Black Hills : 2024 SASB Disclosure

About this update from Black Hills Corporation

2024 Sustainability Accounting Standards Board (SASB) Mapping Report Black Hills Corporation SUSTAINABILITY DISCLOSURE TOPICS & ACCOUNTING METRICS Electric Utilities & Power Generators Topic SASB Code Accounting Metric Response Greenhouse Gas Emissions & Energy Resource Planning IF-EU-110a.1 Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations, and emissions-reporting regulations. See EEI Disclosure 3,979,132 MT. Scope 1 emissions for Power Generators and SF6 only, see EEI Disclosure. 4.93% 99.8%. SF6 emissions are part of our electric utilities and are being reported under this framework (Electric Utilities and Power Generators) IF-EU-110a.2 Greenhouse gas (GHG) emissions associated with power deliveries: See EEI Disclosure 4,566,444 MT. Emissions associated with all power deliveries, including market sales, see EEI Disclosure. IF-EU-110a.3 Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets See page 23 of our Corporate Sustainability Report We are excited to announce significant advancements in our decarbonization journey. We have continued to achieve progress toward our goal to reduce electric utility emission intensity 40% by 2030 and 70% by 2040, already reducing emissions by 38% since 2005. We have also committed to operating a net zero natural gas distribution system by 2035 and reduced our emissions 11% since setting our goal in 2022. We are transitioning to our energy future through the addition of low or zero-carbon generation sources, and fossil fuel plant retirements or conversions. Our preferred resource plan in Colorado plans to add 300 MW of renewable energy and 50 MW of battery storage by 2030. We will be positioned to achieve our greenhouse gas (GHG) reduction goals, without reliance on future technologies, through the conversion of Neil Simpson II coal plant to include natural gas as a dual fuel unit, conversion or retirement of our remaining coal and diesel power plants and added renewable energy resources and storage. In addition to company owned and operated renewable energy sources, we leverage purchased power agreements (PPAs) to meet customers' needs and help achieve our GHG reduction goals. Our first large-scale solar PPA, Fall River Solar, was brought online in 2023. The energy from this 80 MW project located near Oelrichs, South Dakota is used to serve Black Hills Energy customers throughout western South Dakota and eastern Wyoming. Roundhouse Renewable Energy Wind and South Cheyenne Solar, brought online in 2023 and 2024, respectively, are serving growing data center loads. Our total renewable portfolio of owned and contracted renewable energy represents 36% of our generation capacity and helps to achieve our GHG reduction goals and serve our customers' needs. Natural gas is a cost effective and highly reliable energy source that will play a vital role in the energy transition, continuing to support emissions reductions associated with energy use. Our natural gas utilities serve more than 1.1 million customers in six states. We operate a gas system above industry standards, investing in quality materials with low emission rates. Cast iron pipe has not been present in our system since 2014, and nearly 99% of our infrastructure is comprised of protected steel or plastic. These investments, with a focus on system integrity, damage prevention and measurement improvement, have positioned us to achieve our net zero emissions target for our natural gas distribution system by 2035. Air Quality IF-EU-120a.1 Air emissions of the following pollutants: NOx (excluding N2O), SOx, Particulate matter (PM10), Lead (Pb), and mercury (Hg); percentage of each in or near areas of dense population See EEI Disclosure for additional notes on inclusions 1,891 MT 1,234 MT 324 MT 0.03 MT 0.009 MT NOx (6.21%), SO2 (0.45%), PM10 (12.42%), Pb (0.05%), Hg (0.08%) Water Management IF-EU-140a.1 Total water withdrawn Total water consumed, percentage of each in regions with high or extremely high baseline water stress 3,871 thousand cubic meters 3,871 thousand cubic meters 100.0% IF-EU-140a.2 Number of incidents of non-compliance associated with water quantity and/or quality permits, standards, and regulations 0 IF-EU-140a.3 Description of water management risks and discussion of strategies and practices to mitigate those risks See page 40 of our Corporate Sustainability Report We have a long and successful track record of environmental leadership and innovation in our utility operations, starting with our pioneering efforts in 1969, when we introduced the first use of industrial air-cooled condensers in the western hemisphere at our energy complex in Wyoming. Using air-cooled condensing technology saves billions of gallons of water per year in this arid region with limited water resources. The U.S. Energy Information Agency lists that the average conventional coal power plant using water to cool the boilers consumes 78 gal/kwh. Black Hills Energy's water consumption rate at its coal-fired power plants using the air-cooled condensing technology consumes approximately 0.1 gal/kwh resulting in an annual water savings of over 240 billion gallons. This provides cost benefits by not having to manage and discharge significant amounts of processed water to the environment and leaves this natural resource in place. Our natural gas combustion turbine fleet uses minimal amounts of water, and we have implemented additional innovative and protective water management measures. At the Pueblo Airport Generating Station, we manage wastewater with an evaporation pond. Rather than treat and discharge treated water to the Arkansas River, pollutants in the water settle out in the pond and evaporate into the atmosphere, returning our wastewater to the Earth's natural water cycle. At the Cheyenne Prairie Generating Station, discharge water is sent to the City's wastewater treatment plant. This plant is located adjacent to our generation facility and requires adherence to stringent water limits set in the Industrial Pretreatment Water discharge permit issued to us. The discharge water goes through further treatment at the wastewater treatment plant before it is discharged to Crow Creek for downstream use. Coal Ash Management IF-EU-150a.1 Amount of coal combustion products (CCPs) generated, percentage recycled 116,795 metric tons 0%. All coal ash is used for back fill in reclamation; however, according to SASB guidance, this process does not meet the definition for being recycled. IF-EU-150a.3 Description of coal combustion products (CCPs) management policies and procedures for active and inactive operations Coal combustion ash is used to reclaim the Wyodak Mine Peerless Pit. Reclamation activities include backfilling sections with coal ash, capping with stockpiled overburden material, applying topsoil, and seeding to restore biodiversity, with 100% of the ash used for backfill reclamation. Energy Affordability IF-EU-240a.1 Average retail electric rate for (USD/kWh): residential, commercial, and industrial customers Colorado: $0.1705 $0.1205 $0.0989 South Dakota: $0.1437 $0.1318 $0.0943 Wyoming: $0.1696 $0.0894 $0.0873 IF-EU-240a.3 Number of residential customer electric disconnections for non-payment, percentage reconnected within 30 days Colorado: 1,835 74% South Dakota: 1,000 75% Wyoming: 795 86% IF-EU-240a.4 Discussion of impact of external factors on customer affordability of electricity, including the economic conditions of the service territory See 10-K Report, Item 1A. Risk Factors. (3) We offer a variety of programs to help our customers, including budget billing, energy efficiency programs and energy assistance. See Billing and payments | Black Hills Energy for more information. Workforce Health & Safety IF-EU-320a.1 Total recordable Incident Rate (TRIR), Fatality Rate, and near miss frequency rate (NMFR) for (a) direct employees and (b) contract employees See EEI Disclosure and See page 56 of our Corporate Sustainability Report (1) 1.51 (2) 0.0 (3) 6.03 End-Use Efficiency & Demand IF-EU-420a.2 Percentage of electric load served by smart grid technology 99.99% IF-EU-420a.3 Customer electricity savings from efficiency measures, by market See page 37 of our Corporate Sustainability Report Colorado: 14,952,047 kWh South Dakota: 822,139 kWh Wyoming: 1,018,638 kWh Nuclear Safety & Emergency Management IF-EU-540a.1 Total number of nuclear power units, broken down by U.S. Nuclear Regulatory Commission (NRC) Action Matrix Column Not applicable IF-EU-540a.2 Description of efforts to manage nuclear safety and emergency preparedness Not applicable Grid Resiliency IF-EU-550a.1 Number of incidents of non-compliance with physical and/or cybersecurity standards or regulations In the interest of physical and cyber security, this information is not disclosed. IF-EU-550a.2 System Average Interruption Duration Index (SAIDI), SAIDI inclusive of major event days, in minutes, System Average Interruption Frequency Index (SAIFI), SAIFI inclusive of major event days, in minutes, Customer Average Interruption Duration Index (CAIDI), and CAIDI inclusive of major event days, in minutes, inclusive of major event days. 72.311 Minutes, 173.108 Minutes 1.061 Minutes, 1.476 Minutes 68.125 Minutes, 117.3 Minutes Activity Metrics IF-EU-000.A Number of: residential, commercial, and industrial customers served; other See Black Hills' 10-K for fiscal year ending Dec 31, 2024 (1) 192,716 (2) 31,210 (3) 83 IF-EU-000.B Total electricity delivered to: residential, commercial, industrial, all other retail customers, and wholesale customers See Black Hills' 10-K for fiscal year ending Dec 31, 2024 1,471,900 MWh 2,091,400 MWh 2,169,800 MWh 147,100 MWh 1,355,000 MWh IF-EU-000.C Length of (1) transmission and (2) distribution lines Colorado Electric: 655 miles 3,222 miles South Dakota Electric: 1,234 miles 2,627 miles Wyoming Electric: 88 miles (6) 1,370 miles IF-EU-000.D Total electricity generated, percentage by major energy source, and percentage in regulated markets See Black Hills' 10-K for fiscal year ending Dec 31, 2024; For regulated market, see page 12 & 13 of Black Hills' 10-K Coal: 2,478,300 MWh 46.1% 31.0% Natural Gas: 2,239,100 MWh 41.6% 53.3% Wind: 660,200 MWh 12.3% 12.2% Petroleum: 0 MWh 0% (2) 3.5% IF-EU-000.E Total wholesale electricity purchased 2,247,900 MWh 2024 Sustainability Accounting Standards Board (SASB) Mapping Report Black Hills Energy SUSTAINABILITY DISCLOSURE TOPICS & ACCOUNTING METRICS Gas Utilities & Distributors Topic SASB Code Accounting Metric Response Energy Affordability IF-GU-240a.1 Average retail gas rate for Residential, Commercial, Industrial customers, and Transportation services only Arkansas: (Arkansas customer bills are generated using volumes in CCF) $16.64/Mcf $11.25/Mcf $6.25/Mcf $1.32/Mcf Colorado: $11.33/Dth $10.77/Dth $6.92/Dth $1.41/Dth Iowa: $10.33/Dth $8.09/Dth $6.57/Dth $0.40/Dth Kansas: $12.95/Dth $9.46/Dth $2.46/Dth $0.48/Dth Nebraska: $12.69/Dth $9.60/Dth $5.73/Dth $1.22/Dth Wyoming: $11.59/Dth $6.85/Dth $4.52/Dth $1.85/Dth IF-GU-240a.3 Number of residential customer gas disconnections for non-payment, percentage reconnected within 30 days Arkansas: 4,360 37% Colorado: 965 43% Iowa: 1,697 28% Kansas: 1,981 40% Nebraska: 3,307 34% Wyoming: 986 28% IF-GU-240a.4 Discussion of impact of external factors on customer affordability of gas, including the economic conditions of the service territory See 10-K Report, Item 1A. Risk Factors. We offer a variety of programs to help our customers, including budget billing, energy efficiency programs and energy assistance. See Billing and payments | Black Hills Energy for more information. End-Use Efficiency IF-GU-420a.2 Customer gas savings from efficiency measures by market Arkansas: 138,812 Dth Colorado: 44,325 Dth Iowa: 37,684 Dth Wyoming: 14,854 Dth Integrity of Gas Delivery Infrastructure IF-GU-540a.1 Number of reportable pipeline incidents, corrective actions received and notices of pipeline safety statutes (1) 4 (2) 0 (3) 0 IF-GU-540a.2 Percentage of distribution pipeline that is cast or wrought iron and unprotected steel (1) 0 % (2) 1.83%* *Percentage reflects distribution mains and services and includes unknown pipeline material. IF-GU-540a.3 Percentage of gas transmission and distribution pipelines inspected See our AGA Disclosure 0.732% of transmission system was inspected by in-line inspection methods; 0.0% by pressure testing; and 0.296% by internal/external direct assessment. Natural gas transmission pipeline inspection requirements are based on pipeline proximity to populated areas. Our service area is largely rural, and the ratio of transmission pipeline located in high consequence compared to total system miles is low. 0% of distribution system was inspected by in-line inspection methods (this is not typically performed on the lower pressure distribution pipelines). Also see our 2020 AGA ESG Quantitative Analysis (EXL) and our 2020 Corporate Sustainability Report. IF-GU-540a.4 Description of efforts to manage the integrity of gas delivery infrastructure, including risks related to safety and emissions See page 33 of our Corporate Sustainability Report Our comprehensive, programmatic integrity management program monitors our natural gas pipeline systems and plans upgrades to our pipeline networks to enhance safety, improve system reliability and reduce or eliminate methane emissions. The program assesses risk and prioritizes the replacement and upgrading of pipeline to proactively replace vintage and at-risk materials while achieving our GHG emissions reduction goal. Integrity management involves comprehensive evaluations of all pipelines and aboveground equipment, including direct inspection of pipelines for leaks using state of the art technologies. Our GHG emissions reduction strategy includes: Pipeline replacement: We're continuing our multi-year investment plan to update older infrastructure with lower emissions pipeline and service line materials, and have committed to replacing all unprotected steel pipe by 2035. Damage prevention: Our comprehensive damage prevention strategy increases system safety and lowers the potential for methane to be released from a damaged natural gas pipeline. By conducting outreach and education, we can help prevent pipeline hits and mitigate emissions. Renewable natural gas (RNG): We currently receive RNG from ten facilities, own one production facility, and are pursuing additional RNG opportunities. RNG, a carbon negative or neutral energy, has the potential to further reduce operational and customer natural gas GHG emissions. Expanded leak detection and surveying: By collecting detailed emissions data from our system, we can identify new opportunities for reductions. In addition to our regular system-wide leak surveying, we conduct additional leak surveys of our aboveground natural gas equipment to help determine fugitive emissions from our system. In 2020 we began surveying two additional states, Colorado and Nebraska, which joined Arkansas in our surveying program as required by the EPA Greenhouse Gas reporting program. The additional surveys we conducted helped us identify fugitive emissions from our system that otherwise would not have been found as quickly. Activity Metrics IF-GU-000.A Number of: residential, commercial, industrial, and transportation customers served See Black Hills' 10-K for fiscal year ending Dec 31, 2024 (1) 882,232 (2) 85,594 (3) 2,174 (4) 158,355 IF-GU-000.B Amount of natural gas delivered to residential customers, commercial customers, industrial customers, and transferred to a third party See Black Hills' 10-K for fiscal year ending Dec 31, 2024 56,700,000 Dth 28,400,000 Dth 6,000,000 Dth 159,200,000 Dth IF-GU-000.C Length of gas transmission and distribution pipelines Arkansas 875 miles 5,221 miles Colorado 148 miles 7,238 miles Iowa 177 miles 2,952 miles Kansas 304 miles 3,107 miles Nebraska 1,313 miles 8,712 miles Wyoming 1,179 miles 3,631 miles

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