BLACK HILLS CORPORATION OBTAINS FINAL APPROVAL FOR THE WYGEN III POWER PLANT FROM WYOMING REGULATORS; CONSTRUCTION BEGINS IMMEDIATELY

For Information Contact: Dale T. Jahr, Director, Investor Relations

RAPID CITY, SD—March 20, 2008—Black Hills Corporation (NYSE: BKH) announced today that a Certificate of Public Convenience and Necessity was issued by the Wyoming Public Service Commission for the Company’s Wygen III power plant.

The Certificate was the final regulatory requirement for the project, and construction will begin immediately. The 100-megawatt, coal-fired base load Wygen III electric generating facility is expected to take 24 to 30 months to construct at an expected cost of $255 million, including the allowance for funds used during construction (AFUDC).

David R. Emery, Chairman, President and CEO of Black Hills Corporation, said, “We appreciate the Commission’s approval and are excited to start construction immediately on another efficient mine-mouth power plant at our Wyodak energy complex near Gillette, Wyoming. It will be built alongside the Wygen II facility, which was placed into service for the Company’s subsidiary, Cheyenne Light, Fuel & Power, earlier this year. To minimize costs and to gain efficiencies, the two plants will be operated from the same control room and will share coal handling facilities and other infrastructure. Wygen III will utilize state-of-the-art emissions control technology, including mercury emissions reduction.

“Wygen III will be the fourth power plant using the basic design first utilized for our Neil Simpson II facility that went into service in 1995,” Emery said. “Taking advantage of incremental improvements in technology, Wygen III’s expected energy capacity rating of 100 megawatts is about 25 percent greater than the initial configuration of Neil Simpson II. Like its predecessor plants, it will employ air-cooled steam condensing, which will reduce water consumption by approximately 93 percent compared to power plants using conventional water-cooled condensing processes.”

The majority of the energy from Wygen III is expected to serve the growing load requirements of Black Hills Power, an electric utility subsidiary of the Company. In addition, the Company is evaluating potential investments in the power plant by third parties, who are currently wholesale customers of Black Hills Power. These investments would be in the form of non-operating interests and would require contracts for the purchase of coal and operations and maintenance services from the Company for the life of the plant.

ABOUT BLACK HILLS CORPORATION
Black Hills Corporation is a diversified energy company. Our retail businesses are Black Hills Power, an electric utility serving western South Dakota, northeastern Wyoming and southeastern Montana; and Cheyenne Light, Fuel & Power, an electric and gas distribution utility serving the Cheyenne, Wyoming vicinity. Black Hills Energy, the wholesale energy business unit, generates electricity, produces natural gas, oil and coal, and markets energy. More information is available at our Internet web site: www.blackhillscorp.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including the risk factors described in Item 1A of Part I of our 2007 Annual Report on Form 10-K filed with the SEC, and the following:

• Our ability to obtain favorable regulatory rulings when we seek to add power generation assets into our rate base;
• Our ability to complete the construction, start up and operation of power generating facilities in a cost-effective and timely manner;
• Changes in or compliance with laws and regulations, particularly those relating to taxation, safety and protection of the environment;
• Industry and market changes, including the impact of consolidations and changes in competition;
• The outcome of any ongoing or future litigation or similar disputes and the impact on any such outcome or related settlements;
• Capital market conditions and market uncertainties related to interest rates, which may affect our ability to raise debt financing or equity capital on favorable terms;
• Other factors discussed from time to time in our other filings with the SEC.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise.