NorthWestern Energy plans to construct a new natural gas power plant near Aberdeen, aiming to bolster electricity supply in South Dakota. The proposed Hub City Energy Park will produce up to 131 megawatts at peak, enough to power approximately 26,000 homes. According to the company’s 2025 annual report, the project is estimated to cost $300 million.
On October 1, the utility company sought a construction permit from the South Dakota Public Utilities Commission. This week, the commission agreed to hire consultants and form a local committee to review NorthWestern’s proposal. The power plant will occupy 176 acres owned by NorthWestern Energy, which serves 65,600 electric customers in the state.
The new site, close to the existing Aberdeen Generating Station, will employ three natural-gas-fired turbines to enhance energy reliability. “The Aberdeen area was selected for the Project based on its robust electric transmission infrastructure, proximity to a major natural gas interstate pipeline, existing NorthWestern facilities, and anticipated minimal impacts on the surrounding communities and environment,” the application states.
Plans include constructing a new gas pipeline connection, with the route yet to be chosen. NorthWestern Energy does not foresee the need for eminent domain. The project requires an air quality permit from the state Department of Environment and Natural Resources, with emissions expected to remain below National Ambient Air Quality Standards.
Construction could commence in late 2027 or early 2028, with operations projected to start by 2030. The facility will employ six to ten people. Meanwhile, NorthWestern Energy is merging with Black Hills Corp., forming Bright Horizon Energy to serve 2.2 million customers across eight states. For more details on the merger, visit South Dakota Searchlight.
