Black Hills $1.8B Gas Permit Hearing Opens for Google Cheyenne

Wyoming's Industrial Siting Council opened a contested hearing on 9 November 2026 for Black Hills' plan to build 564 MW of new gas generation at Cheyenne Prairie — the first formal gate that must clear before Google's data centre can receive grid power by late 2027.

What happened?

• 9 Nov 2026: Wyoming's Industrial Siting Council opened the contested case hearing (docket DEQ/ISC 25-05) at 9 AM MST at the Red Lion Hotel in Cheyenne, with a possible continuation on 10 November, as stated in the Wyoming DEQ errata notice from 13 Oct 2026.
• Capacity question: The Wyoming DEQ application filed in July 2026 lists 552 MW of new capacity — three simple-cycle combustion turbines and 24 reciprocating engines — taking Cheyenne Prairie from 140 MW to 692 MW, with construction targeted Q4 2026 and operations Q4 2029. Black Hills Corp.'s own October announcement and November 4 SEC filing describe 564 MW nameplate at the same site, with construction beginning in 2027. Neither document explains the 12 MW gap; the November hearing is the next occasion on which the two figures could be formally reconciled.
• Google's advance commitment: Google signed definitive service agreements with Black Hills on 30 September 2026, covering up to 590 MW of grid-connected service through 2048. Google provided $399 million in refundable advance payments for long lead-time equipment, as reported in the Black Hills Corp. SEC filing dated 4 November 2026.
• Transmission chain also filing: On 2 November 2026, Black Hills filed with Wyoming's Public Service Commission for Certificates of Public Convenience and Necessity for the $606 million Aeolus Transmission Project — two parallel 230 kV lines of approximately 125 miles — a separate approval required to deliver Cheyenne Prairie output to Google's site.

Why does it matter?

The direct effect is a gate on data-centre power. Black Hills cannot begin construction on the gas plant without an ISC permit. Without the gas plant, the 590 MW of grid-connected service Google contracted cannot start by late 2027. A contested case hearing means at least one party challenged the application before the ISC filed; the council hears testimony and then rules, a process that can take days to weeks after the hearing closes.

The second-order effect lands on Black Hills' earnings timeline. The company forecast approximately $150 million of net income by 2030 from the Google campus alone, with returns beginning as early as mid-2027 when assets enter service. That forecast starts from a construction start in mid-2027, which follows a permit. Every formal challenge that extends the hearing process pushes the construction clock. Black Hills had already placed $399 million of Google's advance money on long lead-time equipment orders by November 4; delaying the permit does not stop that spending, but it widens the gap between cash out and cash in.

A wider pattern is visible: Google committed $399 million in equipment deposits before the state's first formal scrutiny of the gas plant that would supply the data centre. The Wyoming ISC hearing is the first formal checkpoint.

What does it change?

Near term: A permit decision in the November sitting lets Black Hills target a mid-2027 construction start, as described in its Q3 earnings call on 5 November 2026. The company stated that service to Google would start in late 2027. A contested ruling requiring a material redesign would push that clock out.

Longer term: The gas plant is one link in a chain. The $606 million Aeolus transmission project and the $80 million South Cheyenne substation expansion both require separate Wyoming PSC approvals that Black Hills expects by mid-2027. Black Hills projects approximately $2.4 billion of unlevered free cash flow from the Google contract through 2048, after the $1.8 billion generation investment (stated in the November 4 SEC filing; we reproduce it as reported). That figure only materialises if the siting permit clears, the transmission approvals follow, and construction completes on schedule.

Note: Black Hills stated unlevered FCF of approximately $2.4 billion after netting out the $1.8 billion investment. We reproduce this as reported; the underlying gross FCF total is not separately disclosed.

What should we watch next?

• ISC permit decision (November 2026): A ruling in the November sitting clears the first construction gate. A continuation hearing on 10 November is possible. A contested decision requiring a redesign, or a denial, delays the mid-2027 construction start.
• Wyoming PSC CPCN decisions (by mid-2027): Black Hills expects utility regulator decisions on the Aeolus transmission project (PSC docket 20003-280-EN-26, approval sought by 1 July 2027) and the South Cheyenne substation by mid-2027. Both are needed before the gas plant's output reaches Google's site.
• 552 MW vs 564 MW reconciliation: The hearing is the next formal opportunity to resolve the two published capacity figures.
• Construction start (mid-2027): Black Hills described a mid-2027 start in its November 5 earnings call. A slip past mid-2027 compresses the path to the late-2027 service start.
• Disconfirmation: A contested ISC ruling requiring a material redesign, a PSC denial of the Aeolus line, or a slip in Google's data-centre build schedule each put the $150 million 2030 income projection at risk.

FAQ

What is the Wyoming Industrial Siting Council, and why does the gas plant need its permit?
The Wyoming Industrial Siting Council issues permits for large industrial facilities in the state, including power plants above a capacity threshold. Black Hills' application covers 552 MW of new capacity at the existing Cheyenne Prairie site. Without a permit, construction cannot begin, and the gas plant that underpins 590 MW of contracted grid service to Google cannot supply power by late 2027.

Why are there two different capacity figures for the same project?
The Wyoming DEQ application filed in July 2026 listed 552 MW added (140 MW to 692 MW). Black Hills Corp.'s own October announcement and November earnings filings describe 564 MW nameplate at the same site. Neither document explains the 12 MW gap. The November hearing is the next formal opportunity to reconcile the figures in the public record.

Does Google own the gas plant?
No. The gas plant is owned by Black Hills Electric Generation LLC, a nonregulated affiliate of Black Hills Corp. Under the large-load tariff, Black Hills builds, owns and operates the generation, and Google receives grid-connected power under a contracted service arrangement. Google provided $399 million in refundable advance payments for long lead-time equipment.

What happens if the ISC denies the permit or requires a material redesign?
A denial prevents construction in the filed configuration. Black Hills would need to refile or modify the application, adding time to the approval chain. Without the gas plant, the 590 MW of contracted grid service cannot start in late 2027 as planned, and Black Hills' forecast of approximately $150 million net income in 2030 from the Google campus would slip.

Takeaway: The Cheyenne Prairie hearing is not an approval — it is the first formal gate on the longest-lead item between Google's $399 million advance payments and actual power delivery in late 2027; a permit decision, not the hearing itself, moves the construction clock.

References

1. Black Hills Corp., SEC Form 8-K/EX-99, "Black Hills Corp. Third Quarter 2026 Financial Results," 4 Nov 2026 — $1.8B investment, 564 MW, 590 MW grid service, $2.4B FCF after $1.8B invest., approximately $150M 2030 net income, $399M advances, 2.7 GW resource mix, $2.5B total investment.
2. Black Hills Corp., Q3 2026 Earnings Call Transcript, Motley Fool, 5 Nov 2026 — service structure, Large Power Contract Service tariff details, return beginning mid-2027 during construction.
3. Wyoming Department of Environmental Quality, Industrial Siting Permit Notice DEQ/ISC 25-05, 14 Jul 2026 — 552 MW expansion, 140→692 MW, three simple-cycle turbines and 24 reciprocating engines, construction Q4 2026, operation Q4 2029.
4. Wyoming DEQ, Notice of Errata — Cheyenne Prairie Expansion DEQ/ISC 25-05, Change in Venue, 13 Oct 2026 — hearing 9 Nov 2026, Red Lion Hotel and Conference Center, 204 W Fox Farm Rd, Cheyenne; possible continuation 10 November.
5. Laramie Basin Intelligence, "The $1.8 billion gas plant behind Google's Cheyenne data center goes to a hearing," 5 Nov 2026 — 2.7 GW resource mix details, 95 MW utility gap, Aeolus filing details, Related Digital campus context.
6. Laramie Basin Intelligence, "Black Hills' Cheyenne Prairie expansion for Google goes to a state siting hearing," Nov 2026 — hearing date and venue confirmation.