EPA approves gas-fired power plant in Cheyenne

CHEYENNE, Wyo. -- The U.S. Environmental Protection Agency has approved plans to build a natural gas-fired power plant in Cheyenne.

Black Hills Corp. said Monday that it would move ahead with plans to begin construction on the $237 million, 132-megawatt plant now that it's gotten a greenhouse gas air permit from the EPA.

The plant is needed to help replace old coal-fired power generation units that would require expensive retrofitting to keep operating.

Part of the new plant will be entirely owned by Cheyenne Light, Fuel & Power and part of it will be jointly owned by the utility and a subsidiary of Black Hills, which is based in Rapid City, S.D.

Construction is set to begin in April and the plant is expected to be operating by the end of 2014.