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: August 27, 1996
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
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Item 5. OTHER EVENTS
BLACK HILLS CORPORATION PARTICIPATES IN A NEWLY FORMED ENERGY
MARKETING COMPANY
Black Hills Corporation announced today that its subsidiary, Wyodak
Resources Development Corp., and three experienced energy marketing
managers, Philip D. Shaffer, Allen Dennis and Shawn T. McLaughlin, have
formed a startup energy marketing company by the name of Enserco Energy
Inc. headquartered in Denver, Colorado. Upon receiving the proper
federal licenses, Enserco, will engage in the business of purchasing and
marketing natural gas, electric energy and other energy fuels, first in
the Rocky Mountain region and gradually expanding to other markets
nationwide. Enserco expects to receive the required natural gas
marketing license in September 1996 and the electric energy license in
1997 but cannot make any assurances when such licenses will be received.
Enserco plans to also furnish energy services through alliances with
other entities enabling it to compete in the unregulated energy
business.
Daniel P. Landguth, Chairman, President, and Chief Executive Officer of
Black Hills Corporation, said, "Enserco has a nationwide energy
marketing plan that fits a vital part of Black Hills Corporation's
overall corporate strategy. Enserco will provide several opportunities
to grow the Company's operations in the unregulated energy business."
Although it is anticipated that Enserco's operations will generate
significant revenues, Black Hills does not forecast any material impact
on its earnings until Enserco is able to generate sufficient volumes of
sales to offset the expenses of starting the new company. The company
cannot predict when the impact on earnings will occur or what the effect
on earnings will be in the highly competitive energy market, but the
Company believes that Enserco's earnings can grow to become a
significant part of consolidated operations.
Through investments in common stock and convertible securities, Wyodak
Resources plans to effect a 70 percent equity ownership in Enserco.
Enserco has elected Phillip Shaffer to serve as the Chairman of the
Board, President and Chief Executive Officer, Allen Dennis to serve as
Executive Vice President and Secretary/Treasurer and Shawn T. McLaughlin
to serve as Executive Vice President.
Mr. Shaffer, Mr. Dennis and Mr. McLaughlin come to the new company with
over 50 years of combined experience in the energy industry with their
most recent years concentrated in marketing energy.
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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/ DALE E. CLEMENT
Dale E. Clement, Senior Vice
President - Finance
Dated: August 27, 1996
