191423R0600262015242116253172642218273192842029521306223172332282433925341026411273122811329514306153171632817339181O1019211203122141318 R060026 0-1 2018-01-01 2018-12-31 R060026 ScheduleStoresExpenseUndistributedAbstract 2018-01-01 2018-12-31 R060026 0-27 2018-12-31 R060026 0-11 2017-12-31 R060026 0-5 2018-01-01 2018-12-31 R060026 0-16 2018-01-01 2018-12-31 R060026 0-4 2018-01-01 2018-12-31 R060026 0-25 2018-12-31 R060026 0-29 2018-01-01 2018-12-31 R060026 0-26 2017-12-31 R060026 0-6 2018-01-01 2018-12-31 R060026 0-29 2018-12-31 R060026 0-20 2018-01-01 2018-12-31 R060026 0-20 2018-01-01 2018-12-31 R060026 0-28 2018-01-01 2018-12-31 R060026 0-7 2018-01-01 2018-12-31 R060026 0-20 2018-12-31 R060026 0-14 2017-12-31 R060026 0-18 2017-12-31 R060026 0-4 2018-01-01 2018-12-31 R060026 0-19 2017-12-31 R060026 0-16 2018-12-31 R060026 0-28 2018-12-31 R060026 0-21 2018-12-31 R060026 0-12 2018-01-01 2018-12-31 R060026 0-22 2018-01-01 2018-12-31 R060026 0-22 2018-12-31 R060026 0-4 2017-12-31 R060026 0-3 2018-01-01 2018-12-31 R060026 0-34 2018-12-31 R060026 0-14 2018-01-01 2018-12-31 R060026 0-19 2017-12-31 R060026 0-32 2018-01-01 2018-12-31 R060026 0-2 2018-01-01 2018-12-31 R060026 0-25 2018-01-01 2018-12-31 R060026 0-18 2018-01-01 2018-12-31 R060026 0-16 2018-01-01 2018-12-31 R060026 0-3 2018-12-31 R060026 0-4 2018-12-31 R060026 0-19 2018-01-01 2018-12-31 R060026 0-12 2017-12-31 R060026 0-26 2018-01-01 2018-12-31 R060026 0-5 2017-12-31 R060026 0-13 2018-12-31 R060026 0-17 2018-12-31 R060026 ScheduleResearchDevelopmentOrDemonstrationExpendituresAbstract 2018-01-01 2018-12-31 R060026 0-28 2018-01-01 2018-12-31 R060026 0-2 2018-01-01 2018-12-31 R060026 0-3 2018-12-31 R060026 0-13 2017-12-31 R060026 ScheduleLongTermDebtAbstract 2018-01-01 2018-12-31 R060026 0-10 2018-01-01 2018-12-31 R060026 0-19 2018-12-31 R060026 0-9 2018-01-01 2018-12-31 R060026 0-21 2018-01-01 2018-12-31 R060026 0-33 2018-01-01 2018-12-31 R060026 0-18 2017-12-31 R060026 0-15 2017-12-31 R060026 0-20 2018-01-01 2018-12-31 R060026 0-7 2017-12-31 R060026 0-27 2017-12-31 R060026 0-24 2018-01-01 2018-12-31 R060026 0-19 2018-12-31 R060026 0-24 2017-12-31 R060026 0-31 2018-12-31 R060026 0-22 2017-12-31 R060026 0-33 2018-01-01 2018-12-31 R060026 0-4 2018-01-01 2018-12-31 R060026 ScheduleAnalysisOfBillingNonAssociateCompaniesAbstract 2018-01-01 2018-12-31 R060026 0-10 2018-12-31 R060026 0-30 2018-01-01 2018-12-31 R060026 0-1 2018-01-01 2018-12-31 R060026 0-18 2018-12-31 R060026 0-20 2018-12-31 R060026 0-22 2018-01-01 2018-12-31 R060026 0-15 2018-01-01 2018-12-31 R060026 0-8 2018-01-01 2018-12-31 R060026 0-17 2018-01-01 2018-12-31 R060026 0-27 2018-01-01 2018-12-31 R060026 0-23 2018-01-01 2018-12-31 R060026 0-3 2018-01-01 2018-12-31 R060026 0-24 2018-01-01 2018-12-31 R060026 0-21 2018-01-01 2018-12-31 R060026 0-34 2017-12-31 R060026 0-26 2018-12-31 R060026 0-29 2017-12-31 R060026 0-20 2017-12-31 R060026 0-21 2017-12-31 R060026 2018-12-31 R060026 0-13 2018-01-01 2018-12-31 R060026 0-10 2018-01-01 2018-12-31 R060026 0-13 2018-01-01 2018-12-31 R060026 0-11 2018-01-01 2018-12-31 R060026 0-23 2018-12-31 R060026 0-7 2018-01-01 2018-12-31 R060026 0-18 2018-01-01 2018-12-31 R060026 0-17 2017-12-31 R060026 0-4 2018-01-01 2018-12-31 R060026 0-3 2017-12-31 R060026 0-9 2017-12-31 R060026 0-3 2017-12-31 R060026 0-27 2018-01-01 2018-12-31 R060026 0-4 2018-12-31 R060026 2017-01-01 2017-12-31 R060026 0-3 2018-01-01 2018-12-31 R060026 0-12 2018-01-01 2018-12-31 R060026 0-7 2018-12-31 R060026 0-31 2018-01-01 2018-12-31 R060026 0-25 2018-01-01 2018-12-31 R060026 0-8 2018-01-01 2018-12-31 R060026 0-11 2018-01-01 2018-12-31 R060026 0-18 2018-01-01 2018-12-31 R060026 0-9 2018-01-01 2018-12-31 R060026 0-21 2018-12-31 R060026 0-5 2018-01-01 2018-12-31 R060026 0-24 2018-12-31 R060026 0-6 2018-01-01 2018-12-31 R060026 0-11 2018-12-31 R060026 0-28 2017-12-31 R060026 0-25 2017-12-31 R060026 ScheduleMiscellaneousCurrentAndAccruedAssetsAbstract 2018-01-01 2018-12-31 R060026 0-32 2018-01-01 2018-12-31 R060026 0-9 2018-12-31 R060026 0-17 2018-01-01 2018-12-31 R060026 0-15 2018-12-31 R060026 0-14 2018-12-31 R060026 0-34 2018-01-01 2018-12-31 R060026 0-12 2018-12-31 R060026 0-18 2018-12-31 R060026 2018-01-01 2018-12-31 R060026 0-19 2018-01-01 2018-12-31 R060026 0-26 2018-01-01 2018-12-31 R060026 0-31 2018-01-01 2018-12-31 R060026 0-14 2018-01-01 2018-12-31 R060026 0-23 2018-01-01 2018-12-31 R060026 0-5 2018-12-31 R060026 0-30 2018-01-01 2018-12-31 R060026 0-15 2018-01-01 2018-12-31 R060026 0-10 2017-12-31 R060026 0-3 2018-01-01 2018-12-31 R060026 0-4 2017-12-31 R060026 0-29 2018-01-01 2018-12-31 R060026 0-21 2018-01-01 2018-12-31 R060026 0-19 2018-01-01 2018-12-31 R060026 0-16 2017-12-31 R060026 2017-12-31 R060026 0-23 2017-12-31 R060026 0-6 2018-12-31 R060026 ScheduleFuelStockExpensesUndistributedAbstract 2018-01-01 2018-12-31 R060026 0-6 2017-12-31 iso4217:USD pure
THIS FILING IS
Item 1:
An Initial (Original) Submission
OR
Resubmission No.

FERC FINANCIAL REPORT
FERC FORM No. 60: Annual Report
of Centralized Service Companies

This report is mandatory under the Public Utility Holding Company Act of 2005, Section 1270, Section 309 of the Federal Power Act and 18 C.F.R. § 366.23. Failure to report may result in criminal fines, civil penalties, and other sanctions as provided by law. The Federal Energy Regulatory Commission does not consider this report to be of a confidential nature.
Exact Legal Name of Respondent (Company)

Black Hills Service Company, LLC
Year/Period of Report:

End of:
2018
/
Q4


GENERAL INSTRUCTIONS FOR FILING FERC FORM NO. 60

  1. Purpose

    Form No. 60 is an annual regulatory support requirement under 18 CFR 369.1for centralized service companies. The report is designed to collect financial information from centralized service companies subject to the jurisdiction of the Federal Energy Regulatory Commission. The report is considered to be a non-confidential public use form.
  2. Who Must Submit

    Unless the holding company system is exempted or granted a waiver by Commission rule or order pursuant to §§ 18 CFR 366.3 and 366.4 of this chapter, every centralized service company (see § 367.2) in a holding company system must prepare and file electronically with the Commission the FERC Form No. 60 then in effect pursuant to the General Instructions set out in this form.
  3. How to Submit

    Submit FERC Form No. 60 electronically through the Form No. 60 Submission Software. Retain one copy of each report for your files. For any resubmissions, submit the filing using the Form No. 60 Submission Software including a justification. Respondents must submit the Corporate Officer Certification electronically.
  4. When to Submit

    Submit FERC Form No. 60 according to the filing date contained § 18 CFR 369.1 of the Commission’s regulations.
  5. Preparation

    Prepare this report in conformity with the Uniform System of Accounts (18 CFR 367) (USof A). Interpret all accounting words and phrases in accordance with the USof A.
  6. Time Period

    This report covers the entire calendar year.
  7. Whole Dollar Usage

    Enter in whole numbers (dollars) only, except where otherwise noted. The amounts shown on all supporting pages must agree with the amounts entered on the statements that they support. When applying thresholds to determine significance for reporting purposes, use for balance sheet accounts the balances at the end of the current reporting period, and use for statement of income accounts the current year's amounts.
  8. Accurateness

    Complete each question fully and accurately, even if it has been answered in a previous report. Enter the word "None" where it truly and completely states the fact.
  9. Applicability

    For any page(s) that is not applicable to the respondent, enter "NONE," or "Not Applicable" in column (c) on the List of Schedules, page 2.
  10. Date Format

    Enter the month, day, and year for all dates. Use customary abbreviations. The "Resubmission Date" included in the header of each page is to be completed only for resubmissions (see III. above).
  11. Number Format

    Generally, except for certain schedules, all numbers, whether they are expected to be debits or credits, must be reported as positive. Numbers having a sign that is different from the expected sign must be reported by use of a minus sign.
  12. Required Entries

    Do not make references to reports of previous years or to other reports instead of required entries, except as specifically authorized.
  13. Prior Year References

    Wherever (schedule) pages refer to figures from a previous year, the figures reported must be based upon those shown by the report of the previous year, or an appropriate explanation given as to why the different figures were used.
  14. Where to Send Comments on Public Reporting Burden

    The public reporting burden for the Form No. 60 collection of information is estimated to average 75 hours per response, including

    • the time for reviewing instructions, searching existing data sources,
    • gathering and maintaining the data-needed, and
    • completing and reviewing the collection of information.

    Send comments regarding these burden estimates or any aspect of this collection of information, including suggestions for reducing burden, to:

    Federal Energy Regulatory Commission, (Attention: Information Clearance Officer, CIO),
    888 First Street NE,
    Washington, DC 20426
    or by email to DataClearance@ferc.gov

    And to:

    Office of Information and Regulatory Affairs,
    Office of Management and Budget, Washington, DC 20503 (Attention: Desk Office for the Federal Energy Regulatory Commission).
    Comments to OMB should be submitted by email to: oira_submission@omb.eop.gov

    No person shall be subject to any penalty if any collection of information does not display a valid control number (44 U.S.C. 3512(a)).

DEFINITIONS
  1. Respondent -- The person, corporation, or other legal entity in whose behalf the report is made.

FERC FORM NO.
60

REPORT OF CENTRALIZED SERVICE COMPANIES
Identification
01 Exact Legal Name of Respondent

Black Hills Service Company, LLC
02 Year / Period of Report

2018
/
Q4
03 Previous Name (if name changed during the year)

04 Date of Name Change

05 Address of Principal Office at End of Year (Street, City, State, Zip Code)

7001 Mt. Rushmore Rd., Rapid City, SD 57702
06 Name of Contact Person

Kimberly Nooney
07 Title of Contact Person

VP - Corporate Controller & Treasurer
08 Address of Contact Person

7001 Mt. Rushmore Rd., Rapid City, SD 57702
09 Telephone Number of Contact Person

(605) 721-2370
10 E-mail Address of Contact Person

kim.nooney@blackhillscorp.com
11 This Report is An Original / A Resubmission

(1)
An Original

(2)
A Resubmission
12 Resubmission Date (Month, Day, Year)

13 Date of Incorporation

12/30/2004
14 If Not Incorporated, Date of Organization

15 State or Sovereign Power Under Which Incorporated or Organized

16 Name of Principal Holding Company Under Which Reporting Company is Organized:

Black Hills Corporation
CORPORATE OFFICER CERTIFICATION
The undersigned officer certifies that:

I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are correct statements of the business affairs of the respondent and the financial statements, and other financial information contained in this report, conform in all material respects to the Uniform System of Accounts.

17 Name of Signing Officer

Kimberly Nooney
18 Title of Signing Officer

VP - Corporate Controller & Treasurer
19 Signature of Signing Officer

20 Date Signed (Month, Day, Year)

05/01/2019

FOOTNOTE DATA

(a) Concept: StateOfIncorporation
Original value: SOUTH DAKOTA

Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
List of Schedules
  1. Enter in Column (c) the terms “None” or “Not Applicable” as appropriate, where no information or amounts have been reported for certain pages.
Line No.
Description
(a)
Page Reference
(b)
Remarks
(c)
1
ScheduleComparativeBalanceSheetAbstract
Schedule I - Comparative Balance Sheet
101
2
ScheduleServiceCompanyPropertyAbstract
Schedule II - Service Company Property
103
3
ScheduleAccumulatedProvisionForDepreciationAndAmortizationOfServiceCompanyPropertyAbstract
Schedule III - Accumulated Provision for Depreciation and Amortization of Service Company Property
104
4
ScheduleInvestmentsAbstract
Schedule IV - Investments
105
4.1
ScheduleOtherInvestmentsAbstract
Schedule IV - Investments - Other Investments
105
4.2
ScheduleOtherSpecialFundsAbstract
Schedule IV - Investments - Other Special Funds
105
4.3
ScheduleTemporaryCashInvestmentsAbstract
Schedule IV - Investments - Temporary Cash Investments
105
5
ScheduleAccountsReceivableFromAssociateCompaniesAbstract
Schedule V - Accounts Receivable from Associate Companies
106
6
ScheduleFuelStockExpensesUndistributedAbstract
Schedule VI - Fuel Stock Expenses Undistributed
107
None
7
ScheduleStoresExpenseUndistributedAbstract
Schedule VII - Stores Expense Undistributed
108
None
8
ScheduleMiscellaneousCurrentAndAccruedAssetsAbstract
Schedule VIII - Miscellaneous Current and Accrued Assets
109
None
9
ScheduleMiscellaneousDeferredDebitsAbstract
Schedule IX - Miscellaneous Deferred Debits
110
10
ScheduleResearchDevelopmentOrDemonstrationExpendituresAbstract
Schedule X - Research, Development, or Demonstration Expenditures
111
None
11
ScheduleProprietaryCapitalAbstract
Schedule XI - Proprietary Capital
201
12
ScheduleLongTermDebtAbstract
Schedule XII - Long-Term Debt
202
None
13
ScheduleCurrentAndAccruedLiabilitiesAbstract
Schedule XIII - Current and Accrued Liabilities
203
14
ScheduleNotesToFinancialStatementsAbstract
Schedule XIV - Notes to Financial Statements
204
15
ScheduleStatementOfIncomeAbstract
Schedule XV - Comparative Income Statement
301
16
ScheduleAnalysisOfChargesForServiceAssociateAndNonAssociateCompaniesAbstract
Schedule XVI - Analysis of Charges for Service - Associate and Nonassociate Companies
303
17
ScheduleAnalysisOfBillingAssociateCompaniesAbstract
Schedule XVII - Analysis of Billing - Associate Companies (Account 457)
307
18
ScheduleAnalysisOfBillingNonAssociateCompaniesAbstract
Schedule XVIII - Analysis of Billing - Non-Associate Companies (Account 458)
308
None
21
ScheduleMiscellaneousGeneralExpensesAbstract
Schedule XIX - Miscellaneous General Expenses - Account 930.2
309
23
ScheduleOrganizationChartAbstract
Schedule XX - Organization Chart
401
24
ScheduleMethodsOfAllocationAbstract
Schedule XXI - Methods of Allocation
402


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule I - Comparative Balance Sheet
  1. Give balance sheet of the Company as of December 31 of the current and prior year.
Line No.
Account Number
(a)
Description
(b)
Reference Page No.
(c)
As of Dec 31 Current
(d)
As of Dec 31 Prior
(e)
1
ServiceCompanyPropertyAbstract
Service Company Property
2
ServiceCompanyPropertyGross
Service Company Property
103
3
PropertyUnderCapitalLeases
Property Under Capital Leases
103
4
CompletedConstructionNotClassified
Completed Construction Not Classified
5
ConstructionWorkInProgress
Construction Work In Progress
103
(c)
4,854,126
(l)
1,749,651
6
Property
Total Property (Total Of Lines 2-5)
4,854,126
1,749,651
7
AccumulatedProvisionforDepreciationofServiceCompanyProperty
Less: Accumulated Provision for Depreciation of Service Company Property
104
(d)
14,034
(m)
952
8
AccumulatedProvisionforAmortizationofServiceCompanyProperty
Less: Accumulated Provision for Amortization of Service Company Property
9
ServiceCompanyPropertyNet
Net Service Company Property (Total of Lines 6-8)
4,840,092
1,750,603
10
InvestmentsAbstract
Investments
11
InvestmentInAssociateCompanies
Investment In Associate Companies
105
12
OtherInvestments
Other Investments
105
13
OtherSpecialFunds
Other Special Funds
105
(e)
7,473,549
(n)
7,043,640
14
Investments
Total Investments (Total of Lines 11-13)
7,473,549
7,043,640
15
CurrentAndAccruedAssetsAbstract
Current And Accrued Assets
16
Cash
Cash
17
OtherSpecialDeposits
Other Special Deposits
18
WorkingFunds
Working Funds
19
TemporaryCashInvestments
Temporary Cash Investments
105
20
NotesReceivable
Notes Receivable
21
CustomerAccountsReceivable
Customer Accounts Receivable
22
OtherAccountsReceivable
Accounts Receivable
933,170
348,142
23
AccumulatedProvisionForUncollectibleAccountsCredit
Less: Accumulated Provision for Uncollectible Accounts
23.1
NotesReceivableFromAssociatedCompanies
Notes Receivable From Associate Companies
24
AccountsReceivableFromAssociateCompanies
Accounts Receivable From Associate Companies
106
(f)
62,487,007
(o)
57,222,843
25
FuelStockExpensesUndistributed
Fuel Stock Expenses Undistributed
107
26
MaterialsAndOperatingSupplies
Materials And Supplies
11,455
4,703
27
StoresExpenseUndistributed
Stores Expense Undistributed
108
28
Prepayments
Prepayments
8,505,748
8,082,068
29
InterestAndDividendsReceivable
Interest And Dividends Receivable
30
RentsReceivable
Rents Receivable
31
AccruedRevenues
Accrued Revenues
32
MiscellaneousCurrentAndAccruedAssets
Miscellaneous Current and Accrued Assets
109
33
DerivativeInstrumentAssets
Derivative Instrument Assets
34
DerivativeInstrumentAssetsHedges
Derivative Instrument Assets - Hedges
35
CurrentandAccruedAssets
Total Current and Accrued Assets (Total of Lines 16-34)
71,937,380
65,657,756
36
DeferredDebitsAbstract
Deferred Debits
37
UnamortizedDebtExpense
Unamortized Debt Expense
38
OtherRegulatoryAssets
Other Regulatory Assets
(g)
24,608,616
39
PreliminarySurveyAndInvestigationCharges
Preliminary Survey And Investigation Charges
40
ClearingAccounts
Clearing Accounts
3,274
41
TemporaryFacilities
Temporary Facilities
42
MiscellaneousDeferredDebits
Miscellaneous Deferred Debits
110
418,117
568,730
43
ResearchDevelopmentOrDemonstrationExpenditures
Research, Development, or Demonstration Expenditures
111
44
UnamortizedLossOnReacquiredDebt
Unamortized Loss on Reacquired Debt
45
AccumulatedDeferredIncomeTaxes
Accumulated Deferred Income Taxes
46
DeferredDebits
Total Deferred Debits (Total of Lines 37-45)
25,030,007
568,730
47
AssetsAndOtherDebits
TOTAL ASSETS AND OTHER DEBITS (TOTAL OF LINES 9, 14, 35 and 46)
109,281,028
75,020,729
48
ProprietaryCapitalAbstract
Proprietary Capital
49
CommonStockIssued
Common Stock Issued
201
50
PreferredStockIssued
Preferred Stock Issued
201
51
MiscellaneousPaidInCapital
Miscellaneous Paid-In-Capital
201
100,000
100,000
52
AppropriatedRetainedEarnings
Appropriated Retained Earnings
201
53
UnappropriatedRetainedEarnings
Unappropriated Retained Earnings
201
778,368
778,368
54
AccumulatedOtherComprehensiveIncome
Accumulated Other Comprehensive Income
201
(h)
7,850,467
20,235,039
55
ProprietaryCapital
Total Proprietary Capital (Total of Lines 49-54)
8,528,835
20,913,407
56
LongTermDebtAbstract
Long-Term Debt
57
AdvancesFromAssociateCompanies
Advances From Associate Companies
202
58
OtherLongTermDebt
Other Long-Term Debt
202
59
UnamortizedPremiumonLongTermDebt
Unamortized Premium on Long-Term Debt
60
UnamortizedDiscountonLongTermDebtDebit
Less: Unamortized Discount on Long-Term Debt-Debit
61
LongTermDebt
Total Long-Term Debt (Total of Lines 57-60)
62
OtherNoncurrentLiabilitiesAbstract
Other Non-current Liabilities
63
ObligationsUnderCapitalLeaseNoncurrent
Obligations Under Capital Leases-Non-current
64
AccumulatedProvisionForInjuriesAndDamages
Accumulated Provision for Injuries and Damages
559,212
564,447
65
AccumulatedProvisionForPensionsandBenefits
Accumulated Provision For Pensions and Benefits
(i)
69,227,081
52,327,179
66
AssetRetirementObligations
Asset Retirement Obligations
67
OtherNoncurrentLiabilities
Total Other Non-current Liabilities (Total of Lines 63-66)
69,786,293
52,891,626
68
CurrentandAccruedLiabilitiesAbstract
Current and Accrued Liabilities
69
NotesPayable
Notes Payable
70
AccountsPayable
Accounts Payable
9,888,406
7,043,017
71
NotesPayableToAssociateCompanies
Notes Payable to Associate Companies
203
1,716,004
6,342,725
72
AccountsPayableToAssociateCompanies
Accounts Payable to Associate Companies
203
5,039,935
5,112,025
73
TaxesAccrued
Taxes Accrued
1,032,028
994,373
74
InterestAccrued
Interest Accrued
75
TaxCollectionsPayable
Tax Collections Payable
524,048
523,559
76
MiscellaneousCurrentAndAccruedLiabilities
Miscellaneous Current and Accrued Liabilities
203
21,196,471
14,420,093
77
ObligationsUnderCapitalLeasesCurrent
Obligations Under Capital Leases - Current
78
DerivativeInstrumentLiabilities
Derivative Instrument Liabilities
79
DerivativeInstrumentLiabilitiesHedges
Derivative Instrument Liabilities - Hedges
80
CurrentAndAccruedLiabilities
Total Current and Accrued Liabilities (Total of Lines 69-79)
39,396,892
34,435,792
81
DeferredCreditsAbstract
Deferred Credits
82
OtherDeferredCredits
Other Deferred Credits
8,626,678
8,606,718
83
OtherRegulatoryLiabilities
Other Regulatory Liabilities
84
AccumulatedDeferredInvestmentTaxCredits
Accumulated Deferred Investment Tax Credits
85
UnamortizedGainOnReacquiredDebt
Unamortized Gain on Reacquired Debt
86
AccumulatedDeferredIncomeTaxesOtherProperty
Accumulated deferred income taxes-Other property
87
AccumulatedDeferredIncomeTaxesOther
Accumulated deferred income taxes-Other
88
DeferredCredits
Total Deferred Credits (Total of Lines 82-87)
8,626,678
8,606,718
89
LiabilitiesAndProprietaryCapital
TOTAL LIABILITIES AND PROPRIETARY CAPITAL (TOTAL OF LINES 55, 61, 67, 80, AND 88)
109,281,028
75,020,729


FOOTNOTE DATA

(a) Concept: ServiceCompanyPropertyGross

Service Company Property is allocated monthy to subsidiaries.

(b) Concept: CompletedConstructionNotClassified

Service Company Property is allocated monthly to subsidiaries.

(c) Concept: ConstructionWorkInProgress

Construction Work in Progress is not allocated.

(d) Concept: AccumulatedProvisionforDepreciationofServiceCompanyProperty

Service Company Accumulated Provision is allocated monthly to subsidiaries. Retirement Work in Progress is not allocated.

(e) Concept: OtherSpecialFunds

PEP Insurance Cash Surrender Values.

(f) Concept: AccountsReceivableFromAssociateCompanies

Service Company Property (lines 2 & 4) and Accumulated Provision for Depreciation (line 7) are allocated to the subsidiaries. The associated receivable from the allocation is included in account 146.

(g) Concept: OtherRegulatoryAssets

Account balances for Black Hills Utility Holdings, Inc.’s benefit plans were moved to Black Hills Service Company, LLC as of 12.31.18 as a result of the annual actuarial valuation process each year end. Effective 1.1.19 the service company functions of Black Hills Utility Holdings, Inc. were merged into Black Hills Service Company, LLC.

(h) Concept: AccumulatedOtherComprehensiveIncome

Amounts related to pension and benefit plans that are recoverable through rates were transferred to account 182.3 at 12.31.18.

(i) Concept: AccumulatedProvisionForPensionsandBenefits

Account balances for Black Hills Utility Holdings, Inc.’s benefit plans were moved to Black Hills Service Company, LLC as of 12.31.18 as a result of the annual actuarial valuation process each year end. Effective 1.1.19 the service company functions of Black Hills Utility Holdings, Inc. were merged into Black Hills Service Company, LLC.

(j) Concept: ServiceCompanyPropertyGross

Service Company Property is allocated monthly to subsidiaries.

(k) Concept: CompletedConstructionNotClassified

Service Company Property is allocated monthly to subsidiaries.

(l) Concept: ConstructionWorkInProgress

Construction Work in Progress is not allocated.

(m) Concept: AccumulatedProvisionforDepreciationofServiceCompanyProperty

Service Company Accumulated Provision is allocated monthly to subsidiaries. Retirement Work in Progress is not allocated.

(n) Concept: OtherSpecialFunds

PEP Insurance Cash Surrender Values.

(o) Concept: AccountsReceivableFromAssociateCompanies

Service Company Property (lines 2 & 4) and Accumulated Provision for Depreciation (line 7) are allocated to the subsidiaries. The associated receivable from the allocation is included in account 146.


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule II - Service Company Property
  1. Provide an explanation of Other Changes recorded in Column (f) considered material in a footnote.
  2. Describe each construction work in progress on lines 18 through 30 in Column (b).
Line No.
Account #
(a)
Title of Account
(b)
Balance at Beginning of Year
(c)
Additions
(d)
Retirements or Sales
(e)
Other Changes
(f)
Balance at End of Year
(g)
1
Organization
2
Miscellaneous Intangible Plant
3
Leasehold Improvements
4
Land and Land Rights
291,371
291,371
5
Structures and Improvements
3,629,151
3,342,591
286,560
6
Office Furniture and Equipment
67,325,616
8,010,695
11,991,560
63,344,751
7
Transportation Equipment
3,294,904
733,385
123,569
3,904,720
8
Stores Equipment
9
Tools, Shop and Garage Equipment
10
Laboratory Equipment
11
Power Operated Equipment
12
Communications Equipment
292,576
292,576
13
Miscellaneous Equipment
14
Other Tangible Property
15
Asset Retirement Costs
16
Total Service Company Property (Total of Lines 1-15)
(a)
74,833,618
8,744,080
15,749,091
(b)
67,828,607
17
Construction Work in Progress:
18
Accounting Accruals
400,669
902,425
1,303,094
19
Hardware/Software
1,348,982
10,048,544
8,010,695
3,386,831
20
Vehicles
805,926
733,385
72,541
21
Facility
91,660
91,660
31
Total Account 107 (Total of Lines 18-30)
(c)
1,749,651
11,848,555
8,744,080
(d)
4,854,126
32
Total (Lines 16 and Line 31)
76,583,269
20,592,635
76,572,687
4,854,126


FOOTNOTE DATA

(a) Concept: ServiceCompanyPropertyBalance

The true property beginning balance is zero. The beginning balance activity in column C is the reversal of the entry which allocated all property at 12/31/17. Presented in this format to show the flow of activity and the amount of property that is allocated by Service Company.

(b) Concept: ServiceCompanyPropertyAdjustments

Includes the allocation of Service Company Property, which is allocated monthly to subsidiaries, and miscellaneous adjustments.

(c) Concept: ConstructionWorkInProgress

Construction Work in Progress is not allocated.

(d) Concept: ConstructionWorkInProgress

Construction Work in Progress is not allocated.


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule III - Accumulated Provision for Depreciation and Amortization of Service Company Property
  1. Provide an explanation of Other Charges in Column (f) considered material in a footnote.
Line No.
Account Number
(a)
Description
(b)
Balance at Beginning of Year
(c)
Additions Charged To Account 403-403.1 404-405
(d)
Retirements
(e)
Other Changes Additions (Deductions)
(f)
Balance at Close of Year
(g)
1
Organization
2
Miscellaneous Intangible Plant
3
Leasehold Improvements
4
Land and Land Rights
45,151
45,151
5
Structures and Improvements
624,778
8,149
867,322
238,055
3,660
6
Office Furniture and Equipment
38,397,215
8,915,194
11,991,560
35,320,849
7
Transportation Equipment
844,209
290,389
96,040
1,028,184
10,374
8
Stores Equipment
9
Tools, Shop and Garage Equipment
10
Laboratory Equipment
11
Power Operated Equipment
12
Communications Equipment
83,808
18,712
102,520
13
Miscellaneous Equipment
14
Other Tangible Property
15
Asset Retirement Costs
16
Total
(a)
39,950,010
9,232,444
12,909,771
(b)
36,258,649
14,034

FOOTNOTE DATA

(a) Concept: AccumulatedProvisionForDepreciationAndAmortizationServiceCompanyProperty

The true Accumulated Provision beginning balance is zero, with the exception of Retirement Work in Progress. The beginning balance activity in column C is the reversal of the entry which allocated all Accumulated Provisions at 12/31/17. Presented in this format to show the flow of activity and the amount of Accumulated Provision that is allocated by Service Company.

(b) Concept: AccumulatedProvisionForDepreciationAndAmortizationServiceCompanyPropertyAdjustments

Includes the allocation of Service Company's Accumulated Provision, which is allocated to subsidiaries on a monthly basis, and miscellaneous adjustments.


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IV - Investments
  1. For other investments (Account 124) and other special funds (Account 128), state each investment separately, with description including the name of issuing company, number of shares held or principal investment amount.
  2. For temporary cash investments (Account 136), list each investment separately.
  3. Investments less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
Balance at Beginning of Year
(c)
Balance at Close of Year
(d)
1
Investment In Associate Companies
2
Other Investments
3
Other Special Funds
(a)
7,043,640
(b)
7,473,549
4
Balance at close of year
5
(Total of Line 1-4)
7,043,640
7,473,549


FOOTNOTE DATA

(a) Concept: OtherSpecialFunds

PEP Insurance Cash Surrender Values.

(b) Concept: OtherSpecialFunds

PEP Insurance Cash Surrender Values.


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IV - Investments - Other Investments
  1. For other investments (Account 124) and other special funds (Account 128), state each investment separately, with description including the name of issuing company, number of shares held or principal investment amount.
  2. For temporary cash investments (Account 136), list each investment separately.
  3. Investments less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Investment Description
(a)
Name of Issuing Company
(b)
Number of Shares Held
(c)
Principal Investment Amount
(d)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IV - Investments - Other Special Funds
  1. For other investments (Account 124) and other special funds (Account 128), state each investment separately, with description including the name of issuing company, number of shares held or principal investment amount.
  2. For temporary cash investments (Account 136), list each investment separately.
  3. Investments less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Investment Description
(a)
Name of Issuing Company
(b)
Number of Shares Held
(c)
Principal Investment Amount
(d)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IV - Investments - Temporary Cash Investments
  1. For other investments (Account 124) and other special funds (Account 128), state each investment separately, with description including the name of issuing company, number of shares held or principal investment amount.
  2. For temporary cash investments (Account 136), list each investment separately.
  3. Investments less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Investment Description
(a)
Balance at Close of Year
(b)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule V - Accounts Receivable from Associate Companies
  1. List the accounts receivable from each associate company.
  2. If the service company has provided accommodation or convenience payments for associate companies, provide in a separate footnote a listing of total payments for each associate company.
Line No.
Account Number
(a)
AssociateCompanyName
Title of Account
(b)
AccountsReceivableFromAssociateCompanies
Balance at Beginning of Year
(c)
AccountsReceivableFromAssociateCompanies
Balance at Close of Year
(d)
PaymentsFromAssociateCompanies
Total Accommodation or Convenience Payments
(e)
1
Accounts Receivable From Associate Companies
2
Associate Company:
3
Wyodak Resources Development Coorp
1,605,796
1,579,311
4
Black Hills Wyoming LLC
868,755
851,330
5
Black Hills Electric Generation LLC
1,646,085
1,536,089
6
Black Hills Non-Regulated Holdings LLC
771
974
7
Black Hills Colorado IPP LLC
109,553
170,208
8
Generation Development Co LLC
9
N780BH, LLC
707
317
10
Black Hills Midstream LLC
2,644
3,446
11
Black Hills Exploration and Production Inc
228,912
583,845
12
Black Hills Gas Resources Inc
24,989
52,224
13
Black Hills Plateau Production LLC
12,793
16,387
14
Black Hills Power Inc
9,969,038
8,854,306
15
Cheyenne Light Fuel and Power Company
4,702,877
4,931,588
16
Black Hills Utility Holdings Inc
7,408,151
14,775,237
17
Black Hills Kansas Gas Utility Company LLC
2,533,956
2,360,995
18
Black Hills Iowa Gas Utility Company LLC
2,812,274
3,208,114
19
Black Hills Nebraska Gas Utility Company LLC
3,631,031
3,426,640
20
Black Hills Colorado Electric Utility Company LP
6,707,613
6,182,359
21
Black Hills Colorado Gas Utility Company LP
1,278,228
1,333,994
22
Black Hills Northwest Wyoming Gas Utility Company
229,728
238,062
23
Black Hills Shoshone Pipeline LLC
19,988
4,760
24
Black Hills Energy Arkansas Inc
4,168,486
3,585,522
25
Black Hills Gas Distribution Colorado
2,244,785
2,100,135
26
Black Hills Gas Distribution Nebraska
2,946,712
2,938,723
27
Black Hills Gas Distribution Wyoming
2,109,597
2,094,571
28
Rocky Mountain Natural Gas LLC
1,203,720
1,137,063
29
Black Hills Energy Services Company
357,502
244,534
30
Black Hills Gas Supply Contract Inc.
31
Black Hills Gas Holdings LLC
610
32
Black Hills Gas Distribution LLC
33
Black Hills Gas LLC
34
Black Hills Corporation
398,152
275,663
40
(a)
57,222,843
(b)
62,487,007


FOOTNOTE DATA

(a) Concept: AccountsReceivableFromAssociateCompanies

Service Company Property (lines 2 & 4) and Accumulated Provision for Depreciation (line 7) are allocated to the subsidiaries. The associated receivable from the allocation is included in account 146.

(b) Concept: AccountsReceivableFromAssociateCompanies

Service Company Property (lines 2 & 4) and Accumulated Provision for Depreciation (line 7) are allocated to the subsidiaries. The associated receivable from the allocation is included in account 146.


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule VI - Fuel Stock Expenses Undistributed
  1. List the amount of labor in Column (c) and expenses in Column (d) incurred with respect to fuel stock expenses during the year and indicate amount attributable to each associate company.
  2. In a separate footnote, describe in a narrative the fuel functions performed by the service company.
Line No.
Account Number
(a)
Title of Account
(b)
FuelStockExpensesUndistributedLabor
Labor
(c)
FuelStockExpensesUndistributedExpenses
Expenses
(d)
FuelStockExpensesUndistributed
Total
(e)
1
Fuel Stock Expenses Undistributed
2
Associate Company:
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
40

Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule VII - Stores Expense Undistributed
  1. List the amount of labor in Column (c) and expenses in Column (d) incurred with respect to stores expense during the year and indicate amount attributable to each associate company.
Line No.
Account Number
(a)
Title of Account
(b)
FuelStockExpensesUndistributedLabor
Labor
(c)
FuelStockExpensesUndistributedExpenses
Expenses
(d)
FuelStockExpensesUndistributed
Total
(e)
1
Stores Expense Undistributed
2
Associate Company:
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
40
Total


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule VIII - Miscellaneous Current and Accrued Assets
  1. Provide detail of items in this account. Items less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
MiscellaneousCurrentAndAccruedAssets
Balance at Beginning of Year
(c)
MiscellaneousCurrentAndAccruedAssets
Balance at Close of Year
(d)
1
Miscellaneous Current and Accrued Assets
2
Item List:
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
40
Total


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule IX - Miscellaneous Deferred Debits
  1. Provide detail of items in this account. Items less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
MiscellaneousDeferredDebits
Balance at Beginning of Year
(c)
MiscellaneousDeferredDebits
Balance at Close of Year
(d)
1
Miscellaneous Deferred Debits
2
Item List:
3
Worker's Comp Deposit - Liberty Mutual
100,000
100,000
4
Long Term Portion of Prepaid Maintenance
468,730
318,117
40
Total
568,730
418,117


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule X - Research, Development, or Demonstration Expenditures
  1. Describe each material research, development, or demonstration project that incurred costs by the service corporation during the year. Items less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
ResearchDevelopmentOrDemonstrationExpenditures
Amount
(c)
1
Research, Development, or Demonstration Expenditures
2
Project List:
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
40
Total


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XI - Proprietary Capital
  1. For miscellaneous paid-in capital (Account 211) and appropriated retained earnings (Account 215), classify amounts in each account, with a brief explanation, disclosing the general nature of transactions which give rise to the reported amounts.
  2. For the unappropriated retained earnings (Account 216), in a footnote, give particulars concerning net income or (loss) during the year, distinguishing between compensation for the use of capital owed or net loss remaining from servicing nonassociates per the General Instructions of the Uniform System of Accounts. For dividends paid during the year in cash or otherwise, provide rate percentages, amount of dividend, date declared and date paid.
Line No.
Account Number
(a)
Title of Account
(b)
Description
(c)
Amount
(d)
1
Common Stock Issued
Number of Shares Authorized
2
Par or Stated Value per Share
3
Outstanding Number of Shares
4
Close of Period Amount
5
Preferred Stock Issued
Number of Shares Authorized
6
Par or Stated Value per Share
7
Outstanding Number of Shares
8
Close of Period Amount
9
Miscellaneous Paid-In Capital
100,000
10
Appropriated Retained Earnings
11
Accumulated Other Comprehensive Income
(a)
7,850,467
12
Unappropriated Retained Earnings
Balance at Beginning of Year
778,368
13
Net Income or (Loss)
14
Dividend Paid
15
Balance at Close of Year
778,368
Dividends paid during the year
Line No.
DividendsPaidDescription
Dividend Paid Description
(a)
DividendRate
Dividend Rate
(b)
Dividendpaid
Dividend Paid Amount
(c)
DividendDeclaredDate
Dividend Declared Date
(d)
DividendPaidDate
Dividend Paid Date
(e)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30


FOOTNOTE DATA

(a) Concept: AccumulatedOtherComprehensiveIncome

Amounts related to pension and benefit plans that are recoverable through rates were transferred to account 182.3 at 12.31.18.


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XII - Long-Term Debt
  1. For the advances from associate companies (Account 223), describe in a footnote the advances on notes and advances on open accounts. Names of associate companies from which advances were received shall be shown under the class and series of obligation in Column (c).
  2. For the deductions in Column (h), please give an explanation in a footnote.
  3. For other long-term debt (Account 224), list the name of the creditor company or organization in Column (b).
Line No.
Account Number
(a)
Title of Account
(b)
Term of Obligation
(c)
Class & Series of Obligation
(d)
Date of Maturity
(e)
Interest Rate
(f)
Amount Authorized
(g)
Balance at Beginning of Year
(h)
Additions Deductions
(i)
Balance at Close of Year
(j)
1
Advances from Associate Companies
2
Associate Company:
3
4
5
6
7
8
9
10
11
12
13
Total
14
Other Long Term Debt
15
List Creditor:
16
17
18
19
20
21
22
23
24
25
26
27
28
Total


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XIII - Current and Accrued Liabilities
  1. Provide the balance of notes and accounts payable to each associate company (Accounts 233 and 234).
  2. Give description and amount of miscellaneous current and accrued liabilities (Account 242). Items less than $50,000 may be grouped, showing the number of items in each group.
Line No.
Account Number
(a)
Title of Account
(b)
Balance at Beginning of Year
(c)
Balance at Close of Year
(d)
1
Notes Payable to Associate Companies
2
Associate Company:
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
23
Subtotal (Total of Lines 3-22)
6,342,725
1,716,004
24
Accounts Payable to Associate Companies
25
Associate Company:
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
40
Subtotal (Total of Lines 26-39)
5,112,025
5,039,935
41
Miscellaneous Current and Accrued Liabilities
42 Items List:
43
44
45
46
47
48
49
Subtotal (Total of Lines 43-48)
14,420,093
21,196,471
50
TOTAL (LINES 23, 40, AND 49)
25,874,843
27,952,410


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XIV - Notes to Financial Statements
  1. Use the space below for important notes regarding the financial statements or any account thereof.
  2. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year.
  3. Furnish particulars as to any significant increase in services rendered or expenses incurred during the year.
  4. Furnish particulars as to any amounts recorded in Account 434, Extraordinary Income, or Account 435, Extraordinary Deductions.
  5. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference.
  6. Describe the annual statement supplied to each associate service company in support of the amount of interest on borrowed capital and compensation for use of capital billed during the calendar year. State the basis for billing of interest to each associate company. If a ratio, describe in detail how ratio is computed. If more than one ratio explain the calculation. Report the amount of interest borrowed and/or compensation for use of capital billed to each associate company.

These notes have been taken from the 10K general footnotes of the Black Hills Corporation. The notes included below are notes that are applicable to Black Hills Service Company.

Organization

Black Hills Service Company, LLC (BHSC) is a wholly-owned subsidiary of Black Hills Corporation (BHC), a public utility holding company subject to the regulation of the Public Utility Holding Company Act of 2005 (PUHCA 2005). BHSC began operations effective January 1, 2006 as a service company under the Public Utility Holding Company Act of 1935, as amended (35 Act) to provide support and administrative services to BHC and its subsidiaries. The 35 Act was repealed with the enactment of PUHCA 2005.

Nature of Operations

BHSC provides services at cost. The cost of services are determined on a direct charge basis to the extent practicable and where not practicable, on a reasonable basis of allocation for indirect costs. The charges for services include no compensation for the use of capital.

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.

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. For purposes of the cash flow statements, we consider all highly liquid investments with original maturities of three months or less at the time of purchase to be cash and cash equivalents.

Restricted Cash and Equivalents

We maintain cash accounts for various specified purposes. Therefore, we classify these amounts as restricted cash.

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. 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 base or “cushion gas” as property, plant and equipment. Cushion gas is the portion of natural gas necessary to force saleable gas from a storage field into the transmission system and for system balancing, representing a permanent investment necessary to use storage facilities and maintain reliability.

The cost of regulated utility property, plant and equipment retired, or otherwise disposed of in the ordinary course of business, less salvage plus retirement costs, is charged to accumulated depreciation. Estimated removal costs associated with non-legal obligations related to our regulated properties are reclassified from accumulated depreciation and reflected as regulatory liabilities. Retirement or disposal of all other assets, except for crude oil and natural gas properties as described below, 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 class of property. Capitalized coal mining costs and coal leases are amortized on a unit-of-production method based on volumes produced and estimated reserves. For certain non-utility power plant components, depreciation is computed on a unit-of-production methodology based on plant hours run.

Regulatory Accounting

Our Electric Utilities and Gas Utilities follow accounting standards for regulated operations and reflect the effects of the numerous rate-making principles followed by the various state and federal agencies regulating the utilities. The accounting policies followed are generally subject to the Uniform System of Accounts of the FERC. These accounting policies differ in some respects from those used by our non-regulated businesses. If rate recovery becomes unlikely or uncertain due to competition or regulatory action, these accounting standards may no longer apply which would require these net assets to be charged to current income or OCI. Our regulatory assets represent amounts for which we will recover the cost, but generally are not allowed a return, except as described below. In the event we determine that our regulated net assets no longer meet the criteria for following accounting standards for regulated operations, the accounting impact to us could be an extraordinary non-cash charge to operations, which could be material.

Income Taxes

The Company and its subsidiaries file consolidated federal income tax returns. As a result of the SourceGas transaction, certain subsidiaries acquired file as a separate consolidated group. Where applicable, each tax-paying entity records income taxes as if it were a separate taxpayer and consolidating 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 carry forwards. 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.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the TCJA. The TCJA makes broad and complex changes to the U.S. tax code, including, but not limited to reducing the U.S. federal corporate tax rate from 35% to 21%.

It is our policy to apply the flow-through method of accounting for investment tax credits. Under the flow-through method, investment tax credits 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 investment tax credit being amortized as a reduction to income tax expense over the estimated useful lives of the underlying property that generated the credit.

We recognize interest income or interest expense and penalties related to income tax matters in Income tax (expense) benefit on the Consolidated Statements of Income (Loss).

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 on the accompanying Consolidated Balance Sheets.

Centralized Service Company Combination

Effective January 1, 2019, Black Hills Utility Holdings, Inc. will cease to function as a centralized service company. All service company activities previously performed by BHUH will be combined with the activities of Black Hills Service Company, LLC. This will include the movement of balances between the two companies.

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.

The SourceGas Retirement Savings Plan was merged into the Black Hills Corporation Retirement Savings Plan effective December 31, 2017. The plan design of the Black Hills Corporation 401(k) Plan applies to all eligible employees as of January 1, 2018.

Defined Benefit Pension Plans (Pension Plans)

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, 2018, the expected rate of return on pension plan assets was based on the targeted asset allocation range of 29% to 37% return-seeking assets and 63% to 71% liability-hedging assets.

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 not funded by the Company.

Non-pension Defined Benefit Postretirement Healthcare Plans

BHC sponsors retiree healthcare plans (Healthcare Plans) 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 Plans for participating business units are pre-funded via VEBAs. Pre-65 retirees as well as a grandfathered group of post-65 Cheyenne Light, Fuel and Power (“CLFP”) retirees and a grandfathered group of post-65 former SourceGas employees who retired prior to January 1, 2017 receive their retiree medical benefits through the Black Hills self-insured retiree medical plans.

Healthcare coverage for Medicare-eligible BHC and Black Hills Utility Holdings retirees is provided through an individual market healthcare exchange. Medicare-eligible SourceGas employees who retired after December 31, 2016 also receive retiree medical coverage through an individual market healthcare exchange.

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.

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.


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XV - Comparative Income Statement
Line No.
Account Number
(a)
Title of Account
(b)
Current Year
(c)
Prior Year
(d)
1
OperatingRevenuesAbstract
SERVICE COMPANY OPERATING REVENUES
2
OperatingRevenues
Service Company Operating Revenues
184,575,036
164,512,654
3
OperatingExpensesAbstract
SERVICE COMPANY OPERATING EXPENSES
4
OperationExpense
Operation Expenses
161,888,083
142,897,950
5
MaintenanceExpense
Maintenance Expenses
12,771,186
10,797,447
6
DepreciationExpense
Depreciation Expenses
8,925,113
8,601,461
7
DepreciationExpenseForAssetRetirementCosts
Depreciation Expense for Asset Retirement Costs
8
AmortizationOfLimitedTermProperty
Amortization of Limited-Term Property
9
AmortizationOfOtherProperty
Amortization of Other Property
10
RegulatoryDebits
Regulatory Debits
11
RegulatoryCredits
Regulatory Credits
12
TaxesOtherThanIncomeTaxesOperatingIncome
Taxes Other Than Income Taxes, Operating Income
124,925
268,198
13
IncomeTaxesOperatingIncome
Income Taxes, Operating Income
14
ProvisionForDeferredIncomeTaxesOperatingIncome
Provision for Deferred Income Taxes, Operating Income
15
ProvisionForDeferredIncomeTaxesCreditOperatingIncome
Provision for Deferred Income Taxes - Credit , Operating Income
16
InvestmentTaxCreditAdjustmentsServiceCompanyProperty
Investment Tax Credit, Service Company Property
17
GainsFromDispositionOfServiceCompanyPlant
Gains from Disposition of Service Company Plant
18
LossesFromDispositionOfServiceCompanyPlant
Losses from Disposition of Service Company Plant
19
AccretionExpense
Accretion Expense
20
CostAndExpensesOfConstructionOrOtherServices
Costs and Expenses of Construction or Other Services
21
CostsAndExpensesOfMerchandisingJobbingAndContractWork
Costs and Expenses of Merchandising, Jobbing, and Contract Work
(a)
420,017
189,408
22
OperatingExpenses
TOTAL SERVICE COMPANY OPERATING EXPENSES (Total of Lines 4-21)
184,129,324
162,754,464
23
OperatingIncomeNet
NET SERVICE COMPANY OPERATING INCOME (Total of Lines 2 less 22)
445,712
1,758,190
24
OtherIncomeAbstract
OTHER INCOME
25
EquityInEarningsOfSubsidiaryCompanies
Equity in Earnings of Subsidiary Companies
26
InterestAndDividendIncome
Interest and Dividend Income
12,902
6,530
27
AllowanceForOtherFundsUsedDuringConstruction
Allowance for Other Funds Used During Construction
28
MiscellaneousNonoperatingIncome
Miscellaneous Income or Loss
260,962
265,237
29
GainOnDispositionOfProperty
Gain on Disposition of Property
45,151
30
OtherIncome
TOTAL OTHER INCOME (Total of Lines 25-29)
319,015
271,767
31
OtherIncomeAndDeductionsAbstract
OTHER INCOME DEDUCTIONS
32
LossOnDispositionOfProperty
Loss on Disposition of Property
33
MiscellaneousAmortization
Miscellaneous Amortization
34
Donations
Donations
412,650
95,177
35
LifeInsurance
Life Insurance
36
Penalties
Penalties
(b)
372
(e)
1,074
37
ExpendituresForCertainCivicPoliticalAndRelatedActivities
Expenditures for Certain Civic, Political and Related Activities
439,843
586,328
38
OtherDeductions
Other Deductions
(c)
229,882
1,257,669
39
OtherIncomeDeductions
TOTAL OTHER INCOME DEDUCTIONS (Total of Lines 32-38)
622,983
1,940,248
40
TaxesApplicableToOtherIncomeAndDeductionsAbstract
TAXES APPLICABLE TO OTHER INCOME AND DEDUCTIONS
41
TaxesOtherThanIncomeTaxesOtherIncomeAndDeductions
Taxes Other Than Income Taxes, Other Income and Deductions
42
IncomeTaxesOtherIncomeAndDeductions
Income Taxes, Other Income and Deductions
43
ProvisionForDeferredIncomeTaxesOtherIncomeAndDeductions
Provision for Deferred Income Taxes, Other Income and Deductions
44
ProvisionForDeferredIncomeTaxesCreditOtherIncomeAndDeductions
Provision for Deferred Income Taxes - Credit, Other Income and Deductions
45
InvestmentTaxCreditAdjustmentsNonutilityOperations
Investment Tax Credit, Other Income Deductions
46
TaxesApplicableToOtherIncomeAndDeductions
TOTAL TAXES APPLICABLE TO OTHER INCOME AND DEDUCTIONS (Total of Lines 41-45)
47
InterestChargesAbstract
INTEREST CHARGES
48
InterestOnLongTermDebt
Interest on Long-Term Debt
49
AmortizationOfDebtDiscountAndExpense
Amortization of Debt Discount and Expense
50
AmortizationOfPremiumOnDebtCredit
(less) Amortization of Premium on Debt- Credit
51
InterestOnDebtToAssociateCompanies
Interest on Debt to Associate Companies
180,754
115,508
52
OtherInterestExpense
Other Interest Expense
(d)
39,010
25,799
53
AllowanceForBorrowedFundsUsedDuringConstructionCredit
(less) Allowance for Borrowed Funds Used During Construction-Credit
54
InterestCharges
TOTAL INTEREST CHARGES (Total of Lines 48-53)
141,744
89,709
55
IncomeBeforeExtraordinaryItems
NET INCOME BEFORE EXTRAORDINARY ITEMS (Total of Lines 23, 30, minus 39, 46, and 54)
56
ExtraordinaryItemsAbstract
EXTRAORDINARY ITEMS
57
ExtraordinaryIncome
Extraordinary Income
58
ExtraordinaryDeductions
(less) Extraordinary Deductions
59
NetExtraordinaryItems
Net Extraordinary Items (Line 57 less Line 58)
60
IncomeTaxesExtraordinaryItems
(less) Income Taxes, Extraordinary
61
ExtraordinaryItemsAfterTaxes
Extraordinary Items After Taxes (Line 59 less Line 60)
62
NetIncomeLoss
NET INCOME OR LOSS/COST OF SERVICE (Total of Lines 55 and 61)


FOOTNOTE DATA

(a) Concept: CostsAndExpensesOfMerchandisingJobbingAndContractWork
Duplicate fact discrepancy. Schedule: 016 - Schedule - Analysis of Charges for Service- Associate and Non-Associate Companies, Row: 13, Column: k, Value: 420016
(b) Concept: Penalties

$150 is Franschise tax penalty. $222 is tax return penalties.

(c) Concept: OtherDeductions
Duplicate fact discrepancy. Schedule: 016 - Schedule - Analysis of Charges for Service- Associate and Non-Associate Companies, Row: 26, Column: k, Value: -229989
(d) Concept: OtherInterestExpense
Duplicate fact discrepancy. Schedule: 016 - Schedule - Analysis of Charges for Service- Associate and Non-Associate Companies, Row: 31, Column: k, Value: -39009
(e) Concept: Penalties

$1,074 is tax return penalties.


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XVI - Analysis of Charges for Service - Associate and Nonassociate Companies
  1. Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.
Line No.
Account Number
(a)
Title of Account
(b)
Associate Company Direct Cost
(c)
Associate Company Indirect Cost
(d)
Associate Company Total Cost
(e)
Nonassociate Company Direct Cost
(f)
Nonassociate Company Indirect Cost
(g)
Nonassociate Company Total Cost
(h)
Total Charges for Services Direct Cost
(i)
Total Charges for Services Indirect Cost
(j)
Total Charges for Services Total Cost
(k)
1
Depreciation Expense
8,925,113
8,925,113
8,925,113
8,925,113
2
Amortization Expense
3
Regulatory Debits/Credits - Net
4
Taxes Other Than Income Taxes
9
124,934
124,925
9
124,934
124,925
5
Income Taxes
6
Provision for Deferred Taxes
7
Provision for Deferred Taxes - Credit
8
Gain from Disposition of Service Company Plant
9
Losses from Disposition of Service Company Plant
10
Investment Tax Credit Adjustment
11
Accretion Expense
12
Costs and Expenses of Construction or Other Services
13
Costs and Expenses of Merchandising, Jobbing, and Contract Work for Associated Companies
419,956
60
(b)
420,016
419,956
60
(d)
420,017
14
Non-operating Rental Income
15
Equity in Earnings of Subsidiary Companies
16
Interest and Dividend Income
12,902
12,902
12,902
12,902
17
Allowance for Other Funds Used During Construction
18
Miscellaneous Income or Loss
260,962
260,962
260,962
260,962
19
Gain on Disposition of Property
45,151
45,151
45,151
45,151
20
Loss on Disposition Of Property
21
Miscellaneous Amortization
22
Donations
55,902
356,748
412,650
55,902
356,748
412,650
23
Life Insurance
24
Penalties
372
372
372
(e)
372
25
Expenditures for Certain Civic, Political and Related Activities
307,204
132,639
439,843
307,204
132,639
439,843
26
Other Deductions
138,720
368,709
229,989
138,720
368,709
(f)
229,882
27
Interest On Long-Term Debt
28
Amortization of Debt Discount and Expense
29
Amortization of Premium on Debt - Credit
30
Interest on Debt to Associate Companies
180,754
180,754
180,754
180,754
31
Other Interest Expense
3,450
42,459
39,009
3,450
42,459
(g)
39,010
32
Allowance for Borrowed Funds Used During Construction
33
Total Steam Power Generation Operation Expenses
14,046
41,597
55,643
14,046
41,597
55,643
34
Total Steam Power Generation Maintenance Expenses
2,721,956
2,721,956
2,721,956
2,721,956
35
Total Nuclear Power Generation Operation Expenses
36
Total Nuclear Power Generation Maintenance Expenses
37
Total Hydraulic Power Generation Operation Expenses
38
Total Hydraulic Power Generation Maintenance Expenses
39
Total Other Power Generation Operation Expenses
3,539,270
38,992
3,578,262
3,539,270
38,992
3,578,262
40
Total Other Power Generation Maintenance Expenses
1,195,447
1,195,447
1,195,447
1,195,447
41
Total Other Power Supply Operation Expenses
66,198
66,198
66,198
66,198
42
Operation Supervision and Engineering
16,176
16,176
16,176
16,176
43
Load Dispatch-Reliability
44
Load Dispatch-Monitor and Operate Transmission System
38,087
38,087
38,087
38,087
45
Load Dispatch-Transmission Service and Scheduling
46
Scheduling, System Control and Dispatch Services
47
Reliability Planning and Standards Development
643,946
643,946
643,946
643,946
48
Transmission Service Studies
49
Generation Interconnection Studies
50
Reliability Planning and Standards Development Services
51
Station Expenses (Major Only)
51.1
Operation of Energy Storage Equipment
52
Overhead Line Expenses (Major Only)
53
Underground Line Expenses (Major Only)
54
Transmission of Electricity by Others (Major Only)
55
Miscellaneous Transmission Expenses (Major Only)
267,791
267,791
267,791
267,791
56
Rents
57
Operation Supplies and Expenses (Nonmajor Only)
58
Total Transmission Operation Expenses
966,000
966,000
966,000
966,000
59
Maintenance Supervision and Engineering (Major Only)
60
Maintenance of Structures (Major Only)
61
Maintenance of Computer Hardware
62
Maintenance of Computer Software
63
Maintenance of Communication Equipment
64
Maintenance of Miscellaneous Regional Transmission Plant
65
Maintenance of Station Equipment (Major Only)
112
112
112
112
65.1
Maintenance of Energy Storage Equipment
66
Maintenance of Overhead Lines (Major Only)
67
Maintenance of Underground Lines (Major Only)
68
Maintenance of Miscellaneous Transmission Plant (Major Only)
69
Maintenance of Transmission Plant (Nonmajor Only)
70
Total Transmission Maintenance Expenses
112
112
112
112
71
Total Regional Market Operation Expenses
72
Total Regional Market Maintenance Expenses
73
Total Distribution Operation Expenses
16,758
16,758
16,758
16,758
74
Total Distribution Maintenance Expenses
75
Total Electric Operation and Maintenance Expenses
9,432,480
9,083,556
18,516,036
9,432,480
9,083,556
18,516,036
76
Production Expenses (Provide selected accounts in a footnote)
2,087
(c)
2,087
2,087
2,087
77
Total Other Gas Supply Operation Expenses
34
34
34
34
78
Total Underground Storage Operation Expenses
1,318
1,318
1,318
1,318
79
Total Underground Storage Maintenance Expenses
80
Total Other Storage Operation Expenses
81
Total Other Storage Maintenance Expenses
82
Total Liquefied Natural Gas Terminaling and Processing Operation Expenses
83
Total Liquefied Natural Gas Terminaling and Processing Maintenance Expenses
84
Operation Supervision and Engineering
725
725
725
725
85
System Control and Load Dispatching
86
Communication System Expenses
634
634
634
634
87
Compressor Station Labor and Expenses
88
Gas for Compressor Station Fuel
89
Other Fuel and Power for Compressor Stations
90
Mains Expenses
245
245
245
245
91
Measuring and Regulating Station Expenses
92
Transmission and Compression of Gas By Others
93
Other Expenses
3,354
3,354
3,354
3,354
94
Rents
95
Total Gas Transmission Operation Expenses
4,958
4,958
4,958
4,958
96
Maintenance Supervision and Engineering
97
Maintenance of Structures and Improvements
98
Maintenance of Mains
99
Maintenance of Compressor Station Equipment
100
Maintenance of Measuring And Regulating Station Equipment
101
Maintenance of Communication Equipment
33
33
33
33
102
Maintenance of Other Equipment
103
Total Gas Transmission Maintenance Expenses
33
33
33
33
104
Total Distribution Operation Expenses
8,033
8,033
8,033
8,033
105
Total Distribution Maintenance Expenses
731
731
731
731
106
Total Natural Gas Operation and Maintenance Expenses
17,194
17,194
17,194
17,194
107
Supervision
67,456
67,456
67,456
67,456
108
Meter reading expenses
7,303
7,303
7,303
7,303
109
Customer records and collection expenses
169,016
169,016
169,016
169,016
110
Uncollectible accounts
111
Miscellaneous customer accounts expenses
28,967
28,967
28,967
28,967
112
Total Customer Accounts Operation Expenses
272,742
272,742
272,742
272,742
113
Supervision
114
Customer assistance expenses
48,322
48,322
48,322
48,322
115
Informational And Instructional Advertising Expenses
18,726
18,726
18,726
18,726
116
Miscellaneous Customer Service And Informational Expenses
89,870
89,870
89,870
89,870
117
Total Service and Informational Operation Accounts
156,918
156,918
156,918
156,918
118
Supervision
119
Demonstrating and Selling Expenses
266
266
266
266
120
Advertising Expenses
36,193
36,193
36,193
36,193
121
Miscellaneous Sales Expenses
122
Total Sales Operation Expenses
35,927
35,927
35,927
35,927
123
Administrative and General Salaries
(a)
13,767,071
45,402,330
59,169,401
13,767,071
45,402,330
59,169,401
124
Office Supplies and Expenses
9,222,671
8,514,741
17,737,412
9,222,671
8,514,741
17,737,412
125
Outside Services Employed
5,898,837
14,127,854
20,026,691
5,898,837
14,127,854
20,026,691
126
Property Insurance
2,292,697
4,953
2,297,650
2,292,697
4,953
2,297,650
127
Injuries and Damages
374,526
7,325,102
7,699,628
374,526
7,325,102
7,699,628
128
Employee Pensions and Benefits
531,123
32,210,202
32,741,325
531,123
32,210,202
32,741,325
129
Regulatory Commission Expenses
4,052
4,052
4,052
4,052
130
General Advertising Expenses
215,110
270,007
485,117
215,110
270,007
485,117
131
Miscellaneous General Expenses
245,855
2,879,162
3,125,017
245,855
2,879,162
3,125,017
132
Rents
51,976
13,384,936
13,436,912
51,976
13,384,936
13,436,912
133
Total Administrative and General Operation Expenses
32,603,918
124,119,287
156,723,205
32,603,918
124,119,287
156,723,205
134
Maintenance of Structures and Equipment
3,274,870
5,578,144
8,853,014
3,274,870
5,578,144
8,853,014
135
Total Administrative and General Maintenance Expenses
36,344,375
129,697,431
166,041,806
36,344,375
129,697,431
166,041,806
136
Total Cost of Service
45,794,049
138,780,987
184,575,036
45,794,049
138,780,987
184,575,036


FOOTNOTE DATA

(a) Concept: AdministrativeAndGeneralSalariesAssociateCompanyDirectCost

This amount includes the A&G loading offset, account 922000.

(b) Concept: CostsAndExpensesOfMerchandisingJobbingAndContractWorkForAssociatedCompaniesAssociateCompany

416000 EXP MERCH JOBBING & CONTRACT

369

417100 NONUTILITY EXPENSES - COS

26,261

417101 NONUTILITY EXP - OTHER O&M

168,037

417158 NONUTILITY OPS EXPENSE OTHER

0

417160 NONUTILITY SELLING EXPENSE

18,436

417161 NONUTILITY ADMIN & GENERAL

203,813

417162 ADMIN AND GEN-EMPL BENEFITS

300

417170 NONUTILITY MAINTENANCE EXPENSE

2,800

 

420,016

(c) Concept: ProductionExpensesAssociateCompany

759000 NG PROD GATH OTHER EXPENSES $2,087

(d) Concept: CostsAndExpensesOfMerchandisingJobbingAndContractWork
Duplicate fact discrepancy. Schedule: 016 - Schedule - Analysis of Charges for Service- Associate and Non-Associate Companies, Row: 13, Column: k, Value: 420016
(e) Concept: Penalties

$150 is Franschise tax penalty. $222 is tax return penalties.

(f) Concept: OtherDeductions
Duplicate fact discrepancy. Schedule: 016 - Schedule - Analysis of Charges for Service- Associate and Non-Associate Companies, Row: 26, Column: k, Value: -229989
(g) Concept: OtherInterestExpense
Duplicate fact discrepancy. Schedule: 016 - Schedule - Analysis of Charges for Service- Associate and Non-Associate Companies, Row: 31, Column: k, Value: -39009

Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XVII - Analysis of Billing - Associate Companies (Account 457)
  1. For services rendered to associate companies (Account 457), list all of the associate companies.
Line No.
AssociateCompanyName
Name of Associate Company
(a)
DirectCostsChargedToAssociateCompanies
Account 457.1 Direct Costs Charged
(b)
IndirectCostsChargedToAssociateCompanies
Account 457.2 Indirect Costs Charged
(c)
CompensationForUseOfCapitalAssociateCompanies
Account 457.3 Compensation for Use of Capital
(d)
ServicesRenderedToAssociateCompanies
Total Amount Billed
(e)
1
Wyodak Resources Development Corp
1,203,069
3,934,492
5,137,561
2
Black Hills Wyoming LLC
545,404
1,770,816
2,316,220
3
Black Hills Electric Generation LLC
311,928
311,928
4
Black Hills Non-Regulated Holdings LLC
15,608
15,608
5
Black Hills Colorado IPP LLC
2,280,575
3,316,039
5,596,614
6
Generation Development Co LLC
161
161
7
N780Bh, LLC
1,197
1,197
8
Black Hills Midstream LLC
9
Black Hills Exploration and Production Inc
593,587
365,769
959,356
10
Black Hills Gas Resources Inc
3,416
3,416
11
Black Hills Plateau Production LLC
7,181
7,181
12
Black Hills Power Inc
5,348,967
20,028,270
25,377,237
13
Cheyenne Light Fuel and Power Company
4,148,561
9,601,489
13,750,050
14
Black Hills Utility Holdings Inc
20,110,362
25,321,337
45,431,699
15
Black Hills Kansas Gas Utility Company LLC
1,022,100
6,163,479
7,185,579
16
Black Hills Iowa Gas Utility Company LLC
820,325
7,246,624
8,066,949
17
Black Hills Nebraska Gas Utility Company LLC
674,256
8,865,509
9,539,765
18
Black Hills Colorado Electric Utility Company LP
3,354,791
13,748,458
17,103,249
19
Black Hills Colorado Gas Utility Company LP
876,960
2,984,200
3,861,160
20
Black Hills Northwest Wyoming Gas Utility Company
232,257
564,606
796,863
21
Black Hills Shoshone Pipeline LLC
22,202
8,450
30,652
22
Black Hills Energy Arkansas Inc
1,833,698
12,825,369
14,659,067
23
Black Hills Gas Distribution Colorado
340,049
5,235,036
5,575,085
24
Black Hills Gas Distribution Nebraska
108,651
7,886,946
7,778,295
25
Black Hills Gas Distribution Wyoming
522,350
5,295,501
5,817,851
26
Rocky Mountain Natural Gas LLC
166,060
2,505,768
2,671,828
27
Black Hills Energy Services Company
380,921
619,612
1,000,533
28
Black Hills Gas Supply Contract Inc
29
Black Hills Gas Holdings LLC
602
602
30
Black Hills Gas Distribution LLC
31
Black Hills Gas LLC
32
Black Hills Corporation
890,348
493,217
1,383,565
33
Black Hills Exploration & Production
210,127
210,127
40 Total
45,794,049
138,780,987
184,575,036


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XVIII - Analysis of Billing - Non-Associate Companies (Account 458)
  1. For services rendered to nonassociate companies (Account 458), list all of the nonassociate companies. In a footnote, describe the services rendered to each respective nonassociate company.
Line No.
NonAssociateCompanyName
Name of Non-associate Company
(a)
DirectCostsChargedToNonAssociateCompanies
Account 458.1 Direct Costs Charged
(b)
IndirectCostsChargedToNonAssociateCompanies
Account 458.2 Indirect Costs Charged
(c)
CompensationForUseOfCapitalNonAssociateCompanies
Account 458.3 Compensation for Use of Capital
(d)
ExcessOrDeficiencyOnServicingNonAssociateUtilityCompanies
Account 458.4 Excess or Deficiency on Servicing Non-associate Utility Companies
(e)
ServicesRenderedToNonAssociateCompanies
Total Amount Billed
(f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40 Total


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XIX - Miscellaneous General Expenses - Account 930.2
  1. Provide a listing of the amount included in Account 930.2, "Miscellaneous General Expenses" classifying such expenses according to their nature. Amounts less than $50,000 may be grouped showing the number of items and the total for the group.
  2. Payments and expenses permitted by Section 321 (b)(2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. 441(b)(2)) shall be separately classified.
Line No.
MiscellaneousGeneralExpensesDescription
Title of Account
(a)
MiscellaneousGeneralExpenses
Amount
(b)
1
Director Fees
2,442,464
2
Dues
342,101
3
Labor
58,527
4
Other
281,925
40
Total
3,125,017


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XX - Organization Chart
  1. Provide a graphical presentation of the relationships and inter relationships within the service company that identifies lines of authority and responsibility in the organization.
OrganizationChart_26_2018.html


Name of Respondent:

Black Hills Service Company, LLC
This Report Is:

(1)
An Original

(2)
A Resubmission
Resubmission Date (Mo, Da, Yr)

Year/Period of Report:

End of:
2018
/
Q4
Schedule XXI - Methods of Allocation
  1. Indicate the service department or function and the basis for allocation used when employees render services to more than one department or functional group. If a ratio, include the numerator and denominator.
  2. Include any other allocation methods used to allocate costs.

Black Hills Service Company costs are either directly charged to a subsidiary, or indirectly allocated when the cost is not associated with a specific subsidiary. Indirect costs are allocated using one of several pre-defined allocation ratios. Each department has been assigned one of these allocation ratios. All indirect costs of that department are then allocated using that ratio. When determining which allocation ratio should be assigned to each department, a ratio is selected based on the specific cost driver of that department. For instance, the expenses incurred by a Human Resources department are primarily related to their support of all company employees. In this example, the cost driver for the Human Resources department indirect costs is employees. Therefore, their indirect costs will be allocated based upon the Employee Ratio.

For certain departments, a specific cost driver may not be clearly identifiable or the driver may not be cost effective to compute on a continuing basis. In these instances, a three-pronged general allocation ratio is used, which is referred to as the Blended Ratio. This ratio equally weights three different general ratios: Gross Margin, Asset Cost, and Payroll Dollars. These factors were chosen to be included in the Blended Ratio because they best allocate costs based on the diverse nature of Black Hills Corporation (BHC) operations.

In addition, some departments utilize a Holding Company Blended Ratio. The difference between the Blended Ratio and the Holding Company Blended Ratio is that the Holding Company Blended Ratio allocates a percentage of costs to BHC Holding Company. For example, the Corporate Governance department will allocate indirect costs using the Holding Company Blended Ratio because certain costs incurred, such as New York Stock Exchange fees and Board of Directors costs, relate to both the Holding Company and the subsidiary companies.

One additional item to note is that pooled benefits, primarily health care costs, are allocated differently due to the pooling method for benefits such as self-insured health care. Black Hills Corporation has chosen to pool certain benefit costs and spread the risk amongst all subsidiaries equally. All pooled benefit costs of BHC are paid by the Service Company and allocated to subsidiaries based on employee counts. (See Black Hills Service Company Cost Allocation Manual 2018 for further details.)

 

Service Department or Function

Basis of Allocation

BHSC Indirect Allocations:

 

Environmental Services

Property Accounting

 

 

Accounting Systems

Accounts Payable

Tax

Credit and Risk

General Accounting

Insurance

Internal Audit

Legal

Corporate Affairs

Budget and Forecast

Accounting-Central Services

Engineering Rotation Program

Internal Audit

In-House Creative Solutions

Records Management

Supply Chain Management

Contract Management

Strategic Sourcing

Fleet Services

Facilities

Governmental Affairs

IT Administration

IT Business Applications Wholesale & Enterprise

IT Business Applications Web Service Support

IT Business Applications Financial & HR Systems

IT Infrastructure Services

IT Communications

IT User Services

Corporate Security

IT Compliance

Material Management

Continuous Improvement

IT Helpdesk/Technology Integration

Procurement

Assets Blended

Accounting Accruals

Benefits

BHSC portion of the Rapid city Plant Street Facility, Midlands Data Facility, and Cheyenne Data Center Facility

Catch-All

 

 

 

Corporate Development

Corporate Governance

Shareholder Services

Executive Management

Finance & Treasury

Financial Reporting

 

 

 

Safety

Human Resources Regulated

Compensation & Benefits

Organizational Development & Training

 

 

 

Power Delivery Management

 

 

Generation Plant Operations

CPGS Plant Operations

 

 

Rapid City Office Facility

Fayetteville

Denver Office Facility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blended Ratio

 

 

 

 

 

 

 

 

Holding Company Blended Ratio

 

 

 

 

 

 

Employee Ratio

 

 

 

Power Generation Capacity Ratio

 

 

 

Nameplate Generation Capacity Ratio

 

 

 

 

Square Footage Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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