Black Hills Power 10-Q 3 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2019	Apr. 30, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	BLACK HILLS POWER INC
Entity Central Index Key	0000012400
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Document Fiscal Year End Focus	2019
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock Shares Outstanding	23,416,396	23,416,396

Condensed Statements of Compreh

Condensed Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenues	$ 79,041	$ 73,815
Operating expenses:
Fuel and purchased power	22,733	22,440
Operations and maintenance	19,557	19,151
Depreciation and amortization	10,077	9,884
Taxes - property	2,032	1,976
Total operating expenses	54,399	53,451
Operating income	24,642	20,364
Other income (expense):
Interest expense incurred (including amortization of debt issuance costs, premiums, and discounts)	(5,830)	(5,587)
Allowance for funds used during construction - borrowed	283	48
Interest income	115	115
Allowance for funds used during construction - equity	0	34
Other income (expense), net	(375)	(151)
Total other income (expense), net	(5,807)	(5,541)
Income before income taxes	18,835	14,823
Income tax expense	(3,338)	(3,063)
Net income	15,497	11,760
Other comprehensive income (loss), net of tax:
Reclassification of net realized (gains) losses on settled/amortized interest rate swaps (net of tax of $0 and $(6), respectively)	0	10
Reclassification adjustment of benefit plan liability - net gain (loss) (net of tax of $(4) and $(9), respectively)	12	17
Other comprehensive income (loss), net of tax	12	27
Comprehensive income	$ 15,509	$ 11,787

Condensed Statements of Compr_2

Condensed Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Reclassification adjustment of cash flow hedges settled, (tax) benefit	$ 0	$ (6)
Reclassification adjustment of benefit and other postretirement plans included in net income, (tax) benefit	$ (4)	$ (9)

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash	$ 5	$ 112
Accounts receivable, net	28,354	28,431
Accounts receivable from affiliates	9,903	8,119
Materials, supplies and fuel	25,275	24,853
Regulatory assets, current	23,215	19,052
Other current assets	4,692	4,538
Total current assets	91,444	85,105
Investments	4,973	4,889
Property, plant and equipment	1,399,901	1,381,045
Less: accumulated depreciation and amortization	(383,681)	(376,160)
Total property, plant and equipment, net	1,016,220	1,004,885
Other assets:
Regulatory assets, non-current	53,141	56,680
Other assets, non-current	24,616	9,729
Total other assets, non-current	77,757	66,409
TOTAL ASSETS	1,190,394	1,161,288
Current liabilities:
Accounts payable	19,434	25,122
Accounts payable to affiliates	26,966	25,804
Accrued liabilities	40,428	34,193
Money pool notes payable	33,300	38,690
Regulatory liabilities, current	2,079	2,574
Total current liabilities	122,207	126,383
Long-term debt	340,070	340,035
Deferred credits and other liabilities:
Deferred income tax liabilities, net	116,499	114,009
Regulatory liabilities, non-current	161,714	160,642
Benefit plan liabilities	14,631	14,606
Other deferred credits and other liabilities	15,525	1,368
Total deferred credits and other liabilities	308,369	290,625
Commitments and contingencies (Notes 5, 6 and 9)
Stockholder’s equity:
Common stock $1 par value; 50,000,000 shares authorized; 23,416,396 shares issued	23,416	23,416
Additional paid-in capital	39,575	39,575
Retained earnings	357,636	342,145
Accumulated other comprehensive loss	(879)	(891)
Total stockholder’s equity	419,748	404,245
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$ 1,190,394	$ 1,161,288

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common Stock, Par Value (usd per share)	$ 1	$ 1
Common Stock, Shares authorized	50,000,000	50,000,000
Common Stock, Shares Issued	23,416,396	23,416,396

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net income	$ 15,497	$ 11,760
Adjustments to reconcile net income to net cash provided by operating activities-
Depreciation and amortization	10,077	9,884
Deferred income tax	1,718	(898)
Employee benefits	195	380
Other adjustments, net	1,044	1,018
Change in operating assets and liabilities -
Accounts receivable and other current assets	(2,437)	(2,478)
Accounts payable and other current liabilities	6,210	3,320
Regulatory assets - current	(1,413)	1,807
Regulatory liabilities - current	(444)	3,171
Other operating activities, net	(594)	35
Net cash provided by (used in) operating activities	29,853	27,999
Investing activities:
Property, plant and equipment additions	(24,386)	(13,533)
Proceeds from sale of assets	0	4,994
Other investing activities	(169)	(3,608)
Net cash provided by (used in) investing activities	(24,555)	(12,147)
Financing activities:
Change in money pool notes payable, net	(5,390)	(15,856)
Other financing activities	(15)	0
Net cash provided by (used in) financing activities	(5,405)	(15,856)
Net change in cash	(107)	(4)
Cash, beginning of period	112	16
Cash, end of period	$ 5	$ 12

Management's Statement_

Management's Statement:	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Management's Statement	MANAGEMENT’S STATEMENT The unaudited condensed financial statements included herein have been prepared by Black Hills Power, Inc. (the “Company,” “we,” “us,” or “our”), pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, we believe that the footnotes adequately disclose the information presented. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto, included in our 2018 Annual Report on Form 10-K filed with the SEC. The information furnished in the accompanying condensed financial statements reflects certain estimates required and all adjustments, including accruals, which are, in the opinion of management, necessary for a fair presentation of the March 31, 2019 , December 31, 2018 and March 31, 2018 financial information and are of a normal recurring nature. The results of operations for the three months ended March 31, 2019 and March 31, 2018 , and our financial condition as of March 31, 2019 and December 31, 2018 are not necessarily indicative of the results of operations and financial condition to be expected as of or for any other period. Recently Adopted Accounting Standards Leases, ASU 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet for most leases, whereas previously only financing-type lease liabilities (capital leases) were recognized on the balance sheet. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. We adopted the standard effective January 1, 2019. We elected the option to not recast comparative periods presented with transitioning to the new lease standard and will report these comparative periods as presented under previous lease guidance. In addition, we elected the package of practical expedients permitted under the transition guidance with the new standard, which among other things, allowed us to carry forward the historical lease classification. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment of existing land easement agreements. Adoption of the new standard resulted in the recording of an operating lease right-of-use asset and an off-setting operating lease obligation liability of $14 million

Revenue_

Revenue:	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue	REVENUE Revenue Recognition As of January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , and its related amendments (collectively known as ASC 606). Revenue is recognized in an amount that reflects the consideration we expect to receive in exchange for goods or services, when control of the promised goods or services is transferred to our customers. The following table depicts the disaggregation of revenue, from contracts with customers by customer type and timing of revenue recognition for the three months ended March 31, 2019 and 2018 . Sales tax and other similar taxes are excluded from revenues. Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (in thousands) Customer types: Retail $ 53,076 $ 50,641 Wholesale 8,343 9,050 Market - off-system sales 4,670 2,275 Transmission/Other 12,831 11,718 Revenue from contracts with customers 78,920 73,684 Other revenues 121 131 Total revenues $ 79,041 $ 73,815 Timing of revenue recognition: Services transferred over time $ 78,920 $ 73,684 Revenue from contracts with customers $ 78,920 $ 73,684 Contract Balances

Accounts Receivable_

Accounts Receivable:	3 Months Ended
	Mar. 31, 2019
Accounts Receivable, Net [Abstract]
Accounts Receivable	ACCOUNTS RECEIVABLE Following is a summary of Accounts receivable, net included in the accompanying Condensed Balance Sheets (in thousands) as of: March 31, 2019 December 31, 2018 Accounts receivable trade $ 18,196 $ 16,236 Unbilled revenues 10,356 12,333 Allowance for doubtful accounts (198 ) (138 ) Accounts receivable, net $ 28,354 $ 28,431

Regulatory Accounting_

Regulatory Accounting:	3 Months Ended
	Mar. 31, 2019
Regulated Operations [Abstract]
Regulatory Accounting	REGULATORY ACCOUNTING Our regulated electric operations are subject to regulation by various state and federal agencies. The accounting policies followed are generally subject to the Uniform System of Accounts of the FERC. Our regulatory assets and liabilities were as follows (in thousands) as of: March 31, 2019 December 31, 2018 Regulatory assets: Loss on reacquired debt (a) $ 1,191 $ 1,259 Deferred taxes on AFUDC (b) 5,048 5,020 Employee benefit plans and related deferred taxes (c) 20,085 19,868 Deferred energy and fuel cost adjustments (b) 21,649 20,334 Deferred taxes on flow through accounting (c) 9,045 8,749 Decommissioning costs (a) 7,682 8,196 Vegetation management (a) 9,790 10,366 Other regulatory assets (a) 1,866 1,940 Total regulatory assets $ 76,356 $ 75,732 Less current regulatory assets (23,215 ) (19,052 ) Regulatory assets, non-current $ 53,141 $ 56,680 Regulatory liabilities: Cost of removal for utility plant (a) $ 53,758 $ 52,366 Employee benefit plan costs and related deferred taxes (c) 7,518 7,518 Excess deferred income taxes (c) 99,846 100,276 TCJA revenue reserve 2,079 2,523 Other regulatory liabilities (c) 592 533 Total regulatory liabilities $ 163,793 $ 163,216 Less current regulatory liabilities (2,079 ) (2,574 ) Regulatory liabilities, non-current $ 161,714 $ 160,642 ____________________ (a) We are allowed a recovery of costs, but we are not allowed a rate of return. (b) In addition to recovery of costs, we are 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 Matters There have been no other significant changes to our Regulatory Matters from those previously disclosed in Note 1 of the Notes to the Financial Statements in our 2018

Related-Party Transactions_

Related-Party Transactions:	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Related-Party Transactions	RELATED-PARTY TRANSACTIONS Dividend to Parent We recorded non-cash dividends to our Parent of $16 million and decreased the utility Money pool note receivable by $16 million for the three months ended March 31, 2018 . We did not record any dividends for the three months ended March 31, 2019 . Receivables and Payables We have accounts receivable and accounts payable balances related to transactions with other BHC subsidiaries. The balances were as follows (in thousands) as of: March 31, 2019 December 31, 2018 Accounts receivable from affiliates $ 9,903 $ 8,119 Accounts payable to affiliates $ 26,966 $ 25,804 Money Pool Notes Receivable and Notes Payable We participate in the Utility Money Pool Agreement (the Agreement). Under the Agreement, we may borrow from the pool; however the Agreement restricts the pool from loaning funds to BHC or to any of BHC’s non-utility subsidiaries. The Agreement does not restrict us from paying dividends to BHC. Borrowings under the Agreement bear interest at the weighted average daily cost of our parent company’s external borrowings as defined under the Agreement, or if there are no external funds outstanding on that date, then the rate will be the daily one-month LIBOR plus 1.0% . At March 31, 2019 , the average cost of borrowing under the Utility Money Pool was 2.88% . We had the following balances with the Utility Money Pool (in thousands) as of: March 31, 2019 December 31, 2018 Money pool notes payable $ 33,300 $ 38,690 Our net interest income (expense) relating to balances with the Utility Money Pool was as follows (in thousands): Three Months Ended March 31, 2019 2018 Net interest income (expense) $ (273 ) $ (36 ) Other related party activity was as follows (in thousands): Three Months Ended 2019 2018 Revenue: Energy sold to Cheyenne Light $ 574 $ 703 Rent from electric properties $ 896 $ 909 Horizon Point shared facility revenues $ 3,007 $ 2,769 Fuel and purchased power : Purchases of coal from WRDC $ 4,657 $ 4,067 Purchase of excess energy from Cheyenne Light $ 132 $ 86 Purchase of renewable wind energy from Cheyenne Light - Happy Jack $ 535 $ 641 Purchase of renewable wind energy from Cheyenne Light - Silver Sage $ 983 $ 1,093 Gas transportation service agreement: Gas transportation service agreement with Cheyenne Light for firm and interruptible gas transportation $ 76 $ 96 Corporate support: Corporate support services and fees from Black Hills Service Company $ 10,191 $ 7,606 Horizon Point Agreement

Employee Benefit Plans_

Employee Benefit Plans:	3 Months Ended
	Mar. 31, 2019
Defined Benefit Plan [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS The components of net periodic benefit cost for the Defined Benefit Pension Plan were as follows (in thousands): Three Months Ended March 31, 2019 2018 Service cost $ 91 $ 129 Interest cost 603 548 Expected return on plan assets (851 ) (886 ) Prior service cost 2 11 Net loss (gain) 305 516 Net periodic benefit cost $ 150 $ 318 Defined Benefit Postretirement Healthcare Plan The components of net periodic benefit cost for the Defined Benefit Postretirement Healthcare Plan were as follows (in thousands): Three Months Ended March 31, 2019 2018 Service cost $ 37 $ 48 Interest cost 47 45 Prior service cost (benefit) (84 ) (84 ) Net periodic benefit cost $ — $ 9 Supplemental Non-qualified Defined Benefit Plans The components of net periodic benefit cost for the Supplemental Non-qualified Defined Benefit Plans were as follows (in thousands): Three Months Ended March 31, 2019 2018 Interest cost $ 29 $ 27 Net loss (gain) 16 26 Net periodic benefit cost $ 45 $ 53 Contributions Contributions to the Defined Benefit Pension Plan are cash contributions made directly to the Pension Plan Trust account. Contributions to the Postretirement Healthcare and Supplemental Plans are made in the form of benefit payments. Contributions made for 2019 and anticipated contributions for 2019 and 2020 are as follows (in thousands): Contributions Three Months Ended March 31, 2019 Remaining Anticipated Contributions for 2019 Anticipated Contributions for 2020 Defined Benefit Pension Plan $ — $ 1,753 $ 1,841 Defined Benefit Postretirement Healthcare Plan $ 117 $ 349 $ 466 Supplemental Non-qualified Defined Benefit Plans $ 58 $ 172 $ 240

Fair Value of Financial Instrum

Fair Value of Financial Instruments:	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance on fair value measurements establishes a hierarchy for grouping assets and liabilities, based on significance of inputs. For additional information see Note 1 included in our 2018 Annual Report on Form 10-K filed with the SEC. The estimated fair values of our financial instruments were as follows (in thousands) as of: March 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Cash (a) $ 5 $ 5 $ 112 $ 112 Long-term debt, including current maturities (b) (c) $ 340,070 $ 428,498 $ 340,035 $ 412,894 _________________ (a) The cash fair value approximates carrying value and therefore is classified as Level 1 in the fair value hierarchy. We believe that the market risk arising from cash in a bank account is minimal. (b) 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. (c)

Supplemental Disclosure of Cash

Supplemental Disclosure of Cash Flow Information:	3 Months Ended
	Mar. 31, 2019
Supplemental Cash Flow Information [Abstract]
Supplemental Disclosure of Cash Flow Information	SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Three Months Ended March 31, 2019 2018 (in thousands) Non-cash investing and financing activities - Property, plant and equipment acquired with accrued liabilities $ 8,633 $ 7,556 Non-cash (decrease) to money pool notes receivable, net $ — $ (16,000 ) Non-cash dividend to Parent $ — $ 16,000 Cash (paid) refunded during the period for - Interest (net of amounts capitalized) $ (3,345 ) $ (3,088 ) Income taxes, net $ — $ —

Commitment and Contingencies_

Commitment and Contingencies:	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES There have been no significant changes to commitments and contingencies from those previously disclosed in Note 11 of our Notes to the Financial Statements in our 2018

Leases_

Leases:	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	LEASES We have a ground lease for the Wygen III generating facility with an affiliate and communication tower site and operation center facility leases with third parties. Our leases have remaining terms ranging from less than one year to 31 years . The components of lease expense were as follows (in thousands): Income Statement Location Three Months Ended March 31, 2019 Operating lease cost Operations and maintenance $ 228 Variable lease cost Operations and maintenance 43 Total lease cost $ 271 Supplemental balance sheet information related to leases was as follows (in thousands): Balance Sheet Location As of March 31, 2019 Assets: Operating lease assets Other assets, non-current $ 14,316 Total lease assets $ 14,316 Liabilities: Current: Operating leases Accrued liabilities $ 279 Noncurrent: Operating leases Other deferred credits and other liabilities 14,054 Total lease liabilities $ 14,333 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 223 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — As of March 31, 2019 Weighted average remaining lease term (years): Operating leases 31 years Weighted average discount rate: Operating leases 4.4 % Scheduled maturities of operating lease liabilities for future years were as follows (in thousands): Total 2019 (a) $ 681 2020 856 2021 855 2022 856 2023 853 Thereafter 21,947 Total lease payments $ 26,048 Less imputed interest 11,715 Present value of lease liabilities $ 14,333 (a) Includes lease obligations for the remaining nine months of 2019

Equity_

Equity:	3 Months Ended
	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Equity	EQUITY A summary of the changes in equity is as follows: Three Months Ended March 31, 2019 Common Stock (in thousands except share amounts) Shares Value Additional Paid in Capital Retained Earnings AOCI Total December 31, 2018 23,416 $ 23,416 $ 39,575 $ 342,145 $ (891 ) $ 404,245 Net income (loss) available for common stock — — — 15,497 — 15,497 Other comprehensive income (loss), net of tax — — — — 12 12 Cumulative effect of ASU 2016-02, Leases implementation — — — (7 ) — (7 ) Other adjustments — — — 1 — 1 March 31, 2019 23,416 $ 23,416 $ 39,575 $ 357,636 $ (879 ) $ 419,748 Three Months Ended March 31, 2018 Common Stock (in thousands except share amounts) Shares Value Additional Paid in Capital Retained Earnings AOCI Total December 31, 2017 23,416 $ 23,416 $ 39,575 $ 332,499 $ (1,258 ) $ 394,232 Net income (loss) available for common stock — — — 11,760 — 11,760 Other comprehensive income (loss), net of tax — — — — 27 27 Non-cash dividend to Parent company — — — (16,000 ) — (16,000 ) Other adjustments — — — 1 — 1 March 31, 2018 23,416 $ 23,416 $ 39,575 $ 328,260 $ (1,231 ) $ 390,020

Management's Statement (Policie

Management's Statement (Policies)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards Leases, ASU 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet for most leases, whereas previously only financing-type lease liabilities (capital leases) were recognized on the balance sheet. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. We adopted the standard effective January 1, 2019. We elected the option to not recast comparative periods presented with transitioning to the new lease standard and will report these comparative periods as presented under previous lease guidance. In addition, we elected the package of practical expedients permitted under the transition guidance with the new standard, which among other things, allowed us to carry forward the historical lease classification. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment of existing land easement agreements. Adoption of the new standard resulted in the recording of an operating lease right-of-use asset and an off-setting operating lease obligation liability of $14 million
Revenue Recognition	Revenue Recognition As of January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , and its related amendments (collectively known as ASC 606). Revenue is recognized in an amount that reflects the consideration we expect to receive in exchange for goods or services, when control of the promised goods or services is transferred to our customers. The following table depicts the disaggregation of revenue, from contracts with customers by customer type and timing of revenue recognition for the three months ended March 31, 2019 and 2018 . Sales tax and other similar taxes are excluded from revenues. Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (in thousands) Customer types: Retail $ 53,076 $ 50,641 Wholesale 8,343 9,050 Market - off-system sales 4,670 2,275 Transmission/Other 12,831 11,718 Revenue from contracts with customers 78,920 73,684 Other revenues 121 131 Total revenues $ 79,041 $ 73,815 Timing of revenue recognition: Services transferred over time $ 78,920 $ 73,684 Revenue from contracts with customers $ 78,920 $ 73,684 Contract Balances

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (in thousands) Customer types: Retail $ 53,076 $ 50,641 Wholesale 8,343 9,050 Market - off-system sales 4,670 2,275 Transmission/Other 12,831 11,718 Revenue from contracts with customers 78,920 73,684 Other revenues 121 131 Total revenues $ 79,041 $ 73,815 Timing of revenue recognition: Services transferred over time $ 78,920 $ 73,684 Revenue from contracts with customers $ 78,920 $ 73,684

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2019
Accounts Receivable, Net [Abstract]
Schedule of Accounts Receivable	Following is a summary of Accounts receivable, net included in the accompanying Condensed Balance Sheets (in thousands) as of: March 31, 2019 December 31, 2018 Accounts receivable trade $ 18,196 $ 16,236 Unbilled revenues 10,356 12,333 Allowance for doubtful accounts (198 ) (138 ) Accounts receivable, net $ 28,354 $ 28,431

Regulatory Accounting (Tables)

Regulatory Accounting (Tables)	3 Months Ended
	Mar. 31, 2019
Regulated Operations [Abstract]
Schedule of Regulatory Assets	Our regulatory assets and liabilities were as follows (in thousands) as of: March 31, 2019 December 31, 2018 Regulatory assets: Loss on reacquired debt (a) $ 1,191 $ 1,259 Deferred taxes on AFUDC (b) 5,048 5,020 Employee benefit plans and related deferred taxes (c) 20,085 19,868 Deferred energy and fuel cost adjustments (b) 21,649 20,334 Deferred taxes on flow through accounting (c) 9,045 8,749 Decommissioning costs (a) 7,682 8,196 Vegetation management (a) 9,790 10,366 Other regulatory assets (a) 1,866 1,940 Total regulatory assets $ 76,356 $ 75,732 Less current regulatory assets (23,215 ) (19,052 ) Regulatory assets, non-current $ 53,141 $ 56,680 Regulatory liabilities: Cost of removal for utility plant (a) $ 53,758 $ 52,366 Employee benefit plan costs and related deferred taxes (c) 7,518 7,518 Excess deferred income taxes (c) 99,846 100,276 TCJA revenue reserve 2,079 2,523 Other regulatory liabilities (c) 592 533 Total regulatory liabilities $ 163,793 $ 163,216 Less current regulatory liabilities (2,079 ) (2,574 ) Regulatory liabilities, non-current $ 161,714 $ 160,642 ____________________ (a) We are allowed a recovery of costs, but we are not allowed a rate of return. (b) In addition to recovery of costs, we are 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.
Schedule of Regulatory Liabilities	Regulatory liabilities: Cost of removal for utility plant (a) $ 53,758 $ 52,366 Employee benefit plan costs and related deferred taxes (c) 7,518 7,518 Excess deferred income taxes (c) 99,846 100,276 TCJA revenue reserve 2,079 2,523 Other regulatory liabilities (c) 592 533 Total regulatory liabilities $ 163,793 $ 163,216 Less current regulatory liabilities (2,079 ) (2,574 ) Regulatory liabilities, non-current $ 161,714 $ 160,642 ____________________ (a) We are allowed a recovery of costs, but we are not allowed a rate of return. (b) In addition to recovery of costs, we are 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.

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Schedule of Related Party Accounts Receivable and Payable	The balances were as follows (in thousands) as of: March 31, 2019 December 31, 2018 Accounts receivable from affiliates $ 9,903 $ 8,119 Accounts payable to affiliates $ 26,966 $ 25,804
Schedule of Related Party Notes	We had the following balances with the Utility Money Pool (in thousands) as of: March 31, 2019 December 31, 2018 Money pool notes payable $ 33,300 $ 38,690
Schedule of Related Party Interest Income Expense	Our net interest income (expense) relating to balances with the Utility Money Pool was as follows (in thousands): Three Months Ended March 31, 2019 2018 Net interest income (expense) $ (273 ) $ (36 )
Schedule of Revenues and Purchases from Related Parties	Other related party activity was as follows (in thousands): Three Months Ended 2019 2018 Revenue: Energy sold to Cheyenne Light $ 574 $ 703 Rent from electric properties $ 896 $ 909 Horizon Point shared facility revenues $ 3,007 $ 2,769 Fuel and purchased power : Purchases of coal from WRDC $ 4,657 $ 4,067 Purchase of excess energy from Cheyenne Light $ 132 $ 86 Purchase of renewable wind energy from Cheyenne Light - Happy Jack $ 535 $ 641 Purchase of renewable wind energy from Cheyenne Light - Silver Sage $ 983 $ 1,093 Gas transportation service agreement: Gas transportation service agreement with Cheyenne Light for firm and interruptible gas transportation $ 76 $ 96 Corporate support: Corporate support services and fees from Black Hills Service Company $ 10,191 $ 7,606

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2019
Defined Benefit Plan [Abstract]
Schedule of Net Benefit Costs	The components of net periodic benefit cost for the Defined Benefit Pension Plan were as follows (in thousands): Three Months Ended March 31, 2019 2018 Service cost $ 91 $ 129 Interest cost 603 548 Expected return on plan assets (851 ) (886 ) Prior service cost 2 11 Net loss (gain) 305 516 Net periodic benefit cost $ 150 $ 318 Defined Benefit Postretirement Healthcare Plan The components of net periodic benefit cost for the Defined Benefit Postretirement Healthcare Plan were as follows (in thousands): Three Months Ended March 31, 2019 2018 Service cost $ 37 $ 48 Interest cost 47 45 Prior service cost (benefit) (84 ) (84 ) Net periodic benefit cost $ — $ 9 Supplemental Non-qualified Defined Benefit Plans The components of net periodic benefit cost for the Supplemental Non-qualified Defined Benefit Plans were as follows (in thousands): Three Months Ended March 31, 2019 2018 Interest cost $ 29 $ 27 Net loss (gain) 16 26 Net periodic benefit cost $ 45 $ 53
Schedule of Defined Benefit Plans Contributions	Contributions made for 2019 and anticipated contributions for 2019 and 2020 are as follows (in thousands): Contributions Three Months Ended March 31, 2019 Remaining Anticipated Contributions for 2019 Anticipated Contributions for 2020 Defined Benefit Pension Plan $ — $ 1,753 $ 1,841 Defined Benefit Postretirement Healthcare Plan $ 117 $ 349 $ 466 Supplemental Non-qualified Defined Benefit Plans $ 58 $ 172 $ 240

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Instruments	The estimated fair values of our financial instruments were as follows (in thousands) as of: March 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Cash (a) $ 5 $ 5 $ 112 $ 112 Long-term debt, including current maturities (b) (c) $ 340,070 $ 428,498 $ 340,035 $ 412,894 _________________ (a) The cash fair value approximates carrying value and therefore is classified as Level 1 in the fair value hierarchy. We believe that the market risk arising from cash in a bank account is minimal. (b) 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. (c)

Supplemental Disclosure of Ca_2

Supplemental Disclosure of Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2019
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	Three Months Ended March 31, 2019 2018 (in thousands) Non-cash investing and financing activities - Property, plant and equipment acquired with accrued liabilities $ 8,633 $ 7,556 Non-cash (decrease) to money pool notes receivable, net $ — $ (16,000 ) Non-cash dividend to Parent $ — $ 16,000 Cash (paid) refunded during the period for - Interest (net of amounts capitalized) $ (3,345 ) $ (3,088 ) Income taxes, net $ — $ —

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lease, Cost	The components of lease expense were as follows (in thousands): Income Statement Location Three Months Ended March 31, 2019 Operating lease cost Operations and maintenance $ 228 Variable lease cost Operations and maintenance 43 Total lease cost $ 271
Lessee Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows (in thousands): Balance Sheet Location As of March 31, 2019 Assets: Operating lease assets Other assets, non-current $ 14,316 Total lease assets $ 14,316 Liabilities: Current: Operating leases Accrued liabilities $ 279 Noncurrent: Operating leases Other deferred credits and other liabilities 14,054 Total lease liabilities $ 14,333
Lessee Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 223 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ —
Lessee Supplemental Weighted Average Schedule Related to Leases	As of March 31, 2019 Weighted average remaining lease term (years): Operating leases 31 years Weighted average discount rate: Operating leases 4.4 %
Lessee, Operating Lease, Liability, Maturity	Scheduled maturities of operating lease liabilities for future years were as follows (in thousands): Total 2019 (a) $ 681 2020 856 2021 855 2022 856 2023 853 Thereafter 21,947 Total lease payments $ 26,048 Less imputed interest 11,715 Present value of lease liabilities $ 14,333 (a) Includes lease obligations for the remaining nine months of 2019

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Schedule of Stockholders Equity	A summary of the changes in equity is as follows: Three Months Ended March 31, 2019 Common Stock (in thousands except share amounts) Shares Value Additional Paid in Capital Retained Earnings AOCI Total December 31, 2018 23,416 $ 23,416 $ 39,575 $ 342,145 $ (891 ) $ 404,245 Net income (loss) available for common stock — — — 15,497 — 15,497 Other comprehensive income (loss), net of tax — — — — 12 12 Cumulative effect of ASU 2016-02, Leases implementation — — — (7 ) — (7 ) Other adjustments — — — 1 — 1 March 31, 2019 23,416 $ 23,416 $ 39,575 $ 357,636 $ (879 ) $ 419,748 Three Months Ended March 31, 2018 Common Stock (in thousands except share amounts) Shares Value Additional Paid in Capital Retained Earnings AOCI Total December 31, 2017 23,416 $ 23,416 $ 39,575 $ 332,499 $ (1,258 ) $ 394,232 Net income (loss) available for common stock — — — 11,760 — 11,760 Other comprehensive income (loss), net of tax — — — — 27 27 Non-cash dividend to Parent company — — — (16,000 ) — (16,000 ) Other adjustments — — — 1 — 1 March 31, 2018 23,416 $ 23,416 $ 39,575 $ 328,260 $ (1,231 ) $ 390,020

Management Statement (Details)

Management Statement (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operating lease assets	$ 14,316	$ 14,000
Operating Lease, Liability	$ 14,333	$ 14,000

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 78,920	$ 73,684
Other revenues	121	131
Revenues	79,041	73,815
Services transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	78,920	73,684
Retail
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	53,076	50,641
Wholesale
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	8,343	9,050
Market - off-system sales
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	4,670	2,275
Transmission/Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 12,831	$ 11,718

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accounts Receivable, Net [Abstract]
Accounts receivable trade	$ 18,196	$ 16,236
Unbilled revenues	10,356	12,333
Allowance for doubtful accounts	(198)	(138)
Accounts receivable, net	$ 28,354	$ 28,431

Regulatory Accounting_ Regulato

Regulatory Accounting: Regulatory Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Regulatory Assets [Line Items]
Total regulatory assets	$ 76,356	$ 75,732
Less current regulatory assets	(23,215)	(19,052)
Regulatory assets, non-current	53,141	56,680
Unamortized loss on reacquired debt
Regulatory Assets [Line Items]
Total regulatory assets	1,191	1,259
Deferred taxes on AFUDC
Regulatory Assets [Line Items]
Total regulatory assets	5,048	5,020
Employee benefit plans
Regulatory Assets [Line Items]
Total regulatory assets	20,085	19,868
Deferred energy and fuel cost adjustments - current
Regulatory Assets [Line Items]
Total regulatory assets	21,649	20,334
Deferred taxes on flow through accounting
Regulatory Assets [Line Items]
Total regulatory assets	9,045	8,749
Decommissioning costs
Regulatory Assets [Line Items]
Total regulatory assets	7,682	8,196
Vegetation management
Regulatory Assets [Line Items]
Total regulatory assets	9,790	10,366
Other regulatory assets
Regulatory Assets [Line Items]
Total regulatory assets	$ 1,866	$ 1,940

Regulatory Accounting_ Regula_2

Regulatory Accounting: Regulatory Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Regulatory Liabilities [Line Items]
Total regulatory liabilities	$ 163,793	$ 163,216
Less current regulatory liabilities	(2,079)	(2,574)
Regulatory liabilities, non-current	161,714	160,642
Cost of removal for utility plant
Regulatory Liabilities [Line Items]
Total regulatory liabilities	53,758	52,366
Employee benefit plan costs and related deferred taxes
Regulatory Liabilities [Line Items]
Total regulatory liabilities	7,518	7,518
Excess deferred income taxes
Regulatory Liabilities [Line Items]
Total regulatory liabilities	99,846	100,276
TCJA revenue reserve
Regulatory Liabilities [Line Items]
Total regulatory liabilities	2,079	2,523
Other regulatory liabilities
Regulatory Liabilities [Line Items]
Total regulatory liabilities	$ 592	$ 533

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Non-cash dividend to Parent		$ 16,000
Accounts receivable from affiliates	$ 9,903		$ 8,119
Accounts payable to affiliates	$ 26,966		25,804
Related Party Transaction, Utility Money Pool Interest Rate	2.88%
Money pool notes payable	$ 33,300		$ 38,690
Parent
Related Party Transaction [Line Items]
Non-cash dividend to Parent	$ 0	16,000
Commitment fee percentage	1.00%
Subsidiary of Common Parent
Related Party Transaction [Line Items]
Non-cash decrease to money pool notes receivable, net	$ 0	16,000
Subsidiary of Common Parent | Energy sold to Cheyenne Light
Related Party Transaction [Line Items]
Revenue	574	703
Subsidiary of Common Parent | Rent from electric properties
Related Party Transaction [Line Items]
Revenue	896	909
Subsidiary of Common Parent | Horizon Point shared facility revenues
Related Party Transaction [Line Items]
Revenue	3,007	2,769
Subsidiary of Common Parent | Purchases of coal from WRDC
Related Party Transaction [Line Items]
Fuel and purchased power	4,657	4,067
Subsidiary of Common Parent | Purchase of excess energy from Cheyenne Light
Related Party Transaction [Line Items]
Fuel and purchased power	132	86
Subsidiary of Common Parent | Purchase of renewable wind energy from Cheyenne Light - Happy Jack
Related Party Transaction [Line Items]
Fuel and purchased power	535	641
Subsidiary of Common Parent | Purchase of renewable wind energy from Cheyenne Light - Silver Sage
Related Party Transaction [Line Items]
Fuel and purchased power	983	1,093
Subsidiary of Common Parent | Gas transportation service agreement with Cheyenne Light for firm and interruptible gas transportation
Related Party Transaction [Line Items]
Fuel and purchased power	76	96
Subsidiary of Common Parent | Corporate support services and fees from Black Hills Service Company
Related Party Transaction [Line Items]
Fuel and purchased power	10,191	7,606
Utility Money Pool
Related Party Transaction [Line Items]
Net interest income (expense)	$ (273)	$ (36)

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Defined Benefit Pension Plan
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	$ 91	$ 129
Interest cost	603	548
Expected return on plan assets	(851)	(886)
Prior service cost (benefit)	2	11
Net loss (gain)	305	516
Net periodic benefit cost	150	318
Payment for Pension and Other Postretirement Benefits [Abstract]
Contributions Three Months Ended March 31, 2019	0
Remaining Anticipated Contributions for 2019	1,753
Anticipated Contributions for 2020	1,841
Defined Benefit Postretirement Healthcare Plan
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	37	48
Interest cost	47	45
Prior service cost (benefit)	(84)	(84)
Net periodic benefit cost	0	9
Payment for Pension and Other Postretirement Benefits [Abstract]
Contributions Three Months Ended March 31, 2019	117
Remaining Anticipated Contributions for 2019	349
Anticipated Contributions for 2020	466
Supplemental Non-qualified Defined Benefit Plans
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Interest cost	29	27
Net loss (gain)	16	26
Net periodic benefit cost	45	$ 53
Payment for Pension and Other Postretirement Benefits [Abstract]
Contributions Three Months Ended March 31, 2019	58
Remaining Anticipated Contributions for 2019	172
Anticipated Contributions for 2020	$ 240

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, carrying amount	$ 5	$ 112	$ 12	$ 16
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, carrying amount	5	112
Long-term debt, including current maturities, carrying amount	340,070	340,035
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	5	112
Long-term debt, including current maturities, fair value	$ 428,498	$ 412,894

Supplemental Disclosure of Ca_3

Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Noncash Investing and Financing Items [Abstract]
Property, plant and equipment acquired with accrued liabilities	$ 8,633	$ 7,556
Non-cash dividend to Parent		16,000
Interest and Income Taxes Paid Net [Abstract]
Interest (net of amounts capitalized)	(3,345)	(3,088)
Income taxes, net	0	0
Subsidiary of Common Parent
Noncash Investing and Financing Items [Abstract]
Non-cash (decrease) to money pool notes receivable, net	0	(16,000)
Parent
Noncash Investing and Financing Items [Abstract]
Non-cash dividend to Parent	$ 0	$ 16,000

Leases (Details)

Leases (Details)	Mar. 31, 2019
Minimum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	31 years

Leases_ Lease Costs (Details)

Leases: Lease Costs (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 228
Variable lease cost	43
Total lease cost	$ 271

Leases_ Supplemental Balance Sh

Leases: Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Operating lease assets	$ 14,316	$ 14,000
Operating leases, current	279
Operating leases, noncurrent	14,054
Total lease liabilities	$ 14,333	$ 14,000

Leases_ Supplemental Cash Flow

Leases: Supplemental Cash Flow Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 223
Right of use assets obtained in exchange for lease obligations	$ 0

Leases_ Weighted Average Inform

Leases: Weighted Average Information (Details)	Mar. 31, 2019
Leases [Abstract]
Weighted average remaining lease term (years)	31 years
Weighted average discount rate	4.40%

Leases_ Future Minimum Payments

Leases: Future Minimum Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Leases [Abstract]
2019	$ 681
2020	856
2021	855
2022	856
2023	853
Thereafter	21,947
Total lease payments	26,048
Less imputed interest	11,715
Present value of lease liabilities	$ 14,333	$ 14,000

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares Issued	23,416,396		23,416,396
Total Equity, beginning balance	$ 404,245	$ 394,232
Net income (loss) available for common stock	15,497	11,760
Other comprehensive income (loss), net of tax	12	27
Cumulative effect of ASU 2016-02, Leases implementation	(7)
Non-cash dividend to Parent company		(16,000)
Other adjustments	1	1
Total Equity, ending balance	$ 419,748	$ 390,020
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares Issued	23,416,000	23,416,000	23,416,000	23,416,000
Total Equity, beginning balance	$ 23,416	$ 23,416
Total Equity, ending balance	23,416	23,416
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total Equity, beginning balance	39,575	39,575
Total Equity, ending balance	39,575	39,575
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total Equity, beginning balance	342,145	332,499
Net income (loss) available for common stock	15,497	11,760
Cumulative effect of ASU 2016-02, Leases implementation	(7)
Non-cash dividend to Parent company		(16,000)
Other adjustments	1	1
Total Equity, ending balance	357,636	328,260
AOCI Attributable to Parent
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total Equity, beginning balance	(891)	(1,258)
Other comprehensive income (loss), net of tax	12	27
Total Equity, ending balance	$ (879)	$ (1,231)