The company said that the 95MW, coal-fired base load Wygen II plant is owned by its Cheyenne Light, Fuel & Power subsidiary. In November 2007, the Wyoming Public Service Commission approved a new rate structure for Cheyenne Light, which placed Wygen II into its rate base.
The commission approved general increases of $6.7 million for electric rates and $4.4 million for natural gas rates, reflecting increased costs of providing service. Black Hills said that the approval stipulates an allowed return on equity of 10.9% on a capital structure that is 54% equity and 46% debt. A final commission order is pending.
David Emery, chairman and CEO of Black Hills Corporation, said: This power plant, with its use of state-of-the-art emissions control technology, is among the cleanest in the US. In addition to its low emissions profile, Wygen II is expected to contribute to electric cost stability for our customers throughout its useful life.
