Frequently Asked Questions
Our investment in the new campus is estimated at approximately $70 million.
No. Black Hills Energy filed a rate request with the South Dakota Public Utilities Commission to recover operating expenses and infrastructure investments, primarily for the natural gas-fired Cheyenne Prairie Generating Station that will serve Black Hills Energy customers for decades to come.
The new headquarters supports all of our businesses. The cost for the facility will replace existing expenses for our five facilities throughout Rapid City and will be spread across all of our regulated utility subsidiaries and non-regulated energy subsidiaries.
We’re moving employees from five facilities to one, which is more efficient. Predicting rate cases is challenging, but we expect the efficiencies from the new facility to help minimize future rate increases.
Our organization grew significantly over the past 10 years, especially in the Rapid City area.
To support our entire seven-state natural gas and electric service territory, we continue to consolidate central functions in Rapid City, which keeps our customers’ costs down.
Since 2004, we’ve added more than 300 jobs in Rapid City, mostly by acquiring seven different utilities in five other states. Most recently, on July 12, we announced our intention to purchase SourceGas, pending regulatory approval, which will likely bring additional employees to Rapid City.
The positions we’ve brought to Rapid City since 2004 include:
- Customer bill print and collection
- Electric reliability center
- Customer support services
- Other corporate support functions
Our Rapid City employees are currently spread throughout five locations, which is inefficient. We’ve run out of room and don’t have space to grow.
Additionally, in July, we announced the pending acquisition of SourceGas, a natural gas utility headquartered in Colorado. Integrating SourceGas into our family will grow our corporation significantly, adding more jobs here in Rapid City. The company will serve over 1.2 million customers across nearly 800 communities in eight states. Nearly 95 percent of our customers will reside outside of South Dakota. We expect the transaction to close by mid-2016.
Also, we want to be a destination employer and are designing a facility for today’s — as well as the future’s — diverse workforce to help recruit and keep talent in South Dakota and Rapid City.
We’ve chosen to build our new corporate headquarters here in Rapid City. This is our home, and by building our new facility here, we’re reinforcing our commitment to remain a part of this community.
Our economic investment model shows that the impact of our current 550 local employees and their families to be $81 million annually to the community. With our new HQ allowing room for future growth, our impact can also grow.
Furthermore, as we work to close our agreement to purchase SourceGas, we may have the opportunity to bring even more jobs to Rapid City.
The company and our employees will continue to support our downtown businesses. We will sell our existing corporate facility on Ninth Street. The employees of the business or businesses that move into that location should also provide business to downtown.
We’re partnering with ARC International, a local architecture firm, to make sure the aesthetics of the building match its surroundings. Scull construction services will serve as our construction manager.
We broke ground on Sept. 15, and marked the milestone with a ceremony on Sept. 28. We plan to begin moving employees into the new headquarters in the fall of 2017.