Black Hills Corporation
Corporate brand
UnclaimedAn American diversified energy company operating regulated electric and natural-gas utilities, wholesale energy businesses, and energy-related assets.
Last updated August 31, 2026
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Overview
Black Hills Corporation is a diversified American energy company headquartered in Rapid City, South Dakota. Its roots reach back to the organization of the Black Hills Electric Light Company in Deadwood in 1883, linking the company’s identity to the Black Hills region from which it takes its name. Over time, a collection of local electric providers, power assets, and energy businesses developed into a public utility holding company serving customers across the central and western United States. The company’s principal operating identity is Black Hills Energy. Through regulated subsidiaries, it provides electricity and natural gas to residential, commercial, industrial, and other customers. Its electric utility activities include service in South Dakota, Wyoming, and Montana, as well as electric operations in Colorado. Its natural-gas utilities serve communities in Colorado, Kansas, Nebraska, Iowa, Arkansas, and Wyoming. The company also sells electricity into wholesale markets and has maintained energy-related businesses outside its regulated utility operations. Black Hills expanded beyond its original local-electric foundation during the twentieth century. The 1956 acquisition of Wyodak Coal Company created a platform for substantial investments in mining and other energy activities. Later transactions broadened the regulated utility footprint. The purchase of Cheyenne Light, Fuel & Power from Xcel Energy in 2004 strengthened the company’s Wyoming presence. Its acquisition of Aquila’s Colorado, Kansas, Nebraska, and Iowa gas utilities and Colorado electric utility, completed in 2008, was a major scale-changing transaction: the customer base increased from approximately 137,000 to about 753,000, while employee numbers rose from roughly 916 to 2,000. In 2015, Black Hills announced the purchase of SourceGas for approximately $1.89 billion. The transaction added about 425,000 natural-gas customers in Arkansas, Colorado, Nebraska, and Wyoming and included a regulated intrastate gas transmission pipeline in Colorado. These acquisitions made regulated utility operations the central part of the company’s customer-facing business, although generation, wholesale energy, and legacy resource assets remain important components of the corporate portfolio. Black Hills has also faced the policy and commercial issues common to regulated utilities. Rate increases and franchise questions generated opposition in Pueblo, Colorado, where customers and local officials debated the company’s service arrangements and the possibility of municipal ownership. At the same time, the company has pursued renewable-energy procurement and compliance with Colorado requirements while continuing to operate natural-gas generation and other conventional energy assets. Its stated utility priorities have generally centered on reliability, affordability, regulatory compliance, and investment in infrastructure. The company is listed on the New York Stock Exchange under the symbol BKH. In August 2025, Black Hills and NorthWestern Energy announced an agreement to combine in an all-stock transaction described as valuing the combined company at approximately $15.4 billion. The announced structure would give Black Hills shareholders about 54 percent of the combined company, with NorthWestern chief executive Brian Bird expected to lead the merged organization if the transaction is completed. The merger announcement represents a potential strategic transition, but the company’s operating status and completion of the transaction should be verified against current regulatory and corporate filings.
History
Black Hills Corporation traces its history to 1883, when the Black Hills Electric Light Company was organized in Deadwood, South Dakota. In 1905, that company merged with the Belt Light and Power Company of Lead and became Consolidated Power and Light Company of South Dakota. A separate provider, Dakota Power Company, began serving Rapid City in 1910. Both businesses later came under the control of holding companies during the 1920s. Federal policy during the Roosevelt era sought to dismantle large national utility holding-company structures. In that setting, Black Hills Power & Light Company was formed in 1941 by combining assets associated with General Public Utilities and Dakota Power Company. The resulting company supplied much of western South Dakota and established the institutional base for the later Black Hills Corporation. The company’s activities expanded beyond electricity in 1956, when it completed the purchase of Wyodak Coal Company from Homestake Mining Company. Wyodak Resources Development Corporation became a significant long-term energy asset, and the transaction helped lead Black Hills into mining, oil, and natural gas. The Wyodak mine near Gillette, Wyoming, became a major part of the company’s resource portfolio and has been described as the oldest continuously operating surface coal mine in the United States. Black Hills experienced important corporate and accounting developments in 2002. Its energy-marketing subsidiary Enserco Energy reached a settlement with the U.S. Commodity Futures Trading Commission concerning its wholesale natural-gas activities. Later that year, Deloitte & Touche completed audits of the company’s 1999–2001 financial statements, which had originally been audited by Arthur Andersen. The company returned to acquisition-led expansion in the regulated utility sector. In 2004, it acquired Cheyenne Light, Fuel & Power from Xcel Energy, retaining the business as a separate subsidiary. In 2007, Black Hills announced an agreement to acquire natural-gas utilities in Colorado, Kansas, Nebraska, and Iowa, together with an electric utility in Colorado, from Aquila. The transaction closed in July 2008 and transformed the scale of the company, increasing its customer base from about 137,000 to approximately 753,000 and its workforce from around 916 to about 2,000. In July 2015, Black Hills announced that it would buy SourceGas. The approximately $1.89 billion transaction covered around 425,000 natural-gas customers in Arkansas, Colorado, Nebraska, and Wyoming and included a 512-mile regulated intrastate gas transmission pipeline in Colorado. The deal reinforced the company’s position as a multistate natural-gas utility as well as an electric utility. The company continued to consider industrial and energy-related investment. In late 2016, it announced plans for a large drilling and pipe production plant in Norfolk, Nebraska, with projected investment of about $700 million and expected employment of approximately 400 people. The planned facility was intended to use steel supplied by Nucor. Black Hills’ Colorado operations have also been the subject of local political debate. In Pueblo, opposition developed around service policies and several rate increases between 2010 and 2018. Pueblo voters approved a 20-year franchise agreement with the company in 2010, but city officials and community groups later examined whether the city could terminate or replace the arrangement. In 2018, the city council authorized funding for a study of alternatives, including a possible municipal utility. Energy-transition questions became increasingly important to the company’s Colorado strategy. In 2017, Black Hills issued a request for proposals for up to 60 megawatts of renewable energy, including wind, other renewable resources, greenhouse-gas-neutral resources, and recycled-energy projects. The procurement was connected with Colorado regulatory plans requiring greater renewable generation. At the time, the company reported that approximately 19 percent of its Colorado electricity came from renewable resources and that it was developing a mix of natural-gas, wind, and solar facilities. In August 2025, Black Hills and NorthWestern Energy announced an all-stock merger agreement. The proposed transaction was described as valuing the combined company at approximately $15.4 billion. Under the announced terms, Black Hills shareholders would own about 54 percent of the combined company, which was expected to be led by NorthWestern chief executive Brian Bird if the transaction closed. Completion, regulatory approvals, and the eventual operating structure require confirmation from subsequent filings.
- 2025
Merger agreement with NorthWestern Energy is announced
[1]Black Hills and NorthWestern Energy announced an all-stock combination subject to completion requirements.
- 2017
Renewable-energy request for proposals is issued
[1]The Colorado electric business sought up to 60 megawatts of renewable or greenhouse-gas-neutral resources.
- 2015
SourceGas acquisition is announced
[1]Black Hills announced the purchase of SourceGas, adding regulated gas customers and pipeline infrastructure.
- 2008
Aquila utility transaction closes
[1]The acquisition of Aquila utilities in four states and Colorado electric operations greatly enlarged the customer and employee base.
- 2004
Cheyenne Light is acquired
[1]Black Hills purchased Cheyenne Light, Fuel & Power from Xcel Energy.
- 1956
Wyodak Coal Company is acquired
[1]The purchase from Homestake Mining Company expanded Black Hills into coal mining and broader energy-resource activities.
- 1941
Black Hills Power & Light Company is formed
[1]Assets associated with General Public Utilities and Dakota Power Company were combined to form a major western South Dakota utility.
- 1910
Dakota Power Company begins Rapid City service
[1]A separate power provider began serving Rapid City, later becoming part of the corporate lineage consolidated in 1941.
- 1905
Deadwood and Lead electric businesses combine
[1]The Black Hills Electric Light Company merged with Belt Light and Power Company and became Consolidated Power and Light Company of South Dakota.
- 1883
Black Hills Electric Light Company is organized
[1]The company’s historical roots begin with the organization of an electric-light company in Deadwood, South Dakota.
Products and positioning
A regional, vertically diversified utility holding company combining regulated electricity and natural-gas distribution with generation, wholesale energy, and legacy energy-resource operations. The brand emphasizes dependable service, local community relationships, infrastructure investment, and compliance with evolving state energy requirements.
Electric utility service
Regulated electricity
Black Hills supplies electricity through utility subsidiaries serving communities in South Dakota, Wyoming, Montana, and Colorado. The business includes distribution networks, generation resources, customer service, system planning, and compliance with state public-utility regulation. Cheyenne Light, Fuel & Power is a distinct subsidiary within the electric portfolio.
Natural-gas utility service
Regulated natural gas
The company distributes natural gas to customers in Arkansas, Colorado, Kansas, Nebraska, Iowa, and Wyoming through businesses operating primarily under the Black Hills Energy name. Its gas activities include local distribution, customer connections, system maintenance, and regulated infrastructure investment.
Wholesale energy
Wholesale power
Black Hills owns or operates generation and related energy assets whose output can be sold beyond its retail utility territories. The company has marketed power throughout the American West and has operated generating capacity in several western states.
Coal mining · 1956
Wyodak Resources
Wyodak Resources Development Corporation operates the Wyodak mine near Gillette, Wyoming. The mine is a long-standing Black Hills resource asset in the Powder River Basin and represents the company’s historical involvement in coal production and fuel supply.
Controversies
2002
Enserco Energy CFTC settlement
Black Hills announced a settlement with the U.S. Commodity Futures Trading Commission related to activities of Enserco Energy, its wholesale natural-gas marketing subsidiary. The available reference does not specify the settlement amount or detailed allegations.
Marketing campaigns
- 2017Colorado renewable-energy procurement
Colorado
Black Hills issued a request for proposals seeking as much as 60 megawatts of renewable, greenhouse-gas-neutral, or recycled-energy resources to support Colorado regulatory compliance and customer demand.
Outcome. The procurement was approved as part of the company’s electric-resource and renewable-standard compliance planning.
Brand decisions
2025
Agree to combine with NorthWestern EnergyM&ABackground
The companies proposed an all-stock combination to create a larger regulated energy company.
Action taken
Black Hills and NorthWestern Energy announced a merger agreement. The announced plan would give Black Hills shareholders approximately 54 percent of the combined company and place Brian Bird in the chief executive role.
Aftermath
The transaction’s completion and final corporate structure require confirmation from later regulatory and company disclosures.
Announced combined-company valuation. $15.4 billion (August 2025 announcement)
2018
Reject San Isabel Electric purchase proposalOtherBackground
San Isabel Electric Association made an unsolicited proposal concerning Black Hills’ Colorado business.
Action taken
Black Hills rejected the approximately $1.1 billion offer and responded publicly through a newspaper advertisement.
Aftermath
The Colorado operations remained under Black Hills ownership, while local debate about utility control continued.
2015
Purchase SourceGasM&ABackground
Black Hills aimed to broaden its regulated natural-gas distribution and transmission platform.
Action taken
The company announced the purchase of SourceGas, covering gas customers in four states and a Colorado pipeline.
Aftermath
The transaction expanded the company’s multistate gas utility footprint.
Announced transaction value. $1.89 billion (2015 announcement)
2007
Agree to acquire Aquila utility assetsM&ABackground
Black Hills pursued a substantial expansion of its regulated gas and electric operations.
Action taken
The company agreed to buy Aquila’s gas utilities in Colorado, Kansas, Nebraska, and Iowa and its Colorado electric utility.
Aftermath
After completion in 2008, the customer base grew from approximately 137,000 to about 753,000.
2004
Acquire Cheyenne Light, Fuel & PowerM&ABackground
Black Hills sought to expand its regulated electric utility presence in Wyoming.
Action taken
The company purchased Cheyenne Light from Xcel Energy and continued operating it as a separate subsidiary.
Aftermath
The transaction strengthened Black Hills’ Wyoming customer and infrastructure base.
Recent events
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