227,608 Weighted average shares - basic 64,858 63,219 62,378 Dilutive effect of: Equity compensation 163 106 61 Weighted average shares - diluted 65,021 63,325 62,439 Net income available for common stock, per share - Diluted $ 3.97 $ 3.74 $ 3.65 |
Antidilutive Securities | The following securities were excluded from the diluted earnings per share computation for the years ended December 31 because of their anti-dilutive nature (in thousands): 2022 2021 2020 Equity compensation - 13 60 Anti-dilutive shares excluded from computation of earnings per share - 13 60 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | We had the following regulatory assets and liabilities as of December 31 (in thousands): 2022 2021 Regulatory assets Winter Storm Uri (a) $ 347,980 $ 509,025 Deferred energy and fuel cost adjustments (b) 72,580 59,973 Deferred gas cost adjustments (b) 12,147 9,488 Gas price derivatives (b) 8,793 2,584 Deferred taxes on AFUDC (b) 7,333 7,457 Employee benefit plans and related deferred taxes (c) 89,259 88,923 Environmental (b) 1,343 1,385 Loss on reacquired debt (b) 19,213 21,011 Deferred taxes on flow-through accounting (b) 69,529 63,243 Decommissioning costs (b) 3,472 5,961 Other regulatory assets (b) 21,332 27,549 Total regulatory assets 652,981 796,599 Less current regulatory assets ( 260,312 ) ( 270,290 ) Regulatory assets, non-current $ 392,669 $ 526,309 Regulatory liabilities Deferred energy and gas costs (b) $ 24,030 $ 6,113 Employee benefit plan costs and related deferred taxes (c) 34,258 32,241 Cost of removal (b) 175,614 179,976 Excess deferred income taxes (c) 254,833 264,042 Other regulatory liabilities (c) 29,838 20,579 Total regulatory liabilities 518,573 502,951 Less current regulatory liabilities ( 46,013 ) ( 17,574 ) Regulatory liabilities, non-current $ 472,560 $ 485,377 (a) Timing of Winter Storm Uri incremental cost recovery and associated carrying costs vary by jurisdiction. See further information below. (b) Recovery of costs, but we are not allowed a rate of return. (c) In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base. |
Commitment, Contingencies And_2
Commitment, Contingencies And Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Unconditional Purchase Obligations Disclosure | The following is a schedule of unconditional purchase obligations required under the power purchase, transmission services and natural gas transportation and storage agreements (in thousands): PPAs (a) Transmission Services Agreements Natural gas supply, transportation and storage agreements (b) Future commitments for the year ending December 31, 2023 $ 11,175 $ 12,320 $ 130,031 2024 2,738 - 98,881 2025 - - 72,662 2026 - - 45,102 2027 - - 14,862 Thereafter - - 56,595 Total future commitments $ 13,913 $ 12,320 $ 418,133 ___________________________ (a) This schedule does not reflect renewable energy PPA future obligations since these agreements vary based on weather conditions. (b) Our Gas Utilities have commitments to purchase physical quantities of natural gas under contracts indexed to various forward natural gas price curves. A portion of our gas purchases are purchased under evergreen contracts and are therefore, for purposes of this disclosure, carried out for 60 days . |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | As of December 31, 2022, scheduled maturities of operating lease payments to be received in future years were as follows (in thousands): Operating Leases 2023 $ 2,381 2024 2,125 2025 2,070 2026 1,881 2027 1,845 Thereafter 49,387 Total lease receivables $ 59,689 |
Schedule of Guarantor Obligations | We had the following guarantees in place as of (in thousands): Maximum Exposure at Nature of Guarantee December 31, 2022 Indemnification for reclamation/surety bonds $ 107,314 Guarantees supporting business transactions $ 484,968 $ 592,282 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables depict the disaggregation of revenue, including intercompany revenue, from contracts with customers by customer type and timing of revenue recognition for each of the reportable segments, for the years ended December 31, 2022, 2021 and 2020. Sales tax and other similar taxes are excluded from revenues. Year ended December 31, 2022 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 739,734 $ 1,453,266 $ — $ 2,193,000 Transportation — 173,275 ( 413 ) 172,862 Wholesale 44,832 — — 44,832 Market - off-system sales 48,578 829 — 49,407 Transmission/Other 61,470 37,879 ( 16,594 ) 82,755 Revenue from contracts with customers 894,614 1,665,249 ( 17,007 ) 2,542,856 Other revenues 5,548 3,841 ( 429 ) 8,960 Total revenues $ 900,162 $ 1,669,090 $ ( 17,436 ) $ 2,551,816 Timing of revenue recognition: Services transferred at a point in time $ 30,454 $ — $ — $ 30,454 Services transferred over time 864,160 1,665,249 ( 17,007 ) 2,512,402 Revenue from contracts with customers $ 894,614 $ 1,665,249 $ ( 17,007 ) $ 2,542,856 Year ended December 31, 2021 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 711,448 $ 913,725 $ — $ 1,625,173 Transportation — 158,053 ( 428 ) 157,625 Wholesale 30,848 — — 30,848 Market - off-system sales 41,682 396 — 42,078 Transmission/Other 52,945 39,365 ( 17,200 ) 75,110 Revenue from contracts with customers 836,923 1,111,539 ( 17,628 ) 1,930,834 Other revenues 5,335 13,326 ( 393 ) 18,268 Total revenues $ 842,258 $ 1,124,865 $ ( 18,021 ) $ 1,949,102 Timing of revenue recognition: Services transferred at a point in time $ 27,141 $ — $ — $ 27,141 Services transferred over time 809,782 1,111,539 ( 17,628 ) 1,903,693 Revenue from contracts with customers $ 836,923 $ 1,111,539 $ ( 17,628 ) $ 1,930,834 Year ended December 31, 2020 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 636,902 $ 765,922 $ — $ 1,402,824 Transportation — 154,581 ( 526 ) 154,055 Wholesale 24,845 — — 24,845 Market - off-system sales 15,512 260 — 15,772 Transmission/Other 55,422 43,658 ( 15,772 ) 83,308 Revenue from contracts with customers 732,681 964,421 ( 16,298 ) 1,680,804 Other revenues 6,176 10,249 ( 288 ) 16,137 Total revenues $ 738,857 $ 974,670 $ ( 16,586 ) $ 1,696,941 Timing of revenue recognition: Services transferred at a point in time $ 27,089 $ — $ — $ 27,089 Services transferred over time 705,592 964,421 ( 16,298 ) 1,653,715 Revenue from contracts with customers $ 732,681 $ 964,421 $ ( 16,298 ) $ 1,680,804 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment at December 31 consisted of the following (dollars in thousands): 2022 2021 Lives (in years) Electric Utilities Property, Plant and Equipment Weighted Average Useful Life (in years) Property, Plant and Equipment Weighted Average Useful Life (in years) Minimum Maximum Electric plant: Production $ 1,482,081 41 $ 1,452,055 41 32 46 Electric transmission 632,872 48 546,126 49 40 51 Electric distribution 1,082,535 47 1,000,619 47 45 50 Integrated Generation 713,519 31 720,490 30 19 38 Plant acquisition adjustment (a) 4,870 32 4,870 32 32 32 General 274,857 27 266,935 28 24 31 Total electric plant in service 4,190,734 3,991,095 Construction work in progress 152,953 181,451 Total electric plant 4,343,687 4,172,546 Less accumulated depreciation and depletion ( 1,104,056 ) ( 1,016,738 ) Electric plant net of accumulated depreciation and depletion $ 3,239,631 $ 3,155,808 ____________________ (a) The plant acquisition adjustment is included in rate base and is being recovered w ith 8 years rem aining. 2022 2021 Lives (in years) Gas Utilities Property, Plant and Equipment Weighted Average Useful Life (in years) Property, Plant and Equipment Weighted Average Useful Life (in years) Minimum Maximum Gas plant: Production $ 17,843 45 $ 14,841 40 24 47 Gas transmission 695,345 58 645,550 58 32 72 Gas distribution 2,620,174 57 2,394,352 53 48 60 Cushion gas - depreciable (a) — N/A 3,539 28 N/A N/A Cushion gas - not depreciable (a) 63,137 N/A 42,478 N/A N/A N/A Storage 65,781 41 56,289 38 36 48 General 497,407 23 474,964 21 3 25 Total gas plant in service 3,959,687 3,632,013 Construction work in progress 52,041 37,860 Total gas plant 4,011,728 3,669,873 Less accumulated depreciation ( 471,013 ) ( 389,115 ) Gas plant net of accumulated depreciation $ 3,540,715 $ 3,280,758 ____________________ (a) Depreciation of Cushion Gas is determined by the respective regulatory jurisdiction in which the Cushion Gas resides. In 2022, assets classified as Cushion gas - depreciable were fully depreciated and removed from gross plant in service and accumulated depreciation. 2022 2021 Lives (in years) Corporate Property, Plant and Equipment Weighted Average Useful Life (in years) Property, Plant and Equipment Weighted Average Useful Life (in years) Minimum Maximum Total plant in service $ 5,685 11 $ 5,694 10 4 24 Construction work in progress 13,690 8,460 Total gross property, plant and equipment 19,375 14,154 Less accumulated depreciation ( 1,773 ) ( 1,544 ) Total net of accumulated depreciation $ 17,602 $ 12,610 |
Jointly Owned Facilities (Table
Jointly Owned Facilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Jointly Owned Utility Plants | At December 31, 2022, our interests in jointly-owned generating facilities and transmission systems were (in thousands): Ownership Interest Plant in Service Construction Work in Progress Less Accumulated Depreciation Plant Net of Accumulated Depreciation Wyodak Plant (a) 20 % $ 121,769 $ 93 $ ( 70,884 ) $ 50,978 Transmission Tie 35 % $ 24,482 $ 300 $ ( 7,375 ) $ 17,407 Wygen III (b) 52 % $ 143,818 $ 1,051 $ ( 29,634 ) $ 115,235 Wygen I (c) 76.5 % $ 114,811 $ 1,579 $ ( 56,553 ) $ 59,837 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligation | The following tables present the details of AROs which are included on the accompanying Consolidated Balance Sheets in Other deferred credits and other liabilities (in thousands): December 31, 2021 Liabilities Incurred Liabilities Settled Accretion Revisions to Prior Estimates December 31, 2022 Electric Utilities $ 30,089 $ — $ ( 3,003 ) $ 1,353 $ ( 856 ) $ 27,583 Gas Utilities (a) 45,455 — ( 158 ) 2,016 14,032 61,345 Total $ 75,544 $ — $ ( 3,161 ) $ 3,369 $ 13,176 $ 88,928 December 31, 2020 Liabilities Incurred Liabilities Settled Accretion Revisions to Prior Estimates December 31, 2021 Electric Utilities $ 29,157 $ — $ ( 978 ) $ 1,315 $ 595 $ 30,089 Gas Utilities (a) 42,274 — ( 66 ) 1,733 1,514 45,455 Total $ 71,431 $ — $ ( 1,044 ) $ 3,048 $ 2,109 $ 75,544 (a) The Revisions to Prior Estimates were primarily driven by changes in estimates associated with natural gas wells and compressor stations. |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Our Revolving Credit Facility and CP Program, which are classified as Notes payable on the Consolidated Balance Sheets, had the following borrowings, outstanding letters of credit, and available capacity at December 31 (dollars in thousands): 2022 2021 Amount outstanding $ 535,600 $ 420,180 Letters of credit (a) 24,626 27,209 Available capacity 189,774 302,611 Weighted average interest rates 4.88 % 0.30 % (a) Letters of credit are off-balance sheet commitments that reduce the borrowing capacity available on our corporate Revolving Credit Facility. Revolving Credit Facility and CP Program borrowing activity for the years ended December 31 was as follows (in thousands): 2022 2021 Maximum amount outstanding (based on daily outstanding balances) $ 572,300 $ 440,000 Average amount outstanding (based on daily outstanding balances) 390,653 258,392 Weighted average interest rates 2.11 % 0.22 % |
Schedule of Long-term Debt Instruments | Long-term debt outstanding was as follows (dollars in thousands): Interest Rate at Balance Outstanding Due Date December 31, 2022 December 31, 2022 December 31, 2021 Corporate Senior unsecured notes due 2023 November 30, 2023 4.25 % $ 525,000 $ 525,000 Senior unsecured notes due 2024 August 23, 2024 1.04 % 600,000 600,000 Senior unsecured notes due 2026 January 15, 2026 3.95 % 300,000 300,000 Senior unsecured notes due 2027 January 15, 2027 3.15 % 400,000 400,000 Senior unsecured notes, due 2029 October 15, 2029 3.05 % 400,000 400,000 Senior unsecured notes, due 2030 June 15, 2030 2.50 % 400,000 400,000 Senior unsecured notes due 2033 May 1, 2033 4.35 % 400,000 400,000 Senior unsecured notes, due 2046 September 15, 2046 4.20 % 300,000 300,000 Senior unsecured notes, due 2049 October 15, 2049 3.88 % 300,000 300,000 Total Corporate debt 3,625,000 3,625,000 Less unamortized debt discount ( 5,259 ) ( 6,125 ) Total Corporate debt, net 3,619,741 3,618,875 South Dakota Electric First Mortgage Bonds due 2032 August 15, 2032 7.23 % 75,000 75,000 First Mortgage Bonds due 2039 November 1, 2039 6.13 % 180,000 180,000 First Mortgage Bonds due 2044 October 20, 2044 4.43 % 85,000 85,000 Total South Dakota Electric debt 340,000 340,000 Less unamortized debt discount ( 69 ) ( 74 ) Total South Dakota Electric debt, net 339,931 339,926 Wyoming Electric Industrial development revenue bonds due 2027 (a) (b) March 1, 2027 3.68 % 10,000 10,000 First Mortgage Bonds due 2037 November 20, 2037 6.67 % 110,000 110,000 First Mortgage Bonds due 2044 October 20, 2044 4.53 % 75,000 75,000 Total Wyoming Electric debt 195,000 195,000 Less unamortized debt discount — — Total Wyoming Electric debt, net 195,000 195,000 Total long-term debt 4,154,672 4,153,801 Less current maturities ( 525,000 ) — Less unamortized deferred financing costs (c) ( 22,332 ) ( 26,878 ) Long-term debt, net of current maturities and deferred financing costs $ 3,607,340 $ 4,126,923 (a) Variable interest rate. (b) A reimbursement agreement is in place with Wells Fargo on behalf of Wyoming Electric for the 2009A bonds of $ 10 million due March 1, 2027. In the case of default, we hold the assumption of liability for drawings on Wyoming Electric’s Letter of Credit attached to these bonds. (c) Includes deferred financing costs associated with our Revolving Credit Facilit y of $ 1.8 million and $ 2.5 million as of December 31, 2022 and December 31, 2021 , respectively. |
Schedule of Maturities of Long-term Debt | Scheduled maturities of long-term debt and associated interest payments by year are shown below (in thousands): Payments Due by Period 2023 2024 2025 2026 2027 Thereafter Total Principal payments on Long-term debt including current maturities (a) $ 525,000 $ 600,000 $ — $ 300,000 $ 410,000 $ 2,325,000 $ 4,160,000 Interest payments on Long-term debt (a) 148,125 125,813 119,591 113,666 101,134 994,804 1,603,133 (a) Long-term debt amounts do not include deferred financing costs or discounts or premiums on debt. Estimated interest payments on variable rate debt are calculated by utilizing the applicable rates as of December 31, 2022. |
Deferred Financing Costs | Our deferred financing costs and associated amortization expense included in Interest expense on the accompanying Consolidated Statements of Income were as follows (in thousands): Deferred Financing Costs Remaining at Amortization Expense for the years ended December 31, December 31, 2022 2022 2021 2020 $ 22,332 $ 4,549 $ 3,769 $ 3,272 |
Credit Facility and Short Term Debt Covenants | We were in compliance with our covenants at December 31, 2022 as shown below: As of December 31, 2022 Covenant Requirement Consolidated Indebtedness to Capitalization Ratio 60.9 % Less than 65 % |
Summary of ATM Activity | ATM activity for the years ended December 31 was as follows (net proceeds and issuance costs in millions): December 31, 2022 December 31, 2021 December 31, 2020 Number of shares issued 1,307,755 1,812,197 - Average price per share $ 69.74 $ 66.18 $ - Proceeds, (net of issuance costs of $( 0.9 ), $( 1.1 ) and $ 0 respectively) $ 90.3 $ 118.8 $ - |
Risk Management And Derivativ_2
Risk Management And Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Contract or notional amounts and terms of marketing activities and derivative commodity instruments | The contract or notional amounts and terms of the natural gas derivative commodity instruments held by our utilities are comprised of both short and long positions. We had the following net long positions as of: December 31, 2022 December 31, 2021 Units Notional Amounts Maximum Term (months) (a) Notional Amounts Maximum Term (months) (a) Natural gas futures purchased MMBtus 630,000 3 590,000 3 Natural gas options purchased, net MMBtus 1,790,000 3 3,100,000 3 Natural gas basis swaps purchased MMBtus 900,000 3 870,000 3 Natural gas over-the-counter swaps, net (b) MMBtus 4,460,000 24 4,570,000 34 Natural gas physical commitments, net (c) MMBtus 17,864,412 12 16,416,677 24 (a) Term reflects the maximum forward period hedged. (b) As of December 31, 2022, 1,646,200 MMBtus of natural gas over-the-counter swaps purchased were designated as cash flow hedges. (c) Volumes exclude derivative contracts that qualify for the normal purchase, normal sales exception permitted by GAAP. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present the fair value and balance sheet classification of our derivative instruments as of December 31, (in thousands): Balance Sheet Location 2022 2021 Derivatives designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets - current $ 118 $ 2,017 Noncurrent commodity derivatives Other assets, non-current 198 18 Liability derivative instruments: Current commodity derivatives Derivative liabilities - current ( 1,703 ) — Total derivatives designated as hedges $ ( 1,387 ) $ 2,035 Derivatives not designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets - current $ 464 $ 2,356 Noncurrent commodity derivatives Other assets, non-current 337 804 Liability derivative instruments: Current commodity derivatives Derivative liabilities - current ( 4,897 ) ( 1,439 ) Noncurrent commodity derivatives Other deferred credits and other liabilities ( 18 ) ( 20 ) Total derivatives not designated as hedges $ ( 4,114 ) $ 1,701 |
Derivative Instruments, Gain (Loss) | The impact of cash flow hedges on our Consolidated Statements of Comprehensive Income and Consolidated Statements of Income is presented below for the years ended December 31, 2022, 2021 and 2020. Note that this presentation does not reflect the gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled. 2022 2021 2020 2022 2021 2020 Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in OCI Income Statement Location Amount of Gain/(Loss) Reclassified from AOCI into Income (in thousands) (in thousands) Interest rate swaps $ 2,850 $ 2,851 $ 2,851 Interest expense $ ( 2,850 ) $ ( 2,851 ) $ ( 2,851 ) Commodity derivatives ( 3,532 ) 1,952 540 Fuel, purchased power and cost of natural gas sold 2,708 2,051 ( 601 ) Total $ ( 682 ) $ 4,803 $ 3,391 $ ( 142 ) $ ( 800 ) $ ( 3,452 ) As of December 31, 2022, $ 4.5 million of net losses related to our interest rate swaps and commodity derivatives are expected to be reclassified from AOCI into earnings within the next 12 months. As market prices fluctuate, estimated and actual realized gains or losses will change during future periods. Derivatives Not Designated as Hedge Instruments The following table summarizes the impacts of derivative instruments not designated as hedge instruments on our Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020. Note that this presentation does not reflect the expected gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic gross profit we realized when the underlying physical and financial transactions were settled. 2022 2021 2020 Derivatives Not Designated as Hedging Instruments Income Statement Location Amount of Gain/(Loss) on Derivatives Recognized in Income (in thousands) Commodity derivatives - Electric Fuel, purchased power and cost of natural gas sol d $ — $ ( 144 ) $ 144 Commodity derivatives - Natural Gas Fuel, purchased power and cost of natural gas sold ( 797 ) 2,599 1,640 $ ( 797 ) $ 2,455 $ 1,784 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy, Measured on Recurring Basis | The following tables set forth, by level within the fair value hierarchy, our gross assets and gross liabilities and related offsetting as permitted by GAAP that were accounted for at fair value on a recurring basis for derivative instruments. As of December 31, 2022 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Netting (a) Total (in thousands) Assets: Commodity derivatives - Gas Utilities $ — 5,407 $ — ( 4,290 ) $ 1,117 Total $ — $ 5,407 $ — $ ( 4,290 ) $ 1,117 Liabilities: Commodity derivatives - Gas Utilities $ — 11,455 $ — ( 4,837 ) $ 6,618 Total $ — $ 11,455 $ — $ ( 4,837 ) $ 6,618 (a) As of December 31, 2022, $ 4.3 million of our commodity derivative gross assets and $ 4.8 million of o ur commodity derivative gross liabilities, as well as related gross collateral amounts, were subject to master netting agreements. As of December 31, 2021 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Netting (a) Total Assets: Commodity derivatives - Gas Utilities $ — 7,569 $ — $ ( 2,374 ) $ 5,195 Total $ — $ 7,569 $ — $ ( 2,374 ) $ 5,195 Liabilities: Commodity derivatives - Gas Utilities $ — $ 3,273 $ — $ ( 1,814 ) $ 1,459 Total $ — $ 3,273 $ — $ ( 1,814 ) $ 1,459 (a) As of December 31, 2021, $ 2.4 million of our commodity derivative assets and $ 1.8 million of our commodity derivative liabilities, as well as related gross collateral amounts, were subject to master netting agreements. |
Fair Value, by Balance Sheet Grouping | The following table presents the carrying amounts and fair values of financial instruments not recorded at fair value on the Consolidated Balance Sheets at December 31 (in thousands): 2022 2021 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current maturities (a) $ 4,132,340 $ 3,760,848 $ 4,126,923 $ 4,570,619 (a) Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy. Carrying amount of long-term debt is net of deferred financing costs. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table details reclassifications out of AOCI and into Net income. The amounts in parentheses below indicate decreases to Net income in the Consolidated Statements of Income for the period, net of tax (in thousands): Location on the Consolidated Amount Reclassified from AOCI Statements of Income December 31, 2022 December 31, 2021 Gains and (losses) on cash flow hedges: Interest rate swaps Interest expense $ ( 2,850 ) $ ( 2,851 ) Commodity contracts Fuel, purchased power and cost of natural gas sold 2,708 2,051 ( 142 ) ( 800 ) Income tax Income tax benefit (expense) 58 175 Total reclassification adjustments related to cash flow hedges, net of tax $ ( 84 ) $ ( 625 ) Amortization of components of defined benefit plans: Prior service cost Operations and maintenance $ 93 $ 98 Actuarial gain (loss) Operations and maintenance ( 751 ) ( 2,391 ) ( 658 ) ( 2,293 ) Income tax Income tax benefit (expense) 198 638 Total reclassification adjustments related to defined benefit plans, net of tax $ ( 460 ) $ ( 1,655 ) Total reclassifications $ ( 544 ) $ ( 2,280 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) | Balances by classification included within AOCI, net of tax on the accompanying Consolidated Balance Sheets were as follows (in thousands): Derivatives Designated as Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2021 $ ( 10,384 ) $ 1,476 $ ( 11,176 ) $ ( 20,084 ) Other comprehensive income (loss) before reclassifications — ( 631 ) 4,604 3,973 Amounts reclassified from AOCI 2,129 ( 2,045 ) 460 544 As of December 31, 2022 $ ( 8,255 ) $ ( 1,200 ) $ ( 6,112 ) $ ( 15,567 ) Derivatives Designated as Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2020 $ ( 12,558 ) $ 2 $ ( 14,790 ) $ ( 27,346 ) Other comprehensive income (loss) before reclassifications — 3,023 1,959 4,982 Amounts reclassified from AOCI 2,174 ( 1,549 ) 1,655 2,280 As of December 31, 2021 $ ( 10,384 ) $ 1,476 $ ( 11,176 ) $ ( 20,084 ) |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | We have recorded the following assets and liabilities on our Consolidated Balance Sheets related to the VIE described above as of December 31 (in thousands): 2022 2021 Assets: Current assets $ 12,761 $ 13,220 Property, plant and equipment of variable interest entities, net $ 178,761 $ 189,079 Liabilities: Current liabilities $ 5,394 $ 5,841 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | The percentages of total plan asset by investment category for our Pension Plan at December 31 were as follows: Return-seeking Assets 2022 2021 Equity 14 % 15 % Real estate 7 % 7 % Fixed income 2 % 3 % Hedge funds 3 % 3 % Total 26 % 28 % Liability-hedging Assets 2022 2021 Fixed income 72 % 71 % Cash 2 % 1 % Total 74 % 72 % Total Assets 100 % 100 % |
Schedule of Employer Contribution to Employee Benefit Plans | Contributions for the years ended December 31 were as follows (in thousands): 2022 2021 Defined Contribution Plan Company retirement contributions $ 11,885 $ 11,332 Company matching contributions $ 16,187 $ 15,938 2022 2021 Defined Benefit Plans Defined Benefit Pension Plan $ - $ - Non-Pension Defined Benefit Postretirement Healthcare Plan $ 6,131 $ 6,432 Supplemental Non-Qualified Defined Benefit Plans $ 3,061 $ 2,576 |
Schedule of Changes in Projected Benefit Obligations | The following tables provide a reconciliation of the employee benefit plan obligations and fair value of employee benefit plan assets, amounts recognized in the Consolidated Balance Sheets, accumulated benefit obligation, and reconciliation of components of the net periodic expense and elements of AOCI (in thousands): Employee Benefit Plan Obligations Defined Benefit Pension Plan Supplemental Non-qualified Defined Non-pension Defined Benefit Postretirement Healthcare Plan As of December 31, 2022 2021 2022 2021 2022 2021 Change in benefit obligation: Projected benefit obligation at beginning of year $ 478,262 $ 514,008 $ 55,260 $ 55,054 $ 63,484 $ 70,238 Service cost (a) 3,927 5,038 ( 801 ) 3,149 1,968 2,237 Interest cost 10,819 9,313 834 706 1,285 1,058 Actuarial (gain) loss ( 97,960 ) ( 14,037 ) ( 7,007 ) ( 1,073 ) ( 12,300 ) ( 5,165 ) Amendments - ( 561 ) - - - - Benefits paid ( 36,663 ) ( 35,499 ) ( 3,061 ) ( 2,576 ) ( 6,131 ) ( 6,432 ) Plan participants’ contributions - - - - 1,419 1,548 Projected benefit obligation at end of year $ 358,385 $ 478,262 $ 45,225 $ 55,260 $ 49,725 $ 63,484 |
Schedule of Changes in Fair Value of Plan Assets | Defined Benefit Supplemental Non-qualified Defined Non-pension Defined Benefit Postretirement Healthcare Plan (a) As of December 31, 2022 2021 2022 2021 2022 2021 Change in fair value of plan assets: Beginning fair value of plan assets $ 458,387 $ 473,721 $ - $ - $ 7,972 $ 8,165 Investment income (loss) ( 98,585 ) 20,165 - - 4 ( 35 ) Employer contributions - - 3,061 2,576 4,488 4,726 Retiree contributions - - - - 1,419 1,548 Benefits paid ( 36,661 ) ( 35,499 ) ( 3,061 ) ( 2,576 ) ( 6,131 ) ( 6,432 ) Ending fair value of plan assets $ 323,141 $ 458,387 $ - $ - $ 7,752 $ 7,972 (a) Assets of VEBA trusts. |
Schedule of Amounts Recognized in Balance Sheet | Amounts Recognized in the Consolidated Balance Sheets Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan As of December 31, 2022 2021 2022 2021 2022 2021 Regulatory assets $ 78,654 $ 67,403 $ - $ - $ 3,788 $ 11,660 Current liabilities $ - $ - $ 2,231 $ 2,156 $ 4,427 $ 4,584 Non-current assets $ - $ - $ - $ - $ 959 $ - Non-current liabilities $ 35,243 $ 19,872 $ 42,994 $ 53,104 $ 38,505 $ 50,949 Regulatory liabilities $ 2,804 $ 3,830 $ - $ - $ 6,198 $ 2,447 |
Schedule of Accumulated and Projected Benefit Obligations | Accumulated Benefit Obligation Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan As of December 31, 2022 2021 2022 2021 2022 2021 Accumulated Benefit Obligation $ 350,187 $ 466,505 $ 45,225 $ 55,260 $ 49,725 $ 63,484 |
Components of Net Periodic Benefit Cost | Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan For the years ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ 3,927 $ 5,038 $ 5,411 $ ( 801 ) $ 3,149 $ 1,579 $ 1,968 $ 2,237 $ 2,056 Interest cost 10,819 9,313 13,426 834 706 1,099 1,285 1,058 1,649 Expected return on assets ( 18,523 ) ( 20,876 ) ( 22,591 ) - - - ( 125 ) ( 136 ) ( 182 ) Net amortization of prior service cost ( 68 ) - - - - 2 ( 289 ) ( 434 ) ( 546 ) Recognized net actuarial loss (gain) 6,092 7,315 8,372 276 1,754 1,702 64 466 20 Net periodic expense $ 2,247 $ 790 $ 4,618 $ 309 $ 5,609 $ 4,382 $ 2,903 $ 3,191 $ 2,997 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan As of December 31, 2022 2021 2022 2021 2022 2021 Net (gain) loss $ 5,179 $ 4,398 $ 1,565 $ 7,159 $ ( 667 ) $ ( 308 ) Prior service cost (gain) ( 39 ) ( 46 ) - - 74 ( 27 ) Total amounts included in AOCI, after-tax not yet recognized as components of net periodic expense $ 5,140 $ 4,352 $ 1,565 $ 7,159 $ ( 593 ) $ ( 335 ) |
Schedule of Assumptions Used | Assumptions Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan Weighted-average assumptions used to determine benefit obligations: 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 5.17 % 2.88 % 2.56 % 5.13 % 2.77 % 2.41 % 5.14 % 2.79 % 2.41 % Rate of increase in compensation levels 3.06 % 3.08 % 3.34 % — 5.00 % 5.00 % N/A N/A N/A Defined Benefit Supplemental Non-pension Defined Benefit Postretirement Healthcare Plan Weighted-average assumptions used to determine net periodic benefit cost for plan year: 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate (a) 2.88 % 2.56 % 3.27 % 2.77 % 2.41 % 3.14 % 2.79 % 2.41 % 3.15 % Expected long-term rate of return on assets (b) 4.25 % 4.50 % 5.25 % N/A N/A N/A 1.70 % 1.80 % 2.35 % Rate of increase in compensation levels 3.08 % 3.34 % 3.49 % — 5.00 % 5.00 % N/A N/A N/A (a) The estimated discount rate for the Defined Benefit Pension Plan is 5.2 % f or the calculation of the 2023 net periodic pension costs. (b) The expected rate of return on plan as sets for the Defined Benefit Pension Plan is 6.0 % for the calculation of the 2023 net periodic pension cost. |
Schedule of Health Care Cost Trend Rates | The healthcare benefit obligation at December 31 was determined as follows: 2022 2021 Trend Rate - Medical Pre-65 for next year - All Plans 7.00 % 6.05 % Pre-65 Ultimate trend rate - Black Hills Corp 4.50 % 4.50 % Trend Year 2031 2030 Post-65 for next year - All Plans 6.00 % 5.10 % Post-65 Ultimate trend rate - Black Hills Corp 4.50 % 4.50 % Trend Year 2031 2030 |
Schedule of Expected Benefit Payments | The following benefit payments to employees, which reflect future service, are expected to be paid (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2023 $ 26,889 $ 2,231 $ 5,600 2024 $ 26,882 $ 2,417 $ 5,313 2025 $ 27,870 $ 2,764 $ 5,022 2026 $ 28,182 $ 2,790 $ 4,883 2027 $ 28,166 $ 2,727 $ 4,769 2028 -2032 $ 140,416 $ 12,184 $ 21,147 |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | The following tables set forth, by level within the fair value hierarchy, the assets that were accounted for at fair value on a recurring basis (in thousands): Pension Plan December 31, 2022 Level 1 Level 2 Level 3 Total Investments Measured at Fair Value NAV (a) Total Investments Common Collective Trust - Cash and Cash Equivalents $ - $ 6,374 $ - $ 6,374 $ - $ 6,374 Common Collective Trust - Equity - 45,087 - 45,087 - 45,087 Common Collective Trust - Fixed Income - 242,025 - 242,025 - 242,025 Common Collective Trust - Real Estate - - - - 21,572 21,572 Hedge Funds - - - - 8,084 8,084 Total investments measured at fair value $ - $ 293,486 $ - $ 293,486 $ 29,656 $ 323,142 Pension Plan December 31, 2021 Level 1 Level 2 Level 3 Total Investments Measured at Fair Value NAV (a) Total Investments Common Collective Trust - Cash and Cash Equivalents $ - $ 6,009 $ - $ 6,009 $ - $ 6,009 Common Collective Trust - Equity - 70,262 - 70,262 - 70,262 Common Collective Trust - Fixed Income - 339,219 - 339,219 - 339,219 Common Collective Trust - Real Estate - - - - 30,407 30,407 Hedge Funds - - - - 12,490 12,490 Total investments measured at fair value $ - $ 415,490 $ - $ 415,490 $ 42,897 $ 458,387 (a) Certain investments that are measured at fair value using NAV per share (or its equivalent) for practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the reconciliation of changes in the plan’s benefit obligations and fair value of plan assets above. |
Postretirement Health Coverage | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | Non-pension Defined Benefit Postretirement Healthcare Plan December 31, 2022 Level 1 Level 2 Level 3 Total Investments Measured at Fair Value Total Investments Cash and Cash Equivalents $ 7,752 $ - $ - $ 7,752 $ 7,752 Total investments measured at fair value $ 7,752 $ - $ - $ 7,752 $ 7,752 Non-pension Defined Benefit Postretirement Healthcare Plan December 31, 2021 Level 1 Level 2 Level 3 Total Investments Measured at Fair Value Total Investments Cash and Cash Equivalents $ 7,972 $ - $ - $ 7,972 $ 7,972 Total investments measured at fair value $ 7,972 $ - $ - $ 7,972 $ 7,972 |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Expensed Amount | Stock-based compensation expense, which is included in Operations and maintenance on the accompanying Consolidated Statements of Income, was as follows for the years ended December 31 (in thousands): 2022 2021 2020 Stock-based compensation expense $ 8,551 $ 9,655 $ 5,373 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the status of the restricted stock and restricted stock units at December 31, 2022, was as follows: Restricted Stock Weighted-Average Grant Date Fair Value (in thousands) Balance at January 1, 2022 219 $ 67.64 Granted 70 69.03 Vested ( 94 ) 69.64 Forfeited ( 16 ) 66.03 Balance at December 31, 2022 179 $ 67.23 The weighted-average grant-date fair value of restricted stock granted, and the total fair value of shares vested during the years ended December 31, were as follows: Weighted-Average Grant Date Fair Value Total Fair Value of Shares Vested (in thousands) 2022 $ 69.03 $ 6,436 2021 $ 65.64 $ 5,400 2020 $ 69.49 $ 6,722 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The outstanding performance periods at December 31, 2022 were as follows (shares in thousands): Possible Payout Range of Target Grant Date Performance Period Target Grant of Shares Minimum Maximum January 1, 2020 January 1, 2020 - December 31, 2022 36 0 % 200 % A summary of the status of the Performance Share Plan at December 31, 2022 was as follows: Equity Portion Liability Portion Weighted-Average Grant Date Weighted-Average Fair Value at Shares Fair Value (a) Shares December 31, 2022 (in thousands) (in thousands) Performance Shares balance at beginning of period 36 $ 68.14 36 Granted — — — Forfeited — — — Vested ( 18 ) 68.72 ( 18 ) Performance Shares balance at end of period 18 $ 81.42 18 $ 32.74 (a) The grant date fair values for the performance shares granted in 2020 were determined by Monte Carlo simulation using a blended volatility o f 18 %, comprised of 50 % historical volatility and 50 % implied volatility and the average risk-free interest rate of the three-year United States Treasury security rate in effect as of the grant date. The weighted-average grant-date fair value of performance share awards granted was as follows in the years ended: Weighted Average Grant Date Fair Value December 31, 2020 $ 81.42 |
Performance Plan Payouts | Performance plan payouts have been as follows (in thousands): Performance Period Year Paid Stock Issued Cash Paid Total Intrinsic Value January 1, 2019 to December 31, 2021 2022 8 $ 519 $ 1,038 January 1, 2018 to December 31, 2020 2021 28 $ 1,647 $ 3,294 January 1, 2017 to December 31, 2019 2020 14 $ 1,100 $ 2,199 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Monte Carlo simulation is used to estimate expected share payout based on the Company’s TSR for a three-year performance period relative to the designated peer group beginning January 1 of the award year. 2022 2021 Fair value of share units award 74.48 64.97 Three-year risk-free rate 0.97 % 0.17 % Black Hills Corporation’s common stock volatility 30 % 33 % Volatility range for the peer group 22 - 67 % 25 - 76 % |
Schedule of Nonvested Share Activity | The following table summarizes the performance share unit activity for the year ended December 31, 2022: Performance Share Units - Performance Share Units - Share Units Weighted-Average Fair Value per Share Unit Share Units Weighted-Average Fair Value per Share Unit Nonvested at January 1, 2022 32,903 $ 64.97 21,948 $ 61.45 Granted 35,571 74.48 23,718 70.57 Nonvested at December 31, 2022 68,474 $ 69.91 45,666 $ 66.19 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) from continuing operations for the years ended December 31 was (in thousands): 2022 2021 2020 Current: Federal $ ( 467 ) $ 574 $ ( 6,020 ) State 80 ( 666 ) 847 Current income tax (benefit) ( 387 ) ( 92 ) ( 5,173 ) Deferred: Federal 23,205 2,170 35,672 State 2,387 5,091 2,419 Deferred income tax expense 25,592 7,261 38,091 Income tax expense $ 25,205 $ 7,169 $ 32,918 |
Schedule of Effective Income Tax Rate Reconciliation | Effective Tax Rates The effective tax rate differs from the federal statutory rate for the years ended December 31, as follows: 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State income tax (net of federal tax effect) (a) 0.5 1.2 2.4 Non-controlling interest (b) ( 0.9 ) ( 1.2 ) ( 1.2 ) Tax credits ( 7.7 ) ( 8.4 ) ( 9.2 ) Flow-through adjustments (c) ( 1.4 ) ( 3.2 ) ( 1.6 ) Uncertain Tax Benefits — 0.3 1.5 Valuation Allowance — — 0.7 Other tax differences ( 0.1 ) ( 0.2 ) 0.6 Amortization of excess deferred income tax expense (d) ( 2.5 ) ( 3.1 ) ( 2.3 ) TCJA bill credits (e) ( 0.4 ) ( 3.6 ) — Effective Tax Rate 8.5 % 2.8 % 11.9 % (a) The state effective tax rate contains the tax expense attributable to multiple statutory state rate reductions in the Company's state jurisdictions. (b) The effective tax rate reflects the income attributable to the non-controlling interest in Black Hills Colorado IPP for which a tax provision was not recorded. (c) Flow-through adjustments related primarily to accounting method changes for tax purposes that allow us to take a current tax deduction for repair costs, certain indirect costs and gain deferral. We recorded a deferred income tax liability in recognition of the temporary difference created between book and tax treatment and flowed the tax benefit through to tax expense. A regulatory asset was established to reflect the recovery of future increases in taxes payable from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record tax benefits consistent with the flow-through method. (d) Primarily TCJA - see above. (e) Primarily related to one-time bill credits of TCJA benefits which were delivered to Colorado Electric and Nebraska Gas customers in 2021. These bill credits, which resulted in a reduction in revenue, were offset by a reduction in income tax expense and resulted in a minimal impact to Net income for the year ended December 31, 2021. |
Schedule of Deferred Tax Assets and Liabilities | The temporary differences, which gave rise to the net deferred tax liability, for the years ended December 31 were as follows (in thousands): 2022 2021 Deferred tax assets: Regulatory liabilities $ 74,728 $ 77,099 State tax credits 22,817 23,342 Federal NOL 191,992 227,535 State NOL 23,031 33,639 Partnership 12,755 13,395 Credit Carryovers 90,881 68,646 Other deferred tax assets 45,407 31,996 Less: Valuation allowance ( 15,476 ) ( 14,719 ) Total deferred tax assets 446,135 460,933 Deferred tax liabilities: Accelerated depreciation, amortization and other property-related differences ( 645,762 ) ( 597,284 ) Regulatory assets ( 94,433 ) ( 124,582 ) Goodwill ( 57,884 ) ( 45,471 ) State deferred tax liability ( 98,200 ) ( 109,136 ) Other deferred tax liabilities ( 58,797 ) ( 49,848 ) Total deferred tax liabilities ( 955,076 ) ( 926,321 ) Net deferred tax liability $ ( 508,941 ) $ ( 465,388 ) |
Summary of Operating Loss and Tax Credit Carryforwards | At December 31, 2022, we have federal NOL and state NOL and tax credit carryforwards that will expire at various dates as follows (in thousands): Amounts Expiration Dates Federal NOL Carryforward $ 330,085 2023 to 2037 Federal NOL Carryforward $ 584,161 No expiration State NOL Carryforward (a) $ 408,269 2023 to 2041 State Tax Credit Carryforward $ 22,817 2023 to 2041 (a) The carryforward balance is reflected on the basis of apportioned tax losses to jurisdictions imposing state income taxes. |
Summary of Income Tax Contingencies | The following table reconciles the total amounts of unrecognized tax benefits, without interest, at the beginning and end of the period included in Other deferred credits and other liabilities on the accompanying Consolidated Balance Sheets (in thousands): Changes in Uncertain Tax Positions: 2022 2021 2020 Beginning balance $ 10,554 $ 8,383 $ 4,165 Additions for prior year tax positions 7 448 3,788 Reductions for prior year tax positions ( 773 ) ( 732 ) ( 1,313 ) Additions for current year tax positions 2,097 2,455 1,743 Ending balance $ 11,885 $ 10,554 $ 8,383 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting Information, Additional Information [Abstract] | |
Segment information included in Consolidated Balance Sheets | Segment information was as follows (in thousands): Total Assets (net of intercompany eliminations) as of December 31, 2022 2021 Electric Utilities $ 3,929,721 $ 3,796,662 Gas Utilities 5,578,282 5,246,370 Corporate and Other 110,227 88,864 Total assets $ 9,618,230 $ 9,131,896 Capital Expenditures (a) for the years ended December 31, 2022 2021 2020 Electric Utilities $ 243,133 $ 285,770 $ 288,683 Gas Utilities 349,438 383,320 449,209 Corporate and Other 5,097 10,500 17,500 Total capital expenditures $ 597,668 $ 679,590 $ 755,392 (a) Includes accruals for property, plant and equipment as disclosed in the Supplemental Cash Flow Information to the Consolidated Statement of Cash Flows . |
Segment information included in Consolidated Statements of Income | Consolidating Income Statement Year ended December 31, 2022 Electric Utilities Gas Utilities Corporate Inter-Company Total Revenue - Contracts with customers $ 882,899 $ 1,659,957 $ — $ — $ 2,542,856 Other revenues 5,548 3,412 — — 8,960 888,447 1,663,369 — — 2,551,816 Inter-company operating revenue - Contracts with customers 11,715 5,292 538 ( 17,545 ) — Other revenues — 429 368,201 ( 368,630 ) — 11,715 5,721 368,739 ( 386,175 ) — Total revenue 900,162 1,669,090 368,739 ( 386,175 ) 2,551,816 Fuel, purchased power and cost of natural gas sold 266,284 965,108 ( 11 ) ( 831 ) 1,230,550 Operations and maintenance, including taxes 283,654 345,143 309,773 ( 323,457 ) 615,113 Depreciation, depletion and amortization 135,966 114,679 26,964 ( 26,700 ) 250,909 Operating income (loss) $ 214,258 $ 244,160 $ 32,013 $ ( 35,187 ) $ 455,244 Interest expense, net ( 160,989 ) Impairment of investment — Other income (expense), net 1,708 Income tax benefit (expense) ( 25,205 ) Net income 270,758 Net income attributable to non-controlling interest ( 12,371 ) Net income available for common stock $ 258,387 Consolidating Income Statement Year ended December 31, 2021 Electric Utilities Gas Utilities Corporate Inter-Company Eliminations Total Revenue - Contracts with customers $ 825,404 $ 1,105,430 $ — $ — $ 1,930,834 Other revenues 5,336 12,932 — — 18,268 830,740 1,118,362 — — 1,949,102 Inter-company operating revenue - Contracts with customers 11,518 6,110 196 ( 17,824 ) — Other revenues — 393 356,151 ( 356,544 ) — 11,518 6,503 356,347 ( 374,368 ) — Total revenue 842,258 1,124,865 356,347 ( 374,368 ) 1,949,102 Fuel, purchased power and cost of natural gas sold 248,018 494,738 96 ( 918 ) 741,934 Operations and maintenance, including taxes 260,036 314,810 293,265 ( 306,325 ) 561,786 Depreciation, depletion and amortization 131,528 104,160 26,838 ( 26,573 ) 235,953 Operating income (loss) $ 202,676 $ 211,157 $ 36,148 $ ( 40,552 ) $ 409,429 Interest expense, net ( 152,404 ) Impairment of investment — Other income (expense), net 1,404 Income tax benefit (expense) ( 7,169 ) Net income 251,260 Net income attributable to non-controlling interest ( 14,516 ) Net income available for common stock $ 236,744 Consolidating Income Statement Year ended December 31, 2020 Electric Utilities Gas Utilities Corporate Inter-Company Eliminations Total Revenue - Contracts with customers $ 721,108 $ 959,696 $ — $ — $ 1,680,804 Other revenues 6,175 9,962 — — 16,137 727,283 969,658 — — 1,696,941 Inter-company operating revenue - Contracts with customers 11,574 4,724 167 ( 16,465 ) — Other revenues — 288 352,976 ( 353,264 ) — 11,574 5,012 353,143 ( 369,729 ) — Total revenue 738,857 974,670 353,143 ( 369,729 ) 1,696,941 Fuel, purchased power and cost of natural gas sold 138,572 354,645 83 ( 896 ) 492,404 Operations and maintenance, including taxes 265,679 303,577 284,501 ( 301,980 ) 551,777 Depreciation, depletion and amortization 123,632 100,559 25,150 ( 24,884 ) 224,457 Operating income (loss) $ 210,974 $ 215,889 $ 43,409 $ ( 41,969 ) $ 428,303 Interest expense, net ( 143,470 ) Impairment of investment ( 6,859 ) Other income (expense), net ( 2,293 ) Income tax benefit (expense) ( 32,918 ) Net income 242,763 Net income attributable to non-controlling interest ( 15,155 ) Net income available for common stock $ 227,608 |
Business Description And Sign_4
Business Description And Significant Accounting Policies: Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable [Line Items] | ||||
Allowance for credit losses | $ (2,953) | $ (2,113) | $ (7,003) | $ (2,444) |
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 508,192 | 321,652 | ||
Billed Revenues | ||||
Accounts Receivable [Line Items] | ||||
Accounts Receivable, Trade | 267,571 | 181,027 | ||
Unbilled Revenues | ||||
Accounts Receivable [Line Items] | ||||
Accounts Receivable, Trade | $ 243,574 | $ 142,738 |
Business Description And Sign_5
Business Description And Significant Accounting Policies: Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Accounts Receivable, Allowance for Credit Loss, Current | $ 2,113 | $ 7,003 | $ 2,444 |
Additions Charged to Costs and Expenses | 9,110 | 2,444 | 8,927 |
Recoveries and Other Additions | 3,529 | 3,560 | 4,728 |
Write-offs and Other Deductions | (11,799) | (10,894) | (9,096) |
Accounts Receivable, Allowance for Credit Loss, Current | $ 2,953 | $ 2,113 | $ 7,003 |
Business Description And Sign_6
Business Description And Significant Accounting Policies: Materials, Supplies and Fuel (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Materials and supplies | $ 99,734 | $ 86,400 |
Fuel | 3,115 | 1,267 |
Natural gas in storage | 104,572 | 63,312 |
Total materials, supplies and fuel | $ 207,421 | $ 150,979 |
Business Description And Sign_7
Business Description And Significant Accounting Policies: Property, Plant and Equipment (AFUDC) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense incurred net of amounts capitalized (including amortization of debt issuance costs, premiums and discounts) | |||
AFUDC Borrowed | $ 5,638 | $ 4,068 | $ 5,617 |
Other Nonoperating Income (Expense) | |||
AFUDC Equity | $ 644 | $ 593 | $ 318 |
Business Description And Sign_8
Business Description And Significant Accounting Policies: Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill [Line Items] | ||
Goodwill | $ 1,299,454 | $ 1,299,454 |
Electric Utilities | ||
Goodwill [Line Items] | ||
Goodwill | 257,244 | 257,244 |
Gas Utilities | ||
Goodwill [Line Items] | ||
Goodwill | $ 1,042,210 | $ 1,042,210 |
Business Description And Sign_9
Business Description And Significant Accounting Policies: Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Roll Forward] | |||
Intangible assets, net, beginning balance | $ 10,770 | $ 11,944 | $ 13,266 |
Intangible assets, amortization expense | (1,181) | (1,174) | (1,322) |
Intangible assets, net, ending balance | 9,589 | $ 10,770 | $ 11,944 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Future Amortization Expense, Year Five | $ 1,200 | ||
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Useful Life | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Useful Life | 37 years |
Business Description And Sig_10
Business Description And Significant Accounting Policies: Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued employee compensation, benefits and withholdings | $ 62,890 | $ 74,387 |
Accrued property taxes | 52,430 | 50,874 |
Customer deposits and prepayments | 47,655 | 48,814 |
Accrued interest | 33,798 | 33,680 |
Other (none of which is individually significant) | 46,684 | 37,004 |
Total accrued liabilities | $ 243,457 | $ 244,759 |
Business Description And Sig_11
Business Description And Significant Accounting Policies: Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income available for common stock | $ 258,387 | $ 236,744 | $ 227,608 |
Weighted average shares - Basic (in shares) | 64,858 | 63,219 | 62,378 |
Dilutive effect of: | |||
Equity compensation (in shares) | 163 | 106 | 61 |
Weighted average shares - diluted (in shares) | 65,021 | 63,325 | 62,439 |
Total earnings (loss) per share of common stock, Diluted (usd per share) | $ 3.97 | $ 3.74 | $ 3.65 |
Business Description And Sig_12
Business Description And Significant Accounting Policies: Anti-dilutive shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Outstanding securities not included in the computation of diluted earnings per share (in shares) | 0 | 13 | 60 |
Equity Compensation | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Outstanding securities not included in the computation of diluted earnings per share (in shares) | 0 | 13 | 60 |
Regulatory Matters_ Regulatory
Regulatory Matters: Regulatory Matters (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Regulatory assets | $ 652,981 | $ 796,599 | |
Regulatory assets, current | (260,312) | (270,290) | |
Regulatory assets, non-current | 392,669 | 526,309 | |
Regulatory liabilities | 518,573 | 502,951 | |
Regulatory liabilities, current | (46,013) | (17,574) | |
Regulatory liabilities, non-current | $ 472,560 | 485,377 | |
Maximum | |||
Gas Price Derivatives - Term of Contract | 2 years | ||
Deferred energy and gas costs | |||
Regulatory liabilities | $ 24,030 | 6,113 | |
Employee benefit plan costs and related deferred taxes | |||
Regulatory liabilities | 34,258 | 32,241 | |
Cost of removal | |||
Regulatory liabilities | 175,614 | 179,976 | |
Excess deferred income taxes | |||
Regulatory liabilities | 254,833 | 264,042 | |
Other regulatory liabilities | |||
Regulatory liabilities | 29,838 | 20,579 | |
Storm Costs | |||
Regulatory assets | 347,980 | 509,025 | |
Deferred energy and gas costs | |||
Regulatory assets | 72,580 | 59,973 | |
Deferred gas cost adjustments | |||
Regulatory assets | 12,147 | 9,488 | |
Gas price derivatives | |||
Regulatory assets | 8,793 | 2,584 | |
Deferred taxes on AFUDC | |||
Regulatory assets | 7,333 | 7,457 | |
Employee benefit plans and related deferred taxes | |||
Regulatory assets | 89,259 | 88,923 | |
Environmental | |||
Regulatory assets | 1,343 | 1,385 | |
Loss on reacquired debt | |||
Regulatory assets | 19,213 | 21,011 | |
Deferred taxes on flow through accounting | |||
Regulatory assets | 69,529 | 63,243 | |
Decommissioning costs | |||
Regulatory assets | 3,472 | 5,961 | |
Regulatory Asset, Amortization Period | 3 years | ||
Other regulatory assets | |||
Regulatory assets | $ 21,332 | $ 27,549 |
Regulatory Matters_ Winter Stor
Regulatory Matters: Winter Storm Uri (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Public Utilities, General Disclosures [Line Items] | ||
Regulatory assets | $ 652,981 | $ 796,599 |
Storm Carrying Costs | 22,000 | 4,100 |
Winter Storm Uri | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory assets | 546,000 | |
Amount Recovered Through Regulatory Mechanism | 174,000 | 40,000 |
Storm Carrying Costs One Time True-up to Commission Authorized Rates | 10,000 | |
Storm Costs | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory assets | $ 347,980 | 509,025 |
Storm Costs | Winter Storm Uri | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory assets | $ 546,000 | |
Regulatory Asset, Amortization Period | 2 years 7 months 6 days | 3 years 6 months |
Deferred gas cost adjustments | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory assets | $ 12,147 | $ 9,488 |
Regulatory Matters_ Tax Cut and
Regulatory Matters: Tax Cut and Jobs Act (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Jan. 01, 2022 | Dec. 21, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 21, 2017 | Jan. 26, 2021 | |
Public Utilities, General Disclosures [Line Items] | |||||||
U.S. federal corporate tax rate | 35% | 21% | 21% | 21% | 35% | ||
Colorado Public Utilities Commission (CPUC) | Black Hills Energy - Colorado Electric | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Settlement of plan to provide TCJA-related customer billing credits to its customers | $ 9.3 | ||||||
Nebraska Public Service Commission (NPSC) | Black Hills Energy - Nebraska Gas | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Settlement of plan to provide TCJA-related customer billing credits to its customers | $ 2.9 | ||||||
Kansas Corporation Commission (KCC) | Black Hills Energy, Kansas Gas | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Annual TCJA-Related Customer Billing Credits | $ 2.9 | ||||||
Settlement of Plan to Provide TCJA and State Tax Reform benefits to Customers Annually | $ 3 | ||||||
Settlement Total of Plan to Provide TCJA and State Tax Reform benefits to Customers | $ 9.1 | ||||||
Number of Years TCJA and State Tax Reform Benefits to be Provide to Customers | 3 years | ||||||
Annual TCJA-Related Customer Billing Credits | $ 2.9 |
Regulatory Matters_ Gas Utiliti
Regulatory Matters: Gas Utilities Regulatory Activity (Details) $ in Millions | Jan. 26, 2023 USD ($) mi | Oct. 10, 2022 USD ($) Riders mi | Oct. 07, 2022 USD ($) mi | Dec. 30, 2021 USD ($) mi | Dec. 28, 2021 USD ($) | Jul. 06, 2021 | Jun. 01, 2021 USD ($) mi | Sep. 11, 2020 |
Arkansas Public Service Commission (APSC) | Black Hills Energy - Arkansas Gas | Settlement agreement reached with APSC Staff and various intervenors | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 8.8 | |||||||
Public Utilities Number Of Former Riders Replaced With A New Comprehensive Safety And Integrity Rider | Riders | 3 | |||||||
Public Utilities Amount of System Safety and Integrety Rider Moved to Base Rates | $ 10 | |||||||
Colorado Public Utilities Commission (CPUC) | Black Hills Energy - Colorado Gas | Rate Review Filed with the Regulatory Agency | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities - Length of Natural Gas Pipeline to Receive Infrastructure Investments | mi | 600 | |||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 12.3 | |||||||
Public Utilities, Approved Equity Capital Structure, Percentage | 52% | |||||||
Public Utilities, Approved Debt Capital Structure, Percentage | 48% | |||||||
Public Utilities, Requested Return on Equity, Percentage | 12.30% | |||||||
Public Utilities, Requested Term Extension of System Safety and Integrity Rider | 5 years | |||||||
Colorado Public Utilities Commission (CPUC) | Black Hills Energy - Colorado Gas | Settlement agreement reached with CPUC Staff and various intervenors, subject to the review and approval by an Administrative Law Judge and the CPUC. | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities - Length of Natural Gas Pipeline to Receive Infrastructure Investments | mi | 7,000 | |||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 6.5 | |||||||
Public Utilities, Amount of Requested System Safety and Integrity Rider be Moved to Base Rates | $ 7.7 | |||||||
Public Utilities, Approved Equity Capital Structure, Percentage | 50.30% | |||||||
Public Utilities, Approved Debt Capital Structure, Percentage | 49.70% | |||||||
Public Utilities, Approved Return on Equity, Percentage | 9.20% | |||||||
Colorado Public Utilities Commission (CPUC) | Black Hills Energy - Colorado Gas | Rate Review Approved by Regulatory Agency | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, Term Extension of System Safety and Integrity Rider | 3 years | |||||||
Iowa Utilities Board (IUB) | Black Hills Energy - Iowa Gas | Settlement Reached with the Regulatory Agency | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities - Length of Natural Gas Pipeline to Receive Infrastructure Investments | mi | 5,000 | |||||||
Public Utilities, Approved Equity Capital Structure, Percentage | 50% | |||||||
Public Utilities, Approved Debt Capital Structure, Percentage | 50% | |||||||
Public Utilities, Approved Return on Equity, Percentage | 9.60% | |||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 3.7 | |||||||
Public Utilities Amount of System Safety and Integrety Rider Moved to Base Rates | $ 2.2 | |||||||
Kansas Corporation Commission (KCC) | Black Hills Energy, Kansas Gas | Global Settlement agreement with KCC Staff and various intervenors for a general rate increase and renewal of its safety and integrity rider. | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities - Length of Natural Gas Pipeline to Receive Infrastructure Investments | mi | 4,600 | |||||||
Public Utilities Amount of System Safety and Integrety Rider Moved to Base Rates | $ 6.6 | |||||||
Public Utilities, Term Extension of System Safety and Integrity Rider | 5 years | |||||||
Arkansas Public Service Commission | Black Hills Energy - Arkansas Gas | Rate Review Filed with the Regulatory Agency | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities - Length of Natural Gas Pipeline to Receive Infrastructure Investments | mi | 7,200 | |||||||
Arkansas Public Service Commission | Black Hills Energy - Arkansas Gas | Settlement agreement reached with APSC Staff and various intervenors | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities, Approved Equity Capital Structure, Percentage | 45% | |||||||
Public Utilities, Approved Debt Capital Structure, Percentage | 55% | |||||||
Public Utilities, Requested Return on Equity, Percentage | 9.60% | |||||||
Subsequent Event | Wyoming Public Service Commission | Wyoming Electric | Rate Review Filed with the Regulatory Agency | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Public Utilities - Length of Electric Distribution Lines to Receive Infrastructure Investments | mi | 1,330 | |||||||
Public Utilities - Length of Electric Transmission Lines to Receive Infrastructure Investments | mi | 59 | |||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 8.7 | |||||||
Public Utilities, Approved Equity Capital Structure, Percentage | 52% | |||||||
Public Utilities, Approved Debt Capital Structure, Percentage | 48% | |||||||
Public Utilities, Requested Return on Equity, Percentage | 9.75% |
Regulatory Matters_ Electric Ut
Regulatory Matters: Electric Utilities Regulatory Activity (Details) $ in Millions | 12 Months Ended | 24 Months Ended | |
Oct. 15, 2020 MW | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Black Hills Energy - South Dakota Electric | Federal Energy Regulatory Commission (FERC) Common Use System (CUS) | |||
Public Utilities, General Disclosures [Line Items] | |||
Annual Revenue Requirement, as Required by the FERC Joint-Access Transmission Tariff | $ 30 | ||
Capital Addition Requirements by the FERC Joint-Access Transmission Tariff | $ 30 | ||
Black Hills Wyoming and Wyoming Electric | Federal Energy Regulatory Commission (FERC) | |||
Public Utilities, General Disclosures [Line Items] | |||
Number of Megawatts Capacity Purchased | MW | 60 | ||
Long-term Purchase Commitment, Period | 11 years |
Commitment, Contingencies And_3
Commitment, Contingencies And Guarantees: Unconditional Purchase Obligations (Details) $ in Thousands | 24 Months Ended |
Dec. 31, 2022 USD ($) | |
Gas Utilities | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Term of Evergreen Contracts | 60 days |
PPAs | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2023 | $ 11,175 |
2024 | 2,738 |
Total future commitments | 13,913 |
Transmission Services Agreements | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2023 | 12,320 |
Total future commitments | 12,320 |
Natural gas supply, transportation and storage agreements | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2023 | 130,031 |
2024 | 98,881 |
2025 | 72,662 |
2026 | 45,102 |
2027 | 14,862 |
Thereafter | 56,595 |
Total future commitments | $ 418,133 |
Commitment, Contingencies And_4
Commitment, Contingencies And Guarantees: Lease Agreements (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2023 | $ 2,381 |
2024 | 2,125 |
2025 | 2,070 |
2026 | 1,881 |
2027 | 1,845 |
Thereafter | 49,387 |
Total lease receivables | $ 59,689 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 1 year |
Lessor - lease term | 1 year |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 33 years |
Lessor - lease term | 34 years |
Commitment, Contingencies And_5
Commitment, Contingencies And Guarantees: Reclamation Liability (Details) - Electric Utilities $ in Millions | Dec. 31, 2022 USD ($) |
Loss Contingencies [Line Items] | |
Accrual for Environmental Loss Contingencies - Pueblo Airport Generation Site | $ 4.1 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent |
Commitment, Contingencies And_6
Commitment, Contingencies And Guarantees: Manufactured Gas Processing (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Regulatory assets | $ 652,981 | $ 796,599 |
Environmental | ||
Loss Contingencies [Line Items] | ||
Regulatory assets | 1,343 | $ 1,385 |
Manufactured Gas Plant | Gas Utilities | ||
Loss Contingencies [Line Items] | ||
Insurance Settlements Receivable, Noncurrent | 1,300 | |
Manufactured Gas Plant | Gas Utilities | Black Hills Energy - Iowa Gas | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies, Gross | 2,600 | |
Manufactured Gas Plant | Gas Utilities | Black Hills Energy - Nebraska Gas | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies, Gross | 600 | |
Manufactured Gas Plant | Gas Utilities | Environmental | ||
Loss Contingencies [Line Items] | ||
Regulatory assets | $ 1,300 |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees: GT Resources, LLC v Black Hills Corp (Details) - GT Resources, LLC - Pending Litigation a in Millions, $ in Millions | Apr. 13, 2022 USD ($) a |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Awarded, Value | $ | $ 41 |
Loss Contingency, Concession Award, Area | a | 2.3 |
Commitment, Contingencies And_7
Commitment, Contingencies And Guarantees: Guarantees (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Guarantor Obligations [Line Items] | |
Guarantor, Maximum Exposure | $ 592,282 |
Surety Bond | |
Guarantor Obligations [Line Items] | |
Guarantor, Maximum Exposure | 107,314 |
Guarantor Subsidiaries | |
Guarantor Obligations [Line Items] | |
Guarantor, Maximum Exposure | $ 484,968 |
Revenue_ Disaggregation of Reve
Revenue: Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from contracts with customers | $ 2,542,856 | $ 1,930,834 | $ 1,680,804 |
Revenue | 2,551,816 | 1,949,102 | 1,696,941 |
Retail - Electric , Natural Gas and Coal | |||
Revenue from contracts with customers | 2,193,000 | 1,625,173 | 1,402,824 |
Transportation | |||
Revenue from contracts with customers | 172,862 | 157,625 | 154,055 |
Wholesale | |||
Revenue from contracts with customers | 44,832 | 30,848 | 24,845 |
Market - off-system sales | |||
Revenue from contracts with customers | 49,407 | 42,078 | 15,772 |
Transmission/Other | |||
Revenue from contracts with customers | 82,755 | 75,110 | 83,308 |
Other revenues | |||
Revenue | 8,960 | 18,268 | 16,137 |
Services transferred at a point in time | |||
Revenue from contracts with customers | 30,454 | 27,141 | 27,089 |
Services transferred over time | |||
Revenue from contracts with customers | 2,512,402 | 1,903,693 | 1,653,715 |
Electric Utilities | |||
Revenue from contracts with customers | 894,614 | 836,923 | 732,681 |
Revenue | 900,162 | 842,258 | 738,857 |
Electric Utilities | Retail - Electric , Natural Gas and Coal | |||
Revenue from contracts with customers | 739,734 | 711,448 | 636,902 |
Electric Utilities | Transportation | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Electric Utilities | Wholesale | |||
Revenue from contracts with customers | 44,832 | 30,848 | 24,845 |
Electric Utilities | Market - off-system sales | |||
Revenue from contracts with customers | 48,578 | 41,682 | 15,512 |
Electric Utilities | Transmission/Other | |||
Revenue from contracts with customers | 61,470 | 52,945 | 55,422 |
Electric Utilities | Other revenues | |||
Revenue | 5,548 | 5,335 | 6,176 |
Electric Utilities | Services transferred at a point in time | |||
Revenue from contracts with customers | 30,454 | 27,141 | 27,089 |
Electric Utilities | Services transferred over time | |||
Revenue from contracts with customers | 864,160 | 809,782 | 705,592 |
Gas Utilities | |||
Revenue from contracts with customers | 1,665,249 | 1,111,539 | 964,421 |
Revenue | 1,669,090 | 1,124,865 | 974,670 |
Gas Utilities | Retail - Electric , Natural Gas and Coal | |||
Revenue from contracts with customers | 1,453,266 | 913,725 | 765,922 |
Gas Utilities | Transportation | |||
Revenue from contracts with customers | 173,275 | 158,053 | 154,581 |
Gas Utilities | Wholesale | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Gas Utilities | Market - off-system sales | |||
Revenue from contracts with customers | 829 | 396 | 260 |
Gas Utilities | Transmission/Other | |||
Revenue from contracts with customers | 37,879 | 39,365 | 43,658 |
Gas Utilities | Other revenues | |||
Revenue | 3,841 | 13,326 | 10,249 |
Gas Utilities | Services transferred at a point in time | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Gas Utilities | Services transferred over time | |||
Revenue from contracts with customers | 1,665,249 | 1,111,539 | 964,421 |
Intercompany Eliminations | |||
Revenue from contracts with customers | (17,007) | (17,628) | (16,298) |
Revenue | (17,436) | (18,021) | (16,586) |
Intercompany Eliminations | Retail - Electric , Natural Gas and Coal | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Intercompany Eliminations | Transportation | |||
Revenue from contracts with customers | (413) | (428) | (526) |
Intercompany Eliminations | Wholesale | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Intercompany Eliminations | Market - off-system sales | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Intercompany Eliminations | Transmission/Other | |||
Revenue from contracts with customers | (16,594) | (17,200) | (15,772) |
Intercompany Eliminations | Other revenues | |||
Revenue | (429) | (393) | (288) |
Intercompany Eliminations | Services transferred at a point in time | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Intercompany Eliminations | Services transferred over time | |||
Revenue from contracts with customers | $ (17,007) | $ (17,628) | $ (16,298) |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Total gross property, plant and equipment | $ 8,374,790 | $ 7,856,573 |
Less accumulated depreciation and depletion | (1,576,842) | (1,407,397) |
Property, plant and equipment of variable interest entities, net | 6,797,948 | 6,449,176 |
Corporate, Non-Segment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 5,685 | 5,694 |
Construction in progress, gross | 13,690 | 8,460 |
Total gross property, plant and equipment | 19,375 | 14,154 |
Less accumulated depreciation and depletion | (1,773) | (1,544) |
Property, plant and equipment of variable interest entities, net | $ 17,602 | $ 12,610 |
Weighted Average | Corporate, Non-Segment | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 11 years | 10 years |
Minimum | Corporate, Non-Segment | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 4 years | |
Maximum | Corporate, Non-Segment | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 24 years | |
Production, Gas | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 45 years | 40 years |
Production, Gas | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 24 years | |
Production, Gas | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 47 years | |
Gas transmission | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 58 years | 58 years |
Gas transmission | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 32 years | |
Gas transmission | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 72 years | |
Gas distribution | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 57 years | 53 years |
Gas distribution | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 48 years | |
Gas distribution | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 60 years | |
Cushion gas - depreciable | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 28 years | |
Gas, Storage | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 41 years | 38 years |
Gas, Storage | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 36 years | |
Gas, Storage | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 48 years | |
General | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 23 years | 21 years |
General | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 3 years | |
General | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 25 years | |
Electric Utilities | ||
Property, Plant and Equipment [Line Items] | ||
Total plant in service before construction work in progress | $ 4,190,734 | $ 3,991,095 |
Construction work in progress | 152,953 | 181,451 |
Property, Plant and Equipment | 4,343,687 | 4,172,546 |
Less accumulated depreciation and depletion | (1,104,056) | (1,016,738) |
Property, plant and equipment of variable interest entities, net | $ 3,239,631 | 3,155,808 |
Depreciation, depletion and amortization, remaining amortization period | 8 years | |
Electric Utilities | Production, Electric | ||
Property, Plant and Equipment [Line Items] | ||
Production, processing and storage | $ 1,482,081 | $ 1,452,055 |
Electric Utilities | Production, Electric | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 41 years | 41 years |
Electric Utilities | Production, Electric | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 32 years | |
Electric Utilities | Production, Electric | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 46 years | |
Electric Utilities | Electric transmission | ||
Property, Plant and Equipment [Line Items] | ||
Transmission | $ 632,872 | $ 546,126 |
Electric Utilities | Electric transmission | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 48 years | 49 years |
Electric Utilities | Electric transmission | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 40 years | |
Electric Utilities | Electric transmission | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 51 years | |
Electric Utilities | Electric distribution | ||
Property, Plant and Equipment [Line Items] | ||
Distribution | $ 1,082,535 | $ 1,000,619 |
Electric Utilities | Electric distribution | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 47 years | 47 years |
Electric Utilities | Electric distribution | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 45 years | |
Electric Utilities | Electric distribution | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 50 years | |
Electric Utilities | Integrated Generation | ||
Property, Plant and Equipment [Line Items] | ||
Plant acquisition adjustment | $ 713,519 | $ 720,490 |
Electric Utilities | Integrated Generation | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 31 years | 30 years |
Electric Utilities | Integrated Generation | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 19 years | |
Electric Utilities | Integrated Generation | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 38 years | |
Electric Utilities | Plant acquisition adjustment | ||
Property, Plant and Equipment [Line Items] | ||
Plant acquisition adjustment | $ 4,870 | $ 4,870 |
Electric Utilities | Plant acquisition adjustment | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 32 years | 32 years |
Electric Utilities | Plant acquisition adjustment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 32 years | |
Electric Utilities | Plant acquisition adjustment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 32 years | |
Electric Utilities | General | ||
Property, Plant and Equipment [Line Items] | ||
General | $ 274,857 | $ 266,935 |
Electric Utilities | General | Weighted Average | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 27 years | 28 years |
Electric Utilities | General | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 24 years | |
Electric Utilities | General | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Weighted average useful life | 31 years | |
Gas Utilities | ||
Property, Plant and Equipment [Line Items] | ||
Total plant in service before construction work in progress | $ 3,959,687 | $ 3,632,013 |
Construction in progress, gross | 52,041 | 37,860 |
Total gross property, plant and equipment | 4,011,728 | 3,669,873 |
Less accumulated depreciation and depletion | (471,013) | (389,115) |
Property, plant and equipment of variable interest entities, net | 3,540,715 | 3,280,758 |
Gas Utilities | Production, Gas | ||
Property, Plant and Equipment [Line Items] | ||
Production, processing and storage | 17,843 | 14,841 |
Gas Utilities | Gas transmission | ||
Property, Plant and Equipment [Line Items] | ||
Transmission | 695,345 | 645,550 |
Gas Utilities | Gas distribution | ||
Property, Plant and Equipment [Line Items] | ||
Distribution | 2,620,174 | 2,394,352 |
Gas Utilities | Cushion gas - depreciable | ||
Property, Plant and Equipment [Line Items] | ||
Production, processing and storage | 3,539 | |
Gas Utilities | Cushion gas - not depreciable | ||
Property, Plant and Equipment [Line Items] | ||
Production, processing and storage | 63,137 | 42,478 |
Gas Utilities | Gas, Storage | ||
Property, Plant and Equipment [Line Items] | ||
Production, processing and storage | 65,781 | 56,289 |
Gas Utilities | General | ||
Property, Plant and Equipment [Line Items] | ||
General | $ 497,407 | $ 474,964 |
Jointly Owned Facilities (Detai
Jointly Owned Facilities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Wyodak Plant | |
Jointly Owned Utility Plant Interests [Line Items] | |
Ownership Interest | 20% |
Plant in Service | $ 121,769 |
Construction Work in Progress | 93 |
Less Accumulated Depreciation | (70,884) |
Plant Net of Accumulated Depreciation | $ 50,978 |
Transmission Tie | |
Jointly Owned Utility Plant Interests [Line Items] | |
Ownership Interest | 35% |
Plant in Service | $ 24,482 |
Construction Work in Progress | 300 |
Less Accumulated Depreciation | (7,375) |
Plant Net of Accumulated Depreciation | $ 17,407 |
Wygen III Generating Facility | |
Jointly Owned Utility Plant Interests [Line Items] | |
Ownership Interest | 52% |
Plant in Service | $ 143,818 |
Construction Work in Progress | 1,051 |
Less Accumulated Depreciation | (29,634) |
Plant Net of Accumulated Depreciation | $ 115,235 |
Wygen I Generating Facility | |
Jointly Owned Utility Plant Interests [Line Items] | |
Ownership Interest | 76.50% |
Plant in Service | $ 114,811 |
Construction Work in Progress | 1,579 |
Less Accumulated Depreciation | (56,553) |
Plant Net of Accumulated Depreciation | $ 59,837 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning Balance | $ 75,544 | $ 71,431 | ||
Liabilities Incurred | 0 | 0 | ||
Liabilities Settled | (3,161) | (1,044) | ||
Accretion | 3,369 | 3,048 | ||
Revisions to Prior Estimates | 13,176 | 2,109 | ||
Ending Balance | 88,928 | 75,544 | ||
Electric Utilities | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning Balance | 30,089 | 29,157 | ||
Liabilities Incurred | 0 | 0 | ||
Liabilities Settled | (3,003) | (978) | ||
Accretion | 1,353 | 1,315 | ||
Revisions to Prior Estimates | (856) | 595 | ||
Ending Balance | 27,583 | 30,089 | ||
Gas Utilities | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning Balance | [1] | 45,455 | 42,274 | |
Liabilities Incurred | 0 | 0 | [1] | |
Liabilities Settled | (158) | (66) | [1] | |
Accretion | 2,016 | 1,733 | [1] | |
Revisions to Prior Estimates | 14,032 | 1,514 | [1] | |
Ending Balance | $ 61,345 | $ 45,455 | [1] | |
[1] The Revisions to Prior Estimates were primarily driven by changes in estimates associated with natural gas wells and compressor stations. |
Financing_ Short-Term Debt_ (De
Financing: Short-Term Debt: (Details) | 3 Months Ended | 12 Months Ended | ||||
Feb. 24, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) CreditExtension | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 19, 2021 USD ($) | |
Short-term Debt [Line Items] | ||||||
Amount outstanding | $ 535,600,000 | $ 420,180,000 | ||||
Commercial Paper, Maximum Borrowing Capacity | 750,000,000 | |||||
Term Loan - borrowings | 0 | 800,000,000 | $ 0 | |||
Repayments of Other Short-term Debt | $ 0 | 800,000,000 | $ 0 | |||
Commercial Paper | ||||||
Short-term Debt [Line Items] | ||||||
Debt Instrument, Term | 397 days | |||||
Line of Credit | Senior Unsecured Notes Due 2021 | ||||||
Short-term Debt [Line Items] | ||||||
Debt Instrument, Term | 9 months | |||||
Term Loan - borrowings | $ 800,000,000 | |||||
Prepayment penalty | $ 0 | |||||
Repayments of Other Short-term Debt | $ 200,000,000 | |||||
Revolving Credit Facility | ||||||
Short-term Debt [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 750,000,000 | |||||
Number Of One-Year Extension Options | CreditExtension | 2 | |||||
Debt Instrument, Term | 1 year | |||||
Maximum amount outstanding (based on daily outstanding balances) | $ 1,000,000,000 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.175% | |||||
Debt Issuance Cost, Gross, Noncurrent | $ 8,900,000 | |||||
Revolving Credit Facility | Base Rate | ||||||
Short-term Debt [Line Items] | ||||||
Weighted average interest rates | 0.125% | |||||
Revolving Credit Facility | Eurodollar | ||||||
Short-term Debt [Line Items] | ||||||
Weighted average interest rates | 1.125% | |||||
Revolving Credit Facility | Letter of Credit | ||||||
Short-term Debt [Line Items] | ||||||
Weighted average interest rates | 1.125% | |||||
Revolving Credit Facility | Commercial Paper | ||||||
Short-term Debt [Line Items] | ||||||
Amount outstanding | $ 535,600,000 | 420,180,000 | ||||
Letters of credit | 24,626,000 | 27,209,000 | ||||
Available capacity | 189,774,000 | 302,611,000 | ||||
Maximum amount outstanding (based on daily outstanding balances) | 572,300,000 | 440,000,000 | ||||
Average amount outstanding (based on daily outstanding balances) | $ 390,653,000 | $ 258,392,000 | ||||
Weighted average interest rates | 2.11% | 0.22% | ||||
Weighted average interest rates | 4.88% | 0.30% |
Financing_ Long-Term Debt (Deta
Financing: Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 26, 2021 | Jun. 17, 2020 |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 4,154,672 | $ 4,153,801 | ||
Less current maturities | 525,000 | 0 | ||
Less unamortized deferred financing costs | 22,332 | 26,878 | ||
Long-term debt, net of current maturities | 3,607,340 | 4,126,923 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Less unamortized deferred financing costs | 1,800 | 2,500 | ||
Senior Unsecured Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 1.037% | 2.50% | ||
Less unamortized deferred financing costs | $ 3,700 | |||
Black Hills Corporation | Corporate, Non-Segment | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 3,625,000 | |||
Less unamortized debt discount | (5,259) | (6,125) | ||
Total long-term debt | $ 3,619,741 | 3,618,875 | ||
Black Hills Corporation | Corporate, Non-Segment | Senior Unsecured Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 4.25% | |||
Long-term debt | $ 525,000 | 525,000 | ||
Black Hills Corporation | Corporate, Non-Segment | Senior Unsecured Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 1.04% | |||
Long-term debt | $ 600,000 | 600,000 | ||
Black Hills Corporation | Corporate, Non-Segment | Senior Unsecured Notes Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 3.95% | |||
Long-term debt | $ 300,000 | 300,000 | ||
Black Hills Corporation | Corporate, Non-Segment | Senior Unsecured Notes Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 3.15% | |||
Long-term debt | $ 400,000 | 400,000 | ||
Black Hills Corporation | Corporate, Non-Segment | Senior Unsecured Notes Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 3.05% | |||
Long-term debt | $ 400,000 | 400,000 | ||
Black Hills Corporation | Corporate, Non-Segment | Senior Unsecured Notes Due 2030 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 2.50% | |||
Long-term debt | $ 400,000 | 400,000 | ||
Black Hills Corporation | Corporate, Non-Segment | Senior Unsecured Notes Due 2033 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 4.35% | |||
Long-term debt | $ 400,000 | 400,000 | ||
Black Hills Corporation | Corporate, Non-Segment | Senior Unsecured Notes Due 2046 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 4.20% | |||
Long-term debt | $ 300,000 | 300,000 | ||
Black Hills Corporation | Corporate, Non-Segment | Senior Unsecured Notes Due 2049 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 3.88% | |||
Long-term debt | $ 300,000 | 300,000 | ||
Black Hills Energy - South Dakota Electric | Electric Utilities | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 340,000 | 340,000 | ||
Less unamortized debt discount | (69) | (74) | ||
Total long-term debt | $ 339,931 | 339,926 | ||
Black Hills Energy - South Dakota Electric | Electric Utilities | First Mortgage Bonds Due 2032 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 7.23% | |||
Long-term debt | $ 75,000 | 75,000 | ||
Black Hills Energy - South Dakota Electric | Electric Utilities | First Mortgage Bonds Due 2039 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 6.13% | |||
Long-term debt | $ 180,000 | 180,000 | ||
Black Hills Energy - South Dakota Electric | Electric Utilities | First Mortgage Bonds Due 2044 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 4.43% | |||
Long-term debt | $ 85,000 | 85,000 | ||
Wyoming Electric | Electric Utilities | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 195,000 | 195,000 | ||
Total long-term debt | 195,000 | 195,000 | ||
Wyoming Electric | Electric Utilities | Senior Unsecured Notes Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 10,000 | |||
Wyoming Electric | Electric Utilities | First Mortgage Bonds Due 2044 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 4.53% | |||
Long-term debt | $ 75,000 | 75,000 | ||
Wyoming Electric | Electric Utilities | Industrial Development Revenue Bonds Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate (percent) | 3.68% | |||
Long-term debt | $ 10,000 | 10,000 | ||
Wyoming Electric | Electric Utilities | First Mortgage Bonds Due 2037 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 6.67% | |||
Long-term debt | $ 110,000 | $ 110,000 |
Financing_ Long-Term Debt_ Aggr
Financing: Long-Term Debt: Aggregate Maturities of Long Term Debt and Associated Interest Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Principal Payments on Long-term Debt Including Current Maturities | |
Debt Instrument [Line Items] | |
2023 | $ 525,000 |
2024 | 600,000 |
2025 | 0 |
2026 | 300,000 |
2027 | 410,000 |
Thereafter | 2,325,000 |
Total | 4,160,000 |
Interest Payments on Long-term Debt | |
Debt Instrument [Line Items] | |
2023 | 148,125 |
2024 | 125,813 |
2025 | 119,591 |
2026 | 113,666 |
2027 | 101,134 |
Thereafter | 994,804 |
Total | $ 1,603,133 |
Financing_ Long-Term Debt_ Debt
Financing: Long-Term Debt: Debt Transactions (Details) - USD ($) $ in Thousands | Aug. 26, 2021 | Jun. 17, 2020 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Less unamortized deferred financing costs | $ 22,332 | $ 26,878 | ||
Senior Unsecured Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 1.037% | 2.50% | ||
Debt Instrument, Term | 3 years | 10 years | ||
Less unamortized deferred financing costs | $ 3,700 | |||
Corporate, Non-Segment | Senior Unsecured Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Debt | $ 600,000 | $ 400,000 |
Financing_ Long-Term Debt_ Amor
Financing: Long-Term Debt: Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Deferred Financing Costs | $ 22,332 | $ 26,878 | |
Amortization expense for deferred financing costs | $ 4,549 | $ 3,769 | $ 3,272 |
Financing_ Debt Covenants (Deta
Financing: Debt Covenants (Details) | Dec. 31, 2022 |
Debt Instrument [Line Items] | |
Consolidated Indebtedness to Capitalization Ratio | 0.609 |
Maximum | |
Debt Instrument [Line Items] | |
Consolidated Indebtedness to Capitalization Ratio | 0.65 |
Maximum | Wyoming Electric | |
Debt Instrument [Line Items] | |
Consolidated Indebtedness to Capitalization Ratio | 0.60 |
Financing_ Dividend Restriction
Financing: Dividend Restrictions (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Utilities Group | |
Debt Instrument [Line Items] | |
Restricted Net Assets for Subsidiaries | $ 155 |
Financing_ At-the-Market Equity
Financing: At-the-Market Equity Offering Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 27, 2020 | Aug. 03, 2020 | Aug. 02, 2020 |
At The Market Equity Offering Program Authorized Aggregate Value | $ 400 | $ 300 | |
Private Placement | |||
Sale of Stock, Number of Shares Issued in Transaction | 1.2 | ||
Sale of Stock, Price Per Share | $ 81.77 | ||
Sale of Stock, Consideration Received on Transaction | $ 99 |
Financing_ Summary of ATM Activ
Financing: Summary of ATM Activity (Details) - Common Stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of shares issued | 1,307,755 | 1,812,197 | 0 |
Average price per share | $ 69.74 | $ 66.18 | $ 0 |
Proceeds, (net of issuance costs) | $ 90.3 | $ 118.8 | $ 0 |
Financing_ Summary of ATM Act_2
Financing: Summary of ATM Activity (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common Stock | |||
Payments of Stock Issuance Costs | $ (0.9) | $ (1.1) | $ 0 |
Financing_ Equity Issuance (Det
Financing: Equity Issuance (Details) - Private Placement $ / shares in Units, shares in Millions, $ in Millions | Feb. 27, 2020 USD ($) $ / shares shares |
Sale of Stock, Number of Shares Issued in Transaction | shares | 1.2 |
Sale of Stock, Price Per Share | $ / shares | $ 81.77 |
Sale of Stock, Consideration Received on Transaction | $ 99 |
Payments of Stock Issuance Costs | $ 1 |
Financing_ Shareholder Dividend
Financing: Shareholder Dividend Reinvestment and Stock Purchase Plan (Details) | Dec. 31, 2022 shares |
Class of Stock [Line Items] | |
Unissued Shares Available | 74,198 |
Dividend Reinvestment Plan | |
Class of Stock [Line Items] | |
Percent of recent average market price | 100% |
Financing_ Preferred Stock (Det
Financing: Preferred Stock (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Stockholders' Equity Note [Abstract] | ||
Preferred Stock, Shares Authorized | 25,000,000 | |
Preferred Stock, Shares Outstanding | 0 | 0 |
Risk Management and Derivativ_3
Risk Management and Derivatives: Utilities (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) MMBTU | Dec. 31, 2021 MMBTU | |
Derivative [Line Items] | ||
Credit Risk Derivative Liabilities, at Fair Value | $ | $ 2.9 | |
Natural Gas, Distribution | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,646,200 | |
Natural Gas, Distribution | Natural gas futures purchased | ||
Derivative [Line Items] | ||
Derivative, Remaining Maturity | 3 months | 3 months |
Natural Gas, Distribution | Natural gas futures purchased | Long | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 630,000 | 590,000 |
Natural Gas, Distribution | Natural gas options purchased, net | ||
Derivative [Line Items] | ||
Derivative, Remaining Maturity | 3 months | 3 months |
Natural Gas, Distribution | Natural gas options purchased, net | Long | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,790,000 | 3,100,000 |
Natural Gas, Distribution | Natural gas basis swaps purchased | ||
Derivative [Line Items] | ||
Derivative, Remaining Maturity | 3 months | 3 months |
Natural Gas, Distribution | Natural gas basis swaps purchased | Long | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 900,000 | 870,000 |
Natural Gas, Distribution | Natural gas over-the-counter swaps, net | ||
Derivative [Line Items] | ||
Derivative, Remaining Maturity | 24 months | 34 months |
Natural Gas, Distribution | Natural gas over-the-counter swaps, net | Long | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 4,460,000 | 4,570,000 |
Natural Gas, Distribution | Natural gas physical contracts, net | ||
Derivative [Line Items] | ||
Derivative, Remaining Maturity | 12 months | 24 months |
Natural Gas, Distribution | Natural gas physical contracts, net | Long | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 17,864,412 | 16,416,677 |
Risk Management and Derivativ_4
Risk Management and Derivatives: Derivatives by Balance Sheet Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ (1,387) | $ 2,035 |
Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (4,114) | 1,701 |
Derivative assets, current | Commodity Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 118 | 2,017 |
Derivative assets, current | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 464 | 2,356 |
Other assets, non-current | Commodity Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 198 | 18 |
Other assets, non-current | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 337 | 804 |
Derivative liabilities, current | Commodity Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (1,703) | |
Derivative liabilities, current | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (4,897) | (1,439) |
Other deferred credits and other liabilities | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ (18) | $ (20) |
Risk Management and Derivativ_5
Risk Management and Derivatives: Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest rate swaps | |||
Derivative [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 4,500 | ||
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | (682) | $ 4,803 | $ 3,391 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (142) | $ (800) | $ (3,452) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest |
Designated as Hedging Instrument | Interest rate swaps | |||
Derivative [Line Items] | |||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 2,850 | $ 2,851 | $ 2,851 |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (2,850) | $ (2,851) | $ (2,851) |
Derivative Instrument, Loss Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Costs Incurred | Interest Costs Incurred | Interest Costs Incurred |
Designated as Hedging Instrument | Commodity Contract | |||
Derivative [Line Items] | |||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ (3,532) | $ 1,952 | $ 540 |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (601) | ||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ 2,708 | $ 2,051 | |
Derivative Instrument, Loss Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | ||
Derivative Instrument, Gain Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | Fuel, Purchased Power and Cost of Gas Sold |
Risk Management and Derivativ_6
Risk Management and Derivatives: Derivatives Not Designated as Hedge Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Regulatory assets | $ 652,981 | $ 796,599 | |
Gas price derivatives | |||
Derivative [Line Items] | |||
Regulatory assets | 8,793 | 2,584 | |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (797) | $ 2,455 | $ 1,784 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | Fuel, Purchased Power and Cost of Gas Sold | Fuel, Purchased Power and Cost of Gas Sold |
Not Designated as Hedging Instrument | Electricity | |||
Derivative [Line Items] | |||
Derivative, Loss on Derivative | $ (144) | ||
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | ||
Derivative, Gain on Derivative | $ 0 | $ 144 | |
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | Fuel, Purchased Power and Cost of Gas Sold | |
Not Designated as Hedging Instrument | Natural Gas | |||
Derivative [Line Items] | |||
Derivative, Loss on Derivative | $ (797) | ||
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | ||
Derivative, Gain on Derivative | $ 2,599 | $ 1,640 | |
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | Fuel, Purchased Power and Cost of Gas Sold |
Fair Value Measurements_ Schedu
Fair Value Measurements: Schedule of Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Derivative Asset, Current | Derivative Asset, Current |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Derivative Liability, Current | Derivative Liability, Current |
Contract Subject to Master Netting | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 4,300 | $ 2,400 |
Derivative Liability, Fair Value, Gross Liability | 4,800 | 1,800 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (4,290) | (2,374) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (4,837) | (1,814) |
Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 1,117 | 5,195 |
Derivative Liabilities, Total | 6,618 | 1,459 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 0 | 0 |
Derivative Liabilities, Total | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 5,407 | 7,569 |
Derivative Liabilities, Total | 11,455 | 3,273 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 0 | 0 |
Derivative Liabilities, Total | 0 | 0 |
Fair Value, Measurements, Recurring | Gas Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (4,290) | (2,374) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (4,837) | (1,814) |
Fair Value, Measurements, Recurring | Gas Utilities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value Disclosure | 1,117 | 5,195 |
Derivative, Liabilities, Fair Value Disclosure | 6,618 | 1,459 |
Fair Value, Measurements, Recurring | Gas Utilities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value Disclosure | 0 | 0 |
Derivative, Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Gas Utilities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value Disclosure | 5,407 | 7,569 |
Derivative, Liabilities, Fair Value Disclosure | 11,455 | 3,273 |
Fair Value, Measurements, Recurring | Gas Utilities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value Disclosure | 0 | 0 |
Derivative, Liabilities, Fair Value Disclosure | $ 0 |
Fair Value Measurements_ Other
Fair Value Measurements: Other Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 4,132,340 | $ 4,126,923 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 3,760,848 | $ 4,570,619 |
Other Comprehensive Income_ Rec
Other Comprehensive Income: Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest expense | $ 162,584 | $ 154,112 | $ 144,931 |
Fuel, purchased power and cost of natural gas sold | 1,230,550 | 741,934 | 492,404 |
Operations and maintenance | 548,430 | 501,690 | 495,404 |
Income Tax Expense (Benefit) | (25,205) | (7,169) | (32,918) |
Net income | 270,758 | 251,260 | $ 242,763 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net income | (544) | (2,280) | |
Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Income before income taxes | (142) | (800) | |
Income Tax Expense (Benefit) | 58 | 175 | |
Net income | (84) | (625) | |
Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Swap | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest expense | (2,850) | (2,851) | |
Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Commodity Contract | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Fuel, purchased power and cost of natural gas sold | 2,708 | 2,051 | |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Operations and maintenance | 93 | 98 | |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Operations and maintenance | (751) | (2,391) | |
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Income before income taxes | (658) | (2,293) | |
Income Tax Expense (Benefit) | 198 | 638 | |
Net income | $ (460) | $ (1,655) |
Other Comprehensive Income_ Acc
Other Comprehensive Income: Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | $ (20,084) | $ (27,346) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (15,567) | (20,084) |
Accumulated Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (11,176) | (14,790) |
Other comprehensive income (loss), before reclassifications | 4,604 | 1,959 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (6,112) | (11,176) |
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 460 | 1,655 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss), before reclassifications | 3,973 | 4,982 |
Accumulated Other Comprehensive Income (Loss) | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 544 | 2,280 |
Interest Rate Swap | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (10,384) | (12,558) |
Other comprehensive income (loss), before reclassifications | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (8,255) | (10,384) |
Interest Rate Swap | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 2,129 | 2,174 |
Commodity Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | 1,476 | 2 |
Other comprehensive income (loss), before reclassifications | (631) | 3,023 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (1,200) | 1,476 |
Commodity Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | $ (2,045) | $ (1,549) |
Variable Interest Entity_ (Deta
Variable Interest Entity: (Details) $ in Thousands | 12 Months Ended | |||
Apr. 14, 2016 | Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Variable Interest Entity [Line Items] | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.90% | |||
Net income attributable to non-controlling interest | $ (12,371) | $ (14,516) | $ (15,155) | |
Number of Days Following the End of the Quarter When Distributions of Net Income Attributable to this Non-controlling Interest are Due | 30 days | |||
Current assets | $ 1,071,708 | 808,133 | ||
Property, plant and equipment of variable interest entities, net | 6,797,948 | 6,449,176 | ||
Current liabilities | 1,666,690 | 901,713 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Current assets | 12,761 | 13,220 | ||
Property, plant and equipment of variable interest entities, net | 178,761 | 189,079 | ||
Current liabilities | 5,394 | 5,841 | ||
Power Generation | ||||
Variable Interest Entity [Line Items] | ||||
Net income attributable to non-controlling interest | $ (12,000) | $ (15,000) | $ (15,000) | |
Pueblo Airport Generation | Subsidiary of Common Parent | ||||
Variable Interest Entity [Line Items] | ||||
Electric Generation Capacity, Megawatts | MW | 200 |
Employee Benefit Plans_ Defined
Employee Benefit Plans: Defined Contribution Plans (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 50% |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 20% |
Defined Contribution Plan, Employee Vesting Period | 5 years |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100% |
Employee Benefit Plans_ Defin_2
Employee Benefit Plans: Defined Benefit Pension Plan (Details) - PensionPlan | Dec. 31, 2022 | Dec. 31, 2021 |
Number of Defined Pension Plans | 1 | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100% | 100% |
Return Seeking Assets | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 26% | 28% |
Liability-hedging Assets | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 74% | 72% |
Investment in privately held oil and gas company | Return Seeking Assets | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 14% | 15% |
Real Estate | Return Seeking Assets | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 7% | 7% |
Fixed Income | Return Seeking Assets | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 2% | 3% |
Fixed Income | Liability-hedging Assets | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 72% | 71% |
Hedge Funds | Return Seeking Assets | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 3% | 3% |
Cash | Liability-hedging Assets | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 2% | 1% |
Minimum | Return Seeking Assets | Pension Plan | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20% | |
Minimum | Hedge Funds | Pension Plan | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 72% | |
Maximum | Return Seeking Assets | Pension Plan | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 28% | |
Maximum | Hedge Funds | Pension Plan | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 80% |
Employee Benefit Plans_ Plan Co
Employee Benefit Plans: Plan Contributions (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension Benefits | $ 0 | $ 0 | $ 0 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | 6,131 | 6,432 | |
Payment for Pension Benefits | 4,488 | 4,726 | |
Supplemental Non-Qualified Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension Benefits | 3,061 | 2,576 | |
Defined Contribution Plan, Company Retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 11,885 | 11,332 | |
Defined Contribution Plan, 401K | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 16,187 | $ 15,938 |
Employee Benefit Plans_ Fair Va
Employee Benefit Plans: Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | $ 323,141 | $ 458,387 | $ 473,721 |
Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 323,142 | 458,387 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value investments | 293,486 | 415,490 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 29,656 | 42,897 | |
Fair Value, Measurements, Recurring | Postretirement Health Coverage | |||
Defined Benefit Plan, Plan Assets, Amount | 7,752 | 7,972 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value investments | 7,752 | 7,972 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Postretirement Health Coverage | |||
Defined Benefit Plan, Plan Assets, Amount | 7,752 | 7,972 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 293,486 | 415,490 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Postretirement Health Coverage | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Postretirement Health Coverage | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Common Collective Trust, Cash And Cash Equivalents | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 6,374 | 6,009 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value investments | 6,374 | 6,009 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Common Collective Trust, Cash And Cash Equivalents | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Common Collective Trust, Cash And Cash Equivalents | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 6,374 | 6,009 | |
Common Collective Trust, Cash And Cash Equivalents | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Common Collective Trust - Equity | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 45,087 | 70,262 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value investments | 45,087 | 70,262 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Common Collective Trust - Equity | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Common Collective Trust - Equity | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 45,087 | 70,262 | |
Common Collective Trust - Equity | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Common Collective Trust - Fixed Income | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 242,025 | 339,219 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value investments | 242,025 | 339,219 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Common Collective Trust - Fixed Income | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Common Collective Trust - Fixed Income | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 242,025 | 339,219 | |
Common Collective Trust - Fixed Income | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Common Collective Trust - Real Estate | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 21,572 | 30,407 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value investments | 0 | ||
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 21,572 | 30,407 | |
Common Collective Trust - Real Estate | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Common Collective Trust - Real Estate | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | 0 | |
Common Collective Trust - Real Estate | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Hedge Funds | Minimum | |||
Percentage Of Monthly Redemption | 10% | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | 15 days | ||
Hedge Funds | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | 60 days | ||
Hedge Funds | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | $ 8,084 | 12,490 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value investments | 0 | ||
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 8,084 | 12,490 | |
Hedge Funds | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Hedge Funds | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Hedge Funds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Cash | Fair Value, Measurements, Recurring | Postretirement Health Coverage | |||
Defined Benefit Plan, Plan Assets, Amount | 7,752 | 7,972 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluding Net Asset Value investments | 7,752 | 7,972 | |
Cash | Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Postretirement Health Coverage | |||
Defined Benefit Plan, Plan Assets, Amount | 7,752 | 7,972 | |
Cash | Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Postretirement Health Coverage | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Cash | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Postretirement Health Coverage | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | $ 0 |
Employee Benefit Plans_ Employe
Employee Benefit Plans: Employee Benefit Plan Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Pension Plan | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation at beginning of year | $ 478,262 | $ 514,008 | $ 514,008 | |
Service Cost | 3,927 | 5,038 | $ 5,411 | |
Interest cost | 10,819 | 9,313 | 13,426 | |
Actuarial (gain) loss | (97,960) | (14,037) | ||
Amendments | (561) | 0 | ||
Benefits paid | (36,663) | (35,499) | ||
Plan participants’ contributions | 0 | 0 | ||
Projected benefit obligation at end of year | 358,385 | 478,262 | 514,008 | 358,385 |
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation at beginning of year | 55,260 | 55,054 | 55,054 | |
Service Cost | (801) | 3,149 | 1,579 | |
Interest cost | 834 | 706 | 1,099 | |
Actuarial (gain) loss | (7,007) | (1,073) | ||
Amendments | 0 | 0 | ||
Benefits paid | (3,061) | (2,576) | ||
Plan participants’ contributions | 0 | 0 | ||
Projected benefit obligation at end of year | 45,225 | 55,260 | 55,054 | 45,225 |
Other Postretirement Benefits Plan | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation at beginning of year | 63,484 | 70,238 | 70,238 | |
Service Cost | 1,968 | 2,237 | 2,056 | |
Interest cost | 1,285 | 1,058 | 1,649 | |
Actuarial (gain) loss | (12,300) | (5,165) | ||
Amendments | 0 | 0 | ||
Benefits paid | (6,131) | (6,432) | ||
Plan participants’ contributions | 1,419 | 1,548 | ||
Projected benefit obligation at end of year | $ 49,725 | $ 63,484 | $ 70,238 | $ 49,725 |
Employee Benefit Plans_ Fair _2
Employee Benefit Plans: Fair Value Employee Benefit Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning fair value of plan assets | $ 458,387 | $ 473,721 | $ 473,721 |
Investment income (loss) | (98,585) | 20,165 | |
Employer contributions | 0 | 0 | 0 |
Retiree contributions | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (36,661) | (35,499) | |
Ending fair value of plan assets | 323,141 | 458,387 | 323,141 |
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning fair value of plan assets | 0 | 0 | 0 |
Investment income (loss) | 0 | 0 | |
Employer contributions | 3,061 | 2,576 | |
Retiree contributions | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (3,061) | (2,576) | |
Ending fair value of plan assets | 0 | 0 | 0 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning fair value of plan assets | 7,972 | 8,165 | 8,165 |
Investment income (loss) | 4 | (35) | |
Employer contributions | 4,488 | 4,726 | |
Retiree contributions | 1,419 | 1,548 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (6,131) | (6,432) | |
Ending fair value of plan assets | $ 7,752 | $ 7,972 | $ 7,752 |
Employee Benefit Plans_ Amounts
Employee Benefit Plans: Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Regulatory assets | $ 652,981 | $ 796,599 |
Benefit plan liabilities | 116,742 | 123,925 |
Regulatory liabilities | 518,573 | 502,951 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Regulatory assets | 78,654 | 67,403 |
Current liabilities | 0 | 0 |
Non-current assets | 0 | 0 |
Benefit plan liabilities | 35,243 | 19,872 |
Regulatory liabilities | 2,804 | 3,830 |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Regulatory assets | 0 | 0 |
Current liabilities | 2,231 | 2,156 |
Non-current assets | 0 | 0 |
Benefit plan liabilities | 42,994 | 53,104 |
Regulatory liabilities | ||
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Regulatory assets | 3,788 | 11,660 |
Current liabilities | 4,427 | 4,584 |
Non-current assets | 959 | 0 |
Benefit plan liabilities | 38,505 | 50,949 |
Regulatory liabilities | $ 6,198 | $ 2,447 |
Employee Benefit Plans_ Accumul
Employee Benefit Plans: Accumulated Benefit Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 350,187 | $ 466,505 |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 45,225 | 55,260 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 49,725 | $ 63,484 |
Employee Benefit Plans_ Compone
Employee Benefit Plans: Components of Net Periodic Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | $ 3,927 | $ 5,038 | $ 5,411 |
Interest cost | $ 10,819 | $ 9,313 | $ 13,426 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on assets | $ (18,523) | $ (20,876) | $ (22,591) |
Net amortization of prior service cost | (68) | 0 | 0 |
Recognized net actuarial loss (gain) | 6,092 | 7,315 | 8,372 |
Net periodic benefit expense | 2,247 | 790 | 4,618 |
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | (801) | 3,149 | 1,579 |
Interest cost | $ 834 | $ 706 | $ 1,099 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on assets | $ 0 | $ 0 | $ 0 |
Net amortization of prior service cost | 0 | 0 | 2 |
Recognized net actuarial loss (gain) | 276 | 1,754 | 1,702 |
Net periodic benefit expense | 309 | 5,609 | 4,382 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 1,968 | 2,237 | 2,056 |
Interest cost | $ 1,285 | $ 1,058 | $ 1,649 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on assets | $ (125) | $ (136) | $ (182) |
Net amortization of prior service cost | (289) | (434) | (546) |
Recognized net actuarial loss (gain) | 64 | 466 | 20 |
Net periodic benefit expense | $ 2,903 | $ 3,191 | $ 2,997 |
Employee Benefit Plans_ AOCI Am
Employee Benefit Plans: AOCI Amounts (After-Tax) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net (gain) loss | $ 5,179 | $ 4,398 |
Prior service cost (gain) | (39) | (46) |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax, Total | 5,140 | 4,352 |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net (gain) loss | 1,565 | 7,159 |
Prior service cost (gain) | 0 | 0 |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax, Total | 1,565 | 7,159 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net (gain) loss | (667) | (308) |
Prior service cost (gain) | 74 | (27) |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax, Total | $ (593) | $ (335) |
Employee Benefit Plans_ Assumpt
Employee Benefit Plans: Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.14% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Trend Year | 2031 | 2030 | |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Trend Year | 2031 | 2030 | |
Black Hills Corporation | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Post-65 for next year - All Plans | 7% | 6.05% | |
Black Hills Corporation | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Post-65 for next year - All Plans | 6% | 5.10% | |
Black Hills Service Company | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Post-65 Ultimate trend rate - Black Hills Corp | 4.50% | 4.50% | |
Black Hills Service Company | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Post-65 Ultimate trend rate - Black Hills Corp | 4.50% | 4.50% | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.17% | 2.88% | 2.56% |
Rate of increase in compensation levels | 3.06% | 3.08% | 3.34% |
Expected long-term rate of return on assets | 4.25% | 4.50% | 5.25% |
Rate of increase in compensation levels | 3.08% | 3.34% | 3.49% |
Defined Benefit Plan Assumptions Used In Calculating Net Periodic Benefit Cost Expected Rate of Return On Assets For Next Fiscal Year | 6% | ||
2023 | $ 26,889 | ||
2024 | 26,882 | ||
2025 | 27,870 | ||
2026 | 28,182 | ||
2027 | 28,166 | ||
2027-2031 | $ 140,416 | ||
Pension Plan | Black Hills Corporation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.88% | ||
Discount Rate | 2.56% | 3.27% | |
Pension Plan | Black Hills Corporation Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Post-65 for next year - All Plans | 5.20% | ||
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.13% | 2.77% | 2.41% |
Rate of increase in compensation levels | 0% | 5% | 5% |
Rate of increase in compensation levels | 0% | 5% | 5% |
2023 | $ 2,231 | ||
2024 | 2,417 | ||
2025 | 2,764 | ||
2026 | 2,790 | ||
2027 | 2,727 | ||
2027-2031 | $ 12,184 | ||
Supplemental Employee Retirement Plan | Black Hills Corporation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.77% | ||
Discount Rate | 2.41% | 3.14% | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.79% | 2.41% | |
Expected long-term rate of return on assets | 1.70% | 1.80% | 2.35% |
2023 | $ 5,600 | ||
2024 | 5,313 | ||
2025 | 5,022 | ||
2026 | 4,883 | ||
2027 | 4,769 | ||
2027-2031 | $ 21,147 | ||
Other Postretirement Benefits Plan | Black Hills Corporation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.79% | ||
Discount Rate | 2.41% | 3.15% |
Share-based Compensation Plans_
Share-based Compensation Plans: Compensation Related Costs, Share Based Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Apr. 26, 2022 | Apr. 25, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||||
Number of shares available for future issuance | 2,900,000 | 1,200,000 | |||
Shares available for grant | 2,213,716 | ||||
Unrecognized compensation expense | $ 12,000 | ||||
Weighted-average recognition period | 1 year 8 months 12 days | ||||
Stock compensation | $ 8,551 | $ 9,655 | $ 5,373 |
Share-based Compensation Plan_2
Share-based Compensation Plans: Restricted Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock and RSUs, total fair value of shares vested | $ 1,038 | $ 3,294 | $ 2,199 |
Unrecognized compensation expense | $ 12,000 | ||
Weighted-average recognition period | 1 year 8 months 12 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 179 | 219 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 67.23 | $ 67.64 | |
Performance Shares, Granted in Period | 70 | ||
Granted (usd per share) | $ 69.03 | $ 65.64 | $ 69.49 |
Shares Vested | (94) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 69.64 | ||
Shares Forfeited | (16) | ||
Forfeited (usd per share) | $ 66.03 | ||
Restricted Stock and RSUs, total fair value of shares vested | $ 6,436 | $ 5,400 | $ 6,722 |
Unrecognized compensation expense | $ 7,500 | ||
Weighted-average recognition period | 1 year 8 months 12 days |
Share Based Compensation Plans_
Share Based Compensation Plans: Performance Share Plan (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Share Award Payout, Shares of Common Stock Percentage | 100% | ||
Unrecognized compensation expense | $ 12,000 | ||
Performance Shares, Number of Shares Authorized | 36 | ||
Stock Issued During Period, Shares, Treasury Stock Reissued | 8 | 28 | 14 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $ 519 | $ 1,647 | $ 1,100 |
Restricted Stock and RSUs, total fair value of shares vested | $ 1,038 | $ 3,294 | $ 2,199 |
Performance Goal - Percentile of Peer Group Performance | 2,600% | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Share Award Payout, Cash Percentage | 50% | ||
Performance Share Award Payout, Shares of Common Stock Percentage | 50% | ||
The percentage paid in cash for the accrued equity portion of the performance share plan upon change in control | 100% | ||
Unrecognized compensation expense | $ 1,400 | ||
Performance Share Award, Percentage of Target | 27% | ||
Weighted Average Grant Date Fair Value (usd per share) | $ 81.42 | ||
Blended volatility | 18% | ||
Volatility Rate - Historic | 0.50 | ||
Volatility Rate - Implied | 0.50 | ||
Volatility range for the peer group, Maximum | 67% | 76% | |
Target shares, value | $ 700 | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Share Award, Percentage of Target | 0% | 0% | |
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Share Award, Percentage of Target | 200% | 200% | |
Performance Shares, Equity Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Shares, Number of Shares Authorized | 18 | 36 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 81.42 | $ 68.14 | |
Performance Shares, Granted in Period | 0 | ||
Weighted Average Grant Date Fair Value (usd per share) | $ 0 | ||
Shares Forfeited | 0 | ||
Forfeited (usd per share) | $ 0 | ||
Shares Vested | (18) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 68.72 | ||
Performance Shares, Liability Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Shares, Number of Shares Authorized | 18 | 36 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 32.74 | ||
Shares Vested | (18) |
Share-based Compensation Plan_3
Share-based Compensation Plans: Performance Plan Share Units (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Share Award Payout, Shares of Common Stock Percentage | 100% | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Share Award Payout, Shares of Common Stock Percentage | 50% | |
Performance Share Award, Percentage of Target | 27% | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | |
Award vesting period | 3 years | |
Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Share Award, Percentage of Target | 0% | 0% |
Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Share Award, Percentage of Target | 200% | 200% |
Share-based Compensation Plan_4
Share-based Compensation Plans: Performance Share Units-Market Condition (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Performance Share Units - Market Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award - Performance Period Used to Estimate Expected Share Payout | 3 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (usd per share) | $ 74.48 | $ 64.97 |
Three-year risk-free rate | 0.97% | 0.17% |
Black Hills Corporation’s common stock volatility | 30% | 33% |
Volatility range for peer group, Minimum | 22% | 25% |
Volatility range for the peer group, Maximum | 67% | 76% |
Performance Shares | Performance Share Units - Market Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (usd per share) | $ 74.48 |
Share-based Compensation Perfor
Share-based Compensation Performance Condition (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average recognition period | 1 year 8 months 12 days | |
Performance Share Units - Market Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award - Performance Period Used to Estimate Expected Share Payout | 3 years | |
Performance Share Units - Performance Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award - Performance Period Used to Estimate Expected Share Payout | 3 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (usd per share) | $ 74.48 | $ 64.97 |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 4.1 | |
Weighted-average recognition period | 1 year 8 months 12 days | |
Performance Shares | Performance Share Units - Market Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 68,474 | 32,903 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 69.91 | $ 64.97 |
Performance Shares, Granted in Period | 35,571 | |
Granted (usd per share) | $ 74.48 | |
Performance Shares | Performance Share Units - Performance Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 45,666 | 21,948 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 66.19 | $ 61.45 |
Performance Shares, Granted in Period | 23,718 | |
Granted (usd per share) | $ 70.57 |
Income Taxes_ Winter Storm Uri
Income Taxes: Winter Storm Uri (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Recovery of incremental costs | $ 652,981 | $ 796,599 |
Deferred income tax liabilities, net | 508,941 | 465,388 |
Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards, With no Expiration Date | 584,161 | |
Operating Loss Carryforwards | 330,085 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards | 408,269 | |
Winter Storm Uri | ||
Recovery of incremental costs | 546,000 | |
Deferred income tax liabilities, net | $ 85,000 | 124,000 |
Winter Storm Uri | Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards, With no Expiration Date | 509,000 | |
Winter Storm Uri | State and Local Jurisdiction | ||
Operating Loss Carryforwards | $ 375,000 |
Income Taxes_ Tax Cut and Jobs
Income Taxes: Tax Cut and Jobs Act (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 21, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 21, 2017 | |
U.S. federal corporate tax rate | 35% | 21% | 21% | 21% | 35% |
Revenue Subject to Refund | |||||
Revenue Refunded To Customers As A Result Of The TCJA Tax Benefits | $ 11 | $ 23 | $ 13 |
Income Taxes_ Current and Defer
Income Taxes: Current and Deferred Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ (467) | $ 574 | $ (6,020) |
State | 80 | (666) | 847 |
Total Current | (387) | (92) | (5,173) |
Deferred: | |||
Federal | 23,205 | 2,170 | 35,672 |
State | 2,387 | 5,091 | 2,419 |
Total Deferred | 25,592 | 7,261 | 38,091 |
Total Current and Deferred | $ 25,205 | $ 7,169 | $ 32,918 |
Income Taxes_ Effective Tax Rat
Income Taxes: Effective Tax Rate Differences From Statutory Tax Rates (Details) | 12 Months Ended | ||||
Dec. 21, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 21, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Federal Statutory Rate | 35% | 21% | 21% | 21% | 35% |
State income tax (net of federal tax effect) | 0.50% | 1.20% | 2.40% | ||
Non-controlling interest | (0.90%) | (1.20%) | (1.20%) | ||
Tax Credits | (7.70%) | (8.40%) | (9.20%) | ||
Flow-through adjustments | (1.40%) | (3.20%) | (1.60%) | ||
Uncertain Tax Benefits | 0% | 0.30% | 1.50% | ||
Valuation Allowance | 0% | 0% | 0.70% | ||
Other tax differences | (0.10%) | (0.20%) | 0.60% | ||
Amortization Of excess deferred income tax expense | (2.50%) | (3.10%) | (2.30%) | ||
TCJA bill credits | (0.40%) | (3.60%) | (0.00%) | ||
Effective Income Tax Rate, Continuing Operations | 8.50% | 2.80% | 11.90% |
Income Taxes_ Deferred Income T
Income Taxes: Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets, Net [Abstract] | ||
Regulatory liabilities | $ 74,728 | $ 77,099 |
State tax credits | 22,817 | 23,342 |
Federal NOL | 191,992 | 227,535 |
State NOL | 23,031 | 33,639 |
Partnership | 12,755 | 13,395 |
Credit Carryovers | 90,881 | 68,646 |
Other deferred tax assets | 45,407 | 31,996 |
Less: Valuation allowance | (15,476) | (14,719) |
Total deferred tax assets | 446,135 | 460,933 |
Deferred tax liabilities: | ||
Accelerated depreciation, amortization and other plant-related differences | (645,762) | (597,284) |
Regulatory assets | (94,433) | (124,582) |
Goodwill | (57,884) | (45,471) |
State deferred tax liability | (98,200) | (109,136) |
Other deferred tax liabilities | (58,797) | (49,848) |
Total deferred tax liabilities | (955,076) | (926,321) |
Net deferred tax liability | $ (508,941) | $ (465,388) |
Income Taxes_ Net Operating Los
Income Taxes: Net Operating Loss and and Tax Credit Carryforwards (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Internal Revenue Service (IRS) | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 330,085,000 |
Operating Loss Carryforwards, With no Expiration Date | 584,161,000 |
State and Local Jurisdiction | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 408,269,000 |
Tax Credit Carryforward | 22,817,000 |
State and Local Jurisdiction | Valuation Allowance, Operating Loss Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards Valuation Allowance | 1,100,000 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 0 |
State and Local Jurisdiction | Valuation Allowance, Income Tax Credit Carryforwards | |
Operating Loss Carryforwards [Line Items] | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 800,000 |
Income Tax Credit carryforward, valuation allowance | 14,000,000 |
Valuation allowance, increase to tax expense | 600,000 |
Remaining tax expense related to increase in valuation allowance | $ 200,000 |
Income Taxes_ Reconciliation of
Income Taxes: Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Liability for Uncertain Tax Positions, Noncurrent, Period Start | $ 10,554 | $ 8,383 | $ 4,165 |
Additions for prior year tax positions | 7 | 448 | 3,788 |
Reductions for prior year tax positions | (773) | (732) | (1,313) |
Additions for current year tax positions | 2,097 | 2,455 | 1,743 |
Liability for Uncertain Tax Positions, Noncurrent, Period End | 11,885 | $ 10,554 | $ 8,383 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 5,700 |
Income Taxes_ Interest, Penalti
Income Taxes: Interest, Penalties and Audits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Interest Expense | $ 0 | $ 0 | $ 0 |
Unrecognized Tax Benefits, Interest Accrued | $ 0 | $ 0 |
Business Segment Information_ I
Business Segment Information: Information Relating to Segments Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information | |||
Revenue from contracts with customers | $ 2,542,856 | $ 1,930,834 | $ 1,680,804 |
Revenue | 2,551,816 | 1,949,102 | 1,696,941 |
Fuel, purchased power and cost of natural gas sold | 1,230,550 | 741,934 | 492,404 |
Operations and maintenance, including taxes | 615,113 | 561,786 | 551,777 |
Depreciation, depletion and amortization | 250,909 | 235,953 | 224,457 |
Adjusted operating income (loss) | 455,244 | ||
Operating income (loss) | 455,244 | 409,429 | 428,303 |
Interest expense, net | (160,989) | (152,404) | (143,470) |
Impairment of investment | 0 | 0 | (6,859) |
Other income (expense), net | 1,708 | 1,404 | (2,293) |
Income tax expense | (25,205) | (7,169) | (32,918) |
Net income | 270,758 | 251,260 | 242,763 |
Net income attributable to non-controlling interest | (12,371) | (14,516) | (15,155) |
Net income available for common stock | 258,387 | 236,744 | 227,608 |
Electric Utilities | |||
Segment Reporting Information | |||
Revenue from contracts with customers | 894,614 | 836,923 | 732,681 |
Revenue | 900,162 | 842,258 | 738,857 |
Fuel, purchased power and cost of natural gas sold | 266,284 | 248,018 | 138,572 |
Operations and maintenance, including taxes | 283,654 | 260,036 | 265,679 |
Depreciation, depletion and amortization | 135,966 | 131,528 | 123,632 |
Adjusted operating income (loss) | 214,258 | 202,676 | 210,974 |
Gas Utilities | |||
Segment Reporting Information | |||
Revenue from contracts with customers | 1,665,249 | 1,111,539 | 964,421 |
Revenue | 1,669,090 | 1,124,865 | 974,670 |
Fuel, purchased power and cost of natural gas sold | 965,108 | 494,738 | 354,645 |
Operations and maintenance, including taxes | 345,143 | 314,810 | 303,577 |
Depreciation, depletion and amortization | 114,679 | 104,160 | 100,559 |
Adjusted operating income (loss) | 244,160 | 211,157 | 215,889 |
Corporate, Non-Segment | |||
Segment Reporting Information | |||
Revenue | 368,739 | 356,347 | 353,143 |
Fuel, purchased power and cost of natural gas sold | (11) | 96 | 83 |
Operations and maintenance, including taxes | 309,773 | 293,265 | 284,501 |
Depreciation, depletion and amortization | 26,964 | 26,838 | 25,150 |
Adjusted operating income (loss) | 32,013 | 36,148 | 43,409 |
Intercompany Eliminations | |||
Segment Reporting Information | |||
Revenue from contracts with customers | (17,007) | (17,628) | (16,298) |
Revenue | (17,436) | (18,021) | (16,586) |
Fuel, purchased power and cost of natural gas sold | (831) | (918) | (896) |
Operations and maintenance, including taxes | (323,457) | (306,325) | (301,980) |
Depreciation, depletion and amortization | (26,700) | (26,573) | (24,884) |
Adjusted operating income (loss) | (35,187) | (40,552) | (41,969) |
Other revenues | |||
Segment Reporting Information | |||
Revenue | 8,960 | 18,268 | 16,137 |
Other revenues | Electric Utilities | |||
Segment Reporting Information | |||
Revenue | 5,548 | 5,335 | 6,176 |
Other revenues | Gas Utilities | |||
Segment Reporting Information | |||
Revenue | 3,841 | 13,326 | 10,249 |
Other revenues | Intercompany Eliminations | |||
Segment Reporting Information | |||
Revenue | (429) | (393) | (288) |
External Customers | |||
Segment Reporting Information | |||
Revenue from contracts with customers | 2,542,856 | 1,930,834 | 1,680,804 |
Revenue | 2,551,816 | 1,949,102 | 1,696,941 |
External Customers | Electric Utilities | |||
Segment Reporting Information | |||
Revenue from contracts with customers | 882,899 | 825,404 | 721,108 |
Revenue | 888,447 | 830,740 | 727,283 |
External Customers | Gas Utilities | |||
Segment Reporting Information | |||
Revenue from contracts with customers | 1,659,957 | 1,105,430 | 959,696 |
Revenue | 1,663,369 | 1,118,362 | 969,658 |
External Customers | Other revenues | |||
Segment Reporting Information | |||
Revenue | 8,960 | 18,268 | 16,137 |
External Customers | Other revenues | Electric Utilities | |||
Segment Reporting Information | |||
Revenue | 5,548 | 5,336 | 6,175 |
External Customers | Other revenues | Gas Utilities | |||
Segment Reporting Information | |||
Revenue | 3,412 | 12,932 | 9,962 |
Intercompany Customers | |||
Segment Reporting Information | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Revenue | 0 | 0 | 0 |
Intercompany Customers | Electric Utilities | |||
Segment Reporting Information | |||
Revenue from contracts with customers | 11,715 | 11,518 | 11,574 |
Revenue | 11,715 | 11,518 | 11,574 |
Intercompany Customers | Gas Utilities | |||
Segment Reporting Information | |||
Revenue from contracts with customers | 5,292 | 6,110 | 4,724 |
Revenue | 5,721 | 6,503 | 5,012 |
Intercompany Customers | Corporate, Non-Segment | |||
Segment Reporting Information | |||
Revenue from contracts with customers | 538 | 196 | 167 |
Revenue | 368,739 | 356,347 | 353,143 |
Intercompany Customers | Intercompany Eliminations | |||
Segment Reporting Information | |||
Revenue from contracts with customers | (17,545) | (17,824) | (16,465) |
Revenue | (386,175) | (374,368) | (369,729) |
Intercompany Customers | Other revenues | |||
Segment Reporting Information | |||
Revenue | 0 | 0 | 0 |
Intercompany Customers | Other revenues | Electric Utilities | |||
Segment Reporting Information | |||
Revenue | 0 | 0 | |
Intercompany Customers | Other revenues | Gas Utilities | |||
Segment Reporting Information | |||
Revenue | 429 | 393 | 288 |
Intercompany Customers | Other revenues | Corporate, Non-Segment | |||
Segment Reporting Information | |||
Revenue | 368,201 | 356,151 | 352,976 |
Intercompany Customers | Other revenues | Intercompany Eliminations | |||
Segment Reporting Information | |||
Revenue | $ (368,630) | $ (356,544) | $ (353,264) |
Business Segment Information_ S
Business Segment Information: Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting, Asset Reconciling Item | ||
Total Assets | $ 9,618,230 | $ 9,131,896 |
Corporate and Other | ||
Segment Reporting, Asset Reconciling Item | ||
Total Assets | 110,227 | 88,864 |
Electric Utilities | ||
Segment Reporting, Asset Reconciling Item | ||
Total Assets | 3,929,721 | 3,796,662 |
Gas Utilities | ||
Segment Reporting, Asset Reconciling Item | ||
Total Assets | $ 5,578,282 | $ 5,246,370 |
Business Segment Information_ C
Business Segment Information: Capital Expenditures and Asset Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 597,668 | $ 679,590 | $ 755,392 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 5,097 | 10,500 | 17,500 |
Electric Utilities | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 243,133 | 285,770 | 288,683 |
Gas Utilities | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 349,438 | $ 383,320 | $ 449,209 |