Black Hills Corp. Secures Approval for New Generation Resource
Black Hills Corp. (NYSE: BKH) is making significant strides in energy production as its South Dakota electric utility has received crucial approval from the local Public Service Commission. This approval grants the company a certificate of public convenience and necessity (CPCN) for the Lange II Project, a cutting-edge 99 MW dispatchable generation resource located in Rapid City.
Addressing Energy Demands
The Lange II Project is set to address a growing capacity deficit resulting from the retirement of older power generation units. This initiative not only meets the immediate energy needs of the community but also contributes to enhancing the planning reserve margin. This ensures the utility can maintain a reliable energy supply for its customers.
Details of the Lange II Project
The Lange II Project plans to utilize six reciprocating internal combustion engines (RICE) capable of operating on both natural gas and diesel. This dual-fuel capability has been deemed the most cost-effective option for reliably serving the energy demands of customers in South Dakota and eastern Wyoming. With an estimated cost of $280 million, this project stands as a testament to Black Hills Corp.'s commitment to innovative energy solutions.
Commitment to Reliability
Linn Evans, the president and CEO of Black Hills Corp., emphasized the company’s dedication to delivering safe and dependable electric service. He stated, “We are committed to providing our customers with the safe, reliable and cost-effective electric service they depend on.” The new RICE units will enhance the electric system's resiliency and improve the company’s ability to respond to varying energy demands efficiently.
Construction Timeline
Construction for the Lange II Project is slated to begin in the third quarter of 2025. Once operational, the project is expected to begin serving customers by the second half of 2026. This timeline underscores the company’s focus on expediting the implementation of infrastructure improvements to meet its customers' energy needs.
About Black Hills Corp.
Founded with a vision of becoming the energy partner of choice, Black Hills Corp. (NYSE: BKH) has established itself as a growth-oriented utility company. The organization serves an impressive 1.35 million natural gas and electric utility customers across eight states, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. With a commitment to enhancing lives with energy, Black Hills Corp. continues to position itself at the forefront of the energy sector.
Investor Relations
For further inquiries, the Investor Relations team can be contacted at:
Sal Diaz
605-399-5079
Investorrelations@blackhillscorp.com
For media inquiries, please reach out to the 24-hour Media Relations Line at 888-242-3969.
Frequently Asked Questions
What is the Lange II Project?
The Lange II Project is a 99 MW dispatchable generation resource developed by Black Hills Corp. in Rapid City, aimed at enhancing energy reliability.
When is the construction expected to start?
Construction is planned to commence in the third quarter of 2025, with operations set to begin in the second half of 2026.
What technologies will be used in the project?
The project will utilize six reciprocating internal combustion engines (RICE) that can run on both natural gas and diesel, offering flexible operational capability.
How does this project impact energy supply in the area?
The Lange II Project will address capacity deficits due to retiring units and will improve the reliability of the energy supply for consumers in South Dakota and eastern Wyoming.
Who can I contact for more information about Black Hills Corp.?
You can reach out to Sal Diaz in Investor Relations at 605-399-5079 or via email at Investorrelations@blackhillscorp.com for more information.
