Exhibit 99

                      BLACK HILLS CORPORATION
                 P.O. BOX 1400, 625 NINTH STREET
                 RAPID CITY, SOUTH DAKOTA  57709
                         (605) 348-1700
                        NYSE SYMBOL - BKH

                                        NEWS RELEASE
                                        For Information Contact

                                        Dan Landguth
                                        Chairman and CEO

                                        Barbara Thirstrup
                                        Manager, Governmental
                                         and Public Affairs

Release Date:

August 16, 1994

    Black Hills Corporation Forms Power Generation Subsidiary


     Rapid City, S.D. - Dan Landguth, Chief Executive Officer of
Black Hills Corporation, announced today that WYGEN, Inc., a
newly-formed Wyoming corporation, intends to seek an air quality
permit to construct the Wygen Plant, an 80 MW coal-fired electric
generating plant. The Wygen Plant would be constructed next to
Neil Simpson Unit #2, a mine-mouth power plant now under
construction by Black Hills Power and Light Company near
Gillette, Wyoming.
     WYGEN has engaged Black and Veatch, engineers from Kansas
City who designed and are constructing NS #2, to furnish WYGEN
the necessary engineering assistance. The Wygen Plant is expected
to be substantially identical to the Neil Simpson #2 Plant.




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     WYGEN is a subsidiary of Wyodak Resources Development Corp.,
a coal mining company, which is in turn a subsidiary to Black
Hills Corporation, a diversified energy company, all
headquartered in Rapid City.
     Landguth explained that before financing for the plant can
be obtained and construction can begin, WYGEN must obtain long-
term contracts for the sale of the power from the plant. He
stated that WYGEN intends to aggressively seek those contracts,
but until contracts justifying the financing of the plant are
obtained, WYGEN will not acquire any property or begin
construction. WYGEN will seek nonrecourse debt financing without
any guarantee of either Wyodak Resources or Black Hills
Corporation.
     Landguth further explained that WYGEN will engage
exclusively in the business of owning or operating electric
generating plants to sell electric power to electric utilities at
wholesale only, but WYGEN will not sell power to its affiliate,
Black Hills Power and Light Company. WYGEN is an exempt wholesale
generator as authorized by the Energy Policy Act enacted by
Congress in 1992.
     Landguth stated that electric rates paid by customers of
Black Hills Power and Light Company would not be adversely
affected by the construction and operation of the Wygen Plant;
but because of operating Neil Simpson Unit #2 and the Wygen Plant
through the use of common facilities, Black Hills would expect to
realize efficiencies in the operation of NS #2, thereby
reflecting lower costs to BHP's customers.
                              - more -
     Landguth can give no assurances that WYGEN can obtain the
necessary power sale contracts to allow the construction of the
Wygen Plant. However, he stated, by working with the same
contractors, architects, and engineers designing and building NS
#2, WYGEN should realize efficiencies resulting in an all-in cost
of the Wygen Plant, which along with economically-priced coal
available on site, allows WYGEN to compete effectively for long-
term power sales. He explained that the wholesale power market
has become very competitive, with electric utilities, independent
power producers, and middle-man brokers all engaging in the
market.
     Landguth stated that because of the period of time required
to permit power plants, he felt it necessary to begin the
permitting process so that WYGEN will be in a position to submit
timely proposals to electric utilities requiring long-term power
commitments.                      




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