RAPID CITY, S.D., July 9, 2003 — Black Hills Corp. entered into a definitive agreement to sell its ownership interests in seven hydroelectric power plants in upstate New York.
The aggregate cash purchase price of approximately US$186 million will be used in part to pay debt of approximately $82 million associated with the power projects. The hydro facilities have a combined nameplate capacity of approximately 80 MW. The purchasers are affiliates of Boralex, Inc., a Canadian corporation, and Boralex Power Income Fund, an unincorporated Canadian trust of which Boralex owns an interest.
The transaction is expected to be completed in the third quarter of 2003, and is subject to conditions customary in transactions of this nature, including receipt of certain regulatory approvals.
Daniel P. Landguth, Chairman and CEO of Black Hills Corporation, said, “Our interests in these hydroelectric plants located in the northeastern United States were determined to be non-strategic. Therefore, we decided to divest of these assets. Our geographic focus has been and will continue to be the western United States. The divestiture of assets strengthens our balance sheet by reducing debt and positions us to move forward with our strategy.”
About Black Hills Corporation
Black Hills Corporation ( www.blackhillscorp.com ) is a diverse energy and communications company. Black Hills Energy, our non-regulated energy business group, generates electricity, produces natural gas, oil and coal and markets energy; Black Hills Power is our electric utility serving western South Dakota, northeastern Wyoming and southeastern Montana; and Black Hills FiberCom, a broadband communications company, offers bundled telephone, high speed Internet and cable entertainment services.