BLACK HILLS ENERGY PRESENTS ENERGY EFFICIENCY
REBATE TO LOCAL PROPERTY OWNER

Media Contacts:
Customer Relations Manager Matt O’Reilly: 712-325-3001
Black Hills Energy Media Line: 866-243-9002

COUNCIL BLUFFS, Iowa, March 12, 2009 — Black Hills Energy today presented an energy efficiency rebate in the amount of $1,173 to John LaBounty in Council Bluffs, Iowa, for installing R-74 insulation throughout the ceiling of his commercial property.

The rebate is one of many available through Black Hills Energy’s current energy efficiency programs, which are designed to promote the benefits of using energy wisely and are aligned with Iowa energy conservation initiatives. The loose-fill fiberglass insulation installed by LaBounty will reduce the amount of energy needed to keep the building warm during the winter months and cool during the summer.

“Our energy efficiency programs, including the rebate offer used by LaBounty, are designed to encourage customers to take measures to conserve energy and be more eco-friendly, and this can translate to monetary savings over the long run,” said Nick Gardner, operations supervisor in Council Bluffs for Black Hills Energy. “When customers take energy efficient measures, such as investing in high-quality insulation for their homes and offices, they may be able to use less energy and as a result, lower their monthly natural gas bill.”

In addition to insulating the ceilings, LaBounty has taken other energy efficiency measures throughout his 5,000-square-foot property, including caulking and installing new windows and light bulbs to reduce energy consumption. “This building represents what people should be doing to make their properties as energy efficient as possible,” said LaBounty. “The steps I’ve taken to modernize the building’s efficiency levels have allowed me to reduce my total energy consumption by 70 percent or 80 percent. In January, my natural gas bill was nearly half of what it was the same month last year.”

Black Hills Energy’s residential and non-residential energy efficiency programs include rebates for purchasing natural gas appliances and equipment, insulating walls and ceilings, weather-stripping and for building a new, energy-efficient home or commercial property. There is $2.7 million in limited funding for rebates available to Black Hills Energy Iowa customers in 2009. Customers can learn more about Black Hills Energy’s energy efficiency programs and available rebates by visiting the company’s Web site at www.blackhillsenergy.com and selecting “Programs & Services”.

“We value our partnership with Council Bluffs and want to help educate residents about the programs available to them,” said Gardner. “Black Hills Energy encourages and supports other customers to participate in our energy efficiency programs that promote the resourceful and safe use of natural gas. These programs really are a win-win situation. Customers can reduce their environmental impact, improve the comfort of their home and office, conserve energy and potentially save on their monthly natural gas bill.”

Black Hills Energy, a division of Black Hills Corp. (NYSE: BKH), serves 148,000 natural gas customers in 130 Iowa communities. Black Hills Corp. — 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, 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.blackhillsenergy.com.

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