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:  September 28, 1998





                         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

     The Registrant through Black Hills FiberCom, will build a
     telecommunications fiber optic network to serve the growing needs of
     Rapid City and the Northern Black Hills of South Dakota.

     "This network will allow us to offer telecommunications, cable and
     data services in the Black Hills which typically have been
     accessible only in more densely-populated areas," said Dan Landguth,
     President and CEO of Black Hills Corporation.  "We're excited to be
     making what we think is the most significant investment in the
     infrastructure of the Black Hills area since the Interstate highway
     system was built nearly 40 years ago and we are ready to start
     building immediately."

     The newly formed company will invest approximately $40,000,000 over
     the next three years in state-of-the-art technology that will offer
     local and long distance telephone service, expanded cable television
     service, Internet access, and high-speed data and video services.
     Construction is targeted to begin in the fourth quarter of this year
     and will take two to three years to build out the complete fiber
     optics system.  The Company plans to market the telecommunications
     services to schools, hospitals, cities, economic development groups,
     and business and residential customers.

     "Black Hills FiberCom grew from Black Hills Corporation's study of
     its internal need for reliable and advanced telecommunications
     services," said Landguth.  "In talking with area communications
     users, including individuals, businesses, school systems, local
     governments, and economic development groups in Rapid City and the
     Northern Black Hills, we were advised that the current
     telecommunications infrastructure inhibits their efforts to employ
     current technology.  We are pleased to be able to make this
     investment in technology to help bring the Black Hills to a state of
     readiness for the next millennium and at the same time bring another
     revenue stream to the Company.  For our customers, Black Hills
     FiberCom will mean more convenience, better service and access to
     advanced telecommunication products and services.   For the Company
     and our shareholders, it will mean additional revenue per customer,
     increased market share, enhanced customer loyalty and another
     earnings stream for the future."

     Black Hills FiberCom will experience operating losses over the next
     two to four years as it develops and constructs its network
     infrastructure, builds its customer base and internal staffing, and
     develops its systems.  Management believes Black Hills FiberCom's
     operating losses will be offset by growth in the Company's other
     business segments and overall the Company should have stable or
     slight growth during this start up phase.

     "Building a Fiber Optic System is similar to building the Neil
     Simpson 2 power plant," said Landguth.  "The Company will experience
     a high capital investment which will increase interest and
     depreciation expense during the construction phase, however once the
     project is completed and marketing successful, it will offer great
     benefits to our shareholders.  A major difference with this project
     is the Company needs to build its customer base which may take a few
     years to do.  "Management believes that the Company goal of
     achieving an average 6% growth in earnings over the next five years
     is an attainable goal with this new business venture.  Black Hills
     FiberCom's assets and net income will comprise less than 10% of
     consolidated assets and earnings.

     Black Hills FiberCom is partnering with an international
     telecommunications firm, GLA International, of St. Louis, Missouri,
     to build a 500-mile hybrid fiber coaxial network in Rapid City and
     the Northern Black Hills.  "As pioneers in fiber optic
     communications, the people at GLA International have the expertise
     to work with us on all phases of this project," said Landguth.  "GLA
     was the firm that developed the fiber networks for Brooks Fiber
     Properties which was recently purchased by WorldCom.  They assisted
     Brooks Fiber in the build-out of over 20 major cities in the last
     few years and will bring a wealth of experience and perspective to
     this project."

     The fiber optic link will enable customers to receive telephone,
     cable television, Internet, and high-speed data and video services
     all through one cable coming into their businesses and homes.  The
     network is designed to provide greater reliability because there
     will be redundancy built into the system.  Compared with the present
     telecommunications network in the Black Hills, connections to homes
     initially will have 4 to 700 times greater capacity; connections to
     schools and businesses will have from 65 to 1750 times greater
     capacity.

     The above information includes forward-looking statements that are
     subject to certain risks, uncertainties and assumptions.  Although
     management believes that its expectations are based on reasonable
     assumptions, it can give no assurances that its goals will be
     achieved.  Actual results may differ materially from management's
     expectations as a result of a variety of factors including, but not
     necessarily limited to,  technological changes, regulation, market
     conditions and marketing success, general economic conditions, and a
     changing competitive environment.

     Black Hills Corporation (HTTP://WWW.BLACKHILLSCORP.COM) is an energy
     and communications 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; markets natural gas,
     electricity, and related services to customers in the Rocky Mountain
     region, Midwest and East Coast markets; and develops and markets
     internally generated computer software.

     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, Vice President -
                              Finance and Secretary/Treasurer

Dated: September 28, 1998