Decade of the 50's
On October 31, 1951, the generator on the No. 1 turbine at the Osage Plant burned out. The manufacturer admitted that the burnout was caused by defective coils and assumed a large part of the cost of replacement. The coils were replaced with a new type of coil which increased the capacity of the unit by 8 percent or 1,000 kW. At the existing value of $200 per kW the increased capacity was worth $200,000.
By 1951 three attempts by representatives of the local union were made for an election to decide whether or not the union should act as bargaining agent for the employees. On each occasion, after investigation, they were withdrawn.
The Korean War had very little effect on the Company's operation although it did provide accelerated general business activity in the area. There was increased demand for meat, wool, and farm products along with increased bentonite, lumber, and minerals produced by small mines. It did not noticeably affect the tourist business.
Ten Years of Growth
The following figures reflect the growth for the first ten years of operation as Black Hills Power and Light Company.
| 1942 | 1951 | %+ | |
| Total Plant and Property | 4,826,277 | 16,039,901 | 232% |
| Generation Capacity in kW | 17,813 | 44,359 | 149% |
| Pole Miles of Transmission Lines | 234 | 633 | 171% |
| Capacity of Distribution Transform | 13,810 | 37,866 | 174% |
| Total Revenue from Electric Sales | $1,073,509 | 3,149,772 | 193% |
| Total kWh Sold | 40,635,919 | 146,166,702 | 260% |
| Average Revenue per kWh | 2.64 cents | 2.l5 cents | (19%) |
| Number of Electric Customers | 12,657 | 21,897 | 73% |
| Number of Residential Customers | 10,039 | 16,026 | 60% |
| Revenue per Residential Customer | $40.51 | $64.74 | 60% |
| kWh Sold per Residential Customer | 1,096 | 2,114 | 93% |
| Residential Revenue per kWh | 3.70 cents | 3.06 cents | (17%) |
| Number of Stockholders | 1,144 | 1,802 | 58% |
| Number of Employees | 110 | 231 | 110% |
| Peak Load in kW | 10,150 | 35,120 | 246% |
The Company constructed approximately three miles of 26,000-volt dual circuit transmis-sion line in 1952. It extended from the Rapid City power plant to the U.S. Bureau of Reclamation substation located at the eastern boundary of the city.
Construction began on the Bureau's 115 kV transmission line from Rapid City to Midland, South Dakota. The line would ultimately be used to bring Missouri River power into the Hills area, but temporarily, it was used to transmit power from the Company's system to Rushmore G and T and member coops in the central part of the state.
The offering of 33,730 shares of common stock to common stockholders in 1952 was over-subscribed by approximately 63 percent. Preemp-tive rights gave existing stockholders preference when a stock issue was offered. Company em-ployees also participated in the offering bringing their total holding of common stock to 3.68 per-cent of the outstanding stock. In addition, the Company contracted with Equitable Life Assur-ance Society of the United States for private sale of $1,000,000 principal amount of 3 7/8 percent 30-year First Mortgage Bonds.
On December 31, 1952, the Company pur-chased the electric distribution system in Key-stone, South Dakota, from Battle Creek Power Company. The Company had been selling power at wholesale to this company which served 127 customers at retail.
Several "rate adjustments" were made in some rate classifications between 1947 and 1952. In 1952 the rates for residential customers using electric ranges was increased approximately three percent. The rates to certain industrial power users was increased approximately eight percent. The total annual gross revenue produced by these rate adjustments was approximately $37,000.
In 1952 the Bureau of Reclamation let a $4.2 million contract for the construction of a 100,000 acre reservoir at Pactola. Water from this reser-voir would be used to augment the water supply for the city of Rapid City and for additional irrigation in the valley to the east of Rapid City. The city would sell a portion of its supply to the Rapid City Air Force Base, which has grown into a major economic force and customer for the Company. It was also announced that contracts were let for 600 housing units to be built adjacent to the base.
The new 10,000 kW generating unit financed by the REA at Osage went on the line in 1952.
Harold Norman was elected to serve as a director replacing Arthur L. Jones who resigned in 1953.
Substantial increases were provided in 1953 for employee life insurance; hospital, surgical, and medical benefits; and retirement annuities. Provi-sions were also made for allowance of straight time pay for 7 holidays.
James W. Bellamy, Company attorney since the end of World War II, died in May of 1953 at the age of 46 after a long illness. Judge Harold Hanley succeeded him as attorney for the Company. David Morrill became the attorney for the Company after Mr. Hanley's retirement.
David Morrill has played a significant role with his legal and management skills during the 70's and 80's. His keen mind and capacity to work hard has served the Company well.
In early 1953 the Company appointed Harry Petersen as Publicity Director and made him editor of the Lamplighter. Birdie Arnold had been the editor from the beginning of the Company paper in 1948, and in 1951 "Dint" Furois was made co-editor with Birdie. They kept the Lamplighter burning until Harry took over in 1953.
A branch office was opened in Hill City in June of 1953 for the convenience of the customers in Hill City and Keystone. A town superintendent and a clerk made up the staff.
A series of meetings were held in September of 1953 to acquaint the Company with the use of aluminum conductors and transmission systems. The change from copper wire to aluminum wire was very difficult for some of the construction people to accept.
A plan to bring Missouri River firm power into the Black Hills area was presented to a large group by Mr. French at a November 3, 1953, meeting. The plan called for a transmission line from Rapid City to the Oahe Dam near Pierre. It would be operated in conjunction with a similar line which was already under construction by the Bureau of Reclamation. The Company felt that a second transmission line was necessary to maintain the high standards of service to the customers includ-ing defense projects, institutions, and hospitals. Presentations were made to representatives of the Bureau of Reclamation, REA's, state and federal institutions, members of Congress and the State Legislature, city officials and Chambers of Com-merce, service clubs and other groups.
A contract for construction of 490 housing units at Rapid City Air Force Base was let in June 1953. The project was scaled down from 580 to 490 units to cut total costs.