Black Hills Corp. Purchases 50 Percent Interest in Busch Ranch I Wind Farm

Source Press Release
Company Black Hills CorpAltaGas Ltd. 
Tags Asset Deals, Deals, Renewable Energy, Power
Date December 11, 2018

Black Hills Corp. (NYSE: BKH) today announced that its power generation subsidiary, Black Hills Electric Generation, LLC, completed the purchase of a 50 percent ownership interest in the 29-megawatt Busch Ranch I Wind Farm located near Pueblo, Colorado, for approximately $16 million from AltaGas Power Holdings (U.S.) Inc. Black Hills Colorado Electric, an affiliate utility company doing business as Black Hills Energy, owns the remaining 50 percent ownership and operates the wind farm.

The Busch Ranch I Wind Farm is located 30 miles south of Pueblo, Colo., in Huerfano County, and consists of 16 wind turbines. All of the energy from the wind farm has been serving the 96,000 customers of Colorado Electric since operations began in October 2012. Black Hills Electric Generation will provide its share of energy from the wind farm to Colorado Electric through an existing long-term power purchase agreement that expires in October 2037.

"This purchase by our power generation business continues our strategy of owning and operating both utility and independent power generation facilities to serve our electric utility customers," said Linn Evans, president and chief operating officer of Black Hills. "The purchase of additional renewable windresources broadens our company's generation mix to better serve the needs of our utility customers while delivering long-term value for our shareholders."

Black Hills Electric Generation recently received approval from the Federal Energy Regulatory Commission to purchase the Busch Ranch I ownership interest. In addition, Black Hills Electric Generation is currently constructing the 60-megawatt Busch Ranch II wind project at an adjacent location, which is expected to begin serving Colorado Electric customers by year-end 2019 through a 25-year power purchase agreement.

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