UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

March 31, 2003
(Date of earliest event reported)

BLACK HILLS POWER, INC.
(Exact name of Registrant as specified in its charter)

South Dakota	1-7978	46-0111677
(State of Incorporation)	(Commission File No.)	(IRS Employer
		(Identification Number)

625 Ninth Street
P. O. Box 1400
Rapid City, South Dakota 57709
(605) 721-1700

Item 2.   Acquisition or Disposition of Assets

        On March 31, 2003, the Registrant distributed a non-cash dividend to its parent company, Black Hills Corporation (the Parent). The dividend included 10,000 common shares of Black Hills Generation, Inc. (“BH Generation”) (formerly Black Hills Energy Capital, Inc.), which represents 100 percent ownership of BH Generation. As a result of the dividend, the Registrant therefore no longer operates in the independent power generation business. After the dividend, the Registrant’s sole business is the regulated electric utility. The Registrant’s investment in BH Generation at the time of the distribution was $55.5 million.

Item 7.   Financial Statements and Exhibits.

UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL INFORMATION

        The following unaudited pro forma condensed financial information has been prepared to assist in your analysis of the financial effects of the disposition of BH Generation in the form of a non-cash dividend, and presents the Registrant’s balance sheet and statement of income as if the Registrant’s investment in BH Generation was discontinued operations. The unaudited pro forma condensed financial information should be read in conjunction with the 2002 audited financial statements and related notes included in the Registrant’s Form 10-K for the year 2002.

        The unaudited pro forma condensed balance sheet has been prepared assuming that the non-cash dividend took place on December 31, 2002. The unaudited condensed statement of income has been prepared assuming that the non-cash dividend took place on January 1, 2002.

BLACK HILLS POWER, INC.
UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME

For the year ended December 31, 2002
(in thousands, except per share amounts)

	Historical
	Black Hills Power Consolidated			Less Black Hills Generation			Plus Pro Forma Adjustments		Pro Forma Amounts
Operating revenues	$	287,453		$	125,267		$	--	$	162,186
Operating expenses:
Fuel and purchased power		60,620			15,878			--		44,742
Operations and maintenance		35,069			10,734			--		24,335
Administrative and general		31,691			21,650			--		10,041
Depreciation and amortization		43,933			26,434			--		17,499
Taxes, other than income taxes		10,341			2,932			--		7,409
		181,654			77,628			--		104,026
Equity in earnings of unconsolidated subsidiaries		4,339			4,339			--		--
Operating income		110,138			51,978			--		58,160
Other (expense) income:
Interest expense		(47,865	)		(34,203	)		--		(13,662	)
Interest income		825			91			--		734
Other expense		(312	)		--			--		(312	)
Other income		2,334			1,970			--		364
		(45,018	)		(32,142	)		--		(12,876	)
Income from continuing operations before minority
interest, income taxes and change in accounting
principle		65,120			19,836			--		45,284
Minority interest		(3,162	)		(3,162	)		--		--
Income taxes		(21,675	)		(6,608	)		--		(15,067	)
Income from continuing operations before
change in accounting principle	$	40,283		$	10,066		$	--	$	30,217

BLACK HILLS POWER, INC.
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET

December 31, 2002
(in thousands)

	Historical
	Black Hills Power Consolidated			Less Black Hills Generation			Plus Pro Forma Adjustments			Pro Forma Amounts
ASSETS
Current assets:
Cash and cash equivalents	$	45,042		$	44,524		$	--		$	518
Restricted cash		1,070			1,070			--			--
Receivables -
Customers		35,942			24,097			--			11,845
Affiliates		53,984			--			269	(1)		54,253
Other		5,596			1,050			--			4,546
Materials, supplies and fuel		16,206			6,463			--			9,743
Prepaid expenses		2,372			2,372			--			--
Deferred income taxes		2,709			(2,688	)		--			5,397
Other		325			325			--			--
		163,246			77,213			269			86,302
Investments		14,531			11,850			--			2,681
Property and equipment		1,504,898			890,972			--			613,926
Less accumulated depreciation		(301,054	)		(89,062	)		--			(211,992	)
		1,203,844			801,910			--			401,934
Other assets:
Regulatory asset		4,350			--			--			4,350
Goodwill		30,562			30,562			--			--
Intangible assets		77,661			77,661			--			--
Other		16,864			9,705			--			7,159
		129,437			117,928			--			11,509
	$	1,511,058		$	1,008,901		$	269		$	502,426
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	22,131		$	19,036		$	--		$	3,095
Notes payable		50,000			50,000			--			--
Notes payable - affiliate		454,824			454,823			--			1
Accounts payable		28,653			14,000			--			14,653
Accounts payable - affiliate		2,990			675			269	(1)		2,584
Accrued liabilities		22,796			7,221			--			15,575
Derivative liabilities		9,345			9,345			--			--
		590,739			555,100			269			35,908
Long-term debt, net of current maturities		557,195			345,153			--			212,042
Deferred credits and other liabilities:
Deferred income taxes		101,046			42,507			--			58,539
Regulatory liability		5,395			--			--			5,395
Derivative liabilities		7,844			7,844			--			--
Other		24,154			7,698			--			16,456
		138,439			58,049			--			80,390
Minority interest in subsidiaries		6,457			6,457			--			--
Stockholder's equity:
Common stock $1 par value; 50,000,000 shares
authorized;		23,416			--			--			23,416
Issued: 23,416,396 shares in 2002
Additional paid-in capital		80,961			41,412			--			39,549
Retained earnings		131,906			12,170			--			119,736
Accumulated other comprehensive loss		(18,055	)		(9,440	)		--			(8,615	)
		218,228			44,142			--			174,086
	$	1,511,058		$	1,008,901		$	269		$	502,426

NOTES TO UNAUDITED PRO FORMA FINANCIAL STATEMENTS

(amounts in thousands)

1.     To add back $269 for intercompany payables and receivables which were previously omitted in the consolidation process.

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

        BLACK HILLS POWER, INC.

By: /s/Mark T. Thies
Mark T. Thies
Sr. Vice President
and Chief Financial Officer

Date: April 11, 2003