PUEBLO, Colo., Dec. 16, 2011 /PRNewswire/ -- Black Hills Corp. (NYSE:BKH) utility subsidiary Black Hills Energy - Colorado Electric announced plans today to respond to an administrative law judge's initial recommendation to the Colorado Public Utilities Commission to deny the utility's request for a certificate of public convenience and necessity. Black Hills Energy is seeking approval to construct an LMS100 natural-gas-fired turbine to replace its W.N. Clark facility being retired in compliance with the Colorado Clean Air - Clean Jobs Act, also known as House Bill 1365.
On March 14, 2011, Black Hills Energy filed an application for a CPCN to construct the 88 megawatt LMS100 natural-gas-fired turbine in accordance with the order issued by the Colorado PUC on Dec. 15, 2010. The Colorado PUC's order also approved the retirement of the company's coal-fired W.N. Clark facility and granted a "presumption of need" for 42 MW to replace the Clark capacity, which the utility has the right to own as granted by the Clean Air - Clean Jobs Act.
On Oct. 4, 2011, Black Hills Energy filed a settlement agreement reached with the Colorado Office of Consumer Counsel, Board of Water Works of Pueblo, Fountain Valley Authority, Noble Energy, Inc. and EnCana Oil & Gas, Inc. to construct and operate the LMS100 and own 42 MW of the turbine's output. The remaining 46 MW of capacity would be competitively sold to a third party, and a seven-year purchase power agreement would be executed whereby Black Hills Energy would use the sold capacity to serve its approximately 94,000 customers in southern Colorado. After seven years, Black Hills Energy would purchase the 46 MW and acquire full ownership of the turbine. A hearing on the settlement was held on Oct. 25, 2011.
If the Colorado PUC adopts the administrative law judge's recommended decision, the settlement would be rejected, and the utility's application would be denied. Black Hills Energy plans to file a response to the recommended decision in early January, consistent with the commission's rules and orders regarding taking exception to the recommended decision.
Black Hills/Colorado Electric Utility Company, LP d/b/a Black Hills Energy
Black Hills Energy serves 93,300 electric customers in 21 southeastern Colorado communities and was ranked No. 6 in Total Solar Watts per Customers in Solar Electric Power Association's 2009 Utility Solar Rankings report. Black Hills Energy is a subsidiary of Black Hills Corp. (NYSE: BKH).
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 Omaha, Neb. The company serves 763,300 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 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 utility's application for a certificate of public convenience and necessity 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.
