Black Hills : 2024 Sustainability Report

Published: 2025-06-25 04:01:07 ET BKH

Published on 06/25/2025 at 04:01

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About this report

Company profile

Sustainability strategy

Environmental stewardship

Social impact

Sustainable growth

Corporate governance

Appendix

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At Black Hills Energy, we have a long history and tradition of improving life with energy. This is our mission and at the core of who we are and what we do. For 141 years, we have served as an integral partner to our customers, communities and shareholders, powering progress through the delivery of safe, reliable and cost-effective electricity and natural gas. Today, we proudly serve over 1.35 million customers in eight states across hundreds of small towns, cities and rural communities.

We have an immense responsibility to deliver the critical energy our customers depend on, and in a way that thoughtfully utilizes our resources, protects the environment, helps our customers and communities thrive, and provides value to shareholders. It's through this lens that we shine the spotlight on our sustainability journey at Black Hills Energy and the meaningful progress we're making on the priorities that drive

our business.

We have worked hard these past few years to carefully align our sustainability strategy with our corporate strategy. By taking this approach, we are integrating our sustainability commitments into the very fabric of our business and making notable progress along the way.

We are approaching our five-year anniversary of setting enterprise-wide clean energy goals for our electric and natural gas operations and continue to

make steady and significant progress in achieving our goals. We have reduced

electric utility emissions 38% since 2005 by adding natural gas generation, retiring aging generation plants,

and incorporating renewables when it makes sense. We are on track to achieve our reduction goals of 40% by 2030 and 70% by 2040.

By leveraging our strategies focused on natural gas system integrity and safety, we are continuing to make considerable progress toward our net zero by 2035 target for our natural gas utility operations. Since 2022, we have reduced natural gas distribution system reported emissions by 11%.

We are proud to report that we are advancing our energy transition based on proven solutions, using technology available today, while minimizing cost impacts to our customers.

As a provider of essential energy, and as a dedicated community partner and trusted employer, we play a vital role in creating healthy and thriving communities. We support the economic well-being of our communities by providing jobs and benefits to our employees, paying taxes, and purchasing goods and services to maintain and upgrade our extensive network of electric and natural gas system infrastructure. In 2024, our direct economic impact totaled $1.45 billion.

Giving back to the community is a value we hold dear. In 2024, our charitable giving totaled $3.8 million, including

$551,000 to United Way and $346,000 in energy assistance through our Black Hills Cares program.

Our employees are engaged and empowered to contribute to the success of our business. We are proud of our collaborative culture, the values that drive us, and the respectful way we work together to support our customers, communities, and shareholders. Our sustainability journey is reflected in every aspect of our business, and we are pleased to share our progress in our 2024 Sustainability Report.

Thank you for your interest in Black Hills Energy.

At Black Hills Energy, we are advancing our sustainability strategy with actions and commitments that create exceptional value for our customers, employees and shareholders. This is supported by our corporate strategy and a collaborative, company-wide approach to deliver the safe, reliable and cost-effective energy our customers depend on today and well into the future.

As you'll read in our 2024 Sustainability Report, we are taking meaningful action to deliver on our

environmental, social and governance commitments through key initiatives and programs that have lasting impact. Some of our highlights include:

We are partnering on strategies that combine the reliability of fossil fuels with innovative technology to achieve a more resilient energy future. In 2024, a

second grant was awarded from the Wyoming Energy Authority to construct a pilot scale BrightLoopTM hydrogen plant at our Neil Simpson Complex in Gillette, Wyoming, with anticipated operation prior

to 2030. Additionally, we are advancing a proposed demonstration pilot of membrane technology, which cools and dehydrates coal plant exhaust into concentrated CO2for sequestration.

We are continuing to create value by responsibly integrating renewable energy resources as a component of our overall emissions reduction strategy. In 2024, our nonregulated subsidiary, Black Hills Energy Renewable Resources, completed the purchase of a renewable natural gas production facility in Dubuque, Iowa. This acquisition represents our entry into the production of RNG as a nonregulated business while

leveraging our expertise in owning and operating regulated natural gas pipeline systems, including RNG interconnections. Last year, the facility produced enough renewable natural gas to heat more than 1,800 homes.

Customers want to make energy choices that are right for their home or business, and they're increasingly looking to Black Hills Energy for solutions that support their values. Our Green Forward program, now in its third year, allows customers to choose to use natural gas and reduce or eliminate the carbon footprint associated with their own usage. This

innovative program is available to residential and small commercial customers throughout our natural gas service territory.

We also offer our customers a wide variety of programs and rebates to help them conserve energy and lower their energy bills. In 2024, Black Hills Energy provided over $10 million in energy efficiency rebates to residential and business customers, driving annual energy savings of over 16 million kilowatt-hours

of electricity and over 273,000 dekatherms of natural gas - enough energy to power 1,515 homes

with electricity and about 246 homes with natural gas for one year.

This is just a snapshot view of the many ways we are creating value for our employees, customers and shareholders through our sustainability journey. Thank you for spending time getting to know Black Hills Energy.

Chief Sustainability Officer • VP of Customer Experience

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ABOUT

THIS REPORT

Line crew working near Sturgis, South Dakota

Our corporate sustainability report provides insight and transparency into the environmental, social and economic impacts of Black Hills Energy. This voluntary report is informed by sustainability reporting guidelines and strives to provide relevant insights into our business and how we view sustainability.

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Disclaimer

Black Hills Corporation published this content on June 25, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 25, 2025 at 08:00 UTC.