Background
In early 2008, Xcel Energy notified us that they would not be renewing the power purchase agreement that supplies 75 percent of our electricity needs. In response, we filed our 2008 Energy Resource Plan with the Colorado Public Utilities Commission, which provided analysis of the best and least cost option to serve the electricity needs of our customers when the Xcel agreement expires.
In March 2009 the Colorado PUC approved us to build up to 200 MW, but determined that a portion of our customer needs should be solicited competitively. Black Hills Colorado IPP was selected as the winning bidder and we signed a 20 year PPA to secure the remaining energy needed to serve our customers when the Xcel contract expires.
- Black Hills Energy - Colorado Electric Utility-Owned Generation Facility – 180 MW
- Two General Electric LMS-100 natural gas-fired turbines
- Black Hills Colorado IPP Non-regulated Generation Facility – 200 MW
- Four 40 MW General Electric LM6000 natural gas-fired turbines and two 20 MW steam turbines (combined cycle)
- Cost Projections
- BHE-COE Utility-Owned Generation (Utility)* $250 - $260 million
- BHCI Non-regulated Generation (PPA) $250 - $260 million
*Capital for BHE-COE generation includes project related transmission investment