NorthWestern Energy is planning to construct a new natural gas power plant south of Aberdeen, anticipated to generate 131 megawatts at peak capacity. The Hub City Energy Park aims to serve approximately 26,000 homes, operating 15% to 25% annually. The estimated cost for this project is $300 million, as noted in NorthWestern Energy’s 2025 annual report.
The utility company submitted a construction permit application to the South Dakota Public Utilities Commission on Oct. 1. Recently, the commission approved hiring external consultants and forming a local review committee for NorthWestern’s proposal.
Situated on 176 acres owned by NorthWestern Energy, the plant will be near their existing Aberdeen Generating Station. The site supports 65,600 electric customers in South Dakota, enhancing the region’s power reliability and addressing potential electricity shortages.
Equipped with three natural-gas-fired turbines, the plant will bolster South Dakota’s electricity infrastructure. According to the company’s application, Aberdeen is ideal due to its strong electric transmission, proximity to natural gas pipelines, existing facilities, and minimal community impact.
Plans include a new natural gas pipeline connection, with the route yet to be determined. Eminent domain is not anticipated to be necessary. The project requires an air quality permit from the Department of Environment and Natural Resources, with emissions expected to remain below National Ambient Air Quality Standards.
Construction could commence by late 2027 or early 2028, with operations projected to start in 2030. The facility will create six to 10 jobs. NorthWestern Energy, based in Sioux Falls, is merging with Black Hills Corp., forming Bright Horizon Energy, intended to serve 2.2 million customers across eight states.
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