Colorado PUC Approves Black Hills Energy's 29 MW Wind Project to Meet the State's Renewable Energy Standard

PUC requests competitive solicitation process to select partner for 50 percent interest

Black Hills Corp. utility subsidiary Black Hills Energy – Colorado Electric recently announced approval from the Colorado Public Utilities Commission regarding the utility’s proposed 29 megawatt wind project. The Colorado PUC approved a settlement which allows Black Hills Energy to construct and own 50 percent of the wind project, an investment of $26.5 million, and authorized Black Hills Energy to conduct a competitive solicitation for ownership of the other 50 percent of the project.

Black Hills Energy serves 94,000 electric customers in 21 southeastern Colorado communities.

This RFP is for a 50 percent ownership interest in the wind “Project” to be constructed by Black Hills Energy in Huerfano County, Colorado, and for the sale to Black Hills Energy pursuant to a Renewable Energy Purchase Agreement (“REPA”) of all of the energy, environmental attributes, and renewable energy credits from such 50 percent of the “Project.”  The remaining 50 percent of the “Project” will be owned by Black Hills Energy. 

The in-service date of the “Project” is expected to be no later than December 31, 2012.  Black Hills Energy invites proposals from all potential investors who are capable of meeting the identified conditions of this RFP excluding Black Hills Energy, all affiliates of Black Hills Energy, and all wind turbine manufacturers and their affiliates except Vestas-American Wind Technology, Inc. (“Vestas”).

The schedule for this RFP is as follows:

Issuance of RFP

August 15, 2011

Notice of Intent to Bid

August 22, 2011

Submission of Indicative Pricing

August 29, 2011

Notice of Short-Listed Bidders

September 2, 2011

Data Room Opened to Short-Listed Bidders

September 2, 2011

Final Bids Due

October 1, 2011

Completion of Bid Evaluation

November 1, 2011

Execution of REPA

January 1, 2011

RFP Document

Exhibit 2 – Colorado PUC Order
Exhibit 3 – Preliminary Site Map
Exhibit 4 – Renewable Energy Purchase Agreement
Exhibit 5 – Project Expenses
Exhibit 6 – Non-Disclosure Agreement – Data Room Access