BLACK HILLS ENERGY BRINGS 'SMART' METERS'
TO PUEBLO ELECTRIC CUSTOMERS

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PUEBLO, Colo. —Nov. 6, 2008—Black Hills Energy’s Colorado Electric utility will soon begin installing new digital meters on the homes and businesses of its customers in the Pueblo area.

These meters, often referred to as ‘smart meters,’ will send customer usage information wirelessly to the company’s computer system, reducing the need for service personnel to access customers’ electric meters on a regular basis. Additionally, the smart meters allow for more frequent readings, resulting in a more accurate bill.

Installation of the digital meters in the initial phase of this program starts this month. Based on the success of this pilot program, the long-range goal is to eventually install smart meters on the homes of all Black Hills Energy’s Colorado Electric customers. This multi-year investment will increase efficiency by using technology to maintain and enhance Black Hills Energy’s ability to provide its customers with safe, reliable electricity.

The pilot phase involves installing 3,500 meters on homes and businesses in the Industrial Park area near the Pueblo Memorial Airport, the Blende area east of Pueblo and a residential area east of the city’s downtown. The company plans to complete this phase of the program by the end of the year.

“The experience we gain in this first phase will give us a good knowledge base as we move forward with this program,” said Gary Stone, vice president of the Black Hills Energy’s Colorado Electric operation.

Black Hills installs new meters

“This is an important program for our customers. As the demand for energy continues to increase, our customers are looking to us to help them keep the cost of their energy as low as possible. Installing these technology-loaded meters will give us the ability to provide more customer options as they become available in the future. Our plan is to move forward as quickly as possible, but with the needed caution to ensure maximum customer value.

” Based on a successful 3,500-meter pilot, phase two of the program will include installation of smart meters on the homes and businesses of an additional 53,000 Pueblo-area customers.

Black Hills Energy has contracted with Elster Integrated Solutions, LLC to install the meters. The contractors will carry a letter from Black Hills Energy explaining that Elster is a contractor for the company. Vehicles used by the contractors also will carry signs identifying them with Black Hills Energy. Before the installation of the smart meters, businesses and homeowners will receive a letter from Black Hills Energy explaining that the new meter will be installed on their home or business, that the installations will be made primarily Monday through Friday and that the process will take approximately 30 minutes. After a meter has been installed, the contractor will hang a notice on the customer’s door telling them that the installation is complete.

The long-range goal of the program is to eventually install smart meters on all Black Hills Energy Colorado Electric customers. This will include installing smart meters on homes and businesses in the Pueblo, Cañon City and Rocky Ford service territories.

“There are many operational and economic benefits of installing smart meters,” Stone said. “Utilizing the technology available to us today will make us a more efficient provider of electricity in the future, and will enable Black Hills Energy to respond to customer needs in a timely matter.”

About Black Hills Energy
Black Hills/Colorado Electric Utility Company, LP, d/b/a Black Hills Energy, successor to Aquila Networks-WPC, a subsidiary of Black Hills Corporation. (NYSE:BKH), serves approximately 93,000 electric customers in 21 southeastern Colorado communities. Black Hills Corporation is a diversified energy company with a tradition of exemplary service and a vision to be the energy partner of choice is based in Rapid City, S.D. with corporate offices in Golden, Colo. and Omaha, Neb. The company serves 750,000 utility customers in Colorado, Iowa, Kansas, Montana, South Dakota and Wyoming. The company’s non-regulated businesses generate wholesale electricity, produce natural gas, oil and coal, and market energy. We partner to produce results that improve life with energy. More information is available at www.blackhillscorp.com.

About Elster
Elster has delivered over 1.5 million smart metering devices worldwide with systems located in North America, Europe, Central America, Australia, New Zealand and the Caribbean. Elster smart metering systems allow utilities to implement energy conservation measures, demand response programs, smart grid initiatives, and smart home solutions as well as achieve operational efficiencies resulting in significant value creation across the utility enterprise. Elster has over 7,500 staff and operations in 38 countries, focused in North and South America, Europe, and Asia. www.elster.com