• Our Towns
• Business Attraction, Retention, and Expansion Programs
• Attractive Electricity Pricing
• Business Enhancement Program
• Site Development
• Community Involvement
• BHP's Community Grant Program

THE POWER TO REACH YOUR GOALS...

When a business sets out to climb higher, choosing the right location is critical. A key prerequisite is the availability of reliable, affordable electric power with capacity to meet your needs. Simply stated, you demand an electric utility that's with you...all the way.

In the beautiful Black Hills of South Dakota and Wyoming, Black Hills Power (BHP) is the sort of partner your business demands:

• With five power plants, BHP has the capacity to meet your power requirements today, and into the future.
• Through its parent company, Black Hills Corporation, BHP owns vast supplies of clean, low-sulfur Western coal, guaranteeing abundant, cost-stable power, independent of foreign affairs.
• With a service record spanning more than half a century, BHP is a seasoned veteran at supplying commercial and industrial power to a growing region.
• Through twelve district offices, BHP maintains nearby, responsive service for its commercial customers.
• BHP has a strong track record of active, aggressive involvement and support of economic development groups throughout the region.
• BHP offers a variety of incentives and support for new business development in our service area. Both financial programs and support personnel are dedicated to helping businesses carve a bright future in the Black Hills.

A CONDUCIVE ENVIRONMENT:

Energy For A Lifetime...

Black Hills Power Company is an investor-owned utility company serving over 60,000 customers throughout a 9,300 square mile area in Western South Dakota, Eastern Wyoming, and Southeastern Montana. Its parent company, Black Hills Corporation, has diversified operations in coal mining through Wyodak Resources Development Corp., and oil and gas production through Black Hills Exploration and Production. Black Hills Corporation has paid continuous dividends since incorporation in 1941.

The economic prosperity of our service area is vitally important to us and the customers and communities we serve. BHP has developed programs and services to assist both existing businesses and potential customers in our service territory. Since each community is unique, we offer flexible packages of economic development programs. This support is through:

• Business Attraction, Retention, and Expansion Programs
• Attractive Electricity Pricing
• Business Enhancement Program
• Site Development
• Community Involvement
• BHP's Community Grant Program

BUSINESS ATTRACTION, EXPANSION, AND RETENTION OPPORTUNITIES:

Black Hills Power offers opportunities for manufacturing and businesses to locate or expand within BHP's service territory area through special economic development incentives...

Economic Development Electricity Pricing Incentive:

BHP's Business Development Service Program offers qualified prospective new manufacturers and businesses the opportunity to contract for special electricity prices. Customers requesting the Business Development Service will be considered upon written application to BHP if one or more of the following conditions is shown to exist:

• The customer accepts non-standard electric service for new or existing load.
• The customer has unique requirements for new load.
• The customer intends to acquire its electric service for new or existing load from a source other than BHP absent service under this rate by showing:
  • The customer demonstrates a competitive alternative, energy source or business location, to BHP's standard tariff rates.
  • The comparative economics, including but not limited to availability of capital, environmental impacts and assessment of risk, of the alternative over BHP's standard tariffed rates are material.
  • The alternative is demonstrated to be technologically feasible and legally permissible.
  • The customer has taken substantial steps to fairly evaluate the alternative sufficient to establish the customer's actual ability to utilize the alternative within a reasonable period of time.

For more information about the Business Development Service Program, see BHP's Attractive Electric Pricing Options.

The Power of Teamwork:

Through shared expertise and financial support, BHP will work with you to make your relocation or expansion as energy efficient as possible. With proper planning and execution, such measures can lower peak demands, reduce energy costs, and enhance production.

BHP's Resource Team is your direct link to local knowledge and specialized engineering support. Our Team can assist in gathering information and/or research, as well as connecting you with the expertise you need in system demand, power quality, power line expansion, and electric pricing options.

Our Resource Team is made of BHP staff from many departments, including Customer Service, Marketing, Energy Sales, and Engineering. We will visit your facilities to develop proposals which will be competitive in power availability, reliability, and pricing.

ATTRACTIVE ELECTRICITY PRICING OPTIONS:

BHP offers a variety of attractive price options for manufacturers or businesses located within its service territory. Our cost containment efforts and customer load growth have provided our customers with electricity prices that are declining in real terms, and are guaranteed at current levels until at least January 1, 2005. The following service options are available to our commercial and industrial customers:

• General Service - For customers using electric service supplied at one point of delivery and for which no specific schedule is provided.
• General Service - Total Electric - For customers supplied at one point of delivery for general use including electric heating and cooling, where electric service is the only source of energy at the service location and whose heating load is not less than thirty percent (30%) of the total energy load.
• General Service - Large - For large power users contracting for their entire electric service requirements supplied at one point of delivery with a minimum billing capacity of at least 125 kilovolt amperes (kVA).
• Small Interruptible General Service - At the customer's election, to customers receiving firm service under provisions of the General Service rate: provided, the customer agrees to allow BHP to interrupt, at any time, a minimum of 4 kw of BHP-approved permanently connected customer designated load which can be separately metered.
• Energy Storage Service - At the customer's election, customers who operate BHP approved energy storage facilities for the purpose of utilizing off-peak electric energy for space conditioning. Electric energy will be supplied through a separately metered circuit at the same voltage and phase utilized to s- For large industrial power users whose actual use of electric energy requires BHP's installation of delivery facilities of not less than 8,000 kVA capacity supplied at one point of delivery. Service is by Industrial Contract Service Agreement only.
• Business Development Service - Qualifying prospective new manufacturers and businesses are provided the opportunity to contract for specially designed electric pricing and services.

BUSINESS ENHANCEMENT PROGRAM:

The purpose of BHP's Business Enhancement Program is to help our commercial and industrial (C & I) electric customers gain a competitive edge in their area of business through the use of electro-technologies. In return for our support, BHP expects the customers to sign a 3-5 year contract with BHP for their future electrical needs.

Economic development incentives through the implementation of new "electro-technologies" will help BHP implement its long-term contracting strategies. The new electro-technologies will aid our customers in reducing their electrical costs, as well as upgrading their older electrical equipment.

Through the use of energy efficient electro-technologies and power quality support, C & I customers will improve productivity in their operations and lower their cost in energy usage. This allows a long-term investment in equipment that helps reduce peak demand for BHP while reducing operational costs for the C & I customer.

Types of Incentives:

Lighting: Existing commercial customers who retrofit their indoor lighting systems are eligible for up to a $5,000 incentive if they sign a three-year electric power service contract. Without a contract, the maximum incentive is $500.00. Incentives are based on $0.12/watt saved for hardwire installations and $0.04/watt saved for compact fluorescents.

Power Factor Correction: Reduced demand charges are the primary incentive for commercial and industrial customers to improve their power factor. BHP provides an account analysis, rate savings calculations, and project financing. BHP requires the customer to sign a three-year electric power service contract for certain projects.

Custom Packages: There are other electro-technologies in addition to those stated above that may qualify for an economic development incentive including water loop heat pumps, geothermal loop fields, heating or air-conditioning systems, water heating systems, power quality equipment, and energy management systems. Financing, project design assistance, or an economic development rate may also be options to consider.

These economic development incentives would be negotiated on a case-by-case basis and BHP would expect the customer to sign at least a 3-year contract extension or, if a smaller customer, sign a 5-year all requirements contract for electric service. Economic development rates would require a negotiated contract for up to 7 years.

SITE DEVELOPMENT:

If you are interested in selecting properties within BHP's service territory, we can assist you in that selection process through real estate networking and the economic development agencies within the community you are interested in. BHP is very involved in industrial parks within its service territory through community development organizations and private industrial park developers.

COMMUNITY INVOLVEMENT:

Through community involvement, BHP promotes the economic development of our states and communities by establishing and maintaining partnerships with economic development groups in order to achieve locally established and supported goals that will enhance both the region and BHP's continued growth. This partnership uniquely positions BHP to be your company's "man in the field" during the search and selection process. Your BHP contact person is able to knowledgeably and objectively steer you toward the communities or regions that best suit your parameters.

BHP's community involvement extends beyond the context of economic development. BHP people are active in the entire spectrum of civic, charitable, religious and governmental affairs of our communities. There is a strong caring presence, and it shows in everyone you meet at BHP. We are proud of what we do and where we live. Because of this, we work hard to protect and enhance the high quality of life the Black Hills region is known for.

BLACK HILLS POWER'S COMMUNITY GRANT PROGRAM:

The Community Grant Program is designed to encourage all Black Hills area communities, to plan, initiate, and carry out a program for complete community and economic development. Through this program, it is possible for all activities to be carried out by members of the community at the local level.

Members of each local community determine the success of the Grant Program. Through their own initiative, community members can improve the economic development potential of their community. Each community will develop a program tailored to the needs of that community. Particular facets of the community's local program, along with the community's goals and objectives, will be based on the needs within that community. Only one Grant will be approved by BHP officials and presented to each community that apply.

The program assists communities by taking them through a series of phases:

• Identify a development organization.
• Research and gather information about the community.
• Identify opportunities and establish goals.
• Create a working plan for the first 12 months.
• Evaluate first 12 months of progress, and establish a plan for the second 12 months.

Grant community members located within BHP's service territory include:

Black Hills Power will offer the Black Hills communities a grant program designed to assist communities in need of financial assistance in order to complete their community project or goal.

How to Apply :

The community may apply for only one grant within their community. They must complete a BHP Community Grant Program application which is available at the community's local BHP district office, or they may contact BHP's Marketing & Community Connection Dept. at (605) 716-3951.

• Applications must be submitted no later than August 25, 2006. Community action plan must be included.
• Maximum grant amount awarded to a qualified community is $1,500.
• BHP's Grant Committee will review each application to determine the level of the grant to be awarded to the community.
• The area district office Business Manager, along with other key BHP officials, will present the grant to the community during a scheduled meeting presentation.