Black Hills Corp (NYSE:BKH) Chairman, President and CEO David Emery said Nov. 3 that his company is happy to receive approval from the Colorado Public Utilities Commission to purchase the $109m, 60-MW Peak View Wind Project, which is expected to be completed by year-end 2016.
The wind project would be located near Colorado Electric‘s Busch Ranch wind facility. Construction is expected to commence in the second quarter 2016 and be completed by year-end 2016.
Emery made the comment in connection with issuance of Black Hills third quarter earnings report.
Construction is continuing, meanwhile, on a $65m, 40-MW, natural gas-fired turbine at Colorado Electric’s Pueblo Airport Generating Station. The new turbine is expected to be in service by year-end 2016.
Additionally, the company initiated a strategic review process to explore the sale of a minority interest in its Colorado independent power producer (IPP) generating assets. If any resulting bids merit a sale, the transaction would be expected to close in the first quarter 2016.
“Given the recent comparable transaction valuations for long-term contracted assets, we are optimistic that a premium valuation can be achieved for shareholders. Proceeds from any sale will be used to reduce the financing needs of the SourceGas acquisition,” Emery said.
On July 12, the company entered into an agreement to acquire SourceGas Holdings LLC for total consideration of $1.89bn. Joint applications for approval were filed on Aug. 10 with Arkansas, Colorado, Nebraska and Wyoming. On Aug. 18, the company received Hart-Scott-Rodino antitrust clearance for the acquisition. Procedural schedules have been established in Arkansas, Nebraska and Wyoming with hearings scheduled for January and February 2016. The transaction is expected to close in the first half of 2016.
July 23, Black Hills Power received approval from the Wyoming Public Service Commission for a certificate of public convenience and necessity to construct a new 144-mile, $54m electric transmission line from northeastern Wyoming to Rapid City, S.D. Black Hills Power received approval on Nov. 6, 2014, from the South Dakota Public Utilities Commission for a permit to construct this line. Assuming timely receipt of the remaining approvals, construction is expected to commence in the fourth quarter of 2015.
On July 27, Cheyenne Light, Fuel & Power recorded a new all-time electric peak load of 212 megawatts, its third new peak since June 1. The previous peak load of 198 megawatts was recorded on July 21, 2014.