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BKH - Black Hills News Story

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

Black Hills Sells Generating Unit to City Of Gillette for $22 Million

Wed 3rd September, 2014 9:15pm
Black Hills Sells Generating Unit to City Of Gillette for $22 Million

GILLETTE, Wyo. - Sept. 3, 2014 - Black Hills Corp. (NYSE: BKH) non-regulated subsidiary Black Hills Wyoming today closed the sale of a 40-megawatt, natural gas-fired generating unit to the City of Gillette for approximately $22 million.

The transaction includes a 20-year agreement for Black Hills Wyoming to operate the plant, provide plant-related administrative services and share equally with Gillette in savings from wholesale power market purchases made on behalf of the city when power costs are less than operating the generating unit.

Black Hills Corp. plans to pay down debt with proceeds from the sale.

"Black Hills is an energy solutions partner, and this mutually beneficial agreement is an important part of the solution to Gillette's need for cost-effective, reliable electricity to support the community's current needs, future growth and economic prosperity," said David R. Emery, chairman, president and chief executive officer of Black Hills Corp.

An existing power sales agreement for Black Hills Wyoming to sell all of the generating unit's output to Black Hills Corp. subsidiary Cheyenne Light, Fuel and Power expired on Aug. 31.

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a growth-oriented, vertically-integrated energy company with a tradition of exemplary service and a vision to be the energy partner of choice. Black Hills Corp. is based in Rapid City, S.D., and serves 777,000 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. Black Hills Corp.'s 1,948 employees partner to produce results that are improving life with energy. More information is available at www.blackhillscorp.com.

Investor Relations:
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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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