Decade of the 70's
Louise S. Kelley became Assistant Secretary-Treasurer replacing H. R. McIntosh. Mrs. Kelley has been employed by the Company for 27 years and most recently served as internal auditor for the Company.
The June 9, 1972, flood goes down in history as the area's most tragic major disaster of its kind. It took 238 lives and caused millions of dollars of damage. People from all over the nation responded to the area's needs following the flood with donations totaling over $1.5 million. The Small Business Administration approved $57 million in low interest disaster loans to affected businesses and individuals. The United States Department of Housing and Urban Development approved $52.5 million for comprehensive rebuilding and redevelopment in the flooded area.
The Company's distribution system incurred the most damage, but was quickly repaired by dedicated employees trained to meet emergencies. In less than a week, electric service was restored to 99 percent of the customers who could take service. Enough cannot be said for the valiant employees of Black Hills Power and Light Company through this period. Employees worked in the environment of total destruction for many hours without sleep and under the terrible emotional stress associated with loss of life and property. Two employees, Elaine F. Smolnikar, a secretary in the General Office, and Henry Housmann, a retired plant employee, lost their lives in the flood waters. Several employees lost close relatives and friends and a number sustained heavy property loss, including loss of their homes. As a result of the flood damage to Company property, application was made to the Small Business Administration for a disaster loan. Approval was granted for a loan of $374,000 repayable over 15 years.
During the rehabilitation from the damage, HUD installed about 1,200 trailer spaces in different locations throughout the city to provide temporary housing for families who lost their homes. Along with cleaning up the destroyed distribution facilities in the flooded area, service had to be installed for the trailers. Later as homes were built, most of them high on hills outside the city, service was provided and the service to the trailer courts was taken down. It amounted to taking down the old distribution, installing new distribution, then taking the new down and installing it again in a different location. The number of hookups was equivalent to a town the size of Sturgis.
Hardly a year goes by without a natural disaster in the form of blizzards, snow and ice storms, lightning and wind, floods and fires. Company employees have risen to every occasion including the Deadwood fire of '59, the blizzards of '49, '66, '71, and others. It is amazing how everyone works together and cooperates in such situations. It's part of the "tradition" of Black Hills Power and Light Company.
The Company became a member of Western Systems Coordinating Council, a voluntary regional organization of electric utilities which was created primarily for the purpose of insuring continued electrical reliability in the western portion of the United States. At the same time, membership in MAPP, a power pool to the east, was terminated. It was more feasible to be affiliated with the western organization due to the location of the new generating plant and interconnected transmission lines to the west.
J. B. French was elected Director Emeritus in May 1972, after 31 years of dedicated service to the Company. He was instrumental in organizing the Company. Robert Asheim was elected to the Board as his replacement. Under Mr. French's leadership as President for 16 years and Board Chairman for 31 years, the Company grew from a $4 million property doing gross business of $1 million annually, to a $56 million. property annually grossing in excess of $13 million. The Company and the states of South Dakota and Wyoming have benefited immeasurably because of his participation and efforts in the development of the areas.
Wilford J. Westre moved to Wyodak as Assistant Vice President and Assistant General Manager of Wyodak Resources Development Corp. H. E. Ross had been Vice President and General Manager since the Company acquired the mine from Homestake in 1956.
R. E. "Dint" Furois was elected Vice President-District Operations in 1972. He had been District Manager of Rapid City since 1953.
During 1973 the Wyoming Public Service Commission issued Certificates of Convenience and Necessity for the 330 megawatt Wyodak Plant along with that segment of the Wyodak/Rapid City transmission line lying within Wyoming Construction was to start in the spring of 1974 and the plant was expected to be in commercial operation by mid-1977. The Company's share of the plant was to be 40 percent or 132 megawatts. Formal agreements between the Company, Basin Electric Power Cooperative, Rushmore Electric Power Cooperative, Tri-County Electric Association, the U. S. Bureau of Reclamation, and Pacific Power & Light Company related to the interconnections, transmission line, ownership and wheeling arrangements progressed satisfactorily.
The earnings trend began to show the results of increases in labor costs, transportation costs, and nearly all other items used, together with a projected slow down in revenue because of the energy crisis. The construction program for 1974 was projected at $11.1 million.
The death of Douglas Nelson, a lineman for the Company, occurred during a violent snow storm on March 14, 1973.
On March 21, 1973, the production, maintenance, and construction employees voted in favor of union representation by the IBEW/CIO and an agreement, effective November 1, 1973, was negotiated.
In 1973 the company reached a compromise agreement with the state of South Dakota to provide the delivery of Bureau of Reclamation power to the School of Mines and Technology in Rapid City. The Company did not feel that the compromise agreement gave full consideration to all the costs involved in using the Company's facilities to deliver Bureau power. The Company did recognize that consideration of who will supply power to the School has plagued state officials, legislators, and the Company for many years, and the Company believed it to be in the best interest of all concerned to resolve the matter by agreeing to the delivery of Bureau power.
Wyodak Resources Development Corp. purchased two new coal haulers, Caterpillar 768's, with wagons custom built for Caterpillar by Wyoming Oil Company of Casper, Wyoming. When fully loaded, they can haul 70 tons. The new $125,000 units replace coal haulers about one-fourth their size that have been hauling from 2500 to 3100 tons of coal per day for the last 20 years.
Officials of General Growth Properties announced a proposed $5 to $7 million shopping center at Rapid City. The center would consist of more than 10 acres under one roof and provide for two department stores and 62 shops. General Growth is a Des Moines, Iowa, real estate investment trust.