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Cheyenne Prairie Generating StationBenefits of PartnershipOur partnership between Black Hills Power and Cheyenne Light is a win-win for customers. This facility allows us to share some of the capital costs with one another — resulting in lower cost to customers. The project will include construction of one combustion turbine generator with a net capacity of 37 megawatts that will be wholly owned by Cheyenne Light and one combined cycle with a net capacity of 95 megawatts that will be jointly owned by Cheyenne Light (40 MW) and Black Hills Power (55 MW). Benefits of joint ownership of a combined cycle unit in Cheyenne include:
Cheyenne Light recognized that we will need new electric resources to offset load growth occurring during the next several years and completed an integrated resource plan (IRP) in June 2011. Cheyenne Light’s integrated resource plan identified a preferred plan that included the addition of combustion turbine generators for Cheyenne Light customers by 2014. In late summer 2011, Black Hills Power began work on an IRP to identify the future resource needs of our customers. The future resource needs of Black Hills Power are driven primarily by the impact of environmental regulatory requirements on its existing older coal-fired generating facilities. Based on regulatory requirements and economics, the Ben French, Neil Simpson 1 and Osage coal-fired units owned by Black Hills Power will need to be retired in 2014. As a result of the preferred plan in Black Hills Power’s IRP, consideration was given to siting the combined cycle resource in Cheyenne, presenting an opportunity for Cheyenne Light and Black Hills Power to benefit from ownership of a combined-cycle resource.
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