Cheyenne Light, Fuel and Power Seeks Approval for 120 Megawatts of New Generation

CHEYENNE, Wyo., Aug. 1, 2011 /PRNewswire/ -- Black Hills Corp. (NYSE:BKH) utility subsidiary Cheyenne Light, Fuel & Power announced today that it has filed for a certificate of public convenience and necessity with the Wyoming Public Service Commission to construct and operate a new $158 million electric generation facility within the Cheyenne city limits. The facility includes three simple-cycle, natural-gas-fired combustion turbines, each with a gross capacity of 40 megawatts totaling approximately 120 megawatts. If approved by the Wyoming Public Service Commission, construction would begin in 2013, and the facility would begin serving customers in 2014.

"Cheyenne is a growing community and has been fortunate to experience positive economic development in recent years. We are committed to making sure all of our customers have the energy they need to succeed," said Mark Stege, vice president of operations. "This is the right investment to serve the increasing demand for electricity and maintain the reliability customers expect from our utility company."

Cheyenne Light recently completed an integrated resource plan to study and analyze the current and future energy needs of Cheyenne Light's service area. The plan identified natural-gas-fired combustion turbines as the most effective option to enhance existing generation resources to meet future electricity demand. The turbines will be fueled by natural gas, which will enable compliance with current and future Environmental Protection Agency emission regulations and diversify Cheyenne Light's generation portfolio. The turbines offer operational flexibility, providing the ability to operate independently of one another during times when electricity demand is lower. They can also cost effectively back up renewable resources such as wind as needed in the future.

The generation facility's location within the city limits will benefit customers by adding to the local tax base and providing increased electric system reliability. Its close proximity to existing power lines will lower costs to integrate the project into Cheyenne Light's transmission system.

Cheyenne Light, Fuel & Power Company

Cheyenne Light, Fuel and Power Company, a subsidiary of Black Hills Corp. (NYSE: BKH), serves 39,000 electric customers and 34,000 natural gas customers in the greater Cheyenne, Wyo., area.

Black Hills Corporation

Black Hills Corp. — a diversified energy company with a tradition of exemplary service and a vision to be the energy partner of choice — is based in Rapid City, S.D., with corporate offices in Denver and Papillion, Neb. The company serves 762,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company's non-regulated businesses generate wholesale electricity, produce natural gas, oil and coal, and market energy. Black Hills' 2,100 employees partner to produce results that improve life with energy. More information is available at www.blackhillscorp.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This news release includes "forward-looking statements" as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including statements regarding the cost of the project and our ability to comply with future environmental regulations,  are forward-looking statements. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including the factors discussed above, the risk factors described in Item 1A of Part I of our 2010 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Black Hills Corp.

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