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