Black Hills Energy-Colorado Electric, a unit of Black Hills Corp. (NYSE: BKH), received approval from the Colorado Public Utilities Commission (PUC) to build and own 50 percent of a planned 29 MW capacity wind project, an investment of $26.5 million. The utility plans to solicit for ownership of the other half. Black Hills Energy will issue a request for proposals (RFP) no later than Aug. 15, 2011.
The 50 percent of the project subject to the RFP is owned by a wind developer and is subject to a Renewable Energy Purchase Agreement (REPA) with Black Hills Energy. If Black Hills Energy determines that a new REPA with more favorable terms is available based on proposals gathered during the upcoming solicitation process, then a replacement REPA may be executed no later than Jan. 1, 2012.
The project, planned for completion in late 2012, is expected to qualify for the U.S. Department of Treasury's section 1603 cashgrant program. It will include 16 Vestas wind turbines.
