This excerpt taken from the BKH 10-K filed Mar 16, 2006.
Invest in Rate-Base Generation to Serve our Electric Utilities. Our Companys original business was a vertically integrated electric utility. This business model remains a core strength today, where we operate efficient power generation resources to transmit and distribute electricity to our customers. By doing so, we provide power at reasonable and stable rates to our customers and earn solid returns to our investors. Rate-based generation assets offer several advantages for consumers, regulators and investors. First, they assure consumers that rates have been reviewed and approved by government authorities who are safeguarding the public interest. Second, regulators are given the opportunity to participate in a planning process where long-term investments are designed to match long-term energy demand. Third, investors are assured that a long-term, reasonable, stable rate of return may be earned on their investment. A lower risk profile may also improve credit ratings which, in turn, can benefit both consumers and investors, by lowering the cost of capital to the Company.