Black Hills receives air permit for Colorado power plant projects

Pueblo, Colo., July 23, 2010 — Black Hills Energy Colorado Electric and Black Hills Colorado IPP, units of Black Hills Corp., were issued an air permit by the State of Colorado Department of Public Health and Environment.

Black Hills Corp. immediately began construction on two generation projects that will serve more than 93,300 Black Hills Energy Colorado Electric utility customers in southern Colorado beginning Jan. 1, 2012.

“Receiving our air permit is an important milestone for these Black Hills generation projects, and now we have begun construction at the Pueblo Airport site,” said David R. Emery, chairman, president and chief executive officer of Black Hills Corp. “We are on track to have both plants ready for commercial operation by the end of 2011 as planned. Most of the major equipment for the projects has been purchased, contracts have been awarded for the construction of water and gas lines, a water supply agreement has been executed, the annexation agreement has been approved by the City of Pueblo and the process to select the remaining contractors is well underway.”

In June 2009, Black Hills filed an initial application for an air permit with the State of Colorado Department of Public Health to construct and operate its new utility generating plant, and in September 2009, Black Hills submitted a revised application to include the Black Hills Colorado IPP plant.

Both generation projects will be located on a site near the Pueblo Airport. As many as 400 local jobs will be created during the construction phase, and once completed, the Black Hills facilities will create about 15-20 permanent highly technical jobs in southern Colorado.


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