Black Hills Corp. Requests Renewable Tariffs and Approval for $57 Million Wind Project

                                                          
  
RAPID CITY, S.D. - Dec. 17, 2018 - Black Hills Corp. BKH announced today its Black Hills Energy electric utility subsidiaries in South Dakota and Wyoming filed for approval of new, voluntary renewable energy tariffs to serve customer requests for renewable energy resources. In addition, Black Hills Energy South Dakota and Wyoming electric utilities filed a joint application with the Wyoming Public Service Commission for a certificate of public convenience and necessity to construct a new $57 million, 40-megawatt wind generation project near Cheyenne, Wyoming.

Requests to approve the voluntary tariffs, known as Renewable Ready Service Tariffs, were submitted to the South Dakota Public Utilities Commission and Wyoming Public Service Commission. The Renewable Ready Program would provide large commercial and industrial customers and governmental agencies a cost-effective option to purchase utility-scale renewable energy resources from Black Hills Energy for up to 100 percent of their electric energy needs. As proposed, customers would be able to enter into contracts with Black Hills Energy to purchase renewable energy for periods of five to 25 years. Through the proposed Renewable Ready Program and its utility-scale generation facilities, Black Hills Energy's customers would be able to purchase renewable energy at a cost substantially lower than if they chose to install and maintain renewable energy systems constructed on-site at their business locations.

In connection with the Renewable Ready Program, Black Hills Energy requested approval from the WPSC to construct a new $57 million wind generation project near Cheyenne, Wyoming. If approved, the 40-megawatt Corriedale Wind Energy Project would be jointly owned by Black Hills Energy's electric utility subsidiaries in South Dakota and Wyoming. The project would be largely constructed and placed in service during 2020. The $57 million capital investment for the project is not included in the company's previously disclosed five-year capital investment forecast.

"We are excited to provide new energy solutions for our customers and to help meet their renewable energy objectives," said Linn Evans, president and chief operating officer of Black Hills. "The Renewable Ready program provides our customers an excellent choice for the long-term delivery of cost-effective, utility-scale renewable energy."

This project would be additive to Black Hills' existing renewable electric generation resources. Black Hills' utility and power generation subsidiaries have constructed, own and operate 89 megawatts of wind generation facilities which serve its utility customers in Colorado. Another 60-megawatt wind project in Colorado is expected to be in service by the end of 2019.

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Black Hills Corporation
Black Hills Corp. BKH is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.25 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

Investor Relations
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com

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Caution Regarding Forward Looking Statement
This news release includes "forward-looking statements" as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements. This includes our ability to obtain required approvals to establish the Renewable Ready Service Tariff and obtain required approvals to construct the Corriedale Wind Energy project. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, the risk factors described in Item 1A of Part I of our 2017 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.