RAPID CITY, S.D., Mar. 31, 2014 - Black Hills Corp. (NYSE: BKH) utility
subsidiary Black Hills Power today filed a rate request with the South Dakota
Public Utilities Commission to increase the electric utility's revenues to
recover operating expenses and infrastructure investments, primarily for the
natural gas-fired Cheyenne Prairie Generating Station, under construction in
Cheyenne, Wyo.

The new generating station will replace the company's three oldest coal-fired
power plants, retired this month to comply with new Environmental Protection
Agency standards. The construction of the Cheyenne Prairie Generating Station is
on budget and on schedule to meet the plant's expected in-service date of Oct.
1, 2014.

If approved as filed, Black Hills Power's new South Dakota electric rates will
generate an estimated $14.6 million per year in additional revenue, based on a
capital structure of approximately 53 percent equity and 47 percent debt. The
filing seeks a return on equity of 10.25 percent for investments Black Hills
Power has made in its electric system.

"Natural gas-fired generation has relatively low air emissions, making it an
effective solution to meet increasingly strict EPA air emissions standards,"
said Linn Evans, Black Hills Corp.'s president and chief operating officer of
utilities.

"Replacing Black Hills Power's three oldest coal-fired power plants is less
expensive for customers than retrofitting the plants to comply with the new EPA
standards," Evans said. "Our goal is to provide reliable, safe and cost-
effective energy for our customers, while earning an appropriate return on our
capital investments for our investors."

Black Hills Power and another Black Hills Corp. utility, Cheyenne Light, Fuel &
ower, will co-own the $222 million Cheyenne Prairie Generating Station. Black
Hills Power is investing $95 million for its share of the new generating station
and associated infrastructure, and will use the electricity to serve its
customers in both South Dakota and Wyoming.

In September 2013, the South Dakota PUC approved a rider that allowed Black
Hills Power to begin recovery of financing costs for the station. Black Hills
Power, on Jan. 17, 2014, also filed a similar rate request with the Wyoming
Public Service Commission.

The South Dakota rate request also includes costs for restoring power to
approximately 42,000 of Black Hills Power's 68,000 customers affected by Storm
Atlas, the October 2013 blizzard that was the second worst in the Black Hills
region's recorded history. The Edison Electric Institute recently recognized the
company's restoration efforts and successful results with its Emergency Recovery
Award.

Black Hills Power is seeking to implement new electric rates on Oct. 1, 2014,
the expected in-service date of the new generating station. Consistent with the
standard process, the PUC and its staff will thoroughly review the rate plans,
consider public comments and review testimony from utility representatives and
other interested parties.

Black Hills Power will provide rate request information at www.reliablebhp.com,
and information on the company and its services is always available at
www.blackhillspower.com and www.blackhillscorp.com, and through Black Hills
Power's Facebook page and Twitter feed.

Black Hills Power, Inc.
Black Hills Power is the legacy utility business of Black Hills Corp. and has
been delivering energy for more than 131 years. The electric utility serves
69,000 customers in 31 communities in western South Dakota, northeastern
Wyoming, and southeastern Montana.

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a growth-oriented, vertically-integrated energy
company with a tradition of exemplary service and a vision to be the energy
partner of choice. Black Hills Corp. is based in Rapid City, S.D., and serves
777,000 natural gas and electric utility customers in Colorado, Iowa, Kansas,
Montana, Nebraska, South Dakota and Wyoming. The company generates wholesale
electricity and produces natural gas, oil and coal. Black Hills Corp.'s 1,948
employees partner to produce results that are improving life with energy. More
information is available at www.blackhillscorp.com.
Caution Regarding Forward Looking Statements

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, including our ability and the
timing of receiving regulatory approval to recover our operating costs and a
return on our investments. 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, including the factors
discussed above, our ability to obtain adequate cost recovery for our utility
operations through regulatory proceedings and the timing in which new rates
would go into effect, the risk factors described in Item 1A of Part I of our
2013 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.
 Investor Relations:

 Jerome E. Nichols          Phone: 605-721-1171


 Media Contact:

 24-hour Media Assistance   Phone: 866-243-9002


 Local Media Contact:

 Mutch Usera                Phone: 605-716-3951

                            Mobile: 605-484-1476


 Digital Media:             Blackhillspower.com

                            ReliableBHP.com

                            Twitter.com/blackhillspower

                            Facebook.com/blackhillspower


This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
    other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
     originality of the information contained therein.
distributed by