Black Hills Power and Cheyenne Light, Fuel & Power (CLFP) have received approval from the Wyoming Public Service Commission (WPSC) to construct and operate a new 132MW natural gas-fired power station in the US city of Cheyenne, Wyoming.
The certificate of public convenience and necessity filed on 1 November last year allows the two companies, both subsidiaries of Black Hills Corp, to construct and operate the $237m facility.
With this jointly owned generation facility, both companies will be able to reliably and cost-effectively serve the changing electricity needs of their customers, Black Hills said in a statement.
The new station will comprise a 37MW simple-cycle combustion turbine owned entirely by CLFP and a 95MW combined-cycle combustion turbine, which will be jointly owned by Black Hills Power and CLFP.
Black Hills Power plans to retire 82MW of its older, coal-fired generation in March 2014 to meet new Environmental Protection Agency (EPA) air emissions regulations.
Meanwhile, CLFP will prepare for growing electricity demand due to a rise in economic development and the need to replace a 40MW purchase power agreement for the firm that ends in 2014.
The facility's construction is scheduled to begin in 2013, and it is expected to start serving customers in late 2014.