NATURAL GAS PRICES REMAIN STABLE;
SLIGHTLY LOWER IN NEBRASKA IN JANUARY

Media Contact: Bob McKeon (402) 437-1812
Black Hills Media Line (866) 243-9002

LINCOLN, Neb., Jan. 20, 2009 – January natural gas prices for Black Hills Energy traditional billing customers in Nebraska are down from December and Nebraska weather for the heating season to date has been slightly colder than normal. January, however, has been slightly warmer than normal while December was colder than normal.

Colder temperatures in December, along with higher December natural gas prices, and Black Hills Energy’s cycle billing, means Black Hills Energy natural gas customers receiving bills in January could be seeing higher bills this month due to some amount of December usage on bills being received now. Bills received in February will have January and February usage on them.

“We realize that even with the good news about lower natural gas prices in January and close to normal temperatures so far this month, more natural gas is used during winter months than in other times of the year,” said Dan Mechtenberg, Black Hills Energy vice president of Nebraska Natural Gas Operations. “That’s why we offer a Budget Billing program. It’s a way to level out monthly payments and spread winter bills over the entire year.

“However, for those customers who still may have trouble paying their bill, we urge them to call us right away so that we can work with them to help them maintain their natural gas service,” Mechtenberg said. “If necessary, we can make payment arrangements or make referrals to energy assistance agencies.”

Black Hills Energy also sponsors Black Hills Cares, the company’s energy assistance program that provides customer and company contributions for residential energy assistance. Customers can indicate on their bill the amount they want to contribute monthly. In Nebraska, Salvation Army’s HeatShare program disburses Black Hills Cares funds.

For more information on programs and services from Black Hills Energy, customers are encouraged to contact the 24-hour Black Hills Energy Customer Service Center at (888) 890-5554 or visit blackhillsenergy.com.

Black Hills Energy serves 197,000 natural gas customers in 110 eastern Nebraska communities. Black Hills Energy is part of Black Hills Corp. (NYSE: BKH) — a diversified energy company with a tradition of exemplary service and a vision to be the energy partner of choice — based in Rapid City, S.D. The company has other main offices in Golden, Colo., and Omaha, Neb. Black Hills Corp.’s regulated utilities serve 750,000 electric and natural gas utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company’s non-regulated businesses generate wholesale electricity, produce natural gas, oil and coal, and market energy. More information is available at www.blackhillscorp.com.

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