SECURITIES AND EXCHANGE COMMISSION

                         Washington, D. C. 20549



                                 Form 8-K



                              CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of
                    THE SECURITIES EXCHANGE ACT OF 1934


                     Date of Report:  October 10, 1997





                          BLACK HILLS CORPORATION



State of South Dakota  File Number 1-7978   IRS Number 46-0111677





                               625 Ninth Street
                        Rapid City, South Dakota  57709



                 Registrant's telephone number (605) 348-1700

Item 5. OTHER INFORMATION

       POWER SALES AGREEMENT WITH PACIFICORP RENEGOTIATED

       The Registrant has entered into a Restated and Amended Power Sales
       Agreement ("The Amended Agreement") with PacifiCorp.  This agreement
       restates and amends the Purchased Power Agreement ("The Agreement") that
       was entered into with PacifiCorp on December 31, 1983, which obligated
       the Company to purchase 75 MWs of power from PacifiCorp based upon the
       costs of PacifiCorp's Colstrip Power Plants.  The Agreement was for a
       term of 40 years.

       The Amended Agreement provides (i) that 25 megawatts of the contract
       capacity amount and the charges therefor will be deleted, 5 megawatts
       each year commencing in the year 2000, (ii) the Company shall pay no
       levelized annual charges for Colstrip Plants' additions and replacement
       which are completed after January 1, 1997, (iii) that commencing January
       1, 1997, all fixed cost components of the Variable Costs to be paid by
       the company shall be based on an assumption that the Colstrip Plants
       operated at an 80 percent load factor, (iv) beginning August 1, 1997 and
       continuing until December 31, 1999, the Company shall pay PacifiCorp
       annual fixed cost of $164.59 per KW-yr multiplied by the capacity
       purchased, (v) commencing January 2000 and continuing until December
       2018 the Company shall pay PacifiCorp an annual levelized fixed charge
       based upon PacifiCorp's initial investment in Colstrip Units 3 and 4
       using PacifiCorp's then most current applicable cost of capital
       consisting of PacifiCorp's then current Federal Energy Regulatory
       Commissions ("FERC") approved capital structure, PacifiCorp's then-
       current weighted average cost of long-term debt and preferred stock
       using FERC prescribed methods, and the then current FERC approved cost
       of common equity for PacifiCorp, (vi) that for the invoices for each
       month of the calendar years 2000 through 2009, the fixed amount
       calculated above shall be reduced by $95,564 each month, and (vii)
       unbundled the transmission charge in the contract to PacifiCorp's FERC -
       filed rates.  The Amended Agreement is subject to the approval of FERC.

       Future cost reductions or increases related to these amendments will
       depend on PacifiCorp's future capital structure and cost of capital and
       the cost of replacement power starting in the year 2000.  However, the
       Company believes the reduction of the 25 MWs of capacity which begins in
       the year 2000 at a rate of 5 MW a year is positive as the Company enters
       a deregulated electricity market and believes PacifiCorp's future cost
       of capital under the FERC approved capital structure will be lower than
       the cost

       of capital formulas embedded in the existing contract.  The Agreement is
       the Company's most expensive source of power at approximately 4.5 cents
       per kilowatthour when fully utilized.  The reduction in capacity should
       allow the Company to blend down this cost of power, but will depend on
       the market conditions at that time.

       Black Hills Corporation is an energy company that supplies electric
       utility service to a 9,300 square-mile area in western South Dakota,
       northeastern Wyoming, and southeastern Montana; engages in the mining
       and sale of coal from its mine located near Gillette, Wyoming; produces,
       explores, and operates oil and gas interests located in the Rocky
       Mountain region, Texas, and California; and markets natural gas,
       electricity, and related services to customers in the Rocky Mountain
       region, Midwest and East Coast markets.


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                 BLACK HILLS CORPORATION





                               By  /S/ ROXANN R. BASHAM                  
                                   Roxann R. Basham, Corporate
                                   Secretary and Treasurer



Dated:  October 10, 1997