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BKH - Black Hills News Story

$67.86 0.4  0.7%

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Large Cap
Market Cap £3.05bn
Enterprise Value £5.83bn
Revenue £1.29bn
Position in Universe 1555th / 6849


Fri 17th January, 2014 9:57pm 
RAPID CITY, S.D., - Jan. 17, 2014 - Black Hills Corp. (NYSE: BKH) subsidiary Black Hills Power
today filed a rate request with the Wyoming Public Service Commission to increase the electric
utility's revenues to recover investments it has made in its electric infrastructure, including
the natural gas-fired Cheyenne Prairie Generating Station under construction in Cheyenne, Wyo. 

If approved as filed, Black Hills Power's new Wyoming electric rates will generate an estimated
$2.8 million per year in additional revenue for the utility, based on a capital structure of
approximately 53 percent equity and 47 percent debt. The filing seeks a return on equity of 10.25
percent for investments Black Hills Power has made in its Wyoming electric systems. 

The primary purpose for Black Hills Power's rate request is to recover operating expenses and a
return on its investment in the new Cheyenne Prairie facility and associated infrastructure to
serve the electric utility's Wyoming customers. The new facility will replace Black Hills Power's
Osage and Neil Simpson I plants in Wyoming, and the Ben French plant in South Dakota. Those three
plants will be retired in March 2014 to comply with new Environmental Protection Agency air
emissions regulations. 

"Natural gas-fired generation has relatively low air emissions and is an effective solution to
meet the increasingly strict EPA air emissions regulations," said Linn Evans, Black Hills Corp.'s
president and chief operating officer of utilities. "Replacing Black Hills Power's three oldest
power plants is less expensive for customers than retrofitting the coal-fired plants to comply
with the new EPA regulations. Our goal is to provide reliable, safe and cost-effective energy for
our customers while earning an appropriate return on our capital costs for our investors."

Black Hills Power and another Black Hills Corp. utility, Cheyenne Light, Fuel & Power, will co-own
the $222 million Cheyenne Prairie Generating Station. Black Hills Power is investing $95 million
in its share of the new generating station and associated infrastructure, and will use electricity
from the station to serve customers in both Wyoming and South Dakota. 

Cheyenne Light filed a similar rate request with the Wyoming PSC on Dec. 2, 2013, to recover
operating expenses and a return on the approximately $127 million it is investing in its share of
the plant. 

"The Black Hills Power/Cheyenne Light partnership benefits customers of both utilities, in part
through economies of scale created by sharing construction and operating costs for the
132-megawatt Cheyenne Prairie Generating Station," Evans said. 

The rate filing pertains to Black Hills Power's investments and costs for serving its 2,700
electric customers in Wyoming. Any rate changes associated with the filing will only apply to the
utility's Wyoming customers. By the end of the first quarter, Black Hills Power plans to file a
rate request in South Dakota to recover investments and costs for serving its 65,300 electric
customers in that state.

Black Hills Power is seeking to implement the electric rate increase when the plant is placed into
service, scheduled for Oct. 1, 2014. The Wyoming PSC and its staff will conduct an extensive
review of the rate plans, a process that considers public comments and includes testimony from
utility representatives, the Wyoming Office of Consumer Advocate and other interested parties.

Black Hills Power will provide rate request information at , and information on the company and its services is always available
at  and . Black Hills Power's Facebook page and Twitter feed also provide
helpful information.

Black Hills Power, Inc.
Black Hills Power is the legacy utility business of Black Hills Corp. and has been delivering
energy for more than 130 years. The electric utility serves 68,000 customers in 34 communities in
western South Dakota, northeastern Wyoming, and southeastern Montana. 

Cheyenne Light, Fuel & Power Company
Cheyenne Light, Fuel & Power Company, a subsidiary of Black Hills Corp., serves 40,000 electric
customers and 35,000 natural gas customers in the greater Cheyenne, Wyo., area. 

Black Hills Corporation
Black Hills Corp. (NYSE: BKH), a growth-oriented, vertically-integrated 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. The company serves 769,000 natural gas and electric utility customers in Colorado,
Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company generates wholesale
electricity and produces natural gas, oil and coal. The 1,925 Black Hills employees partner to
produce results that are improving life with energy. More information is available at .

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 are
forward looking statements, including our ability and the timing of receiving regulatory approval
to recover our operating costs and a return on our investments. 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, our ability to obtain adequate cost recovery for our utility operations
through regulatory proceedings and the timing in which new rates would go into effect, the risk
factors described in Item 1A of Part I of our 2012 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. 
 Investor Relations:                                     
 Jerome E. Nichols         Phone: 605-721-1171           
 Media Contact:                                          
 24-hour Media Assistance  Phone: 866-243-9002           
 Local Media Contact:                                    
 Mutch Usera               Phone: 605-716-3951           
                           Mobile: 605-484-1476          
 Digital Media:             


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX
Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content,
accuracy and originality of the information contained therein.
Source: Black Hills Corporation via Globenewswire

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