Our Subsidiaries

Non-Regulated Energy Operations A Regional Market Leader

The non-regulated energy businesses comprise about 40 percent of the Company's total assets and are headquartered in Golden, Colo. This team oversees power generation, oil and natural gas production, coal mining and energy marketing, which extend into 12 states and Canada.

subsidiaries graphicBlack Hills Electric Generation

Power Delivery
  • In July 2008, Black Hills Corp. sold seven independent power production gas-fired plants with a total capacity of 974 megawatts for $840 million cash to Hastings Funds Management and to a subsidiary of JPMorgan Asset Management.
  • We are not exiting this business. Following the sale, we have 158 MW of capacity remaining.
  • Our strategy utilizes long-term contracts in western markets with load growth potential.
  • Nearly all of our non-regulated power is under long-term tolling contracts with electric utilities.

Wyodak

  • Reserves of 280 million tons (YE 2007) at our mine in the Powder River Basin of Wyoming:
    – a 43-year supply at current production levels.
  • Production to increase to provide fuel for new Wygen II plant and new contract with Dave Johnston plant for increased sales.
  • Supports low-cost generation of our electric utility and non-regulated power fleet.

Enserco

  • Record 2007 earnings capitalize on increased natural gas volumes and continued volatility.
  • We provide producer and end-use origination services with a regional wholesale marketing strategy. Operational headquarters in Golden, Colo., with a branch office in Calgary, Alberta.
  • Oil marketing producer services began in May 2006.
  • Energy marketing focuses on storage and transportation plays that move Rockies and Canadian natural gas and regional power primarily to Western markets.
  • Disciplined business practices minimize credit and market risk.

Black Hills Exploration & Production

  • Oil and natural gas subsidiary of the non-regulated energy group.
  • Operates oil and natural gas producing properties in Colorado, Nebraska, New Mexico and Wyoming.
  • Has non-operated interests in properties producing in California, Montana, North Dakota, Oklahoma, Texas and Wyoming.
  • Growth is dependent upon successful drilling within exsisting fields and in identifying new opportunities to purchase and explore.
  • Basins:

Utilities... Committed To Our Customers

Our regulated businesses consist of natural gas utilities in Colorado, Iowa, Kansas, Nebraska and Wyoming and electric utilities in Colorado, Montana, South Dakota and Wyoming. These utilities serve more than 750,000 customers and represent about 60 percent of our total assets. The earnings from our utilities provide a stable cash flow within our overall revenue mix. Our dedication to exceptional customer service and value is evident by the high approval ratings from our customers.

Natural Gas

Our natural gas utilities provide natural gas service in Colorado, Iowa, Kansas, Nebraska and Wyoming. Our employees in these operations serve approximately 552,700 customers.

Cheyenne Light, Fuel & Power

  • Cheyenne Light, Fuel & Power is an electric and natural gas distribution company serving ~39,400 electric and ~33,000 gas customers.
  • Cheyenne Light has an electric peak of 171 MW, annual gas delivery of 4.4 Bcf plus commercial transportation of ~8.3 Bcf.
  • Wygen II, a 95 MW base-load coal-fired power plant began serving customers January 1, 2008.
  • Rate case approved an increase of $4.4 million in gas rates and $6.7 million in electric rates, effective January 1, 2008.

Colorado Natural Gas

  • Approximate Number of Customers Served in Colorado: 67,100
  • Approximate Number of Employees: 66
  • June 30, 2008 filed for a rate increase of $2.8 million. Interim rates not applicable.

Iowa Natural Gas

  • Approximate Number of Customers Served: 148,500
  • Approximate Number of Employees: 205
  • June 2, 2008 filed for a rate increase of $13.6 million. Interim rates of $9.4 million went into effect on June 13, 2008.

Kansas Natural Gas

  • Approximate Number of Customers Served in Kansas: 107,700
  • Approximate Number of Employees: 153
  • New rates implemented June 1, 2007 representing $5.1 million annual increase.

Nebraska Natural Gas

  • Approximate Number of Customers Served: 196,200
  • Approximate Number of Employees: 242
  • New rates implemented April 1, 2008 representing $9.2 million annual increase.

Electric

Our electric utilities provide electrical service in Colorado, Montana, South Dakota and Wyoming. Our employees in these operations serve approximately 194,800 customers.

Black Hills Power

  • Black Hills Power has steady customer growth and strong cash flows.
  • BHP has 65,100 customers in western South Dakota and parts of Wyoming and MT; provides wholesale power to the cities of Gillette Wyo., and Sheridan, Wyo.
  • BHP has the ability to sell surplus energy on the open wholesale market, with unique access to both eastern and western power grids.
  • 435 MW capacity plus 50 MW purchased power; 295 MW of low-cost coal fired generation resources; 430 MW peak load; ~256 MW average system load.
  • 100 MW Wygen III power plant construction began in April 2008. Expected to cost $255 million and be in commercial service in 24-30 months.

Cheyenne Light, Fuel & Power

  • Cheyenne Light, Fuel & Power is an electric and natural gas distribution company serving ~39,400 electric and ~33,000 gas customers.
  • Cheyenne Light has an electric peak of 171 MW, annual gas delivery of 4.4 Bcf plus commercial transportation of ~8.3 Bcf.
  • Wygen II, a 95 MW base-load coal-fired power plant began serving customers January 1, 2008.
  • Rate case approved an increase of $4.4 million in gas rates and $6.7 million in electric rates, effective January 1, 2008.

Colorado Electric

  • Approximate Number of Customers Served: 92,000
  • Approximate Number of Employees: 198
  • Colorado Electric Resource Plan will be filed with Colorado Puc before September 1, 2008.