Related Party Transactions

9 Months Ended

Sep. 30, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

RELATED-PARTY TRANSACTIONS

Receivables and Payables

We have accounts receivable and accounts payable balances related to transactions with other BHC subsidiaries. The balances were as follows (in thousands):

	September 30, 2011		December 31, 2010
Receivable - affiliates	$	5,201	$	6,891
Accounts payable - affiliates	$	13,887	$	12,562

Money Pool Notes Receivable and Notes Payable

We have entered into a Utility Money Pool Agreement (the "Agreement") with BHC, Cheyenne Light and Black Hills Energy. Under the Agreement, we may borrow from our Parent. The Agreement restricts us from loaning funds to our Parent or to any of our Parent's non-utility subsidiaries; the Agreement does not restrict us from making dividends to our Parent. Borrowings under the agreement bear interest at the daily cost of external funds as defined under the Agreement, or if there are no external funds outstanding on that date, then the rate will be the daily one month LIBOR rate plus 100 basis points.

We had the following balances with the Utility Money Pool (in thousands):

	September 30, 2011		December 31, 2010
Money pool notes receivable	$	59,928	$	39,862

Advances under the Utility Money Pool notes bear interest at 2.75% above the daily average LIBOR rate (which equates to 2.98% at September 30, 2011). Net interest (income) expense relating to balances for the Utility Money Pool was as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Net interest (income) expense	$	(384	)	$	(121	)	$	(1,044	)	$	(171	)

Other Balances and Transactions

Sales and purchases with related parties were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Revenues:
Transmission of electricity sold to Black Hills Wyoming	$	—	$	216	$	220	$	1,158
Electricity and dispatch services sold to Cheyenne Light	$	354	$	171	$	602	$	1,045
Expenses:
Coal purchases from WRDC	$	5,487	$	4,033	$	16,132	$	13,569
Purchase of excess power generated at Cheyenne Light	$	1,532	$	2,545	$	6,999	$	7,255
Natural gas from Enserco	$	—	$	611	$	223	$	1,333
Purchase of excess transmission capacity from Black Hills Wyoming	$	8	$	—	$	8	$	—
Corporate support services from Parent and Black Hills Energy	$	4,091	$	3,101	$	13,774	$	11,317
Other Transactions:
Gain on sale of operating asset to BHC	$	768	$	—	$	768	$	—

We have funds on deposit from Black Hills Wyoming for transmission system reserve which are included in Other, deferred credits and other liabilities on the accompanying Condensed Balance Sheets. Transmission system reserve balances were as follows (in thousands):

	September 30, 2011		December 31, 2010
Funds on deposit from affiliate	$	2,094	$	2,044

Interest on the funds on deposit from Black Hills Wyoming accrues quarterly at an average quarterly prime rate (3.25% at September 30, 2011) (in thousands).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Interest expense paid to affiliate	$	16	$	16	$	49	$	48