Black Hills Electric Cooperative

What Black Hills Electric Cooperative does

Black Hills Electric Cooperative (BHEC) is a member-owned, non-profit electric distribution cooperative serving 8,400+ members across 12,400 meters in a 3,700-square-mile territory covering six counties in southwestern South Dakota. Founded in 1940 and first energized in July 1946 after World War II delays, BHEC operates 2,762 miles of overhead, underground, and transmission lines from its Custer, South Dakota headquarters with 28 employees. The cooperative delivers electricity purchased wholesale from Basin Electric Power Cooperative under multiple rate structures—Demand Rate, Demand Controller Rate, and Electric Heat Rate—plus demand-management hardware (Demand Response Units, Demand Controllers, Water Heater Timers), prepaid and budget billing options, and a renewable energy interconnection service for member-owned solar.

The cooperative's core technology platform is SmartHub, a NISC-licensed member self-service system delivered via web and native iOS/Android applications, augmented by an Alexa/Echo voice assistant integration and secured by TrustWave payment validation. Member-facing communications run through a Cooperative Connections newsletter, Facebook, YouTube, and annual meetings, with operational intelligence surfaced through a real-time outage map. BHEC is governed by a seven-member member-elected board; CEO Walker C. Witt and CFO Sammi Langendorf lead a management team that includes operations, IT, and member-services functions. The cooperative is undertaking a multi-year capital program—including a spring 2026 groundbreaking for a new facility (operations targeted mid-2027) and a December 2024 USDA loan of $19,124,000—to support grid modernization and operational expansion. As a non-profit, BHEC allocates margins as capital credits to members rather than to external shareholders.

Name

Black Hills Electric Cooperative

Legal name

Black Hills Electric Cooperative, Inc.

Website

https://bhec.coop

Company type

Private

Founded year

1940

Operating status

Operating

Headcount range

11–50 employees

Short description

Black Hills Electric Cooperative is a member-owned, non-profit electric distribution utility serving 8,400+ members across 12,400 meters and 2,762 miles of line in six southwestern South Dakota counties, operating from Custer since 1946.

Ownership category

akta.pro rank

Product category

Electric Utility Distribution

NAICS

Electric Power Distribution (221122), Solar Electric Power Generation (221114)

SIC

Electric Services (4911), Electric, Gas & Sanitary Services (4900)

akta.pro primary industry

Electric Cooperatives (Rural/Member-Owned Utilities) (EUADABAC)

akta.pro secondary industries

Demand Response & Load Flexibility Services (EUAMAJAF), Distributed Generation (DG) Solar & Small Wind (EUAMAJAD)

Keywords

• Electric utility distribution
• Member-owned cooperative
• Rural electricity service
• Demand response programs
• Smart metering services

Headquarters

HQ city

Custer

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Infrastructure, Personnel, Supply Chain, Technology or R&D

Revenue model

1. Electricity Sales: BHEC generates revenue through electricity sales to its member-owners. As a non-profit cooperative, revenues above operating costs are allocated as capital credits to members. Members pay for electricity based on rate schedules including demand charges, energy charges, and customer charges.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels8 records

Core offering

Black Hills Electric Cooperative (BHEC) is a member-owned, not-for-profit electric utility cooperative that distributes electricity to over 8,400 members across six counties in southwestern South Dakota through approximately 2,762 miles of overhead, underground, and transmission lines. The cooperative purchases wholesale power from Basin Electric Power Cooperative and delivers it directly to member homes and businesses under multiple rate structures, including demand-based and electric heat rates, with member equity returned annually as capital credits. BHEC supplements electricity delivery with the SmartHub digital member portal, demand management hardware (DRU and Demand Controller), solar/renewable interconnection services, and member programs such as rebates, budget billing, and energy efficiency outreach.

Product overview

Black Hills Electric Cooperative operates as a member-owned, non-profit electric utility providing electricity distribution services across six counties in southwestern South Dakota. The cooperative's product portfolio centers on SmartHub, a comprehensive member self-service platform available via web and native mobile apps (iOS/Android) that integrates account management, bill payment, usage monitoring, and voice assistant capabilities through Alexa/Echo. Supporting services include demand management programs (Demand Response Unit, Demand Controller, Water Heater Program), multiple rate structures (Demand Rate, Electric Heat Rate, Demand Controller Rate), alternative billing options (Prepaid and Budget Billing), and grid services (Outage Map, Wildfire Mitigation Plan, PSPS, Renewable/Solar Interconnection). The cooperative also provides member benefit programs including Capital Credits, Energy Assistance, Together We Save efficiency resources, and youth programs (Scholarships, Youth Tour).

Differentiator

Problem solved

Functional benefit

Products and services

• Electricity Distribution Service Core regulated electricity distribution service delivered through owned overhead, underground, and transmission infrastructure to residential and commercial members across southwestern South Dakota; members pay via monthly rate schedules and receive annual capital credit allocations of any margins.
• SmartHub Member Portal Web and mobile member self-service platform providing integrated account management, bill payment, usage monitoring, payment history, notifications, and outage reporting for BHEC members.
• Water Heater Program Rebate and equipment-discount program offering $100 rebates for fossil fuel to electric water heater conversions, $50 for electric replacements, and Marathon water heater discounts of 25%-75% depending on installation scenario; requires Demand Response Unit installation on qualifying units.
• Renewable Energy / Solar Interconnection Distributed generation interconnection service enabling members to install solar and other renewable energy systems, with excess energy buyback from the cooperative at avoided-cost rates based on grid location.
• Outage Map Service Real-time interactive outage tracking system displaying current power outage locations and restoration status across the cooperative's 3,700-square-mile service territory.
• Wildfire Mitigation Service Comprehensive wildfire risk reduction program including vegetation management, wood pole inspection and treatment, line patrol, and targeted tree trimming along transmission and distribution rights-of-way.
• Prepaid Billing Advance-payment electricity billing option allowing members to pay for service before use, with daily billing, low-balance notifications, and no security deposit requirement.
• Budget Billing Averaged-payment plan that evens out electricity costs over a 12-month period, providing consistent monthly payments to help members budget for seasonal usage variations.
• Together We Save Energy Efficiency Program

Quantifiable outcome

• 81 years of continuous service to southwestern South Dakota
• +1 more outcomes

Named customers3 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

AI capability2 records

Feature3 records

Partnerships

Six partnerships are on record, tiered core and minor.

• Basin Electric Power CooperativecoreStrategic or Co-development PartnerBasin Electric is BHEC's wholesale power provider. Rate increases from Basin Electric over the past two years necessitated the 2026 rate adjustment. BHEC has absorbed additional wholesale power costs before passing them to members.
• National Rural Electric Cooperative Association (NRECA)minorOthersBHEC is a member of NRECA, the national organization representing America's electric cooperatives. Provides access to industry resources, advocacy, and cooperative community network.
• South Dakota Energy Assistance (LIEAP)minorOthersState energy assistance program for low-income households. BHEC refers members to LIEAP for bill assistance.
• Western SD Community ActionminorOthersCommunity action agency providing energy assistance. BHEC refers members needing bill assistance to this organization.
• SDREA (South Dakota Rural Electric Association)minorOthersState association for South Dakota electric cooperatives. BHEC participates in cooperative publications through SDREA and utilizes their newsletter format for member communications.
• Basin ElectriccoreStrategic or Co-development PartnerListed as a quick link partner on BHEC website. Wholesale power supplier to the cooperative.

Scale indicators6 records

Recent moves3 records

Expansion highlights4 records

Broad incumbents

• Black Hills Energy: Investor-owned electric and gas utility serving a broad multi-state territory including the Black Hills region. Operates adjacent to BHEC's service area and coordinates on the Provo substation / PSPS protocol; serves as a reference point for benchmarking rates and service expectations.

Direct peers

• Grand Electric Cooperative: Distribution electric cooperative serving rural members in northwestern South Dakota and surrounding areas. Comparable member-owned utility model, rural territory, and reliance on similar Basin Electric / WAPA power supply arrangements.
• West River Electric Association: Member-owned electric distribution cooperative serving western South Dakota with similar rural service territory, cooperative governance, and NRECA membership. Highly comparable in scale, customer mix, and reliance on Basin Electric wholesale supply.
• Rushmore Electric Power Cooperative: Generation and transmission cooperative serving member distribution co-ops in the Black Hills region, including BHEC via Basin Electric. Direct wholesale and operational counterpart within the same regional power network.
• FEM Electric Association: Member-owned electric cooperative serving rural areas of southwestern South Dakota and northwestern Nebraska. Directly comparable in size, territory characteristics, and reliance on Basin Electric wholesale power.
• Moreau-Grand Electric Cooperative: Member-owned electric distribution cooperative serving rural areas of northwestern South Dakota. Directly comparable as a small rural distribution co-op with similar scale, customer segments, and RUS financing profile.
• Cherry-Todd Electric Cooperative: Rural electric distribution cooperative serving south-central South Dakota and north-central Nebraska. Comparable cooperative structure, rural agricultural customer base, and demand management programs.
• Butte Electric Cooperative: Electric distribution cooperative headquartered in Newell, South Dakota, serving rural members in the western part of the state. Comparable member-owned distribution utility operating adjacent to BHEC's territory with similar Basin Electric wholesale supply.

Others

• National Rural Electric Cooperative Association (NRECA): National trade association representing approximately 900 electric cooperatives in the U.S. BHEC is a member; NRECA shapes cooperative policy, advocacy, and shared services (including the SmartHub platform) used by BHEC.
• Basin Electric Power Cooperative: Wholesale generation and transmission cooperative supplying power to BHEC and other distribution co-ops across the northern Great Plains. Closest wholesale counterparty; relevant peer for understanding upstream cost structure and supply dynamics.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/channel/UCSYrXSMdzKEfwPw4L-uf1fg
• Facebookfacebook.com/blackhillselectriccoop
• LinkedInlinkedin.com/company/bhec

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Black Hills Electric Cooperative