Black Hills, a utility company and auxiliary of Black Hills Energy – Colorado Electric, declared that it has received approval for its planned 29 MW wind power generation project from the Colorado Public Utilities Commission.
The approval permits Black Hills Energy to build and possess 50% of the wind project with an estimated investment of around $26.5 million and further empowered Black Hills Energy to carry out a competitive solicitation to own the balance of 50% of the project. The order from the Colorado PUC is anticipated to be received by August 2011 and the company will make out an appeal for proposals before August 2011.
Presently, for the 50% of the project, for which a RFP (request for proposal) is to be solicited is possessed by another wind developer and it is dependent on a Renewable Energy Purchase Agreement (REPA) with Black Hills Energy. In case Black Hills Energy decides that a revised REPA based on encouraging terms and conditions is offered during the solicitation process, a revised REPA will be accomplished with the other wind developer before 1st January 2012.
The wind project will have 16 Vestas wind turbines and the components of the wind turbine will be produced in Pueblo and the other manufacturing facilities of Vestas in Colorado. The project, which will generate enough power to meet the power requirements of around 94,000 clients of southern Colorado, located Black Hills Energy will generate around 55 construction job positions and will generate revenue to the Huerfano County every year. The project proposed to get completed in the last part of 2012 is anticipated to be eligible for section 1603 cash funding program of the U.S. Department of Treasury.