Black Hills Corp. secures approval for a $280 million electric generation project to enhance reliability in South Dakota and Wyoming.
Quiver AI Summary
Black Hills Corp. has received approval from the Wyoming Public Service Commission for a certificate of public convenience and necessity for its Lange II Project, a 99 MW generation facility in Rapid City, South Dakota. This project addresses a capacity shortfall due to the retirement of aging generation units and aims to increase the planning reserve margin for reliable energy supply. The Lange II Project will consist of six dual-fuel reciprocating internal combustion engines using natural gas and diesel, with construction planned to start in the third quarter of 2025 and operations expected to begin in the second half of 2026. The total estimated cost for the project is $280 million, highlighting the company's commitment to providing safe and reliable electric service to its customers in South Dakota and eastern Wyoming.
Potential Positives
- Approval of the CPCN for the Lange II Project enhances the company's ability to meet energy demand and address capacity deficits, ensuring reliable service for customers.
- The project represents a significant investment of $280 million, indicating the company's commitment to growth and infrastructure improvement.
- Utilization of dual-fuel options for the reciprocating internal combustion engines demonstrates flexibility and adaptability in energy sourcing, which can enhance operational efficiency.
- The construction and subsequent operation of the Lange II Project are expected to improve system resiliency and responsiveness to demand fluctuations, benefiting the utility's reliability metrics.
Potential Negatives
- The approval of the CPCN indicates that the company is addressing a capacity deficit, which may reflect previous challenges in maintaining sufficient power generation resources.
- The project cost of $280 million raises concerns about financial implications and potential impact on customer rates, especially if project costs escalate.
FAQ
What is the Lange II Project by Black Hills Corp.?
The Lange II Project is a 99 MW dispatchable generation resource in Rapid City, addressing a capacity deficit in South Dakota and Wyoming.
When will construction for the Lange II Project begin?
Construction is planned to commence in the third quarter of 2025.
What is the estimated cost of the Lange II Project?
The Lange II Project is estimated to cost $280 million.
How will the Lange II Project enhance energy reliability?
The project will include six reciprocating internal combustion engines, ensuring a reliable energy supply and better response to demand fluctuations.
When will the Lange II Project start serving customers?
The project is expected to start serving customers in the second half of 2026.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
RAPID CITY, S.D., June 11, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its South Dakota electric utility subsidiary serving South Dakota and eastern Wyoming has received approval from the Wyoming Public Service Commission for a certificate of public convenience and necessity (CPCN) that supports the need for its Lange II Project, a 99 MW dispatchable generation resource in Rapid City, South Dakota. The approval allows commencement of construction of the project, which addresses a capacity deficit resulting from the retirement of other aging generation units, as well as an increase in planning reserve margin to ensure the utility has a reliable energy supply.
Lange II will include six reciprocating internal combustion engines (RICE) with dual-fuel optionality of natural gas and diesel, and related interconnection facilities. These were identified as the least-cost resource to continue to reliably serve customers in South Dakota and eastern Wyoming. The project is estimated to cost $280 million.
“We are committed to providing our customers with the safe, reliable and cost-effective electric service they depend on,” said Linn Evans, president and CEO of Black Hills Corp. “Notably, these RICE units will enhance resiliency of the electric system and the ability to quickly respond to fluctuations in demand needs for our customers.”
Construction is planned to commence during the third quarter of 2025 and the project is expected to start serving customers in the second half of 2026.
Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.35 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.
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