New S.D. power plant gets federal loan guarantee

SIOUX FALLS, S.D. (AP) — The federal government is guaranteeing a $405 million loan for construction of a power plant in eastern South Dakota.

Bismarck, N.D.-based Basin Electric Power Cooperative is building the Deer Creek Station near Brookings. It is to open in August 2012, providing electricity to 135 rural electric systems in nine states.

The plant will use gas and steam to produce electricity and will have a capacity of about 300 megawatts, or roughly enough energy to power 300,000 homes.

The federal Rural Utilities Service says the loan guarantee is part of $2.9 billion for projects across the country. Basin Electric also is getting about $153 million in loan guarantees for two wind projects in the Dakotas.

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