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Black Hills Corp. Receives Approval For 99 MW Dispatchable Generation Resource in South Dakota

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Black Hills Corp. (NYSE: BKH) has received approval from the Wyoming Public Service Commission for its Lange II Project, a 99 MW dispatchable generation resource in Rapid City, South Dakota. The $280 million project will feature six reciprocating internal combustion engines with dual-fuel capability using natural gas and diesel. The project addresses a capacity deficit from retiring aging units and increases planning reserve margin. Construction will begin in Q3 2025, with service expected to start in H2 2026. The RICE units were chosen as the least-cost solution to enhance system resiliency and quickly respond to customer demand fluctuations. Black Hills Corp. serves 1.35 million utility customers across eight states.
Black Hills Corp. (NYSE: BKH) ha ottenuto l'approvazione dalla Wyoming Public Service Commission per il progetto Lange II, una centrale di generazione da 99 MW a Rapid City, South Dakota, con capacità di dispacciamento. Il progetto da 280 milioni di dollari prevede sei motori a combustione interna alternativi con doppia alimentazione a gas naturale e diesel. Questa iniziativa risponde alla carenza di capacità dovuta al pensionamento di unità obsolete e aumenta il margine di riserva pianificato. La costruzione inizierà nel terzo trimestre del 2025, con l'entrata in servizio prevista per la seconda metà del 2026. Le unità RICE sono state scelte come soluzione a minor costo per migliorare la resilienza del sistema e rispondere rapidamente alle variazioni della domanda dei clienti. Black Hills Corp. serve 1,35 milioni di clienti in otto stati.
Black Hills Corp. (NYSE: BKH) ha recibido la aprobación de la Comisión de Servicios Públicos de Wyoming para su Proyecto Lange II, un recurso de generación despachable de 99 MW en Rapid City, Dakota del Sur. El proyecto, valorado en 280 millones de dólares, contará con seis motores de combustión interna recíprocos con capacidad de doble combustible usando gas natural y diésel. Este proyecto atiende un déficit de capacidad debido al retiro de unidades antiguas y aumenta el margen de reserva planificada. La construcción comenzará en el tercer trimestre de 2025, y se espera que el servicio inicie en la segunda mitad de 2026. Las unidades RICE fueron seleccionadas como la solución de menor costo para mejorar la resiliencia del sistema y responder rápidamente a las fluctuaciones de la demanda de los clientes. Black Hills Corp. atiende a 1.35 millones de clientes en ocho estados.
Black Hills Corp.(NYSE: BKH)� 와이오� 공공서비스위원회로부� 사우스다코타� 래피드시티에 위치� 99MW 디스패처� 발전 자원� Lange II 프로젝트 승인� 받았습니�. 2� 8천만 달러 규모� � 프로젝트� 천연가스와 디젤� 모두 사용� � 있는 6대� 왕복 내연기관 엔진으로 구성됩니�. � 프로젝트� 노후 발전 설비 폐쇄� 인한 용량 부� 문제� 해결하고 계획 예비율을 높입니다. 건설은 2025� 3분기� 시작되며, 서비스는 2026� 하반기에 개시� 예정입니�. RICE 유닛은 시스� 복원력을 강화하고 고객 수요 변동에 신속� 대응하� 위한 최저 비용 솔루션으� 선택되었습니�. Black Hills Corp.� 8� 주에� 135� 명의 유틸리티 고객에게 서비스를 제공합니�.
Black Hills Corp. (NYSE : BKH) a obtenu l'approbation de la Wyoming Public Service Commission pour son projet Lange II, une centrale de production pilotable de 99 MW à Rapid City, Dakota du Sud. Ce projet de 280 millions de dollars comprendra six moteurs à combustion interne alternatifs avec une capacité bi-carburant utilisant du gaz naturel et du diesel. Le projet répond à un déficit de capacité lié à la mise hors service d'unités anciennes et augmente la marge de réserve planifiée. La construction débutera au troisième trimestre 2025, avec une mise en service prévue pour le second semestre 2026. Les unités RICE ont été choisies comme solution la moins coûteuse pour renforcer la résilience du système et répondre rapidement aux fluctuations de la demande des clients. Black Hills Corp. dessert 1,35 million de clients dans huit États.
Black Hills Corp. (NYSE: BKH) hat von der Wyoming Public Service Commission die Genehmigung für sein Lange II Projekt erhalten, eine 99 MW flexible Erzeugungsanlage in Rapid City, South Dakota. Das 280 Millionen Dollar teure Projekt umfasst sechs Hubkolben-Verbrennungsmotoren mit Dual-Fuel-Fähigkeit, die Erdgas und Diesel nutzen. Das Projekt behebt ein Kapazitätsdefizit durch die Stilllegung alter Einheiten und erhöht die geplante Reservekapazität. Der Baubeginn ist für das dritte Quartal 2025 geplant, der Betrieb soll in der zweiten Hälfte 2026 starten. Die RICE-Einheiten wurden als kostengünstigste Lösung ausgewählt, um die Systemresilienz zu verbessern und schnell auf Nachfrageschwankungen der Kunden zu reagieren. Black Hills Corp. versorgt 1,35 Millionen Kunden in acht Bundesstaaten.
Positive
  • Project addresses capacity deficit and increases planning reserve margin for reliable energy supply
  • Dual-fuel capability (natural gas and diesel) provides operational flexibility
  • RICE units identified as least-cost resource solution
  • Enhanced system resiliency and quick response to demand fluctuations
Negative
  • Significant capital expenditure of $280 million required
  • Project completion not expected until second half of 2026

Insights

BKH secures regulatory approval for critical $280M power generation project addressing capacity deficit with flexibility-focused technology.

Black Hills Corp has secured a critical regulatory milestone with Wyoming Public Service Commission approval for its 99 MW Lange II Project in Rapid City. This $280 million investment addresses both immediate capacity shortfalls from retiring generation units and bolsters planning reserve margins for enhanced grid reliability.

The project's technology selection is particularly notable. By deploying six reciprocating internal combustion engines (RICE) with dual-fuel capability (natural gas and diesel), Black Hills gains operational flexibility that traditional generation assets often lack. These units provide quick-start capability to respond to demand fluctuations � a growing necessity as more intermittent renewable resources connect to the grid.

From a strategic perspective, this investment signals Black Hills' commitment to maintaining system reliability while navigating the complexities of generation fleet transitions. The regulatory approval provides certainty for the project timeline, with construction commencing Q3 2025 and operations beginning in 2026's second half.

For a utility serving 1.35 million customers across eight states, this capacity addition represents approximately 2.5% of Black Hills' total power generation portfolio, helping ensure adequate capacity across their service territories in South Dakota and eastern Wyoming. The project's identification as the "least-cost resource" suggests a favorable long-term impact on the rate base while maintaining competitive customer pricing.

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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FAQ

What is the cost and capacity of Black Hills Corp's Lange II Project?

The Lange II Project will cost $280 million and have a capacity of 99 MW.

When will BKH's Lange II Project begin construction and operations?

Construction will begin in Q3 2025, with operations expected to start in the second half of 2026.

What type of generation technology will BKH use in the Lange II Project?

The project will use six reciprocating internal combustion engines (RICE) with dual-fuel capability using natural gas and diesel.

How many customers does Black Hills Corp serve?

Black Hills Corp serves 1.35 million natural gas and electric utility customers across eight states.

Why is Black Hills Corp building the Lange II Project?

The project addresses a capacity deficit from retiring aging generation units and increases planning reserve margin to ensure reliable energy supply.
Black Hills

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