Rapid City-based Black Hills Energy is taking another bold step in its more than 100-year history of growth and innovation. The company announced plans to merge with NorthWestern Energy in an all-stock transaction that will create a premier regional regulated utility company serving more than two million customers across eight states.
The combined company will be headquartered in Rapid City, reaffirming the city’s role as a hub for energy innovation and leadership. With a market capitalization of approximately $7.8 billion and an enterprise value of $15.4 billion, the merger underscores the strength of Black Hills Energy’s business model and its long-standing commitment to the region.
A Milestone for Rapid City
This expansion reflects the strong business climate in Rapid City, where companies like Black Hills Energy have thrived thanks to a supportive community and access to growth opportunities. The merger is expected to create significant long-term value, provide more resilient infrastructure, and accelerate investment in clean energy initiatives—all of which benefit Rapid City’s residents and businesses.
“For more than a century, Black Hills Corp has shown what’s possible when a company grows alongside its community,” said Tom Johnson, President & CEO of Elevate Rapid City. “They’ve proven time and again that their success goes hand in hand with the success of Rapid City and western South Dakota. This merger reflects the strong business climate we have here, and we’re proud that Rapid City will remain at the heart of it.”
Investing in the Future
The combined company is positioned to double its rate base, with over $7 billion in planned investments from 2025 to 2029 focused on critical infrastructure, energy resilience, and meeting rising demand from industries such as data centers. Importantly, the headquarters’ continued presence in Rapid City ensures that local leadership and community engagement remain a priority.
A Win for the Community
For Rapid City, this merger is more than a corporate milestone—it is a testament to the city’s ability to support, retain, and grow industry leaders. Black Hills Energy has long been recognized as a dedicated employer, investor, and philanthropic partner, and this new chapter will only enhance its impact across the community.
As Rapid City continues to attract new businesses and talent, Black Hills Energy’s expansion stands as a powerful example of the opportunities available in the region.