August 26, 2008
MEAN to Purchase Ownership Interest in Black Hills Wygen-I Facility
The Municipal Energy Agency of Nebraska has announced that it will purchase a 23.5% ownership interest in Black Hills Corporation's Wygen-I generation facility for $51 million. Wygen-I is an 85MW coal-fired plant near Gillette, Wyoming.
The Municipal Energy Agency of Nebraska's (MEAN's) new ownership agreement also includes payment for overhead, operations and coal supply provided by Black Hills subsidiaries for the life of the facility.MEAN currently holds a 10-year purchase power agreement with Black Hills to buy 20MW of power annually from Wygen-I. The new purchase and sale transaction is expected to close on or before December 31, 2008, thus terminating the current power purchase agreement between MEAN and Black Hills.
David Emery, chairman, president and CEO of Black Hills, said: "We appreciate our longstanding relationship with MEAN and look forward to our continuing partnership as co-owners of the Wygen-I facility."