Dakota

South Dakota-based Black Hills Corp.’s natural gas utility operations in five states — Colorado, Iowa, Kansas, Nebraska and Wyoming — are switching customers of Black Hills Energy to smart meters. Earlier in August the installation of new Itron advanced gas meters began.

As a marketer had correctly predicted, the cash market was unable to sustain Tuesday’s brief burst of firmness and was down at nearly all points Wednesday. The previous day’s 4.1-cent drop by September futures played a minor bearish role, of course, but it was primarily the subpar late-summer cooling load and continuing warnings about storage facilities soon being unable to accommodate further injections in many locations (see related story) that drove most quotes downward.

South Dakota-based Black Hills Corp.’s Colorado utility has proposed reducing its retail natural gas rates in the area around Colorado Springs, CO, by nearly $20/month for some residential customers. Black Hills Energy has asked state regulators to make the reduction effective June 1.

NorthWestern Energy Corp., the South Dakota-based energy holding company, announced last Thursday that the U.S. Bankruptcy Court for the District of Delaware has approved its settlement with Magten Asset Management, Law Debenture Trust Company of New York and holders of quarterly income preferred securities, marking the end of the last major disputed claim in its 2003 Chapter 11 proceedding.

The Oregon Public Utility Commission (PUC) last Tuesday approved the pending $475 million sale of Cascade Natural Gas to North Dakota-based MDU Resources Group Inc., following stipulations and a settlement filed with the PUC last month by MDU. Seattle-based Cascade serves retail natural gas customers in Oregon and Washington state, with its 54,633 Oregon customers concentrated in the central region including the towns of Pendleton, Hermiston and Ontario.

The Oregon Public Utility Commission (PUC) Tuesday approved the pending $475 million sale of Cascade Natural Gas to North Dakota-based MDU Resources Group Inc., following stipulations and a settlement filed with the PUC last month by MDU. Seattle-based Cascade serves retail natural gas customers in Oregon and Washington state, with its 54,633 Oregon customers concentrated in the central region including the towns of Pendleton, Hermiston and Ontario.

Shareholders in a closely held former independent power producer bought six years ago by South Dakota-based Black Hills Corp. received a Chicago federal judge’s permission to continue pursuing $27.5 million they allege the diversified energy holding company owes them. The case involves a disputed part of the transaction involving “earn-out” provisions of the acquired unit, Indeck Capital, Inc., that sparked the initial lawsuit Aug. 11, 2004.

South Dakota-based NorthWestern Corp. saw consolidated net income rise $55.2 million for 2005 when special items relating to its Chapter 11 filing are excluded. Gross margin growth at all four operating segments and decreased interest expense were credited.

In what is becoming an extremely verbose war between neighboring South Dakota energy holding companies, NorthWestern Corp. Monday fired off another letter to its pursuer, Black Hills Corp., reiterating that its board has not rejected the Black Hills’ offer to start serious merger talks, and it wants to consider the offer as one of several strategic alternatives, but only after a confidentiality agreement between the two companies is hammered out. Black Hills is balking at the current confidentiality proposal.