Gillette Power

  Instead of buying 23 megawatts of
electricity from Black Hills Power, the city of Gillette will buy
23 percent ownership in the output of the new WyGen III power
plant.

City officials say a 14 percent to 18 percent electric rate hike
was expected if the city kept its current contract with Black Hills
Power. But they say the $68 million investment into the
100-megawatt plant means rates will increase only about 5 percent
next year.

City Attorney Charlie Anderson said the investment is the
cheapest option in the long run for the city, since rates will
continue to increase in the future.

City leaders voted Monday night to make the investment.
The Black Hills Power Corp. plant is expected to go online for
commercial operation April 1.

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