Rapid City, S.D. – May 21, 2020 – Black Hills Corp. (NYSE: BKH) today announced that utility subsidiary Cheyenne Light, Fuel and Power Co. and power generation subsidiary Black Hills Wyoming reached an agreement-in-principle with the intervenors and participants in its joint application with the Federal Energy Regulatory Commission for a proposed 60-megawatt power purchase agreement.
The parties are working to finalize the agreement and present it to FERC for review and a decision. Under FERC rules, the agreement is confidential until filed and must be approved by FERC before it is final.
Cheyenne Light identified a near-term generation capacity shortfall of 60 megawatts stemming from the 2022 expiration of the existing Wygen I power purchase agreement. The new contract will provide the Wyoming electric utility and its customers with reliable, low-cost electric capacity and energy.
Under the proposed agreement, Black Hills Wyoming will continue to deliver 60 megawatts of capacity and energy to Cheyenne Light from its Wygen I power plant. The Wygen I power plant is located near Gillette in northeast Wyoming and is a mine-mouth operation with the adjacent mining complex.