BLACK HILLS POWER

The Early YearsDakota Power Company

Dakota Power Company was developed from a defunct mining enterprise which started at Pactola on Rapid Creek three years earlier. Called The Dakota-Placerville Gold Mining Company, a New York corporation, the company acquired water rights on Rapid Creek and built a two-mile wooden flume, extending to Placerville from Pactola, where water was diverted by a low head dam into the flume.Mining operations at the Dakota-Placerville Mine ceased in 1907. George B. Mansfield, who was associated with Black Hills Power and Light Company until his death in March 1953 at age 99, was inspecting the property of the mining company with Louis A. Richards, the manager. Mansfield remarked that the water was being wasted and could be used to produce electric energy. That started a chain of events which reached their ultimate conclusion in the formation of Dakota Power Company. The New York owners sent an engineer to the Black Hills and he reported favorably on the feasibility of changing from mining operations to generation of electricity. While the owners in New York were considering the report, a group of Rapid City men became interested in the proposal, and in March 1907 they met in a skylighted room in the old Security Bank building and the Dakota Power Company was born.John C. Haines, a leading merchant, was elected president. Mansfield became secretary-treasurer and Richards was made general manager. Those three, with Judge Levi McGee, became the first board of directors. After acquiring the water rights and other property of the mining company, the new power company started construction of a two-mile extension of the flume to carry water to Big Bend. Construction there started on a 2,000 horsepower hydro-plant. A 20-year franchise was granted the company by the city of Rapid City. It created a situation where two electric companies each had a franchise. Rapid City Light and Gas Company immediately requested an exclusive franchise to serve Rapid City but was voted down.

Since its hydro-plant would not be finished until 1912, Dakota Power Company constructed a 400 kW steam plant in Rapid City at the old warehouse building near Halley Park. Operations began in August 1910. In December of that year the company purchased the property of the Rapid City Light and Gas Company. In December 1923, a group of Chicago bankers bought the common stock of the company and changed the name to The Dakota Power Company. Later, control of the company was acquired by a Philadelphia firm which continued its operation until 1928. It was purchased by General Public Utilities Company and continued under the name of The Dakota Power Company in Rapid City.The Dakota Power Company steam plant in Rapid City was built to take care of customers, principally the Dakota Plaster Company at Black Hawk, until the water power plant at Big Bend could be completed. The steam plant could then be used as backup for water power development. Soon after the steam plant was completed, the Rapid City Light and Gas Company was taken over by Dakota Power and this plant was operated in parallel with the water power of Dakota Power. The 400 kW DeLaral steam turbine had been purchased from the Consolidated Power and Light Company and while in good condition, it was not very efficient.The Rapid City Light and Gas Company plant, built in 1886, was a combination water power and steam plant. Water permit No. 74 was granted to H. W. Hinrichs. A prominent local business man, Valentine McGillicuddy, was fascinated with power generation and actually worked on the installation and operation of the first power plant. By the time Dakota Power purchased the plant and equipment, it was old and in poor repair. It consisted of a piling and timber dam across Rapid Creek, a waterway, and a six foot by six foot flume to the powerhouse that was 2,330 feet long. The net head was 27 feet and the capacity was approximately 125 hp of water power.When purchased by Dakota Power the plant housed a 150 kW Warren single-phase, 212 RPM, 2300 volt generator purchased in 1907. It was directly connected to an 18" x 18" Skinner engine, a 115 kW Warren single-phase, 720 RPM, 2300 volt generator, belted, purchased in 1907; a T.H. Arc generator, purchased in 1886; a 12" x 36" Murray Iron Works Corliss engine, 85 RPM, purchased in 1903; and two 150 hp boilers with pumps and equipment.The plant was practically abandoned, but to hold the water rights, management rebuilt the waterway to Dakota Power Company's steam plant. They installed a Victor water wheel from the old hydro-plant and a new 75 kVA generator and operated in parallel with the steam plant until the Big Bend hydro-plant was started.

The distribution system included a mile-long 2300 volt line to the Government Indian School; a one-mile line to the SD School of Mines; and about one mile of extensions in Rapid City. The business district distribution system of Rapid was rebuilt in 1908 and 1909 with 40 and 45 foot poles, and in about 1980, distribution in North Rapid City was constructed. By August 1, 1912, 700 meters under 50 ampere capacity and 8 meters over 50 ampere capacity had been installed.In addition to the transformers in the power stations and substations, 100 secondary transformers had been installed. Seventy were under 10 kW and thirty were 10 kW and larger, with a total

capacity of 800 kW.

The Dakota Power Company sold its wiring and contracting business to A. Emerick who had an electric supply and repair store in Rapid City. The Company agreed at the time of the sale to discontinue part of the business until September 1, 1914.The office of Dakota Power Company on Main Street rented for $30.00 per month. A showroom was maintained with a stock of electric appliances, motors, heating devices, washing machines, and vacuum cleaners which sold at list prices. Lamps were also carried in stock. Approximately 400 electric flat irons had been sold.

The only isolated plant in Rapid City was a 25 kW, 110 volt Curtis turbo-generator installed in the laboratory of the School of Mines. It was used for operating the ore treating and testing plant and lighting the buildings. The lighting system was connected with the distribution system of Dakota Power Company.A power market study was made in 1908 by E. C. Braun, and H. M. Byllesby and Company, Incorporated, an engineering firm. Their report said:"Rapid City is a prosperous city of 5,500 inhabitants and is the county seat for Pennington County. It is situated to the west of several irrigated and fertile valleys immediately at the foot of the Black Hills, and has more than tripled its population since 1905. It is well supplied with roads, two lines of the Chicago and Northwestern Railroad entering the town, and one line of the Chicago, Milwaukee, St. Paul Railroads. A short line called the Crouch Line, approximately thirty miles in length, also connects the Deadwood branch of the Burlington System with the city. The bank deposits in the banks were approximately $2,500,000 in 1908.“

"The manufacturing interest includes several large saw mills, planing mills, sash and door factories, a large machine shop and foundry, a stucco plant, brick plant, and flour mill. Without exception, the managers of the various plants state that extensions of their properties are either contemplated or provided for in the near future. The flour mill and the machine shop are operated by small hydraulic developments within the town."

"Large gypsum beds and quantities of fire clay are found within close proximity, and it is also reported that all the necessary material for the manufacture of cement is found in abundant quantities. The Black Hills Forest Reserve, by its active interest in protecting the young and growing timber, should keep the lumber industries in good condition. Limestone for building material is abundant. The gold and tin mines of the Southern Black Hills contain large beds of low-grade ore."Rapid City has a number of very prosperous retail stores, all built because of requirements of agriculture, stock, manufacturing and mining interests, and for a small place it has a very prosperous appearance. The principal streets are macadamized, the sidewalks are of concrete and the city owns the water works, which is apparently in high class condition. It is the seat of a well known school of mines supported by the state, and a large government Indian School."The Standard Oil Company, with its many substitutes, is credited with driving the Mica Axle Grease Company, Block 127, City of Custer City, out of business. This catastrophe did not damage the order of Block 127, City of Custer City, for upon closing of the Mica Axle Grease plant, a paint factory owned and operated by the Acme Paint Company of Ohio was substituted in its stead. "The Demon of Deadwood", fire, again took its toll. It was not yet the end of Block 127, for a boiler and a 125 horsepower Hamilton Corliss steam engine and much other equipment was saved.On April 13, 1911, an ordinance was approved for Dennis Carrigan and a group of local men, granting to the Custer Light, Heat and Power Company the usual rights granted in an ordinary franchise for a period of fifty years. The Company originally supplied service from dusk to midnight only. At 11:45 p.m. nightly the lights were blinked as a warning to get to bed, because in fifteen minutes they were going to shut down. It became common practice among young gentlemen on dance nights to hurriedly collect about one dollar in dimes and nickels and rush to the power house with it as a bribe to the operator to keep the lights burning for another hour.Again in 1928, Block 127, City of Custer City, saw another change. During that year the Dakota Power Company purchased the entire property of Custer Light, Heat and Power Company. The Dakota Power Company in 1929, installed a 180 hp Fairbanks Morse diesel engine. In 1930, a line was built from Custer to Hill City via Sylvan Lake, and a 200 hp Fairbanks Morse diesel engine was installed in 1936, and still another in 1937. Then in 1938 a line was completed from Hill City to Big Bend via Pactola, connecting Custer, Hill City, and Rapid City with a 26 kV line.Dakota Power Company operated the Big Bend Plant which was equipped with three 500 kW turbo hydro-generators that served Rapid City. In the winter the plant would have to be shut down completely due to the freezing of the flumes and water flow lines. The Rapid City to Deadwood tie line made it possible for Dakota Power Company to receive power from the Pluma Plant during their peak periods and during the time Big Bend was frozen up. On the other hand, Consolidated could handle their load in the daytime in the summer from Redwater Plant with the help of dump water power from Big Bend, so the Pluma Plant was run to meet the evening peak.

Following is The Power Contract Between Dakota Power Company and Consolidated Power and Light Company:

"Contract expires January 1, 1922. Contract covers mutual purchase and sale of electric power. The excess power at the Big Bend Plant is to be sold by the Dakota Power Company to the

Consolidated Company, in such amounts as the Consolidated may desire at the rate of four mills ($0.004) per kwh. The Consolidated Company is to furnish primary power to Dakota Power

Company, in such amounts as may be desired, at the rate of two cents ($0.02) per kWh. Measurement of power in each case to be made at "Point of Delivery" in Rapid City. Contract

provides that upon termination of same, the Dakota Power Company shall have option to purchase from Consolidated Company for cash at original cost, fifteen miles of transmission line, beginning at point of delivery in Rapid City and measuring along line toward Sturgis. This option

must be exercised within one week after date of termination of Contract."