Black Hills utility seeks approval for new 120MW gas-fired power plant in Wyoming

Source: Black Hills Corp. 

Black Hills Corp. (NYSE:BKH) utility subsidiary Cheyenne Light, Fuel & Power announced that it has filed for a certificate of public convenience and necessity with the Wyoming Public Service Commission to construct and operate a new $158 million electric generation facility within the Cheyenne city limits. The facility includes three simple-cycle, natural-gas-fired combustion turbines, each with a gross capacity of 40 megawatts totaling approximately 120 megawatts. If approved by the Wyoming Public Service Commission, construction would begin in 2013, and the facility would begin serving customers in 2014. 

"Cheyenne is a growing community and has been fortunate to experience positive economic development in recent years. We are committed to making sure all of our customers have the energy they need to succeed," said Mark Stege, vice president of operations. "This is the right investment to serve the increasing demand for electricity and maintain the reliability customers expect from our utility company." 

Cheyenne Light recently completed an integrated resource plan to study and analyze the current and future energy needs of Cheyenne Light's service area. The plan identified natural-gas-fired combustion turbines as the most effective option to enhance existing generation resources to meet future electricity demand. The turbines will be fueled by natural gas, which will enable compliance with current and future Environmental Protection Agency emission regulations and diversify Cheyenne Light's generation portfolio. The turbines offer operational flexibility, providing the ability to operate independently of one another during times when electricity demand is lower. They can also cost effectively back up renewable resources such as wind as needed in the future. 

The generation facility's location within the city limits will benefit customers by adding to the local tax base and providing increased electric system reliability. Its close proximity to existing power lines will lower costs to integrate the project into Cheyenne Light's transmission system.



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