10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2012
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from __________ to __________.

Commission File Number 1-7978

Black Hills Power, Inc.

Incorporated in South Dakota  IRS Identification Number 46-0111677

625 Ninth Street, Rapid City, South Dakota 57701

Registrant's telephone number (605) 721-1700

Former name, former address, and former fiscal year if changed since last report

NONE

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

Yes x No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No x

As of July 31, 2012, there were issued and outstanding 23,416,396 shares of the Registrant's common stock, $1.00 par value, all of which were held beneficially and of record by Black Hills Corporation.

Reduced Disclosure

The Registrant meets the conditions set forth in General Instruction H (1) (a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format.

TABLE OF CONTENTS

		Page
	GLOSSARY OF TERMS AND ABBREVIATIONS	3
PART 1.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Statements of Income and Comprehensive Income - unaudited	4
	Three and Six Months Ended June 30, 2012 and 2011
	Condensed Balance Sheets - unaudited	5
	June 30, 2012 and December 31, 2011
	Cash Flow Statements - unaudited	7
	Six Months Ended June 30, 2012 and 2011
	Notes to Condensed Financial Statements - unaudited	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	15
Item 4.	Controls and Procedures	20
PART II.	OTHER INFORMATION	20
Item 1.	Legal Proceedings	20
Item 1A.	Risk Factors	20
Item 6.	Exhibits	20
	Signatures	22
	Exhibit Index	23

2

GLOSSARY OF TERMS AND ABBREVIATIONS

The following terms and abbreviations appear in the text of this report and have the definitions described below:

AFUDC	Allowance for Funds Used During Construction
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
BHC	Black Hills Corporation, the Parent Company
Black Hills Energy	The name used to conduct the business activities of Black Hills Utility Holdings, Inc., a direct, wholly-owned subsidiary of the Parent Company
Black Hills Service Company	Black Hills Service Company, LLC, a direct, wholly-owned subsidiary of the Parent Company
Black Hills Wyoming	Black Hills Wyoming, LLC, an indirect, wholly-owned subsidiary of the Parent Company
Cheyenne Light	Cheyenne Light, Fuel and Power Company, a direct, wholly-owned subsidiary of the Parent Company
CPCN	Certificate of Public Convenience and Necessity
Enserco	Enserco Energy, Inc., an indirect, wholly-owned subsidiary of the Parent Company, which was sold by the Parent Company to an unrelated third party on February 29, 2012
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
FERC	Federal Energy Regulatory Commission
GAAP	Generally Accepted Accounting Principles of the United States
IFRS	International Financial Reporting Standards
LIBOR	London Interbank Offered Rate
MW	Megawatts
MWh	Megawatt-hours
SEC	U.S. Securities and Exchange Commission
WPSC	Wyoming Public Service Commission
WRDC	Wyodak Resources Development Corp., an indirect, wholly-owned subsidiary of the Parent Company

3

BLACK HILLS POWER, INC.

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(in thousands)
Revenue	$	58,372		$	56,098		$	120,642		$	115,292
Operating expenses:
Fuel and purchased power	19,768			22,764			44,483			44,324
Operations and maintenance	16,776			16,195			33,319			34,185
Depreciation and amortization	6,823			6,761			13,773			13,323
Taxes - property	1,146			1,197			2,466			2,362
Total operating expenses	44,513			46,917			94,041			94,194
Operating income	13,859			9,181			26,601			21,098
Other income (expense):
Interest expense	(4,410		)	(4,533		)	(8,700		)	(8,753		)
AFUDC - borrowed	56			88			113			268
Interest income	220			360			244			370
AFUDC - equity	113			155			229			442
Other income (expense), net	71			(256		)	459			(152		)
Total other income (expense)	(3,950		)	(4,186		)	(7,655		)	(7,825		)
Income before income taxes	9,909			4,995			18,946			13,273
Income tax expense	(3,182		)	(1,254		)	(6,166		)	(3,651		)
Net income	6,727			3,741			12,780			9,622
Other comprehensive income (loss):
Reclassification adjustments of cash flow hedges	11			10			21			21
Comprehensive income	$	6,738		$	3,751		$	12,801		$	9,643

The accompanying Notes to Condensed Financial Statements are an integral part of these Condensed Financial Statements.

4

BLACK HILLS POWER, INC.

CONDENSED BALANCE SHEETS

(unaudited)

	June 30, 2012			December 31, 2011
	(in thousands, except common stock par value and share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	2,933		$	2,812
Receivables - customers, net	20,981			24,668
Receivables - affiliates	7,015			6,998
Other receivables, net	830			786
Money pool notes receivable, net	3,215			50,477
Materials, supplies and fuel	20,586			22,074
Regulatory assets, current	6,336			6,605
Other, current assets	5,089			4,255
Total current assets	66,985			118,675
Investments	4,315			4,592
Property, plant and equipment	1,005,461			995,772
Less accumulated depreciation and amortization	(316,043		)	(313,581		)
Total property, plant and equipment, net	689,418			682,191
Other assets:
Regulatory assets, non-current	46,524			45,160
Other, non-current assets	3,826			3,812
Total other assets	50,350			48,972
TOTAL ASSETS	$	811,068		$	854,430
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	—		$	37
Accounts payable	11,927			12,560
Accounts payable - affiliates	13,745			18,598
Accrued liabilities	15,792			16,448
Regulatory liabilities, current	36			853
Deferred income tax liabilities, current	1,576			848
Total current liabilities	43,076			49,344
Long-term debt, net of current maturities	269,942			276,390
Deferred credits and other liabilities:
Deferred income tax liability, non-current	120,944			113,320
Regulatory liabilities, non-current	41,979			39,621
Benefit plan liabilities	26,128			31,097
Other deferred credits and other liabilities	3,696			8,172
Total deferred credits and other liabilities	192,747			192,210
Commitments and contingencies (Notes 6, 7, 9 and 11)
Stockholder's equity:
Common stock $1 par value; 50,000,000 shares authorized; 23,416,396 shares issued	23,416			23,416
Additional paid-in capital	39,575			39,575
Retained earnings	243,581			274,785
Accumulated other comprehensive loss	(1,269		)	(1,290		)
Total stockholder's equity	305,303			336,486
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	811,068		$	854,430

5

The accompanying Notes to Condensed Financial Statements are an integral part of these Condensed Financial Statements.

6

BLACK HILLS POWER, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

	Six Months Ended June 30,
	2012			2011
	(in thousands)
Operating activities:
Net income	$	12,780		$	9,622
Adjustments to reconcile net income to net cash provided by operating activities-
Depreciation and amortization	13,773			13,323
Deferred income tax	6,184			4,026
Employee benefits	1,914			1,202
AFUDC - equity	(229		)	(442		)
Other adjustments, net	1,185			514
Change in operating assets and liabilities -
Accounts receivable and other current assets	5,442			11,224
Accounts payable and other current liabilities	(8,161		)	866
Regulatory assets	(809		)	166
Regulatory liabilities	(336		)	(2,358		)
Contributions to employee benefit plans	(6,835		)	—
Other operating activities, net	(2,973		)	(1,552		)
Net cash provided by operating activities	21,935			36,591
Investing activities:
Property, plant and equipment additions	(18,882		)	(24,183		)
Change in money pool notes receivable, net	3,278			(9,965		)
Other investing activities	277			(139		)
Net cash provided by (used in) investing activities	(15,327		)	(34,287		)
Financing activities:
Long-term debt - repayments	(6,487		)	(37		)
Net cash provided by (used in) financing activities	(6,487		)	(37		)
Net change in cash and cash equivalents	121			2,267
Cash and cash equivalents, beginning of period	2,812			2,045
Cash and cash equivalents, end of period	$	2,933		$	4,312

See Note 9 for supplemental cash flow information.

The accompanying Notes to Condensed Financial Statements are an integral part of these Condensed Financial Statements.

7

BLACK HILLS POWER, INC.

Notes to Condensed Financial Statements

(unaudited)

(Reference is made to Notes to Financial Statements

included in our 2011 Annual Report on Form 10-K)

(1) MANAGEMENT'S STATEMENT

The unaudited condensed financial statements included herein have been prepared by Black Hills Power, Inc. (the "Company," "we," "us," or "our"), pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, we believe that the footnotes adequately disclose the information presented. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto, included in our 2011 Annual Report on Form 10-K filed with the SEC.

Accounting methods historically employed require certain estimates as of interim dates. The information furnished in the accompanying condensed financial statements reflects all adjustments, including accruals, which are, in the opinion of management, necessary for a fair presentation of the June 30, 2012, December 31, 2011 and June 30, 2011 financial information and are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2012 and June 30, 2011, and our financial condition as of June 30, 2012 and December 31, 2011 are not necessarily indicative of the results of operations and financial condition to be expected as of or for any other period.

(2) RECENTLY ADOPTED ACCOUNTING STANDARDS

Other Comprehensive Income: Presentation of Other Comprehensive Income ASU 2011-05 and ASU 2011-12

FASB issued an accounting standards update amending ASC 220, Comprehensive Income, to improve the comparability, consistency and transparency of reporting of comprehensive income. It amends existing guidance by allowing only two options for presenting the components of net income and other comprehensive income: (1) in a single continuous financial statement, statement of comprehensive income or (2) in two separate but consecutive financial statements, consisting of an income statement followed by a separate statement of comprehensive income. Also, items that are reclassified from other comprehensive income to net income must be presented on the face of the financial statements. ASU 2011-05 requires retrospective application, and it is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. In December 2011, FASB issued ASU 2011-12 which indefinitely deferred the provisions of ASU 2011-05 requiring the presentation of reclassification adjustments for items reclassified from other comprehensive income to net income.

At December 31, 2011, we elected to early adopt the provisions of ASU 2011-05 as amended by ASU 2011-12. The adoption changed the presentation of certain financial statements and provided additional details in notes to the financial statements, but did not have any other impact on our financial statements.

Fair Value Measurements: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements, ASU 2011-04

FASB issued an accounting standards update amending ASC 820, Fair Value Measurements and Disclosures, to achieve common fair value measurement and disclosure requirements between GAAP and IFRS. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements - quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity's use of a non-financial asset that is different from the asset's highest and best use - the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required - the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. ASU 2011-04 was effective for fiscal years, and interim periods within those years, beginning after December 31, 2011. The amendment required additional details in the notes to financial statements, but did not have any other impact on our condensed financial statements. Additional disclosures are included in Note 7.

8

(3) ACCOUNTS RECEIVABLE

Accounts receivable consist of sales to residential, commercial, industrial, municipal and other customers all of which do not bear interest. These accounts receivable balances are stated at billed and unbilled amounts net of an allowance for doubtful accounts.

We maintain an allowance for doubtful accounts which reflects our best estimate of probable uncollectible trade receivables. We regularly review our trade receivable allowance by considering such factors as historical experience, credit worthiness, the age of the receivable balances and current economic conditions that may affect our ability to collect.

The allowance for doubtful accounts represents our best estimate of existing accounts receivable that will ultimately be uncollected. The allowance is calculated by applying estimated write-off factors to various classes of outstanding receivables, including unbilled revenue. The write-off factors used to estimate uncollectible accounts are based upon consideration of both historical collections experience and management's best estimate of future collection success given the existing collections environment.

Following is a summary of accounts receivable balances (in thousands):

	June 30, 2012			December 31, 2011
Accounts receivable trade	$	11,767		$	16,447
Unbilled revenues	9,321			8,364
Allowance for doubtful accounts	(107		)	(143		)
Receivables - customers, net	$	20,981		$	24,668

(4) REGULATORY ASSETS AND LIABILITIES

Our regulated electric operations are subject to regulation by various state and federal agencies. The accounting policies followed are generally subject to the Uniform System of Accounts of the FERC.

Our regulatory assets and liabilities were as follows (in thousands):

	Recovery Period (in years)	June 30, 2012		December 31, 2011
Regulatory assets:
Unamortized loss on reacquired debt	14	$	2,622	$	2,765
AFUDC	45	8,552		8,552
Employee benefit plans	13	27,602		27,602
Deferred energy costs	1	7,412		6,605
Flow through accounting	35	6,153		5,789
Other		519		452
Total regulatory assets		$	52,860	$	51,765

Regulatory liabilities:
Cost of removal for utility plant	53	$	25,144	$	23,347
Employee benefit plans	13	15,282		15,282
Other		1,589		1,845
Total regulatory liabilities		$	42,015	$	40,474

9

Regulatory assets represent items we expect to recover from customers through probable future rates. Regulatory assets are included in Regulatory assets, current and Regulatory assets, non-current on the accompanying Condensed Balance Sheets.

Unamortized Loss on Reacquired Debt - The early redemption premium on reacquired bonds is being amortized over the remaining term of the original bonds.

AFUDC - The equity component of AFUDC is considered a permanent difference for tax purposes with the tax benefit being flowed through to customers as prescribed or allowed by regulators. If, based on a regulator's action, it is probable the utility will recover the future increase in taxes payable represented by this flow-through treatment through a rate revenue increase, a regulatory asset is recognized. This regulatory asset itself is a temporary difference for which a deferred tax liability must be recognized. Accounting standards for income taxes specifically address AFUDC-equity, and require a gross-up of such amounts to reflect the revenue requirement associated with a rate-regulated environment.

Employee Benefit Plans - Employee benefit plans include the unrecognized prior service costs and net actuarial loss associated with our defined benefit pension plans and post-retirement benefit plans in regulatory assets rather than in accumulated other comprehensive income.

Deferred Energy Costs - Deferred energy and fuel cost adjustments represent the cost of electricity delivered to our electric utility customers in excess of current rates which will be recovered in future rates. Deferred energy and fuel cost adjustments are recorded and recovered or amortized as approved by the appropriate state commission.

Flow-through Accounting - Under flow-through accounting, the income tax effects of certain tax items are reflected in our cost of service for the customer in the year in which the tax benefits are realized and result in lower utility rates. This regulatory treatment was applied to the tax benefit generated by repair costs that were previously capitalized for tax purposes in a rate case settlement that was reached with respect to Black Hills Power in 2010. In this instance, the agreed upon rate increase was less than it would have been absent the flow-through treatment. A regulatory asset established to reflect the future increases in income taxes payable will be recovered from customers as the temporary differences reverse.

Regulatory liabilities represent items we expect to refund to customers through probable future decreases in rates. Regulatory liabilities are included in Regulatory liabilities, current and Regulatory liabilities, non-current on the accompanying Condensed Balance Sheets.

Cost of Removal - Cost of removal for utility plant represents the estimated cumulative net provisions for future removal costs included in depreciation expense for which there is no legal obligation for removal.

Employee Benefit Plans - Employee benefit plans represent the cumulative excess of pension costs recovered in rates over pension expense recorded in accordance with accounting standards for compensation - retirements. In addition, this regulatory liability includes the income tax effect of the adjustment required under accounting for compensation - defined benefit plans, to record the full pension and post-retirement benefit obligations. Such income tax effect has been grossed-up to account for the revenue requirement aspect of a rate regulated environment.

10

(5) RELATED-PARTY TRANSACTIONS

Non Cash Dividend to Parent

We have recorded a non cash dividend to BHC of $44.0 million and decreased the utility money pool note receivable, net for the amount of $44.0 million.

Receivables and Payables

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

	June 30, 2012		December 31, 2011
Receivables - affiliates	$	7,015	$	6,998
Accounts payable - affiliates	$	13,745	$	18,598

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 BHC however the Agreement restricts us from loaning funds to our BHC or to any of our BHC's non-utility subsidiaries. The Agreement does not restrict us from making dividends to BHC. 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 plus 1.0%.

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

	June 30, 2012		December 31, 2011
Money pool notes receivable, net	$	3,215	$	50,477

Advances under the Utility Money Pool notes bear interest at 1.5% above the daily average LIBOR (which equates to 1.74% at June 30, 2012). Net interest income (expense) relating to balances for the Utility Money Pool was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Net interest income (expense)	$	129	$	343	$	412	$	660

Other Balances and Transactions

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenues:
Energy sold to Cheyenne Light	$	750	$	63	$	1,276	$	248
Purchases:
Purchase of coal from WRDC	$	4,426	$	5,758	$	10,421	$	10,645
Purchase of excess energy from Cheyenne Light	$	683	$	2,375	$	1,425	$	2,482
Purchase of renewable wind energy from Cheyenne Light	$	1,289	$	1,285	$	3,037	$	2,985
Purchase of natural gas from Enserco	$	—	$	62	$	7	$	223
Corporate support services from Parent, Black Hills Service Company and Black Hills Utilities Holdings Inc.	$	5,787	$	4,509	$	10,592	$	9,683

11

(6) EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plan

We have a noncontributory defined benefit pension plan (the "Pension Plan") covering employees who meet certain eligibility requirements.

The components of net periodic benefit cost for the Pension Plan were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Service cost	$	191		$	199		$	382		$	398
Interest cost	742			773			1,484			1,546
Expected return on plan assets	(785		)	(905		)	(1,570		)	(1,810		)
Prior service cost	14			16			28			32
Net loss (gain)	650			372			1,300			744
Net periodic benefit cost	$	812		$	455		$	1,624		$	910

Non-pension Defined Benefit Postretirement Healthcare Plans

Employees who are participants in the Postretirement Healthcare Plans (the "Healthcare Plans") and who meet certain eligibility requirements are entitled to postretirement healthcare benefits.

The components of net periodic benefit cost for the Healthcare Plans were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Service cost	$	53		$	52		$	106		$	104
Interest cost	86			91			172			182
Amortization of prior service cost	(69		)	(78		)	(138		)	(156		)
Net loss (gain)	35			41			70			82
Net periodic benefit cost	$	105		$	106		$	210		$	212

Supplemental Non-qualified Defined Benefit Plans

We have various supplemental retirement plans for key executives (the "Supplemental Plans"). The Supplemental Plans are non-qualified defined benefit plans.

The components of net periodic benefit cost for the Supplemental Plans were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Interest cost	$	26	$	28	$	52	$	56
Net loss (gain)	14		12		28		24
Net periodic benefit cost	$	40	$	40	$	80	$	80

12

Contributions

We anticipate that we will make contributions to each of the benefit plans during 2012 and 2013. Contributions to the Pension Plan will be made in cash and contributions to the Healthcare Plans and the Supplemental Plans are expected to be made in the form of benefit payments. Contributions are as follows (in thousands):

	Six Months Ended June 30, 2012		Remaining Anticipated Contributions for 2012		Anticipated Contributions for 2013
Defined Benefit Pension Plan	$	6,835	$	—	$	—
Non-Pension Defined Benefit Postretirement Healthcare Plans	$	328	$	328	$	702
Supplemental Non-qualified Defined Benefit Plans	$	78	$	78	$	113

(7) FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair values of our financial instruments were as follows as of (in thousands):

	June 30, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents(a)	$	2,933	$	2,933	$	2,812	$	2,812
Money pool notes receivable (a)	$	3,215	$	3,215	$	50,477	$	50,477
Long-term debt, including current maturities(b)	$	269,942	$	356,222	$	276,427	$	362,055

___________________

(a) Fair value approximates carrying value due to the short term maturities and therefore is classified in Level 1 in the fair value hierarchy.

(b) Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy.

The following methods and assumptions were used to estimate the fair value of each class of our financial instruments.

Cash and Cash Equivalents

Included in cash and cash equivalents are overnight repurchase agreement accounts and money market funds. As part of our cash management process, excess operating cash is invested in overnight repurchase agreements with our bank.  Repurchase agreements are not deposits and are not insured by the U.S. government, the FDIC or any other government agency and involve investment risk including possible loss of principal.  We believe however, the market risk arising from holding these financial instruments is minimal.  The carrying amount for cash and cash equivalents approximates fair value due to the short maturity of these instruments.

Money Pool Notes Receivable

The fair value of Money pool notes receivable approximates fair value due to the variable interest rate with short reset periods.

Long-term Debt

Our debt instruments are marked to fair value using the market valuation approach. The fair value for our fixed rate debt instruments is estimated based on quoted market prices and yields for debt instruments having similar maturities and debt ratings. The carrying amounts of our variable rate debt approximate fair value due to the variable interest rates with short reset periods.

The first mortgage bonds are either currently not callable or are subject to make-whole provisions which would eliminate any economic benefits if we were to call these bonds.

13

(8) LONG TERM DEBT

Pollution Control Refund Revenue Bonds

On May 15, 2012, we repaid in full $6.5 million principal and interest on the 4.8% Pollution Control Refund Revenue Bonds which were originally due to mature on October 1, 2014.

(9) SUPPLEMENTAL CASH FLOWS INFORMATION

	Six Months Ended June 30,
	2012			2011
	(in thousands)
Non-cash investing and financing activities -
Property, plant and equipment acquired with accrued liabilities	$	2,217		$	2,974
Non-cash (decrease) to money pool notes receivable, net	$	(43,984	)	$	—
Non-cash dividend to Parent	$	43,984		$	—
Supplemental disclosure of cash flow information:
Cash (paid) refunded during the period for -
Interest (net of amounts capitalized)	$	(8,312	)	$	(8,183	)
Income taxes	$	(150	)	$	15

(10) COMMITMENTS AND CONTINGENCIES

There have been no significant changes to commitments and contingencies from those previously disclosed in Note 12 of our Notes to the Financial Statements in our 2011 Annual Report on Form 10-K.

14

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

The following tables provide certain financial information and operating statistics (dollars in thousands):

	Three Months Ended June 30,									Six Months Ended June 30,
	2012			2011			Variance			2012			2011			Variance
Revenue	$	58,372		$	56,098		$	2,274		$	120,642		$	115,292		$	5,350
Fuel and purchased power	19,768			22,764			(2,996		)	44,483			44,324			159
Gross margin	38,604			33,334			5,270			76,159			70,968			5,191
Operating expenses	24,745			24,153			592			49,558			49,870			(312		)
Operating income	13,859			9,181			4,678			26,601			21,098			5,503
Interest income (expense), net	(4,134		)	(4,085		)	(49		)	(8,343		)	(8,115		)	(228		)
Other income (expense), net	184			(101		)	285			688			290			398
Income tax expense	(3,182		)	(1,254		)	(1,928		)	(6,166		)	(3,651		)	(2,515		)
Net income	$	6,727		$	3,741		$	2,986		$	12,780		$	9,622		$	3,158

	Electric Revenue by Customer Type
	Three Months Ended June 30,						Six Months Ended June 30,
	2012		Percentage Change		2011		2012		Percentage Change		2011
Commercial	$	18,804	6	%	$	17,759	$	35,612	2	%	$	35,073
Residential	12,633		(1	)%	12,773		28,109		(6	)%	29,943
Industrial	7,063		9	%	6,464		13,083		7	%	12,228
Municipal	887		13	%	783		1,585		4	%	1,517
Total retail revenue	39,387		4	%	37,779		78,389		—	%	78,761
Contract wholesale	4,370		—	%	4,370		9,275		3	%	8,990
Off-system wholesale	6,459		(13	)%	7,442		17,732		23	%	14,395
Other revenue	8,156		25	%	6,507		15,246		16	%	13,146
Total revenue	$	58,372	4	%	$	56,098	$	120,642	5	%	$	115,292

15

	Megawatt Hours Sold by Customer Type
	Three Months Ended June 30,				Six Months Ended June 30,
	2012	Percentage Change		2011	2012	Percentage Change		2011
Commercial	181,281	8	%	167,649	351,374	2	%	345,886
Residential	106,557	(1	)%	107,683	256,985	(9	)%	282,083
Industrial	115,024	9	%	105,861	210,759	8	%	194,610
Municipal	8,843	14	%	7,739	16,411	2	%	16,041
Total retail quantity sold	411,705	6	%	388,932	835,529	—	%	838,620
Contract wholesale	72,006	(12	)%	82,253	161,054	(6	)%	172,212
Wholesale off-system	295,149	6	%	278,086	753,379	45	%	520,242
Total megawatt hours sold	778,860	4	%	749,271	1,749,962	14	%	1,531,074
Losses and company use	29,128	(26	)%	39,100	72,715	1	%	71,771
Total energy	807,988	2	%	788,371	1,822,677	14	%	1,602,845

	Electric Utility Power Plant Availability
	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Coal-fired plants	76.4	%	(a)	83.6	%	(b)	86.9	%	(a)	86.9	%	(b)
Other plants	99.5	%		86.9	%	(c)	99.7	%		92.8	%
Total availability	85.5	%		84.8	%		91.9	%		89.2	%

___________________________    

(a) Reflects an unplanned outage at Neil Simpson II due to a transformer failure.

(b) Reflects a planned major outage at the PacifiCorp-operated Wyodak plant.

(c) Reflects a planned major overhaul at Neil Simpson CT.

	Megawatt Hours Generated and Purchased
	Three Months Ended June 30,				Six Months Ended June 30,
Generated -	2012	Percentage Change		2011	2012	Percentage Change		2011
Coal-fired	369,049	(4	)%	386,006	868,841	5	%	823,844
Gas-fired	6,216	442	%	1,147	6,579	203	%	2,171
Total generated	375,265	(3	)%	387,153	875,420	6	%	826,015
Total purchased	432,723	8	%	401,218	947,257	22	%	776,830
Total generated and purchased	807,988	2	%	788,371	1,822,677	14	%	1,602,845

16

	Degree Days				Degree Days
	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Heating and cooling degree days:
Actual -
Heating degree days	748		1,190		3,459		4,897
Cooling degree days	206		56		206		56
Variance from normal -
Heating degree days	(27	)%	19	%	(18	)%	14	%
Cooling degree days	108	%	(45	)%	108	%	(45	)%

Amounts are presented on a pre-tax basis unless otherwise indicated. Minor differences in amounts may result due to rounding.

Three Months Ended June 30, 2012 Compared to Three Months Ended June 30, 2011. Net income was $6.7 million compared to $3.7 million for the same period in the prior year primarily due to the following:

Gross margin increased primarily due to an increase of $1.6 million of retail margins on higher quantities sold mainly as a result of warmer weather, an increase of $0.5 million from the Environmental Improvement Cost Recovery Adjustment rider and increases of $2.2 million in wholesale and transmission margins due to an increase in pricing.

Operations and maintenance increased primarily due to higher benefit costs, partially offset by lower maintenance cost and property taxes than in the same period in the prior year.

Interest expense, net was comparable to the same period in the prior year.

Other income, net was comparable to the same period in the prior year.

Income tax expense The effective tax rate increased due to a favorable prior year true-up related to flow through of the tax benefit attributable to costs deducted as repairs and maintenance for tax purposes.

Six Months Ended June 30, 2012 Compared to Six Months Ended June 30, 2011. Net income was $12.8 million compared to $9.6 million for the same period in the prior year primarily due to the following:

Gross margin increased primarily due to an increase of $1.2 million from the Environmental Improvement Cost Recovery Adjustment rider, an increase of $0.5 million in off-system sales, and increases of $2.7 million in wholesale and transmission margins due to an increase in pricing.

Operations and maintenance decreased primarily due to lower benefit costs and maintenance costs, partially offset by higher depreciation expense from a higher asset base.

Interest expense, net was comparable to the same period in the prior year.

Other income, net was comparable to the same period in the prior year.

Income tax expense The effective tax rate increased due to the favorable impact in the prior year for research and development credits and a true up related to flow through of the tax benefit attributable to costs deducted as repair and maintenance for tax purposes.

17

Significant Events

Approved CPCN

On July 31, 2012, Cheyenne Light and Black Hills Power received approval from the WPSC for a CPCN authorizing the construction, operation and maintenance of a new $237 million, 132 megawatt natural gas-fired electric generating facility and related gas and electric transmission in Cheyenne, Wyoming. On July 13, 2012, a Stipulation and Agreement among the joint applicants and the intervenor was filed with the WPSC including provisions for a construction work-in-progress rate rider. Use of the CWIP rider would allow a rate of return during construction, eliminating the usual allowance for funds used during construction, and reducing the total construction cost from $237 million to $222 million. The WPSC noted the Stipulation and Agreement in the CPCN hearing on July 31, 2012, without approving the CWIP rider and indicating its preference to consider the rider and total construction cost in a separate proceeding.

Power Plant Suspension/Retirements

On August 6, 2012, we announced that in order to comply with environmental standards, including the new U.S. EPA Industrial & Commercial Boiler Regulations for Area Sources of Hazardous Air Pollutants regulations, operations at our 25 MW coal-fired Ben French power plant will be suspended as of August 31, 2012 and would be retired on March 21, 2014. Additionally, our 22 MW coal-fired Neil Simpson I and our 35 MW coal-fired Osage power plants would be retired on March 21, 2014.

Financing Transactions and Short-term Liquidity

Repayment of Long-term Debt

On May 15, 2012, we repaid in full $6.5 million principal and interest on the 4.8% Pollution Control Refund Revenue Bonds which were originally due to mature on October 1, 2014.

Credit Ratings

Credit ratings impact our ability to obtain short- and long-term financing, the cost of such financing, and vendor payment terms, including collateral requirements. As of June 30, 2012, our first mortgage bonds credit ratings, as assessed by the three major credit rating agencies, were as follows:

Rating Agency	Rating	Outlook
Fitch	A-	Stable
Moody's	A3	Stable
S&P	BBB+	Stable

18

FORWARD-LOOKING INFORMATION

This Quarterly Report on Form 10-Q includes "forward-looking statements" as defined by the SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this Form 10-Q that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. Forward-looking statements involve risks and uncertainties, and certain important factors can cause actual results to differ materially from those anticipated. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "should," "expects," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "potential," or "continue" or the negative of these terms or other similar terminology. There are various factors that could cause actual results to differ materially from those suggested by the forward-looking statements; accordingly, there can be no assurances that such indicated results will be realized. The forward-looking statements include the factors discussed above, the risk factors described in Item 1A. of our 2011 Annual Report on Form 10-K, risk factors described in Item 1A. of Part II of this Quarterly Report on Form 10-Q and other reports that we file with the SEC from time to time, and the following:

• Our ability to obtain adequate cost recovery for our electric utility operations through regulatory proceedings and receive favorable rulings in periodic applications to recover costs for fuel and purchased power and our ability to add power generation assets into regulatory rate base;

• Our ability to successfully maintain or improve our corporate credit rating;

• Our ability to obtain from utility commissions any requisite determination of prudency to support resource planning and development programs we propose to implement;

• The timing and extent of scheduled and unscheduled outages;

• Our ability to complete the permitting, construction, start-up and operation of power generating facilities in a cost-effective and timely manner;

• The timing, volatility and extent of changes in energy-related and commodity prices, interest rates, energy and commodity supply or volume, the cost and availability of transportation of commodities, and demand for our services, all of which can affect our earnings, liquidity position and the underlying value of our assets;

• Our ability to comply, or to make expenditures required to comply with changes in laws and regulations, particularly those relating to taxation, safety and protection of the environment and to recover those expenditures in customer rates, where applicable;

• Liabilities related to environmental conditions, including remediation and reclamation obligations under environmental laws;

• Federal and state laws concerning climate changes and air emissions, including emission reduction mandates and renewable energy portfolio standards, which may materially increase our generation and production costs and could render some of our generating units uneconomical to operate and maintain;

• Weather and other natural phenomena;

• Capital market conditions, which may affect our ability to raise capital on favorable terms;

• Price risk due to marketable securities held as investments in benefit plans; and

• Other factors discussed from time to time in our other filings with the SEC.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise.

19

ITEM 4. CONTROLS AND PROCEDURES

This section should be read in conjunction with Item 9A, "Controls and Procedures" included in our Annual Report on Form 10-K for the year ended December 31, 2011.

Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (Exchange Act)) as of June 30, 2012

and concluded that, because of the material weakness in our internal control over financial reporting related to accounting for income taxes as previously disclosed in Item 9A, “Controls and Procedures” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, our disclosure controls and procedures were not effective as of June 30, 2012. Additional review, evaluation and oversight have been undertaken to ensure our unaudited Condensed Financial Statements were prepared in accordance with generally accepted accounting principles and as a result, our management, including our Chief Executive Officer and Chief Financial Officer, have concluded that the Condensed Financial Statements in this Form 10-Q fairly present in all material respects our financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States.

As discussed in our 2011 Annual Report on Form 10-K, management concluded that while we had appropriately designed control procedures for income tax accounting and disclosures, the existence of non-routine transactions, insufficient tax resources, and ineffective communications between the tax department and the Controller organization caused us to poorly execute the controls for evaluating and recording income taxes. Management has developed and is implementing a remediation plan to address this material weakness in internal controls surrounding accounting for income taxes. Key aspects of the remediation plan include enhancing resources and skill sets and implementing formal periodic meetings among the Chief Financial Officer, Controller and the tax department.

While we concluded our internal controls surrounding income taxes were not effective as of June 30, 2012, we are remediating the material weakness and will continue to execute our remediation plan and track our performance against the plan.

During the quarter ended June 30, 2012 there have been no other changes in our internal control over financial reporting that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

BLACK HILLS POWER, INC.

Part II - Other Information

Item 1. Legal Proceedings

For information regarding legal proceedings, see Note 12 of Notes to Financial Statements in Item 8 of our 2011 Annual Report on Form 10-K and Note 10 of our Notes to Condensed Financial Statements in this Quarterly Report on Form 10-Q, which information from Note 10 is incorporated by reference into this item.

Item 1A. Risk Factors

There are no material changes to the Risk Factors previously disclosed in Item 1A. of Part I in our Annual Report on Form 10-K for the year ended December 31, 2011.

20

Item 6. Exhibits

Exhibit 31.1 Certification of Chief Executive Officer pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002.

Exhibit 31.2 Certification of Chief Financial Officer pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002.

Exhibit 32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002.

Exhibit 32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002.

Exhibit 101 Financial Statements for XBRL Format

21

BLACK HILLS POWER, INC.

Signatures

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 thereunto duly authorized.

BLACK HILLS POWER, INC.

/S/ DAVID R. EMERY

David R. Emery, Chairman

and Chief Executive Officer    

/S/ ANTHONY S. CLEBERG

Anthony S. Cleberg, Executive Vice President

and Chief Financial Officer

Dated: August 10, 2012

22

EXHIBIT INDEX

Exhibit Number Description

Exhibit 31.1 Certification of Chief Executive Officer pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002.

Exhibit 31.2 Certification of Chief Financial Officer pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002.

Exhibit 32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002.

Exhibit 32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002.

Exhibit 101 Financial Statements for XBRL Format

23

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, David R. Emery, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Black Hills Power, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 10, 2012
		/S/ DAVID R. EMERY
		David R. Emery
		Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Anthony S. Cleberg, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Black Hills Power, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 10, 2012
		/S/ ANTHONY S. CLEBERG
		Anthony S. Cleberg
		Executive Vice President and
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Black Hills Power, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David R. Emery, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13 (a) or

15 (d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material

respects, the financial condition and results of operations of the Company.

Date:	August 10, 2012
		/S/ DAVID R. EMERY
		David R. Emery
		Chairman and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Black Hills Power, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Anthony S. Cleberg, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

(1)    The Report fully complies with the requirements of Section 13 (a) or

15 (d) of the Securities Exchange Act of 1934; and

(2)    The information contained in the Report fairly presents, in all material

respects, the financial condition and results of operations of the Company.

Date:	August 10, 2012
		/S/ ANTHONY S. CLEBERG
		Anthony S. Cleberg
		Executive Vice President and
		Chief Financial Officer

XML

Employee Benefit Plans Employee Benefit Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service Cost	$ 191	$ 199	$ 382	$ 398
Interest Cost	742	773	1,484	1,546
Expected Return on Plan Assets	(785)	(905)	(1,570)	(1,810)
Amortization of Prior Service Cost (Credit)	14	16	28	32
Net loss	650	372	1,300	744
Net Periodic Benefit Cost	812	455	1,624	910
Pension and Other Postretirement Benefit Contributions [Abstract]
Pension and Other Postretirement Benefit Contributions			6,835
Estimated Future Employer Contributions in Current Fiscal Year	0		0
Estimated Future Employer Contributions in Next Fiscal Year	0		0
Other Postretirement Benefit Plans, Defined Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service Cost	53	52	106	104
Interest Cost	86	91	172	182
Amortization of Prior Service Cost (Credit)	(69)	(78)	(138)	(156)
Net loss	35	41	70	82
Net Periodic Benefit Cost	105	106	210	212
Pension and Other Postretirement Benefit Contributions [Abstract]
Pension and Other Postretirement Benefit Contributions			328
Estimated Future Employer Contributions in Current Fiscal Year	328		328
Estimated Future Employer Contributions in Next Fiscal Year	702		702
Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Interest Cost	26	28	52	56
Net loss	14	12	28	24
Net Periodic Benefit Cost	40	40	80	80
Pension and Other Postretirement Benefit Contributions [Abstract]
Pension and Other Postretirement Benefit Contributions			78
Estimated Future Employer Contributions in Current Fiscal Year	78		78
Estimated Future Employer Contributions in Next Fiscal Year	$ 113		$ 113

XML

Regulatory Assets and Liabilities

6 Months Ended

Jun. 30, 2012

Regulated Operations [Abstract]

Regulatory Assets and Liabilities [Text Block]

REGULATORY ASSETS AND LIABILITIES

Our regulated electric operations are subject to regulation by various state and federal agencies. The accounting policies followed are generally subject to the Uniform System of Accounts of the FERC.

Our regulatory assets and liabilities were as follows (in thousands):

	Recovery Period (in years)	June 30, 2012		December 31, 2011
Regulatory assets:
Unamortized loss on reacquired debt	14	$	2,622	$	2,765
AFUDC	45	8,552		8,552
Employee benefit plans	13	27,602		27,602
Deferred energy costs	1	7,412		6,605
Flow through accounting	35	6,153		5,789
Other		519		452
Total regulatory assets		$	52,860	$	51,765

Regulatory liabilities:
Cost of removal for utility plant	53	$	25,144	$	23,347
Employee benefit plans	13	15,282		15,282
Other		1,589		1,845
Total regulatory liabilities		$	42,015	$	40,474

Regulatory assets represent items we expect to recover from customers through probable future rates. Regulatory assets are included in Regulatory assets, current and Regulatory assets, non-current on the accompanying Condensed Balance Sheets.

Unamortized Loss on Reacquired Debt - The early redemption premium on reacquired bonds is being amortized over the remaining term of the original bonds.

AFUDC - The equity component of AFUDC is considered a permanent difference for tax purposes with the tax benefit being flowed through to customers as prescribed or allowed by regulators. If, based on a regulator's action, it is probable the utility will recover the future increase in taxes payable represented by this flow-through treatment through a rate revenue increase, a regulatory asset is recognized. This regulatory asset itself is a temporary difference for which a deferred tax liability must be recognized. Accounting standards for income taxes specifically address AFUDC-equity, and require a gross-up of such amounts to reflect the revenue requirement associated with a rate-regulated environment.

Employee Benefit Plans - Employee benefit plans include the unrecognized prior service costs and net actuarial loss associated with our defined benefit pension plans and post-retirement benefit plans in regulatory assets rather than in accumulated other comprehensive income.

Deferred Energy Costs - Deferred energy and fuel cost adjustments represent the cost of electricity delivered to our electric utility customers in excess of current rates which will be recovered in future rates. Deferred energy and fuel cost adjustments are recorded and recovered or amortized as approved by the appropriate state commission.

Flow-through Accounting - Under flow-through accounting, the income tax effects of certain tax items are reflected in our cost of service for the customer in the year in which the tax benefits are realized and result in lower utility rates. This regulatory treatment was applied to the tax benefit generated by repair costs that were previously capitalized for tax purposes in a rate case settlement that was reached with respect to Black Hills Power in 2010. In this instance, the agreed upon rate increase was less than it would have been absent the flow-through treatment. A regulatory asset established to reflect the future increases in income taxes payable will be recovered from customers as the temporary differences reverse.

Regulatory liabilities represent items we expect to refund to customers through probable future decreases in rates. Regulatory liabilities are included in Regulatory liabilities, current and Regulatory liabilities, non-current on the accompanying Condensed Balance Sheets.

Cost of Removal - Cost of removal for utility plant represents the estimated cumulative net provisions for future removal costs included in depreciation expense for which there is no legal obligation for removal.

Employee Benefit Plans - Employee benefit plans represent the cumulative excess of pension costs recovered in rates over pension expense recorded in accordance with accounting standards for compensation - retirements. In addition, this regulatory liability includes the income tax effect of the adjustment required under accounting for compensation - defined benefit plans, to record the full pension and post-retirement benefit obligations. Such income tax effect has been grossed-up to account for the revenue requirement aspect of a rate regulated environment.

XML

Supplemental Cash Flow Information Supplemental Cash Flow Information (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Supplemental Cash Flow Information [Abstract]
Property, plant and equipment acquired with accrued liabilities	$ 2,217	$ 2,974
Non-cash (decrease) of money pool notes receivalbe, net	(43,984)	0
Non-cash Dividends Paid to Parent	43,984	0
Interest (paid) refunded, (net of amounts capitalized)	(8,312)	(8,183)
Income taxes (paid) refunded, Net	$ (150)	$ 15

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Accounts Receivable

6 Months Ended

Jun. 30, 2012

Accounts Receivable, Net [Abstract]

Schedule of Accounts Receivable [Text Block]

ACCOUNTS RECEIVABLE

Accounts receivable consist of sales to residential, commercial, industrial, municipal and other customers all of which do not bear interest. These accounts receivable balances are stated at billed and unbilled amounts net of an allowance for doubtful accounts.

We maintain an allowance for doubtful accounts which reflects our best estimate of probable uncollectible trade receivables. We regularly review our trade receivable allowance by considering such factors as historical experience, credit worthiness, the age of the receivable balances and current economic conditions that may affect our ability to collect.

The allowance for doubtful accounts represents our best estimate of existing accounts receivable that will ultimately be uncollected. The allowance is calculated by applying estimated write-off factors to various classes of outstanding receivables, including unbilled revenue. The write-off factors used to estimate uncollectible accounts are based upon consideration of both historical collections experience and management's best estimate of future collection success given the existing collections environment.

Following is a summary of accounts receivable balances (in thousands):

	June 30, 2012			December 31, 2011
Accounts receivable trade	$	11,767		$	16,447
Unbilled revenues	9,321			8,364
Allowance for doubtful accounts	(107		)	(143		)
Receivables - customers, net	$	20,981		$	24,668

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Condensed Statements of Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenue	$ 58,372	$ 56,098	$ 120,642	$ 115,292
Operating expenses:
Fuel and purchased power	19,768	22,764	44,483	44,324
Operations and maintenance	16,776	16,195	33,319	34,185
Depreciation and amortization	6,823	6,761	13,773	13,323
Taxes - property	1,146	1,197	2,466	2,362
Total operating expenses	44,513	46,917	94,041	94,194
Operating income	13,859	9,181	26,601	21,098
Other income (expense):
Interest expense	(4,410)	(4,533)	(8,700)	(8,753)
AFUDC - borrowed	56	88	113	268
Interest income	220	360	244	370
AFUDC - equity	113	155	229	442
Other income (expense), net	71	(256)	459	(152)
Total other income (expense)	(3,950)	(4,186)	(7,655)	(7,825)
Income before income taxes	9,909	4,995	18,946	13,273
Income tax expense	(3,182)	(1,254)	(6,166)	(3,651)
Net income	6,727	3,741	12,780	9,622
Other comprehensive income (loss): [Abstract]
Reclassification adjustments of cash flow hedges	11	10	21	21
Comprehensive income	$ 6,738	$ 3,751	$ 12,801	$ 9,643

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Management's Statement

6 Months Ended

Jun. 30, 2012

Management's Statement [Abstract]

Basis of Accounting

MANAGEMENT'S STATEMENT

The unaudited condensed financial statements included herein have been prepared by Black Hills Power, Inc. (the "Company," "we," "us," or "our"), pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, we believe that the footnotes adequately disclose the information presented. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto, included in our 2011 Annual Report on Form 10-K filed with the SEC.

Accounting methods historically employed require certain estimates as of interim dates. The information furnished in the accompanying condensed financial statements reflects all adjustments, including accruals, which are, in the opinion of management, necessary for a fair presentation of the June 30, 2012, December 31, 2011 and June 30, 2011 financial information and are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2012 and June 30, 2011, and our financial condition as of June 30, 2012 and December 31, 2011 are not necessarily indicative of the results of operations and financial condition to be expected as of or for any other period.

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Accounts Receivable Accounts Receivable (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accounts Receivable [Line Items]
Allowance for doubtful accounts	$ (107)	$ (143)
Receivables - customers, net	20,981	24,668
Billed Revenues [Member]
Accounts Receivable [Line Items]
Accounts receivable trade	11,767	16,447
Unbilled Revenues [Member]
Accounts Receivable [Line Items]
Accounts receivable trade	$ 9,321	$ 8,364

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Related Party Transactions Related Party Transactions (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Related Party Transaction [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage			1.00%
Non-cash Dividends Paid to Parent			$ (43,984)	$ 0
Non-cash (decrease) of Notes Receivable, Related Parties			43,984	0
Receivables - affiliates	7,015		7,015		6,998
Accounts payable - affiliates	13,745		13,745		18,598
Money pool notes receivable, net	3,215		3,215		50,477
Money Pool, Basis Spread on Variable Rate	1.50%		1.50%
Money Pool Interest Rate			1.74%
Net interest income (expense), related party	(129)	(343)	(412)	(660)
Energy sold to Cheyenne Light [Member]
Related Party Transaction [Line Items]
Revenue from related party	750	63	1,276	248
Coal, Purchased [Member]
Related Party Transaction [Line Items]
Related Parties Cost of Sales	4,426	5,758	10,421	10,645
Purchase of excess energy from Cheyenne Light [Member]
Related Party Transaction [Line Items]
Related Parties Cost of Sales	683	2,375	1,425	2,482
Renewable wind energy from Cheyenne Light [Member]
Related Party Transaction [Line Items]
Related Parties Cost of Sales	1,289	1,285	3,037	2,985
Natural gas purchased from Enserco [Member]
Related Party Transaction [Line Items]
Related Parties Cost of Sales	0	62	7	223
Corporate costs from parent [Member]
Related Party Transaction [Line Items]
Related Parties Cost of Sales	$ 5,787	$ 4,509	$ 10,592	$ 9,683

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Recently Adopted and Recently Issued Accounting Pronouncements and Legislation

6 Months Ended

Jun. 30, 2012

Recently Adopted and Recently Issued Accounting Standards and Legislation [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

RECENTLY ADOPTED ACCOUNTING STANDARDS

Other Comprehensive Income: Presentation of Other Comprehensive Income ASU 2011-05 and ASU 2011-12

FASB issued an accounting standards update amending ASC 220, Comprehensive Income, to improve the comparability, consistency and transparency of reporting of comprehensive income. It amends existing guidance by allowing only two options for presenting the components of net income and other comprehensive income: (1) in a single continuous financial statement, statement of comprehensive income or (2) in two separate but consecutive financial statements, consisting of an income statement followed by a separate statement of comprehensive income. Also, items that are reclassified from other comprehensive income to net income must be presented on the face of the financial statements. ASU 2011-05 requires retrospective application, and it is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. In December 2011, FASB issued ASU 2011-12 which indefinitely deferred the provisions of ASU 2011-05 requiring the presentation of reclassification adjustments for items reclassified from other comprehensive income to net income.

At December 31, 2011, we elected to early adopt the provisions of ASU 2011-05 as amended by ASU 2011-12. The adoption changed the presentation of certain financial statements and provided additional details in notes to the financial statements, but did not have any other impact on our financial statements.

Fair Value Measurements: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements, ASU 2011-04

FASB issued an accounting standards update amending ASC 820, Fair Value Measurements and Disclosures, to achieve common fair value measurement and disclosure requirements between GAAP and IFRS. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements - quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity's use of a non-financial asset that is different from the asset's highest and best use - the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required - the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. ASU 2011-04 was effective for fiscal years, and interim periods within those years, beginning after December 31, 2011. The amendment required additional details in the notes to financial statements, but did not have any other impact on our condensed financial statements. Additional disclosures are included in Note 7.

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Balance Sheet Parantheticals (Parentheticals) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Common Stock, Par or Stated Value Per Share	$ 1.00	$ 1.00
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	23,416,396	23,416,396
Common Stock, Shares, Outstanding	23,416,396	23,416,396

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Regulatory Assets and Liabilities Regulatory Assets and Liabiliites (Tables)

6 Months Ended

Jun. 30, 2012

Regulatory Assets and Liabilities Disclosure [Abstract]

Schedule of Regulatory Assets [Table Text Block]

Our regulatory assets and liabilities were as follows (in thousands):

	Recovery Period (in years)	June 30, 2012		December 31, 2011
Regulatory assets:
Unamortized loss on reacquired debt	14	$	2,622	$	2,765
AFUDC	45	8,552		8,552
Employee benefit plans	13	27,602		27,602
Deferred energy costs	1	7,412		6,605
Flow through accounting	35	6,153		5,789
Other		519		452
Total regulatory assets		$	52,860	$	51,765

Schedule of Regulatory Liabilities [Table Text Block]

Regulatory liabilities:
Cost of removal for utility plant	53	$	25,144	$	23,347
Employee benefit plans	13	15,282		15,282
Other		1,589		1,845
Total regulatory liabilities		$	42,015	$	40,474

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Document and Entity Information Document	6 Months Ended
	Jun. 30, 2012	Jul. 31, 2012
Document Information [Line Items]
Entity Registrant Name	BLACK HILLS POWER INC
Entity Central Index Key	0000012400
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23,416,396

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Related Party Transactions Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Schedule of accounts receivable/payable - related party [Table Text Block]

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

	June 30, 2012		December 31, 2011
Receivables - affiliates	$	7,015	$	6,998
Accounts payable - affiliates	$	13,745	$	18,598

Schedule of related party notes [Table Text Block]

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

	June 30, 2012		December 31, 2011
Money pool notes receivable, net	$	3,215	$	50,477

Schedule of net interest income / expense [Table Text Block]

Net interest income (expense) relating to balances for the Utility Money Pool was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Net interest income (expense)	$	129	$	343	$	412	$	660

Schedule of revenues and purchases from related parties [Table Text Block]

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenues:
Energy sold to Cheyenne Light	$	750	$	63	$	1,276	$	248
Purchases:
Purchase of coal from WRDC	$	4,426	$	5,758	$	10,421	$	10,645
Purchase of excess energy from Cheyenne Light	$	683	$	2,375	$	1,425	$	2,482
Purchase of renewable wind energy from Cheyenne Light	$	1,289	$	1,285	$	3,037	$	2,985
Purchase of natural gas from Enserco	$	—	$	62	$	7	$	223
Corporate support services from Parent, Black Hills Service Company and Black Hills Utilities Holdings Inc.	$	5,787	$	4,509	$	10,592	$	9,683

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Condensed Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 2,933	$ 2,812
Receivables - customers, net	20,981	24,668
Receivables - affiliates	7,015	6,998
Other receivables, net	830	786
Money pool notes receivable, net	3,215	50,477
Materials, supplies and fuel	20,586	22,074
Regulatory assets, current	6,336	6,605
Other, current assets	5,089	4,255
Total current assets	66,985	118,675
Investments	4,315	4,592
Property, plant and equipment	1,005,461	995,772
Less accumulated depreciation and amortization	(316,043)	(313,581)
Total property, plant and equipment, net	689,418	682,191
Other assets:
Regulatory assets, non-current	46,524	45,160
Other, non-current assets	3,826	3,812
Total other assets	50,350	48,972
TOTAL ASSETS	811,068	854,430
Current liabilities:
Current maturities of long-term debt	0	37
Accounts payable	11,927	12,560
Accounts payable - affiliates	13,745	18,598
Accrued liabilities	15,792	16,448
Regulatory liabilities, current	36	853
Deferred income tax liabilities, current	1,576	848
Total current liabilities	43,076	49,344
Long-term debt, net of current maturities	269,942	276,390
Deferred credits and other liabilities:
Deferred income tax liability, non-current	120,944	113,320
Regulatory liabilities, non-current	41,979	39,621
Benefit plan liabilities	26,128	31,097
Other, deferred credits and other liabilities	3,696	8,172
Total deferred credits and other liabilities	192,747	192,210
Stockholder's equity:
Common stock $1 par value; 50,000,000 shares authorized; 23,416,396 shares issued	23,416	23,416
Additional paid-in capital	39,575	39,575
Retained earnings	243,581	274,785
Accumulated other comprehensive loss	(1,269)	(1,290)
Total stockholder's equity	305,303	336,486
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 811,068	$ 854,430

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2012

Fair Value of Financial Instruments [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair values of our financial instruments were as follows as of (in thousands):

	June 30, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents(a)	$	2,933	$	2,933	$	2,812	$	2,812
Money pool notes receivable (a)	$	3,215	$	3,215	$	50,477	$	50,477
Long-term debt, including current maturities(b)	$	269,942	$	356,222	$	276,427	$	362,055

___________________

(a) Fair value approximates carrying value due to the short term maturities and therefore is classified in Level 1 in the fair value hierarchy.

(b) Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy.

The following methods and assumptions were used to estimate the fair value of each class of our financial instruments.

Cash and Cash Equivalents

Included in cash and cash equivalents are overnight repurchase agreement accounts and money market funds. As part of our cash management process, excess operating cash is invested in overnight repurchase agreements with our bank.  Repurchase agreements are not deposits and are not insured by the U.S. government, the FDIC or any other government agency and involve investment risk including possible loss of principal.  We believe however, the market risk arising from holding these financial instruments is minimal.  The carrying amount for cash and cash equivalents approximates fair value due to the short maturity of these instruments.

Money Pool Notes Receivable

The fair value of Money pool notes receivable approximates fair value due to the variable interest rate with short reset periods.

Long-term Debt

Our debt instruments are marked to fair value using the market valuation approach. The fair value for our fixed rate debt instruments is estimated based on quoted market prices and yields for debt instruments having similar maturities and debt ratings. The carrying amounts of our variable rate debt approximate fair value due to the variable interest rates with short reset periods.

The first mortgage bonds are either currently not callable or are subject to make-whole provisions which would eliminate any economic benefits if we were to call these bonds.

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Employee Benefit Plans

6 Months Ended

Jun. 30, 2012

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plan

We have a noncontributory defined benefit pension plan (the "Pension Plan") covering employees who meet certain eligibility requirements.

The components of net periodic benefit cost for the Pension Plan were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Service cost	$	191		$	199		$	382		$	398
Interest cost	742			773			1,484			1,546
Expected return on plan assets	(785		)	(905		)	(1,570		)	(1,810		)
Prior service cost	14			16			28			32
Net loss (gain)	650			372			1,300			744
Net periodic benefit cost	$	812		$	455		$	1,624		$	910

Non-pension Defined Benefit Postretirement Healthcare Plans

Employees who are participants in the Postretirement Healthcare Plans (the "Healthcare Plans") and who meet certain eligibility requirements are entitled to postretirement healthcare benefits.

The components of net periodic benefit cost for the Healthcare Plans were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Service cost	$	53		$	52		$	106		$	104
Interest cost	86			91			172			182
Amortization of prior service cost	(69		)	(78		)	(138		)	(156		)
Net loss (gain)	35			41			70			82
Net periodic benefit cost	$	105		$	106		$	210		$	212

Supplemental Non-qualified Defined Benefit Plans

We have various supplemental retirement plans for key executives (the "Supplemental Plans"). The Supplemental Plans are non-qualified defined benefit plans.

The components of net periodic benefit cost for the Supplemental Plans were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Interest cost	$	26	$	28	$	52	$	56
Net loss (gain)	14		12		28		24
Net periodic benefit cost	$	40	$	40	$	80	$	80

Contributions

We anticipate that we will make contributions to each of the benefit plans during 2012 and 2013. Contributions to the Pension Plan will be made in cash and contributions to the Healthcare Plans and the Supplemental Plans are expected to be made in the form of benefit payments. Contributions are as follows (in thousands):

	Six Months Ended June 30, 2012		Remaining Anticipated Contributions for 2012		Anticipated Contributions for 2013
Defined Benefit Pension Plan	$	6,835	$	—	$	—
Non-Pension Defined Benefit Postretirement Healthcare Plans	$	328	$	328	$	702
Supplemental Non-qualified Defined Benefit Plans	$	78	$	78	$	113

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Regulatory Assets and Liabilities Regulatory Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Assets	$ 52,860	$ 51,765
Regulatory Liabilities	42,015	40,474
Cost of Removal [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Liabilities Amortization Period	P53Y
Regulatory Liabilities	25,144	23,347
Defined Benefit Pension [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Liabilities Amortization Period	P13Y
Regulatory Liabilities	15,282	15,282
Other Regulatory Liabilities [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Liabilities	1,589	1,845
Loss on Reacquired Debt [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Assets Amortization Period	P14Y
Regulatory Assets	2,622	2,765
Allowance for Cost of Equity Funds Used During Construction [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Assets Amortization Period	P45Y
Regulatory Assets	8,552	8,552
Defined Benefit Pension [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Assets Amortization Period	P13Y
Regulatory Assets	27,602	27,602
Deferred Fuel Costs [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Assets Amortization Period	P1Y
Regulatory Assets	7,412	6,605
Flow Through Accounting [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Assets Amortization Period	P35Y
Regulatory Assets	6,153	5,789
Other Regulatory Assets [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Regulatory Assets	$ 519	$ 452

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Employee Benefit Plans Emplobyee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2012

Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]

Expected Future Contributions Defined Benefit Plans [Table Text Block]

Contributions are as follows (in thousands):

	Six Months Ended June 30, 2012		Remaining Anticipated Contributions for 2012		Anticipated Contributions for 2013
Defined Benefit Pension Plan	$	6,835	$	—	$	—
Non-Pension Defined Benefit Postretirement Healthcare Plans	$	328	$	328	$	702
Supplemental Non-qualified Defined Benefit Plans	$	78	$	78	$	113

Pension Plans, Defined Benefit [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]

Schedule of Net Benefit Costs [Table Text Block]

The components of net periodic benefit cost for the Pension Plan were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Service cost	$	191		$	199		$	382		$	398
Interest cost	742			773			1,484			1,546
Expected return on plan assets	(785		)	(905		)	(1,570		)	(1,810		)
Prior service cost	14			16			28			32
Net loss (gain)	650			372			1,300			744
Net periodic benefit cost	$	812		$	455		$	1,624		$	910

Other Postretirement Benefit Plans, Defined Benefit [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]

Schedule of Net Benefit Costs [Table Text Block]

The components of net periodic benefit cost for the Healthcare Plans were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Service cost	$	53		$	52		$	106		$	104
Interest cost	86			91			172			182
Amortization of prior service cost	(69		)	(78		)	(138		)	(156		)
Net loss (gain)	35			41			70			82
Net periodic benefit cost	$	105		$	106		$	210		$	212

Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]

Schedule of Net Benefit Costs [Table Text Block]

The components of net periodic benefit cost for the Supplemental Plans were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Interest cost	$	26	$	28	$	52	$	56
Net loss (gain)	14		12		28		24
Net periodic benefit cost	$	40	$	40	$	80	$	80

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENCIES

There have been no significant changes to commitments and contingencies from those previously disclosed in Note 12 of our Notes to the Financial Statements in our 2011 Annual Report on Form 10-K.

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Long term Debt

6 Months Ended

Jun. 30, 2012

Long-term Debt, Unclassified [Abstract]

Long-term Debt [Text Block]

LONG TERM DEBT

Pollution Control Refund Revenue Bonds

On May 15, 2012, we repaid in full $6.5 million principal and interest on the 4.8% Pollution Control Refund Revenue Bonds which were originally due to mature on October 1, 2014.

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Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2012

Supplemental Cash Flow Information [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

SUPPLEMENTAL CASH FLOWS INFORMATION

	Six Months Ended June 30,
	2012			2011
	(in thousands)
Non-cash investing and financing activities -
Property, plant and equipment acquired with accrued liabilities	$	2,217		$	2,974
Non-cash (decrease) to money pool notes receivable, net	$	(43,984	)	$	—
Non-cash dividend to Parent	$	43,984		$	—
Supplemental disclosure of cash flow information:
Cash (paid) refunded during the period for -
Interest (net of amounts capitalized)	$	(8,312	)	$	(8,183	)
Income taxes	$	(150	)	$	15

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Accounts Receivable Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2012

Accounts Receivable, Net [Abstract]

Schedule of Accounts Receivable [Table Text Block]

Following is a summary of accounts receivable balances (in thousands):

	June 30, 2012			December 31, 2011
Accounts receivable trade	$	11,767		$	16,447
Unbilled revenues	9,321			8,364
Allowance for doubtful accounts	(107		)	(143		)
Receivables - customers, net	$	20,981		$	24,668

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Supplemental Cash Flow Information Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2012

Supplemental Cash Flow Information [Abstract]

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

	Six Months Ended June 30,
	2012			2011
	(in thousands)
Non-cash investing and financing activities -
Property, plant and equipment acquired with accrued liabilities	$	2,217		$	2,974
Non-cash (decrease) to money pool notes receivable, net	$	(43,984	)	$	—
Non-cash dividend to Parent	$	43,984		$	—
Supplemental disclosure of cash flow information:
Cash (paid) refunded during the period for -
Interest (net of amounts capitalized)	$	(8,312	)	$	(8,183	)
Income taxes	$	(150	)	$	15

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Fair Value of Financial Instruments Fair Value of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012		Dec. 31, 2011		Jun. 30, 2011	Dec. 31, 2010
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 2,933		$ 2,812		$ 4,312	$ 2,045
Money pool notes receivable, net	3,215		50,477
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current maturities, carrying value	269,942		276,427
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, at Fair Value	2,933	[1]	2,812	[1]
Notes Receivable, at Fair Value	3,215	[1]	50,477	[1]
Long-term debt including current maturities, at Fair Value	$ 356,222	[2]	$ 362,055	[2]

[1] Fair value approximates carrying value due to the short term maturities and therefore is classified in Level 1 in the fair value hierarchy.

[2] Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy.

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Condensed Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating activities:
Net income	$ 12,780	$ 9,622
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation and amortization	13,773	13,323
Deferred income tax	6,184	4,026
Employee benefits	1,914	1,202
AFUDC - equity	(229)	(442)
Other adjustments, net	1,185	514
Change in operating assets and liabilities -
Accounts receivable and other current assets	5,442	11,224
Accounts payable and other current liabilities	(8,161)	866
Regulatory assets	(809)	166
Regulatory liabilities	(336)	(2,358)
Contributions to employee benefit plans	(6,835)	0
Other operating activities, net	(2,973)	(1,552)
Net cash provided by operating activities	21,935	36,591
Investing activities:
Property, plant and equipment additions	(18,882)	(24,183)
Change in money pool notes receivable, net	3,278	(9,965)
Other investing activities	277	(139)
Net cash provided by (used in) investing activities	(15,327)	(34,287)
Financing activities:
Long-term debt - repayments	(6,487)	(37)
Net cash (used in) provided by financing activities	(6,487)	(37)
Net change in cash and cash equivalents	121	2,267
Cash and cash equivalents, beginning of period	2,812	2,045
Cash and cash equivalents, end of period	$ 2,933	$ 4,312

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Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

RELATED-PARTY TRANSACTIONS

Non Cash Dividend to Parent

We have recorded a non cash dividend to BHC of $44.0 million and decreased the utility money pool note receivable, net for the amount of $44.0 million.

Receivables and Payables

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

	June 30, 2012		December 31, 2011
Receivables - affiliates	$	7,015	$	6,998
Accounts payable - affiliates	$	13,745	$	18,598

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 BHC however the Agreement restricts us from loaning funds to our BHC or to any of our BHC's non-utility subsidiaries. The Agreement does not restrict us from making dividends to BHC. 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 plus 1.0%.

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

	June 30, 2012		December 31, 2011
Money pool notes receivable, net	$	3,215	$	50,477

Advances under the Utility Money Pool notes bear interest at 1.5% above the daily average LIBOR (which equates to 1.74% at June 30, 2012). Net interest income (expense) relating to balances for the Utility Money Pool was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Net interest income (expense)	$	129	$	343	$	412	$	660

Other Balances and Transactions

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenues:
Energy sold to Cheyenne Light	$	750	$	63	$	1,276	$	248
Purchases:
Purchase of coal from WRDC	$	4,426	$	5,758	$	10,421	$	10,645
Purchase of excess energy from Cheyenne Light	$	683	$	2,375	$	1,425	$	2,482
Purchase of renewable wind energy from Cheyenne Light	$	1,289	$	1,285	$	3,037	$	2,985
Purchase of natural gas from Enserco	$	—	$	62	$	7	$	223
Corporate support services from Parent, Black Hills Service Company and Black Hills Utilities Holdings Inc.	$	5,787	$	4,509	$	10,592	$	9,683

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Long term Debt Long-term Debt (Details) (Electric Utilities [Member], Polution Control Revenue Bonds Due 2014 [Member], USD $) In Millions, unless otherwise specified	0 Months Ended
	May 15, 2012
Electric Utilities [Member] | Polution Control Revenue Bonds Due 2014 [Member]
Debt Instrument [Line Items]
Debt Instrument, Early Repayment Date	May 15, 2012
Long-term Debt, Gross	$ 6.5
Long-term Debt, Percentage Interest Rate, Fixed	4.80%
Debt Instrument, Maturity Date	Oct. 01, 2014

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Fair Value of Financial Instruments Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value of Financial Instruments [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

The estimated fair values of our financial instruments were as follows as of (in thousands):

	June 30, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents(a)	$	2,933	$	2,933	$	2,812	$	2,812
Money pool notes receivable (a)	$	3,215	$	3,215	$	50,477	$	50,477
Long-term debt, including current maturities(b)	$	269,942	$	356,222	$	276,427	$	362,055

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(a) Fair value approximates carrying value due to the short term maturities and therefore is classified in Level 1 in the fair value hierarchy.

(b) Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy.