US-based diversified energy company Black Hills has begun construction on a 132MW Cheyenne Prairie natural gas fired station in Wyoming.

The electricity generated from the power plant will be used to serve the customers of Black Hills’ subsidiaries Cheyenne Light, Fuel & Power and Black Hills Power.

The power plant will contain three gas turbines, of which one simple-cycle combustion turbine unit will be wholly-owned by Cheyenne Light, while one combined-cycle unit will be co-owned by Cheyenne Light and Black Hills Power.

Black Hills chairman, president and chief executive officer David R Emery said, "This plant is an example of how our company continues to safely and reliably support increasing demand for electricity and provide solutions to our customers’ evolving energy needs."

Black Hills Power needs replacement generation for 82MW of older, coal-fired generation as it is economically not viable to upgrade the plant and meet the stringent air emission standards of EPA.

Cheyenne Light is developing the plant to meet the increasing demand for electricity and replace a 40MW power supply agreement that ends in 2014.

The plant is scheduled to be placed in service in the fourth quarter of 2014.