A utility subsidiary of Rapid City, Black Hills has revealed plans to build a 200MW power plant in southeastern Colorado, US.

Black Hills Colorado IPP will build the natural gas-fired plant and sell the electricity it generates to Black Hills Energy-Colorado Electric – a subsidiary of Black Hills Corp – through a 20-year power purchase agreement, reported Associated Press.

The power plant project is expected to cost between $240m to $265m and is sceduled to be built and ready to deliver power by 2012.

The project announced is still subject to approval by the US Federal Energy Regulatory Commission.