Application for CPCN and Settlement Agreement for 3rd LMS 100 Denied by Colorado Public Utilities Commission


Black Hills Corp. (NYSE:BKH) utility subsidiary Black Hills Energy – Colorado Electric announced today that the Colorado Public Utilities Commission denied its settlement agreement reached with customers in October 2011. The agreement would have allowed the utility to build and operate a third LMS100 natural-gas-fired turbine at the company’s Pueblo Airport Generating Station site near the Pueblo Memorial Airport.
 
“We appreciate the willingness of our customers to partner with us and enter into a settlement agreement that included significant cost-savings mechanisms,” said Christopher Burke, vice president of Colorado Utility Operations – Black Hills Energy. “We will continue to have discussions with the Colorado PUC regarding our generation needs when we file our electric resource plan later this year. We remain committed to finding the best replacement for our W.N. Clark plant when it is retired on Dec. 31, 2013, to ensure reliability and meet the terms of Colorado’s Clean Air — Clean Jobs Act.”
 
On March 14, 2011, Black Hills Energy filed an application for a certificate of public convenience and necessity to construct the 88 megawatt LMS100 natural-gas-fired turbine in accordance with the order issued by the Colorado PUC on Dec. 15, 2010. The Colorado PUC’s order also approved the retirement of the utility’s coal-fired W.N. Clark plant and granted a “presumption of need” for 42 megawatts to replace the Clark capacity, which the utility has the right to own as granted by the Clean Air — Clean Jobs Act.
 
Black Hills/Colorado Electric Utility Company, LP d/b/a Black Hills Energy
Black Hills Energy serves 94,000 electric customers in 21 southeastern Colorado communities. Black Hills Energy is a subsidiary of Black Hills Corp. (NYSE: BKH).
 
Black Hills Corporation
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 Denver and Papillion, Neb. The company serves 765,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company’s non-regulated businesses generate wholesale electricity and produce natural gas, oil and coal. Black Hills’ 2,000 employees partner to produce results that improve life with energy. More information is available at www.blackhillscorp.com.
 
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