RAPID CITY, S.D., Dec. 06, 2022 (GLOBE NEWSWIRE) — Black Hills Corp. (NYSE: BKH) today announced its subsidiary, Wyodak Resources Development Corp., completed a new contract to continue providing fuel supply to the 402-megawatt Wyodak Power Plant.
Wyodak Resources currently provides fuel supply to five on-site, mine-mouth coal-fired generating facilities near Gillette, Wyoming, including the Wyodak Power Plant. This new contract will be effective for four years starting on Jan. 1, 2023, and extending through Dec. 31, 2026, with an option to extend the term by one year to Dec. 31, 2027. The contract, if mutually agreed, can be extended in one-year increments thereafter.
Pricing and other terms were renewed at essentially similar terms as the existing fuel supply agreement which expires at year-end. Pricing will be consistent with the methodology in the current contract and will consist of a base price, plus adjustments. The price will be adjusted monthly and quarterly for certain index changes.
The contract will provide coal supply for the Wyodak Power Plant, which is owned 80% by PacifiCorp and 20% by Black Hills Corp.’s subsidiary South Dakota Electric. Wyodak Resources will continue to be the sole supplier to the plant.
“We’re pleased to finalize this new contract which will continue to provide a secure fuel supply at competitive pricing for the Wyodak Plant,” said Linn Evans, president and CEO of Black Hills Corp. “I value our decades of partnership with PacifiCorp at the Wyodak Plant, located at our Gillette energy complex, which provides critical baseload capacity for our combined customer base.”