Black Hills Corporation Announces Commencement of Wygen II Power Plant Commercial Operations for Cheyenne Light Customers

Jan 10, 2008, 00:00 ET from Black Hills Corporation

    RAPID CITY, S.D., Jan. 10 /PRNewswire-FirstCall/ -- Black Hills
 Corporation (NYSE:   BKH) announced today that its newest power plant entered
 into commercial service on January 1, 2008, as anticipated.
 
     The 95-megawatt, coal-fired base load Wygen II plant is owned by the
 Company's Cheyenne Light, Fuel & Power subsidiary. In November 2007, the
 Wyoming Public Service Commission approved a new rate structure for
 Cheyenne Light, effective January 1, 2008, which placed Wygen II into rate
 base. The Commission approved general increases of $6.7 million for
 electric rates and $4.4 million for natural gas rates, reflecting increased
 costs of providing service. The approval stipulates an allowed return on
 equity of 10.9 percent on a capital structure that is 54 percent equity and
 46 percent debt. A final Commission Order is pending.
 
     David R. Emery, Chairman, President and CEO of Black Hills Corporation,
 said, "We are pleased to announce that Wygen II began providing power to
 our Cheyenne Light system last week, as planned. To the credit of our power
 generation team, we completed another successful construction project
 cost-effectively and in less than 30 months. This power plant, with its use
 of state-of-the-art emissions control technology, is among the cleanest in
 the United States. We believe it is among the first coal-fired plants in
 the United States to reduce mercury emissions. In addition to its low
 emissions profile, Wygen II is expected to contribute to electric cost
 stability for our customers throughout its useful life."
 
     ABOUT BLACK HILLS CORPORATION
 
     Black Hills Corporation is a diversified energy company. Our retail
 businesses are Black Hills Power, an electric utility serving western South
 Dakota, northeastern Wyoming and southeastern Montana; and Cheyenne Light,
 Fuel & Power, an electric and gas distribution utility serving the
 Cheyenne, Wyoming vicinity. Black Hills Energy, the wholesale energy
 business unit, generates electricity, produces natural gas, oil and coal,
 and markets energy. More information is available at our Internet web site:
 http://www.blackhillscorp.com. Information about Cheyenne Light, Fuel &
 Power is also available at http://www.cheyennelight.com.
 
 
 

SOURCE Black Hills Corporation
    RAPID CITY, S.D., Jan. 10 /PRNewswire-FirstCall/ -- Black Hills
 Corporation (NYSE:   BKH) announced today that its newest power plant entered
 into commercial service on January 1, 2008, as anticipated.
 
     The 95-megawatt, coal-fired base load Wygen II plant is owned by the
 Company's Cheyenne Light, Fuel & Power subsidiary. In November 2007, the
 Wyoming Public Service Commission approved a new rate structure for
 Cheyenne Light, effective January 1, 2008, which placed Wygen II into rate
 base. The Commission approved general increases of $6.7 million for
 electric rates and $4.4 million for natural gas rates, reflecting increased
 costs of providing service. The approval stipulates an allowed return on
 equity of 10.9 percent on a capital structure that is 54 percent equity and
 46 percent debt. A final Commission Order is pending.
 
     David R. Emery, Chairman, President and CEO of Black Hills Corporation,
 said, "We are pleased to announce that Wygen II began providing power to
 our Cheyenne Light system last week, as planned. To the credit of our power
 generation team, we completed another successful construction project
 cost-effectively and in less than 30 months. This power plant, with its use
 of state-of-the-art emissions control technology, is among the cleanest in
 the United States. We believe it is among the first coal-fired plants in
 the United States to reduce mercury emissions. In addition to its low
 emissions profile, Wygen II is expected to contribute to electric cost
 stability for our customers throughout its useful life."
 
     ABOUT BLACK HILLS CORPORATION
 
     Black Hills Corporation is a diversified energy company. Our retail
 businesses are Black Hills Power, an electric utility serving western South
 Dakota, northeastern Wyoming and southeastern Montana; and Cheyenne Light,
 Fuel & Power, an electric and gas distribution utility serving the
 Cheyenne, Wyoming vicinity. Black Hills Energy, the wholesale energy
 business unit, generates electricity, produces natural gas, oil and coal,
 and markets energy. More information is available at our Internet web site:
 http://www.blackhillscorp.com. Information about Cheyenne Light, Fuel &
 Power is also available at http://www.cheyennelight.com.
 
 
 SOURCE Black Hills Corporation