Non-Regulated Energy
Utilities

About Our Non-regulated Energy

For more than five decades, Black Hills Corp. has supplemented its revenue and earnings streams through non-regulated energy investments. The non-regulated energy businesses comprise about 40 percent of our total assets and are headquartered in Denver, Colo.

Our non-regulated energy businesses oversees power generation, oil and natural gas production, coal mining and energy marketing, which extend into 12 states and Canada. These operations are logical adjuncts to our utility roots in many respects.

For example, our experience in power generation planning, construction, compliance and operation made it possible for us to enter the independent power production sector in 2000. Our production of coal, natural gas and crude oil serves as a direct and indirect hedge for the fuel consumption of our power generation fleet. Likewise, the market intelligence we gather and knowledge we possess through our energy marketing operations benefit our entire organization, such as optimizing prices for either selling or purchasing energy commodities. Most of all, at the core of our non-regulated energy performance is customer care, consistent with the Company’s focus.

Black Hills Electric Generation
Black Hills Electric Generation includes four independent power production gas-fired plants with facilities in Rupert and Glenns Ferry, Idaho; Ontario, Calif.; Gillette, Wyo.; and one coal-fired plant in Gillette, Wyo. After selling seven IPP assets in July 2008, Black Hills Electric Generation has 141 MW of capacity. Our strategy utilizes long-term contracts in Western markets with load growth potential. Nearly all of our non-regulated power is under long-term tolling contracts with electric utilities.

Black Hills Exploration & Production
Black Hills Exploration & Production, a subsidiary of Black Hills Corp. (NYSE: BKH), operates oil and natural gas producing properties in Colorado, Nebraska, New Mexico and Wyoming and has non-operated interests in properties producing in California, Montana, North Dakota, Oklahoma, Texas and Wyoming.

Enserco Energy
Enserco Energy Inc., a subsidiary of Black Hills Corp. (NYSE: BKH), specializes in the optimization of energy assets in the Western and Mid-continent regions of the United States and Canada. More than 40 energy professionals are responsible for transactions in wholesale natural gas marketing and producer services for natural gas and crude oil.

Wyodak
Wyodak Resources Development Corp., a subsidiary of Black Hills Corp. (NYSE: BKH), is a surface coal mine near Gillette, Wyo., and is the oldest operating surface coal mine in the United States. Wyodak has reserves of 274 million tons — a 42 year supply at current production levels — in the Powder River Basin.