Black Hills Power and Cheyenne Light, Fuel & Power seek approval for new generation facility

Black Hills Corp. utility subsidiaries Black Hills Power and Cheyenne Light, Fuel & Power recently announced that they have filed for a certificate of public convenience and necessity with the Wyoming Public Service Commission to construct and operate a new $237 million natural-gas-fired electric generation facility within Cheyenne city limits. If approved by the Wyoming Public Service Commission, construction would begin in 2012, and the facility would begin serving customers in 2014.

The proposed facility will include one simple-cycle combustion turbine unit with a net capacity of approximately 37 megawatts that will be wholly owned by Cheyenne Light. It will also include one combined-cycle unit with a net capacity of approximately 95 megawatts that will be jointly owned by Cheyenne Light and Black Hills Power.

David R. Emery, chairman, president and chief executive officer said, "This joint project represents a win-win for our customers in the Black Hills area and Cheyenne. Black Hills Power must plan for future compliance as federal environmental regulatory requirements will impact some of our older coal-fired generating facilities, and Cheyenne Light must prepare for the growing electricity demand. This jointly owned generation facility allows each utility to cost-effectively serve the changing electricity needs of our customers."

The combined-cycle and simple-cycle turbines will be fueled by natural gas, which will position Black Hills Power and Cheyenne Light to meet current and future emission regulations and policies of U.S. Environmental Protection Agency, and diversify their generation portfolios. Additionally, both units are capable of backing up intermittent renewable generation resources.