Black Hills Energy proposes Rapid City power plant costing up to $270 million

A sign displays the names of the state's three elected public utilities commissioners outside of their Pierre office in January 2023. (South Dakota Searchlight/Joshua Haiar)

Black Hills Energy plans to build a new power generation plant in Rapid City for a cost between $250 million and $270 million, according to a notice sent Aug. 2 to state regulators on the Public Utilities Commission.

The plant would have three engines fueled by natural gas and three turbines using natural gas and diesel. It is expected to produce about 100 megawatts of electricity during peak demand, an amount typically described as enough to power tens of thousands of homes.

The project would be constructed next to an existing Black Hills Energy-owned substation on land zoned for industrial purposes on Deadwood Avenue in northwest Rapid City.

The notice says Black Hills Energy plans to file for a permit from the Public Utilities Commission on Feb. 1. Construction would take 12-15 months, with the plant expected to begin operations by July 1, 2026. The company is also working to obtain other permits from local, state and federal agencies.

The notice says the project would employ up to 200 construction personnel and create three full-time jobs. It would also generate an estimated $10.5 million in sales, use and contractor’s excise taxes for the state during construction, and $1.5 million in additional annual property taxes for local governments.

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