PUEBLO, Colo., Feb. 25 /PRNewswire-FirstCall/ -- Black Hills Corp. utility subsidiary Black Hills/Colorado Electric Utility Company, LP, d/b/a Black Hills Energy, today announced the Colorado Public Utilities Commission's (PUC) initial decision to allow Black Hills to build two utility-owned and operated generation facilities.
This ruling is in response to Black Hills' Electric Resource Plan proposal, filed August 2008, to continue providing electrical service to its 92,000 customers in 21 southeastern Colorado communities by replacing a purchased power agreement the company currently holds with Xcel Energy (Public Service Company of Colorado) which expires December 31, 2011.
"Our goal is to continue providing customers safe, reliable electricity with the security of supply and the cost benefits of long-term and depreciating assets," said Gary Stone, Vice President of Operations of Black Hills Energy's Colorado Electric utility.
The decision waives the Colorado PUC's competitive bidding rules and allows Black Hills Energy to build two of the five proposed power generation facilities, specifically two General Electric natural gas-fired LMS-100 combustion turbines. This decision and order is subject to requests by any party to the proceeding for reconsideration by the Commission which must be filed by March 16, 2009. In addition to Black Hills Energy's right to construct the two turbines, Black Hills Corp., through its IPP subsidiary, will have the opportunity to submit bids to serve all or a portion of the remaining capacity deficiency.
"We are committed to cost-effectively serving the needs of our customers while ensuring that adequate power is available when the purchased power agreement ends on December 31, 2011," said David Emery, Chairman, President and CEO of Black Hills Corporation. "With the Commission's ruling we can now move forward with plans to build the first two turbines, as well as evaluate other business opportunities that the Commission's competitive bidding process provides."
ABOUT BLACK HILLS ENERGY
Black Hills Energy, a subsidiary of Black Hills Corp., serves approximately 92,000 electric customers in 21 southeastern Colorado communities. Black Hills Corp., based in Rapid City, S.D. , is a diversified energy company with a tradition of exemplary service and a vision to be the energy partner of choice. The company serves 750,000 utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The non-regulated business unit generates electricity, produces natural gas, oil and coal, and markets energy. We partner to produce results that improve life with energy. Learn more at blackhillscorp.com.
ABOUT 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 Golden, Colo., and Omaha, Neb. The company serves 750,000 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. We partner to produce results that improve life with energy. More information is available at http://www.blackhillscorp.com/.
