Black Hills Power And Cheyenne Light Receive EPA Air Permit For New Natural Gas-Fired Generation Facility In Cheyenne, Wyoming
Rapid City, SD - Black Hills Corp. announced recently that utility subsidiaries Black Hills Power and Cheyenne Light, Fuel & Power were issued an air permit by the U.S. Environmental Protection Agency on Sept. 27, 2012, allowing the company to immediately begin construction of a new $237M, 132 megawatt, natural gas-fired electric generation facility within the city limits of Cheyenne, Wyo.
"Receipt of the final permit needed to commence construction on the Cheyenne Prairie Generating Station represents a substantial project milestone. The plant is only the second in the nation to receive a greenhouse gas air permit from the U.S. E.P.A. This generation facility is a key component of our strategy to provide cost-effective, safe, reliable service to our customers while balancing changing environmental regulatory demands, economic development needs and an increasing demand for energy," said David R. Emery, chairman, president and chief executive officer of Black Hills Corp. "We expect to commence construction in April 2013 and have the plant ready for commercial operation by the fourth quarter of 2014. With the issuance of the permit, we will proceed with ordering the major equipment. The process to select contractors is already well underway."
Black Hills Power needs replacement generation for the 82 megawatts of older, coal-fired generation that cannot be economically retrofitted to meet new EPA air emissions regulations and must be retired prior to March 2014. Cheyenne Light is preparing for growing electricity demand due to an increase in economic development and the need to replace a 40 megawatt power supply agreement that terminates in 2014. This jointly owned generation facility allows each utility to reliably and cost-effectively serve the changing electricity needs of its customers.
The Cheyenne Prairie Generating Station will consist of a 37 megawatt simple-cycle combustion turbine owned entirely by Cheyenne Light and a 95 megawatt combined-cycle combustion turbine to be jointly owned by Black Hills Power (55 megawatts) and Cheyenne Light (40 megawatts).
The Cheyenne Prairie Generating Station's location will provide Cheyenne with temporary and permanent jobs as well as increased property and sales tax collections.
SOURCE: Black Hills Corporation