Black Hills Corp. Kicks Off Ready Wyoming Transmission Expansion Project

Black Hills Corp. (NYSE: BKH) has taken a significant step towards enhancing its electric transmission infrastructure in Wyoming with the successful energization of the initial 12-mile segment of its Ready Wyoming project. The project, which is expected to be fully operational by the end of 2025, will connect the company's Wyoming and South Dakota electric systems, providing numerous benefits for customers and the region.



The Ready Wyoming project, the largest electric transmission project in Black Hills' history, spans five counties and approximately 300 landowners. Once complete, the 260-mile transmission expansion will add six new, replacement, or expanded substations and interface with electricity markets to the east and west. This strategic investment is expected to contribute more than $100 million of economic benefit to the Wyoming economy.

The project addresses three critical business objectives:

1. Elimination of Third-Party Transmission Costs: By reducing dependence on third-party transmission systems, the project improves long-term pricing stability and margins. This is because Black Hills Corp will no longer have to pay fees to third-party providers, leading to improved operating margins.
2. Enhanced Market Access: The interconnection with the South Dakota electric system provides access to both eastern and western power markets. This trading flexibility can create potential revenue opportunities, contributing to the company's financial growth.
3. Increased Capacity for Data Center Customers: The project's completion will increase capacity for data center customers, a high-growth, high-margin customer segment. This strategic positioning can provide a runway for future earnings expansion, further bolstering the company's financial projections.

The project's regulatory recovery through transmission riders provides earnings visibility and de-risks the investment. This means that the company can predictably recover the costs of the project through its transmission rider, ensuring a stable revenue stream.

The energization of the first phase of Black Hills Corp's Ready Wyoming transmission project represents a strategic infrastructure milestone. The $100 million+ economic benefit project showcases important grid modernization with significant implications for the company and the region. The project's completion by the end of 2025 aligns with the company's regulated utility growth strategy, providing visibility into near-term earnings drivers while supporting the dividend stability that utility investors seek.

In conclusion, the Ready Wyoming transmission expansion project is a critical initiative for Black Hills Corp, offering numerous benefits for customers, the region, and the company's financial projections. The successful energization of the first phase marks a significant step towards the completion of this strategic infrastructure project.