Black Hills Corp. Receives Approval For 99 MW Dispatchable Generation Resource in South Dakota

Rhea-AI Summary

Black Hills Corp. (NYSE: BKH) has received approval from the Wyoming Public Service Commission for its Lange II Project, a 99 MW dispatchable generation resource in Rapid City, South Dakota. The $280 million project will feature six reciprocating internal combustion engines with dual-fuel capability using natural gas and diesel. The project addresses a capacity deficit from retiring aging units and increases planning reserve margin. Construction will begin in Q3 2025, with service expected to start in H2 2026. The RICE units were chosen as the least-cost solution to enhance system resiliency and quickly respond to customer demand fluctuations. Black Hills Corp. serves 1.35 million utility customers across eight states.

Positive

• Project addresses capacity deficit and increases planning reserve margin for reliable energy supply
• Dual-fuel capability (natural gas and diesel) provides operational flexibility
• RICE units identified as least-cost resource solution
• Enhanced system resiliency and quick response to demand fluctuations

Negative

• Significant capital expenditure of $280 million required
• Project completion not expected until second half of 2026

RAPID CITY, S.D., June 11, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its South Dakota electric utility subsidiary serving South Dakota and eastern Wyoming has received approval from the Wyoming Public Service Commission for a certificate of public convenience and necessity (CPCN) that supports the need for its Lange II Project, a 99 MW dispatchable generation resource in Rapid City, South Dakota. The approval allows commencement of construction of the project, which addresses a capacity deficit resulting from the retirement of other aging generation units, as well as an increase in planning reserve margin to ensure the utility has a reliable energy supply.

Lange II will include six reciprocating internal combustion engines (RICE) with dual-fuel optionality of natural gas and diesel, and related interconnection facilities. These were identified as the least-cost resource to continue to reliably serve customers in South Dakota and eastern Wyoming. The project is estimated to cost $280 million.

“We are committed to providing our customers with the safe, reliable and cost-effective electric service they depend on,” said Linn Evans, president and CEO of Black Hills Corp. “Notably, these RICE units will enhance resiliency of the electric system and the ability to quickly respond to fluctuations in demand needs for our customers.”

Construction is planned to commence during the third quarter of 2025 and the project is expected to start serving customers in the second half of 2026.

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.35 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

Investor Relations
Sal Diaz
605-399-5079
Investorrelations@blackhillscorp.com

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FAQ

What is the cost and capacity of Black Hills Corp's Lange II Project?

The Lange II Project will cost $280 million and have a capacity of 99 MW.

When will BKH's Lange II Project begin construction and operations?

Construction will begin in Q3 2025, with operations expected to start in the second half of 2026.

What type of generation technology will BKH use in the Lange II Project?

The project will use six reciprocating internal combustion engines (RICE) with dual-fuel capability using natural gas and diesel.

How many customers does Black Hills Corp serve?

Black Hills Corp serves 1.35 million natural gas and electric utility customers across eight states.

Why is Black Hills Corp building the Lange II Project?

The project addresses a capacity deficit from retiring aging generation units and increases planning reserve margin to ensure reliable energy supply.