Securities and Exchange Commission
Washington, D.C. 20549
Form 10-Q
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995.
OR
___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
ACT OF 1934
For the transition period from _______________ to _______________.
Commission File Number 1-7978
Black Hills Corporation
Incorporated in South Dakota IRS Identification Number 46-0111677
625 Ninth Street
Rapid City, South Dakota 57709
Registrant's telephone number (605)-348-1700
NONE
Former name, former address, and former fiscal year if changed since
last report
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the last practicable date.
Class Outstanding at October 31, 1995
Common stock, $1.00 par value 14,417,575 shares
BLACK HILLS CORPORATION
I N D E X
Page
Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets- 2-3
September 30, 1995, December 31, 1994,
and September 30, 1994
Consolidated Statements of Income- 4
Three, Nine, and Twelve Months
Ended September 30, 1995 and 1994
Consolidated Statements of Cash Flows- 5
Three, Nine, and Twelve Months
Ended September 30, 1995 and 1994
Consolidated Statements of Shareholders' Equity- 6
Three, Nine, and Twelve Months Ended
September 30, 1995 and 1994
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of 7-11
Financial Position and Consolidated
Statements of Earnings
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
BLACK HILLS CORPORATION
Consolidated Balance Sheets
(unaudited)
September 30 December 31 September 30
1995 1994 1994
(in thousands)
Assets
Current assets:
Cash and cash equivalents $ 11,674 $ 12,174 $ 6,819
Securities available for sale 4,696 24,134 29,325
Receivables-
Customers 13,004 12,409 11,911
Other 2,553 4,045 2,546
Materials, supplies,
and fuel 7,432 7,139 6,527
Prepaid expenses 1,595 1,564 1,469
-------- -------- --------
40,954 61,465 58,597
-------- -------- --------
Property and investments:
Electric 463,713 425,690 391,809
Coal mining 51,311 52,267 51,708
Oil and gas 38,755 38,842 37,316
Other 4,465 2,785 2,506
-------- -------- --------
558,244 519,584 483,339
Less accumulated depreciation
and depletion (168,248) (156,046) (153,196)
-------- -------- --------
Net property and
investments 389,996 363,538 330,143
-------- -------- --------
Deferred charges:
Federal income taxes 7,672 7,505 7,448
Other 5,198 4,369 4,505
12,870 11,874 11,953
-------- -------- --------
Total $443,820 $436,877 $400,693
======== ======== ========
BLACK HILLS CORPORATION
Consolidated Balance Sheets
(unaudited)
September 30 December 31 September 30
1995 1994 1994
(in thousands)
Liabilities and Capitalization
Current liabilities:
Current maturities of
long-term debt $ 2,070 $ 2,144 $ 2,144
Notes payable 4,403 37,018 7,493
Accounts payable 7,668 12,018 10,185
Accrued liabilities-
Income taxes 1,538 572 660
Other taxes 5,074 5,759 5,456
Interest 2,959 2,795 2,487
Fuel and purchased
power refunds 641 1,025 750
Other 6,154 7,101 6,689
-------- -------- --------
30,507 68,432 35,864
-------- -------- --------
Deferred credits:
Federal income taxes 42,514 39,953 38,549
Investment tax credits 5,144 5,521 5,648
Reclamation costs 7,881 7,618 7,713
Regulatory liability 6,662 6,925 6,912
Other 5,157 4,093 3,626
-------- -------- --------
67,358 64,110 62,448
-------- -------- --------
Capitalization:
Common stock equity-
Common stock 14,417 14,386 14,382
Additional paid-in
capital 46,231 45,740 45,662
Retained earnings 119,377 115,284 113,387
-------- -------- --------
Total common stock equity 180,025 175,410 173,431
Long-term debt 165,930 128,925 128,950
-------- -------- --------
345,955 304,335 302,381
-------- -------- --------
Total $443,820 $436,877 $400,693
======== ======== ========
BLACK HILLS CORPORATION
Consolidated Statements of Income
(unaudited)
Three Months Nine Months Twelve Months
September 30 September 30 September 30
1995 1994 1995 1994 1995 1994
(in thousands)
Operating revenues:
Electric $29,596 $27,734 $79,609 $79,574 $104,791 $104,638
Coal mining 6,754 7,664 21,490 20,197 29,887 28,056
Oil and gas 2,711 3,191 8,505 8,969 11,588 11,816
Other 250 - 250 - 250 -
------- ------- ------- ------- ------- -------
39,311 38,589 109,854 108,740 146,516 144,510
------- ------- ------- ------- ------- -------
Operating expenses:
Fuel and purchased
power 10,186 10,121 29,956 31,835 40,090 41,491
Operations and
maintenance 6,683 7,638 19,552 21,507 26,707 29,045
Administrative and
general 2,433 2,297 6,913 5,815 9,018 7,451
Depreciation,
depletion,
and amortization 5,633 4,441 15,281 13,327 19,631 17,837
Taxes, other than
income taxes 2,550 2,745 7,922 7,721 10,620 10,223
------- ------- ------- ------- ------- -------
27,485 27,242 79,624 80,205 106,066 106,047
------- ------- ------- ------- ------- -------
Operating income:
Electric 8,979 7,544 20,169 19,205 26,041 25,641
Coal mining 2,667 3,281 9,238 8,211 12,927 11,666
Oil and gas (20) 523 739 1,121 1,474 1,158
Other 200 (1) 84 (2) 8 (2)
------- ------- ------- ------- ------- -------
11,826 11,347 30,230 28,535 40,450 38,463
------- ------- ------- ------- ------- -------
Other (income) and
expense:
Interest expense 3,524 2,718 10,537 7,195 13,679 9,372
Investment income (295) (393) (953) (1,114) (1,471) (1,550)
Allowance for funds
used during
construction (1,014) (1,049) (5,840) (2,125) (7,698) (2,497)
Other (531) (137) (652) (167) (654) (250)
------- ------- ------- ------- ------- -------
1,684 1,139 3,092 3,789 3,856 5,075
------- ------- ------- ------- ------- -------
Income before income
taxes 10,142 10,208 27,138 24,746 36,594 33,388
Income taxes (3,210) (3,229) (8,564) (7,586) (11,376) (9,970)
------- ------- ------- ------- ------- -------
Net income available
for common stock $ 6,932 $ 6,979 $18,574 $17,160 $25,218 $23,418
======= ======= ======= ======= ======= =======
Weighted average common
shares outstanding 14,414 14,360 14,404 14,323 14,400 14,271
Earnings per share $0.48 $0.49 $1.29 $1.20 $1.75 $1.64
Dividends paid per
share of common stock $0.335 $0.330 $1.005 $0.990 $1.335 $1.310
BLACK HILLS CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
Three Months Nine Months Twelve Months
September 30 September 30 September 30
1995 1994 1995 1994 1995 1994
(in thousands)
Operating activities:
Net Income $ 6,932 $ 6,979 $18,574 $17,160 $25,218 $23,418
Principal non-cash items-
Depreciation, depletion,
and amortization 5,633 4,441 15,281 13,327 19,631 17,837
Deferred income taxes
and investment tax
credits, net 971 732 1,746 1,385 2,832 2,087
Allowance for other funds
used during construction (643) (538) (3,625) (1,101) (4,895) (1,254)
(Increase) decrease in
receivables, inventories,
and other current assets (2,709) (210) 574 (734) (2,657) (1,423)
Increase (decrease) in
other current
liabilities (2,099) 3,792 (5,237) 2,011 (2,193) 4,542
Other, net (351) 762 1,475 (388) 7,817 2,150
------- ------- ------- ------- ------- -------
7,734 15,958 28,788 31,660 45,753 47,357
------- ------- ------- ------- ------- -------
Investment activities:
Neil Simpson Unit #2
construction costs,
excluding allowance for
other funds used during
construction (4,790)(24,226) (26,546) (42,314) (56,186) (51,829)
Other property additions,
excluding allowance for
other funds used during
construction (4,724) (7,250) (12,420) (16,738) (24,415) (26,573)
Securities available for
sale purchased (2,005)(12,555) (10,439) (27,581) (24,579) (44,647)
Securities available for
sale sold 7,572 6,331 29,877 22,472 49,208 27,295
Proceeds from sale of
long-term investments 203 203 514 5,269 514 20,000
Long-term investments
purchased (632) - (632) - (632) -
------- ------- ------- ------- ------- -------
(4,376)(37,497) (19,646) (58,892) (56,090) (75,754)
------- ------- ------- ------- ------- -------
Financing activities:
Dividends paid (4,830) (4,736) (14,480) (14,172) (19,228) (18,729)
Common stock issued 140 758 522 2,354 604 15,721
Net short-term borrowings 835 (25,668) (32,615) (4,275) (3,090) (6,326)
Long-term debt issued 15,121 45,795 46,765 45,795 46,765 45,795
Long-term debt retired (7,517) (1,267) (9,834) (3,517) (9,859) (4,207)
------- ------- ------- ------- ------- -------
3,749 14,882 (9,642) 26,185 15,192 32,254
------- ------- ------- ------- ------- -------
Increase (decrease)
in cash and cash
equivalents 7,107 (6,657) (500) (1,047) 4,855 3,857
Cash and cash
equivalents:
Beginning of period 4,567 13,476 12,174 7,866 6,819 2,962
------- ------ ------- ------- ------- -------
End of period $11,674 $ 6,819 $11,674 $ 6,819 $11,674 $ 6,819
======= ======= ======= ======= ======= =======
Supplemental disclosure
of cash flow information
Cash paid during the
period for:
Interest $ 4,207 $ 1,822 $10,373 $ 6,410 $13,205 $ 8,949
Income taxes $ 1,550 $ 1,500 $ 5,695 $ 5,525 $ 7,460 $ 8,025
BLACK HILLS CORPORATION
Statements of Shareholders' Equity
(unaudited)
Three Months Nine Months Twelve Months
September 30 September 30 September 30
1995 1994 1995 1994 1995 1994
(in thousands)
Common stock:
Beginning of period $ 14,409 $ 14,345 $ 14,386 $ 14,270 $ 14,382 $ 13,715
Issuance of $1 par
value shares 8 37 31 112 35 667
-------- -------- -------- -------- -------- --------
End of period 14,417 14,382 14,417 14,382 14,417 14,382
-------- -------- -------- -------- -------- --------
Additional paid-in
capital:
Beginning of period 46,099 44,941 45,740 43,420 45,662 30,608
Excess of proceeds
over par value of
stock issued 133 763 494 2,251 594 15,711
Expenses related to
issuance of stock (1) (42) (3) (9) (25) (657)
-------- -------- -------- -------- -------- --------
End of period 46,231 45,662 46,231 45,662 46,231 45,662
-------- -------- -------- -------- -------- --------
Retained earnings:
Beginning of period 117,275 111,144 115,284 110,399 113,387 108,698
Net income 6,932 6,979 18,574 17,160 25,218 23,418
Cash dividends on
common stock (4,830) (4,736) (14,481) (14,172) (19,228) (18,729)
-------- -------- -------- -------- -------- --------
End of period 119,377 113,387 119,377 113,387 119,377 113,387
-------- -------- -------- -------- -------- --------
Total shareholders'
equity $180,025 $173,431 $180,025 $173,431 $180,025 $173,431
======== ======== ======== ======== ======== ========
See accompanying notes to consolidated financial statements.
BLACK HILLS CORPORATION
Notes to Consolidated Financial Statements
(Reference is made to Notes to Consolidated Financial Statements
included in the Company's Annual Report)
(1) Management's Statement
The financial statements included herein have been prepared by Black
Hills Corporation (the Company) without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations; however, the
Company believes that the footnotes adequately disclose the information
presented. It is suggested that these financial statements be read in
conjunction with the financial statements and the notes thereto, included in
the Company's 1994 Annual Report on Form 10-K filed with the Securities and
Exchange Commission.
In March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 121, Accounting for the Impairment of
Long-Lived Assets and Long-Lived Assets to be Disposed Of. This statement
imposes stricter criteria for regulatory assets by requiring that such assets
be probable of future recovery at each balance sheet date. The Company
anticipates adopting this standard on January 1, 1996, and does not expect
that adoption will have a material impact on the financial position or
results of operations of the Company based on the current regulatory
structure in which the Company operates.
In October 1995, the Financial Accounting Standards Board issued
Statement of Finacial Accounting Standards No. 123, Accounting for Stock-
Based Compensation. This statement, effective for fiscal years beginning
after December 15, 1995, encourages, but does not require, a fair value
based method of accounting for stock based compensation. It also allows an
entity to elect to continue to measure compensation cost under Accounting
Principles Board Opinion No. 25, Accounting for Stock Issued to Employees,
subject to certain limitations, but requires pro forma disclosures of net
income and earnings per share as if the fair value method of accounting
had been applied. The Company expects to adopt Statement No. 123 in 1996.
While the Company is still evaluating Statement No. 123, it currently does
not expect the adoption will have a significant impact.
Accounting methods historically employed require certain estimates as of
interim dates. The information furnished in the accompanying financial
statements reflects all adjustments which are, in the opinion of management,
necessary for a fair presentation of the September 30, 1995,
December 31, 1994, and September 30, 1994, financial information and are of
a normal recurring nature. The results of operations for the three and nine
months ended September 30, 1995, are not necessarily indicative of the
results to be expected for the full year.
(2) Neil Simpson Unit #2 Financing, Construction, and Rate Impact
The Company filed a Form S-3, shelf registration for $100,000,000 first
mortgage bonds, with the Securities and Exchange Commission on June 28, 1994.
The registration statement became effective on July 13, 1994. The Company
issued $45,000,000 of bonds under this filing on September 1, 1994,
$30,000,000 of bonds on February 3, 1995 and $15,000,000 on July 14, 1995.
The $45,000,000 bond issue has a 30 year life and carries an 8.30 percent
interest rate. The $30,000,000 bond issue has a 15 year life, carries an
8.06 percent interest rate, and the bondholders have a one-time option to
cause the Company to redeem the bonds on February 1, 2002. The $15,000,000
bond issue has a 7 year life and carries a 6.50 percent interest rate. The
bonds were used to finance Neil Simpson Unit #2, an 80 MW coal fired
generating plant, located adjacent to Wyodak Resources Development Corp's
coal mine. The $15,000,000 bond issue completed the long-term debt financing
associated with Neil Simpson Unit #2.
The Plant began commercial operation in August 1995. Total cost of the
plant is approximately $121,500,000, $3,400,000 under the initial project
budget.
Effective August 1, 1995, the Company was authorized a 6.76 percent
overall increase in its electric rates charged to its South Dakota customers.
Based on test year ended September 30, 1994, this increase would result in
additional annual revenues from South Dakota customers of approximately
$5,725,000. The settlement also stated that unless a specified extraordinary
event occurs, the Company will not file for an increase in rates or invoke
any fuel and purchased power automatic adjustment tariff to take effect
during a freeze period ending January 1, 2000. (For further information see
the Company's Form 8-K dated June 30, 1995.)
The Company has reached settlement with The Wyoming Public Service
Commission Staff and intervenors providing for an 8.97 percent increase in
electric rates charged Wyoming retail customers effective August 15, 1995.
The Wyoming Commission has allowed the rates to go into effect subject to
refund and final approval of the settlement.
The Federal Energy Regulatory Commission has accepted for filing,
effective September 6, 1995, a negotiated contract amendment providing for a
12.3 percent increase in electric rates to be charged its only wholesale
customer, the City of Gillette. The increase will be reduced to an 8.8
percent increase from current rates commencing January 1, 1997, when the
Company expects to receive additional revenue from sales to Montana-Dakota
Utilities Co. (MDU) for its Sheridan, Wyoming service territory. Acceptance
by the Federal Energy Regulatory Commission of the sale contract to MDU is
pending.
The Company derives approximately 86 percent of its total electric
revenues from its South Dakota customers and 7 percent from each of its
Wyoming retail customers and the City of Gillette.
(3) Economic Shut-Down of Kirk Power Plant
On September 1, 1995, the Company placed the Kirk Power Plant in cold
reserve due to economic conditions. The Kirk Plant is an 18,750 kilowatt
coal-fired electric generating plant built in 1956. The Company placed the
plant in cold reserve because energy can be purchased on the market at a
lower price than can be generated from the plant. Operating costs of the
plant are high due to coal transportation costs and the high ratio of
employees to megawatt generation. The Company anticipates the savings from
the shutdown are currently about $1,000,000 a year before Federal Income
Taxes. The plant can be brought back into operations within 30 days if
economic conditions should change.
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity, Capital Resources, and Commitments
In the past the Company has depended upon internally generated funds,
issuance of short and long-term debt, and sales of common stock to finance
its activities. It is expected future activities will also be financed by
the most appropriate mix of these various sources of funds.
The Company currently has bank lines of credit totaling $41,000,000
which provides for interim borrowings and the opportunity for timing of
permanent financing. At September 30, 1995, the Company had borrowings of
$4,360,000 outstanding under these lines of credit. There are no
compensating balance requirements associated with these lines of credit.
Results of Operations
Black Hills Corporation is an energy services company consisting of
three principal businesses: electric, coal mining, and oil and gas
production.
Consolidated income was $6,932,000 for the three months ended,
$18,574,000 for the nine months ended, and $25,218,000 for the twelve months
ended September 30, 1995, a decrease of $47,000 for the three month period
and an increase of $1,414,000 and $1,800,000 for the nine and twelve month
periods, respectively.
The slight decrease in earnings for the third quarter was due to a
$449,000 decrease in non-electric earnings offset by a $402,000 increase in
electric earnings. The increase in electric earnings was caused by a 7
percent increase in electric revenue offset by an increase in expenses
primarily due to the depreciation and operational expenses associated with
Neil Simpson Unit #2 which began commercial operation in August 1995. The
decrease in non-electric earnings was due to a 12 percent decrease in tons of
coal sold and a decrease in natural gas prices. The decrease in the tons of
coal sold was caused by an unscheduled two week outage at the Wyodak Plant
due to a lightning strike to the plant's transformer. Sales of coal are
expected to continue to be approximately 10 percent less until April 1996,
when a new transformer is expected to be installed replacing a defective
transformer being used in the interim.
The increase in earnings for the nine and twelve month periods was due
to an increase in electric and coal earnings. Electric earnings increased
due to the increase in electric rates and an increase in allowance for funds
used during construction offset by an increase in interest expense. Coal
earnings increased due to an increase in the tons of coal sold caused by the
decrease in coal sold to the Wyodak Plant in the second quarter of 1994 due
to its planned maintenance.
Consolidated revenue and income from continuing operations provided by
the three businesses as a percentage of the total were as follows:
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 September 30 September 30
1995 1994 1995 1994 1995 1994
Revenue
Electric 75% 72% 72% 73% 72% 72%
Coal mining 17 20 20 19 20 20
Oil and gas 7 8 8 8 8 8
Other 1 - - - - -
--- --- --- --- --- ---
100% 100% 100% 100% 100% 100%
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 September 30 September 30
1995 1994 1995 1994 1995 1994
Net Income
Electric 64% 57% 57% 56% 55% 55%
Coal mining 34 37 40 41 41 42
Oil and gas 1 6 3 3 4 3
Other 1 - - - - -
--- --- --- --- --- ---
100% 100% 100% 100% 100% 100%
Capital expenditures and depreciation, depletion, and amortization by
industry segment were as follows:
Three Months Ended Nine Months Ended Twelve Months Ended
September 30 September 30 September 30
1995 1994 1995 1994 1995 1994
(in thousands)
Capital Expenditures
(includes AFDC)
Neil Simpson
Unit #2 $ 5,313 $24,668 $29,945 $43,217 $ 60,709 $52,825
Other electric 3,162 4,868 8,762 10,360 12,591 12,989
Coal mining 172 22 355 509 5,286 6,186
Oil and gas 1,510 2,456 3,529 6,068 6,438 7,656
Other - - - - 472 -
------- ------- ------- ------- -------- -------
$10,157 $32,014 $42,591 $60,154 $ 85,496 $79,656
======= ======= ======= ======= ======== =======
Depreciation,
Depletion, and
Amortization
Electric $3,249 $2,564 $ 8,554 $ 7,710 $11,158 $10,216
Coal mining 873 577 2,811 1,710 3,529 2,285
Oil and gas 1,482 1,300 3,828 3,907 4,780 5,336
Other 29 - 88 - 164 -
------ ------ ------- ------- ------- -------
$5,633 $4,441 $15,281 $13,327 $19,631 $17,837
====== ====== ======= ======= ======= =======
Electric Operations
Electric revenue increased 7 percent for the three months ended and was
relatively flat for the nine and twelve months ended September 30, 1995.
Electric revenue for the three, nine, and twelve month periods increased as
a result of the increase in electric rates offset in the nine and twelve
month periods by a decrease in fuel and purchased power expense that was
passed on to the customers through the automatic fuel and purchased power
adjustment clause. The Wyodak Plant was out of service for maintenance
during the second quarter of 1994 causing an increase in purchased power
costs.
Electric expenses increased 2 percent for the three months ended and
decreased slightly for the nine and twelve months ended September 30, 1995,
compared to the same periods last year. The increase in expenses for the
three month period was due to an increase in depreciation expense associated
with Neil Simpson Unit #2. The decrease in expenses for the nine and twelve
months ended September 30, 1995 was primarily due to a decrease in purchased
power costs offset by an increase in depreciation and administrative and
general expenses.
Non-operating income increased for the nine and twelve months ended
September 30, 1995, primarily due to the allowance for funds used during
construction recorded on the Neil Simpson Unit #2 construction project.
Allowance for funds used during construction decreased $35,000 for the three
month period and increased $3,715,000 and $5,201,000 for the nine and twelve
month periods, while interest expense increased $826,000, $3,336,000, and
$4,344,000, respectively.
Mining Operations
Mining revenue decreased 12 percent for the three month period and
increased 6 percent and 7 percent for the nine and twelve month periods ended
September 30, 1995, compared to the same periods last year. Tons of coal
sold decreased 12 percent for the three month period and increased 6 percent
and 5 percent for the nine and twelve month periods, respectively. The
decrease in the tons of coal sold in the third quarter was due to an
unscheduled two week outage at the Wyodak Plant caused by a lightning strike
to the plant's transformer. The increase in the tons of coal sold for the
nine and twelve month periods was because the Wyodak Plant was out of service
for maintenance for 35 days during the second quarter of 1994 thereby
reducing the tons of coal sold significantly in 1994.
Mining operating expenses decreased 7 percent for the three month period
and increased 2 percent and 3 percent for the nine and twelve month periods
ended September 30, 1995. The change in operating expenses is a direct
reflection of the change in the quantity of coal sold.
Other income increased $346,000, $356,000, and $400,000 for the three,
nine, and twelve month periods. The increase was due to income recognition
associated with the disposal of certain coal facilities offset by a decrease
in interest income. Interest income decreased due to a decrease in the
amount of cash available for investments. The coal mining company payed
$30,000,000 of dividends to the utility company in 1995 to help finance the
construction of Neil Simpson Unit #2.
Oil and Gas Production Operations
Oil and gas production revenue which represents less than 10 percent of
consolidated revenue decreased 15 percent, 5 percent, and 2 percent for the
three, nine, and twelve months ended September 30, 1995, directly related to
a decrease in gas prices offset by an increase in equivalent barrels of oil
sold as a result of the Company's 1993 and 1994 drilling program.
Operating expenses increased 2 percent for the three month period and
decreased 1 percent and 5 percent for the nine and twelve month periods ended
September 30, 1995. The decrease in expenses for the nine and twelve month
periods was due to lower depletion expense.
BLACK HILLS CORPORATION
Part II - Other Information
Item 1. Legal Proceedings
The Company and PacifiCorp have signed a definitive
settlement agreement for the claim filed by the
Company on May 2, 1995 against PacifiCorp before the
Federal Energy Regulatory Commission (FERC). (See
Legal Proceeding in the Company's Form 10-Q for the
quarterly period ended June 30, 1995.) The agreement
is still subject to approval or acceptance by the
FERC.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
None
b. Reports on Form 8-K
The Registrant filed a Form 8-K on July 17, 1995, reporting
the issuance and sale of $15,000,000 First Mortgage Bonds, Series AD, 6.50
percent, due July 15, 2002, under a Registration Statement on Form S-3
(Registration No. 33-54329).
BLACK HILLS CORPORATION
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BLACK HILLS CORPORATION
/s/ Dale E. Clement
Dale E. Clement, Senior Vice President - Finance
(Principal Financial Officer)
/s/ Gary R. Fish
Gary R. Fish, Controller
(Principal Accounting Officer)
Dated: November 13, 1995