Decade of the 70's
Larry Owen was hired in 1970 as Vice President of Marketing and Development in a move designed to recognize the increased responsibilities in the area of marketing and development. Mr. Owen graduated from the University of Nebraska; served as Manager of the Rapid City Chamber of Commerce for nine years; and served as Executive Vice President of the Cedar Rapids, Iowa, Chamber of Commerce for three years.
In the summer of 1970 limited sales of electricity were made to Northern States Power Company of Minneapolis. This was the first time the Company made a sale outside its immediate service area. Dump energy was sold to the United States Bureau of Reclamation, and the energy interchange with the Bureau was increased during the year.
The 20,000 kW numbers unit at Wyodak was dedicated and the name changed to the Neil Simpson Station on July 17, 1970. The unit cost $5 million or about $250 per kW. The unit was named in recognition of Neil Simpson's long and energetic career. During the first year, Neil Simpson Station lowered the fuel cost per net kWh generated on the system by 10 percent.
Mr. C. G. Skartvedt, who served the Company as a Director for 22 years, died on March 22, 1970. Mr. Charles T. Undlin was elected to succeed him.
Preliminary engineering and right-of-way acquisition was planned for a new "backbone" 230 kV transmission line. This was the first step in the development of a long-range transmission system and power supply to be constructed in the 70's. New generating facilities were tentatively planned to be located adjacent to the coal mine at Wyodak. The Company management had been visiting with neighboring utilities concerning construction of a large generating unit which would result in benefits to all involved.
The 230 kV transmission lines were originally proposed to extend from New Underwood, where it would connect with the Bureau of Reclamation line of the same voltage, to Kirk Plant near Lead, and then proceed on to the Neil Simpson Station at Gillette, Wyoming. A spur of the same voltage would also be built from Kirk Plant to Belle Fourche.
The Company submitted an application to the Forest Service for design and construction permits where the line would pass through the National Forest. A public hearing was held and a design permit was issued. Because of the negative environmental impact of such a line going through the Black Hills, it was located around the foothills of the Black Hills.
The Company implemented a rate increase in South Dakota of approximately 15 percent in September 1970. An order from the PSC in Wyoming authorizing the new rates was anticipated in a few weeks.
Donald Barnett, Mayor of Rapid City, proposed an ordinance that would make the City Council the regulatory body over the electric utility Company in the city. After a great deal of propaganda and news hype the City Council voted the issue down by a 10 to 2 vote.
It was announced in 1971 that Mount Rushmore had been chosen as a national focal point for the national bicentennial observance in 1976.
On August 12, 1971, Black Hills Power and Light Company and Pacific Power and Light Company announced joint plans to build a $60 million coal-fired, 200,000 kilowatt steam-electric generating station in the Wyodak area of Wyoming with necessary transmission lines to help supply growing loads to the area. Plans for the new plant called for commercial operation by 1976.
Studies were conducted on the costs associated with the older units in existing power plants. The results of the study indicated that the old units were more costly to operate than constructing a new large unit. As inflation and interest rates increased, the new unit was downsized and retirement of the old units was postponed.
Tri-State Generation and Transmission Association, Inc.; Rushmore Electric Power Cooperative, Inc.; Nebraska Public Power District; and Wyoming municipalities were invited to participate in the project. The consumer-owned system needed additional sources of electric generation beginning in the mid-1970's.
The joint plant would allow the Company to meet its additional generating needs beyond 1976 at a cost less than the cost to build a small generating plant of its own, and utilize more fully the vast coal supply at Wyodak. During the interim, peaking equipment would be planned and contracts made for supplying peaking power.
The General Office of the Company was moved on February 8, 1971, to the new Rushmore Mutual Insurance Building at 625 Ninth Street. The District operations remained at 621 Sixth Street and vacant office space was rented out to other businesses.
Beginning with the December 1971 issue of the Lamplighter, the editorship was put under the direction of Joe Rovere. The name of the Lamplighter was changed to the Public Affairs Outlet.
The Company established a new department known as System Planning in 1971. Mack West managed the new function in addition to his duties as relay engineer. The new System Planning Department is responsible for the overall development of the long-range power supply and transmission system of the Company. The responsibility for Load Dispatching was shifted from West to W.J. Westre.
James O. Harder, Vice President and Manager of Homestake Mining Company, and L. R. Kennedy, Chairman of Dakota Steel & Supply Company and Dakota Block Company, were elected to the Board of Directors. Charles L. Lien and Guy N. Bjorge had resigned from the Board.
In 1971, the Company and Pacific Power Company announced plans to build a large coal-fired generating plant using air-cooled condensing at Wyodak. Public Service Company of Colorado planned to join in the ownership of the plant provided suitable transmission of the power could be worked out. The size of the plant had been increased to 330 megawatts, somewhat larger than originally announced. Plant construction would start in 1973 and completion was scheduled for early 1977. Engineering would be handled by Stone and Webster.
Pacific filed an application with the Public Service Commission of Wyoming to build a 230 kV transmission line from Buffalo, Wyoming, to Wyodak. It was the first step in tying the new plant into the Pacific Power & Light Company system, as well as tying Black Hills' system with Pacific.