Black Hills Corp. Electric Utility in Wyoming Completes Agreement for First Customer under Blockchain Tariff

RAPID CITY, S.D., June 21, 2022 (GLOBE NEWSWIRE) — Black Hills Corp. (NYSE: BKH) today announced that its Wyoming electric utility, Cheyenne Light, Fuel and Power Company, doing business as Black Hills Energy, completed its first agreement for service under its Blockchain Interruptible Service Tariff.

Under the five-year agreement, Black Hills Energy will deliver up to 45 megawatts of electric service with an option to expand service up to 75 megawatts to a new customer in Cheyenne, Wyoming. The crypto mining facility will represent one of the largest bitcoin mining operations in the region, which is expected to be operational and purchasing energy in the fourth quarter of 2022.

Energy will be sourced through the electric energy market and delivered through Black Hills’ electric infrastructure. The customer will be responsible for costs related to service under the agreement, which will also benefit other Cheyenne customers. In addition, the load will be interruptible to prioritize the needs of our existing retail customers.

“We are pleased to deliver yet another innovative solution to support business and technology growth in Wyoming while benefiting other Cheyenne customers,” said Linn Evans, president and CEO of Black Hills Corp. “This agreement is the culmination of Wyoming’s enabling legislation, our unique customer focused Blockchain Interruptible Service Tariff, and our team’s business development efforts. We are excited to serve this new type of customer and to explore the benefits we can provide to other flexible load customers over the longer-term.”

The Blockchain Interruptible Service Tariff was proposed by Black Hills and approved by the Wyoming Public Service Commission in 2019. The tariff was developed to attract new large electric loads related to blockchain and other industry growth with high energy demand. Attracting these large energy needs to Wyoming provides meaningful state and local benefits including additional property taxes, sales taxes, franchise fees, employment for construction and mobilization activities, and permanent management and operating positions.

Black Hills Corporation

Black Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.3 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com and www.blackhillsenergy.com.

Investor Relations
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com

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Caution Regarding Forward Looking Statement
This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements, including our future ability to attract and serve customers under enabling legislation. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, the risk factors described in Item 1A of Part I of our 2021 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.