BLACK HILLS ENERGY ANNOUNCES EXPANDED ENERGY EFFICIENCY
PROGRAM FOR IOWA CUSTOMERS

Media Contacts:
Bob McKeon 402-943-9143 or bob.mckeon@blackhillscorp.com
Janaan Harp 402-680-8928 or janaan.harp@blackhillscorp.com
Black Hills Media Line 866-243-9002

WEST DES MOINES, Iowa, March 18, 2009 – Black Hills Energy announced today that it will launch a statewide energy efficiency marketing and promotional campaign later this month. The campaign will promote the company’s expanded energy efficiency rebate and incentive programs to the 148,000 customers in 130 communities that Black Hills Energy serves in Iowa and encourage them to adopt measures to conserve energy in their homes and businesses. This is the first year in the company’s new five-year energy efficiency plan that was recently approved by the Iowa Utilities Board.

A key feature of the company’s energy efficiency plan includes a free home energy audit, valued at approximately $150, which will provide customers with recommendations on saving energy that can result in less natural gas use and possibly lower monthly natural gas bills. Incentives and rebates are limited so they will be allocated on a first come, first-serve basis.

“Energy efficiency programs and initiatives have long been a priority for Black Hills Energy’s Iowa natural gas operations, and our energy efficiency campaign will help us educate more customers about the rebates available to them,” said Tracy Peterson, vice president of Iowa natural gas operations for Black Hills Energy.

“Our company’s mission is improving life with energy. Our new expanded energy efficiency programs are designed to encourage and reward customers who take steps to use energy wisely and will be a value-added offering in the state that we’re excited to provide,” Peterson said. “This is a significant expansion of benefits, including more options and rebates and increased energy savings expectations for customers.”

The company’s energy efficiency program in Iowa for 2009 has a budget of $5.8 million and includes incentives and rebates for Iowa residential and non-residential customers to use towards qualified energy efficiency measures. The goal of the rebate programs is to reduce Iowa customers’ natural gas use by about 5 percent over the next five years.

New options and initiatives available through Black Hills Energy’s energy efficiency programs include residential appliance rebates, expanded marketing efforts to educate customers and incentives for new residential construction. Other current 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 building.

Customers can learn more about Black Hills Energy’s energy efficiency programs and available rebates, and sign up for them, by visiting www.blackhillsenergy.com and then selecting “Programs & Services” or by calling 888-567-0799.

“We want customers to be aware of the energy efficiency programs available to them,” said Peterson, “and we encourage them to participate in these programs that promote the resourceful and safe use of natural gas. Customers can conserve energy and potentially reduce their environmental impact while improving the comfort of their home or office.”

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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