Oct. 28, 2009 (PR Newswire) --

RAPID CITY, S.D., Oct. 28 /PRNewswire-FirstCall/ -- Black Hills Corp. (NYSE: BKH) announced today that the Department of Energy has selected each of its electric utility subsidiaries, Black Hills Energy - Colorado Electric, Black Hills Power and Cheyenne Light, Fuel & Power, for smart grid investment grant funding totaling $16.7 million. The DOE funds are made available under the American Recovery and Reinvestment Act of 2009 and subject to negotiation of final terms and conditions between the company and the DOE. If negotiations are successful, the funds will enable the installation of about 149,000 smart meters and related infrastructure associated with specific projects in the company's Colorado, South Dakota and Wyoming electric service territories.

Specifically, Black Hills Energy - Colorado Electric received preliminary approval for $6.1 million in matching funds for the installation of an additional 42,000 smart meters and communications infrastructure that will help facilitate automated meter reading and provide a pilot for a dynamic pricing program in their southeastern Colorado service area. Black Hills Power received preliminary approval for $5.6 million in funds toward the installation of 69,000 smart meters, along with the communications infrastructure, IT software and equipment necessary to initiate a smart grid system in their service area in western South Dakota and Wyoming. Cheyenne Light received preliminary approval for $5 million in matching funds toward the installation of 38,000 smart meters and communications infrastructure that will provide the foundation for consumers to better monitor their energy consumption in and around Cheyenne, Wyo.

"We are pleased that our three electric utility applications were among the 100 selected by the DOE for funding and were chosen from the more-than 400 that were submitted for review," said David R. Emery, chairman, president and chief executive officer of Black Hills Corp. "We will evaluate the Department of Energy's proposal and hope to move forward with projects that will benefit our customers, communities and shareholders."

A total of $3.4 billion was awarded by the DOE as part of the American Reinvestment and Recovery Act of 2009. These funds will be matched by additional industry funding for a total public-private investment worth more than $8 billion. The DOE expects to hold briefings with those who received funding notices during the week of Nov. 16, and then, one-on-one negotiations will begin. Grant recipients can expect questions and comments about their project applications that will help determine the final award amounts and other details. In Colorado, South Dakota and Wyoming, the Black Hills Corp.