Published:
Municipal Energy Agency of Nebraska Buys Interest in Black Hills Plant
GILLETTE, Wyo., Aug. 25 /PRNewswire/ -- The Municipal Energy Agency of
Nebraska (MEAN), and Black Hills Corporation (NYSE: BKH), today announced that
MEAN will purchase a 23.5 percent ownership in Black Hills' Wygen I generation
facility for $51 million. Wygen I is an 85 MW coal fired plant nearGillette,
Wyoming.
"We appreciate our longstanding relationship with MEAN and look forward to
our continuing partnership as co-owners of the Wygen I facility," said David
R. Emery, chairman, president and CEO of Black Hills Corporation.
MEAN's new ownership agreement also includes payment for overhead,
operations and coal supply provided by Black Hills subsidiaries for the life
of the facility. MEAN currently holds a 10-year purchase power agreement with
Black Hills to buy 20 MW of power annually from Wygen I. The new purchase and
sale transaction is expected to close on or before December 31, 2008 thus
terminating the current power purchase agreement between MEAN and Black Hills.
"Purchasing interest in the Wygen I facility provides benefits to our
wholesale customers," said MEAN Executive Director J. Gary Stauffer. "By
acquiring ownership in the plant, we can continue to provide our customers
with the benefits of competitively priced energy in a transmission constrained
area for years to come.
MEAN's purchase of ownership interest in the Black Hills facility received
regulatory approval from the Nebraska Power Review Board and this agreement
also requires Black Hills to make a filing with the Federal Energy Regulatory
Commission (FERC).
ABOUT MEAN
Formed in 1981, MEAN provides wholesale power supply and energy-related
services to 65 communities and one joint-action agency in four states:
Colorado,Iowa,Nebraska andWyoming. MEAN is one of four energy-related
organizations of NMPP Energy, a joint-action agency headquartered inLincoln,
Neb.
ABOUT BLACK HILLS CORPORATION
Black Hills Corporation, based inRapid City, S.D., is a diversified
energy company with a tradition of exemplary service and a vision to be the
energy partner of choice. The company serves 750,000 utility customers in
Colorado,Iowa,Kansas,Montana,Nebraska,South Dakota andWyoming. The
non-regulated businesses generate electricity, produce natural gas, oil and
coal, and market energy. We partner to produce results that improve life with
energy. Learn more at http://www.blackhillscorp.com.
SOURCE Municipal Energy Agency ofNebraska
Copyright © 2009, PRNewswire
Copyright © 2009, NewsBlaze,
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