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BROOKINGS, S.D.—Bismarck, N.D.-based Basin Electric Power Cooperative on Tuesday began construction of a power plant in eastern South Dakota.

The $405 million Deer Creek Station is near Brookings. Officials expect to have it operating in mid-2012 to help provide 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 project the past three years cleared all state and federal regulatory hurdles, and on June 29 the South Dakota Department of Environment and Natural Resources issued a construction permit.

Project coordinator Gavin McCollam says the plant will have about 30 full-time employees. At the peak of construction, about 350 workers will be at the site.

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