Black Hills Corp. Reaches Agreement-in-Principle for Wygen I Power Purchase Agreement

Rapid City, S.D., May 21, 2020 (GLOBE NEWSWIRE) — Black Hills Corp. (NYSE: BKH) today announced that utility subsidiary Cheyenne Light, Fuel and Power Co. and power generation subsidiary Black Hills Wyoming reached an agreement-in-principle with the intervenors and participants in its joint application with the Federal Energy Regulatory Commission for a proposed 60-megawatt power purchase agreement.

The parties are working to finalize the agreement and present it to FERC for review and a decision. Under FERC rules, the agreement is confidential until filed and must be approved by FERC before it is final.

Cheyenne Light identified a near-term generation capacity shortfall of 60 megawatts stemming from the 2022 expiration of the existing Wygen I power purchase agreement. The new contract will provide the Wyoming electric utility and its customers with reliable, low-cost electric capacity and energy.

Under the proposed agreement, Black Hills Wyoming will continue to deliver 60 megawatts of capacity and energy to Cheyenne Light from its Wygen I power plant. The Wygen I power plant is located near Gillette in northeast Wyoming and is a mine-mouth operation with the adjacent mining complex.

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 1.28 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.

Investor Relations
Jerome E. Nichols
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Caution Regarding Forward Looking Statement
This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements. This includes our ability to gain approval of the agreement-in-principle. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, the risk factors described in Item 1A of Part I of our 2018 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.