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Black Hills Corp. Utility Subsidiaries Announce First Mortgage Bonds for New Power Plant

June 30, 2014

Black Hills Corp. Utility Subsidiaries Announce First Mortgage Bonds for New Power Plant RAPID CITY, S.D. - June 30, 2014 - Black Hills Corp. (NYSE: BKH) today announced that its Black Hills Power and Cheyenne Light Fuel & Power electric utility subsidiaries entered into Bond Purchase Agreements, dated as of June 30, 2014, to authorize the sale of $160 million of first mortgage bonds in a private placement for the Cheyenne Prairie Generating Station financing. Black Hills Power will issue $85 million of 4.43% first mortgage bonds due Oct. 20, 2044. Cheyenne Light will issue $75 million of 4.53% first mortgage bonds due Oct. 20, 2044. The closing date for the sale of the first mortgage bonds for both utilities is anticipated Oct. 1, 2014. The proceeds from the $160 million sale of first mortgage bonds will provide financing for the Cheyenne Prairie Generating Station, a $222 million power plant being built in Cheyenne, Wyo. The new power plant will serve customers for both Black Hills Power and Cheyenne Light. "This agreement allows us to lock in some of the lowest interest rates we have experienced over the last 35 years," said Tony Cleberg, executive vice president and chief financial officer of Black Hills Corp. "The benefit of low interest rates reduces the cost of electricity for our customers." ABOUT BLACK HILLS CORP.Black Hills Corp. (NYSE: BKH) is a growth-oriented, vertically-integrated energy company with a tradition of exemplary service and a vision to be the energy partner of choice. Based in Rapid City, S.D., the company serves 777,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company generates wholesale electricity and produces natural gas, oil and coal. Black Hills Corp.'s 1,948 employees partner to produce results that are improving life with energy. More information is available at Investor Relations: Jerome E. Nichols 605-721-1171 Media Contact: 24-hour Media Assistance 866-243-9002 CAUTION REGARDING FORWARD-LOOKING STATEMENTS 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, including statements regarding the sale of the bonds and the closing dates, are forward-looking statements. 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, including the factors discussed above, the risk factors described in Item 1A of Part I of our 2013 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. This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Black Hills Corporation via GlobeNewswire [HUG#1808471]

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