8-K

                   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 16, 1994





                          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 Events

     The Registrant announced that its coal mining subsidiary, Wyodak
Resources Development Corp., has announced the formation of a subsidiary,
WYGEN, Inc., a Wyoming corporation.
     WYGEN, Inc. is an exempt wholesale generator (EWG) as authorized by
the Energy Policy Act of 1992 and will engage exclusively in the business
of owning or operating, or both owning and operating eligible electric
generating facilities and selling electric energy at wholesale.
     To successfully construct and operate an EWG project, long-term
electric power sale contracts are required to obtain the necessary
nonrecourse financing.  WYGEN, Inc. has not obtained any long-term power
sale contracts but, in order to be in a position to timely compete for such
sales, has determined to obtain an air quality permit to construct the
WYGEN Plant, an 80 MW mine-mouth, coal-fired electric generating plant, to
be constructed next to Neil Simpson Unit #2, an identical plant being
constructed by the Registrant near Gillette, Wyoming.
     Construction of the WYGEN Plant will not commence and WYGEN, Inc. will
not incur substantial costs until and unless long-term power sale contracts
are obtained, justifying the construction.
     Attached is the news release of the Registrant and is made a part
hereof by express reference.


Item 7(c)  Exhibits

                     Exhibit 99  Black Hills Corporation News Release 
                                 announcing the formation of a new          
                                 subsidiary named WYGEN, an exempt          
                                 wholesale generator.







     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 16, 1994

EX-99

                                                                  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.




                              - more -
     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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