Exhibit 10(s)

                        SHORT-TERM ANNUAL INCENTIVE PLAN


      1.    EFFECTIVE DATE AND PURPOSE OF PLAN.

     The effective date of this Short-Term  Annual Incentive Plan ("Plan") shall
be the 1st day of January,  1998. The purpose of the Plan is to attract and keep
in the employ of the  Company and its  Subsidiaries  persons of  experience  and
ability by providing additional incentive to those who contribute  significantly
to the successful  and  profitable  operation of the business and affairs of the
Company and its Subsidiaries.  To that end, the Plan provides an opportunity for
these  employees to  participate in the  successful  results of such  operations
through  awards,  granted on a merit basis. 2.  DEFINITIONS.  Unless the context
otherwise  specifically  requires, the following words as used herein shall have
the following meanings: "BASE SALARY" shall mean the annual compensation paid to
a Participant by the Company during a calendar year,  including any compensation
reduction  under a cash or  deferred  arrangement  under  Section  401(k) of the
Internal Revenue Code, under a flexible benefit program under Section 125 of the
Internal  Revenue  Code,  or under  the  Black  Hills  Corporation  Nonqualified
Deferred   Compensation  Plan,  but  not  including  any  amounts  paid  to  the
Participant  as  overtime,  bonus,  commission  or incentive  compensation,  nor
reimbursements  and  expense  allowances,   fringe  benefits,  moving  expenses,
nonqualified deferred compensation, or welfare benefits.

      "BOARD" means the Board of Directors of the Company.

      "CHANGE IN CONTROL" shall mean any of the following events:

     (1)  An  acquisition  (other than  directly from the Company) of any common
          stock of the Company (the "Common Stock") by any "Person" (as the term
          person  is  used  for  purposes  of  Section  13(d)  or  14(d)  of the
          Securities  Exchange  Act of 1934,  as amended (the  "Exchange  Act"),
          immediately after which such Person has "Beneficial Ownership" (within
          the  meaning  of Rule 13d-3  promulgated  under the  Exchange  Act) of
          thirty  percent  (30%) or more of the  Common  Stock  of the  Company;
          provided,  however,  in  determining  whether a Change in Control  has
          occurred,   Common   Stock  which  is   acquired  in  a   "Non-Control
          Acquisition"   (as  hereinafter   defined)  shall  not  constitute  an
          acquisition  which  would cause a Change in  Control.  A  "Non-Control
          Acquisition" shall mean an acquisition by (i) an employee benefit plan
          (or a trust forming a part  thereof)  maintained by (A) the Company or
          (B) any  corporation or other Person of which a majority of its voting
          power or its voting equity securities ("Voting  Securities") or equity
          interest  is  owned,  directly  or  indirectly,  by the  Company  (for
          purposes of this definition, a "Subsidiary"),  (ii) the Company or its
          Subsidiaries,  or (iii) any Person in connection  with a  "Non-Control
          Transaction" (as hereinafter defined);

     (2)  The  individuals  who,  as of January 1, 1997 are members of the Board
          (the "Incumbent  Board"),  cease for any reason to constitute at least
          two-thirds of the members of the Board; provided, however, that if the
          election,   or  nomination  for  election  by  the  Company's   common
          shareholders,  of any new  director was approved by a vote of at least
          two-thirds  of the  Incumbent  Board,  such new  director  shall,  for
          purposes  of this Plan,  be  considered  as a member of the  Incumbent
          Board;  provided  further,   however,  that  no  individual  shall  be
          considered  a  member  of  the  Incumbent  Board  if  such  individual
          initially assumed office as a result of either an actual or threatened
          "Election  Contest" (as described in Rule 14a-11 promulgated under the
          Exchange Act) or other actual or threatened solicitation of proxies or
          consents  by or on behalf of a Person  other  than the Board (a "Proxy
          Contest")  including by reason of any  agreement  intended to avoid or
          settle any Election Contest or Proxy Contest; or

      (3) Approval by shareholders of the Company of:

          (a)  A merger,  consolidation or reorganization involving the Company,
               unless  such  merger,   consolidation  or   reorganization  is  a
               "Non-Control Transaction." A "Non-Control Transaction" shall mean
               a merger, consolidation or reorganization of the Company where:

               (i)  the  shareholders  of the Company,  immediately  before such
                    merger,  consolidation  or  reorganization,  own directly or
                    indirectly immediately following such merger,  consolidation
                    or  reorganization,  at least  seventy  percent (70%) of the
                    combined voting power of the outstanding  Voting  Securities
                    of  the   corporation   resulting   from   such   merger  or
                    consolidation    or    reorganization     (the    "Surviving
                    Corporation") in substantially  the same proportion as their
                    ownership of the Voting Securities  immediately  before such
                    merger, consolidation or reorganization.

               (ii) the  individuals  who were  members of the  Incumbent  Board
                    immediately   prior  to  the   execution  of  the  agreement
                    providing for such merger,  consolidation or  reorganization
                    constitute  at least  two-thirds of the members of the board
                    of directors of the Surviving Corporation,  or a corporation
                    beneficially directly or indirectly owning a majority of the
                    Voting Securities of the Surviving Corporation, and

               (iii)no Person other than (i) the Company,  (ii) any  Subsidiary,
                    (iii) any employee benefit plan (or any trust forming a part
                    thereof)   maintained   by  the   Company,   the   Surviving
                    Corporation,  or any  Subsidiary,  or (iv) any  Person  who,
                    immediately   prior  to  such   merger,   consolidation   or
                    reorganization  had  Beneficial  Ownership of thirty percent
                    (30%) or more of the then  outstanding  Voting  Securities),
                    has Beneficial  Ownership of thirty percent (30%) or more of
                    the  combined  voting power of the  Surviving  Corporation's
                    then outstanding Voting Securities.

          (b)  A complete liquidation or dissolution of the Company; or

          (c)  An  agreement  for  the  sale  or  other  disposition  of  all or
               substantially  all of the  assets of the  Company  to any  Person
               other  than  (x) a  transfer  to a  Subsidiary  or (y) a sale  or
               transfer of a  Subsidiary  by the Company  except if such sale or
               transfer  would  be  a  sale  or  other  disposition  of  all  or
               substantially all of the assets of the Company.

     (4)  Notwithstanding  the  foregoing,  (i) a Change in Control shall not be
          deemed to occur  solely  because  any Person  (the  "Subject  Person")
          acquired Beneficial Ownership of more than the permitted amount of the
          then outstanding Common Stock as a result of the acquisition of Common
          Stock by the Company which, by reducing the number of shares of Common
          Stock then  outstanding,  increases the proportional  number of shares
          Beneficially  Owned by the Subject Persons,  provided that if a Change
          in Control would occur (but for the  operation of this  sentence) as a
          result of the  acquisition  of Common Stock by the Company,  and after
          such stock acquisition by the Company,  the Subject Person becomes the
          Beneficial  Owner of any additional  Common Stock which  increases the
          percentage of the then outstanding  Common Stock Beneficially Owned by
          the Subject Person,  then a Change in Control shall occur;  and (ii) a
          Change in  Control  shall not be deemed to occur  unless and until all
          regulatory  approvals  required  to effect a Change in  Control of the
          Company have been obtained.

  "COMMITTEE"  shall  mean  the  Compensation   Committee  of  the  Board  which
   isappointed  to  manage  and  administer  the  Plan in  accordance  with  the
   provisions of Section 4 below.

  "COMPANY" shall mean Black Hills Corporation,  a South Dakota corporation with
   principal offices in the state of South Dakota.

  "EMPLOYEE" shall mean any person who is in the regular full-time employment of
   the  Company  or a  Subsidiary,  as  determined  by the  personnel  rules and
   practices of the Company or a Subsidiary.  The term does not include  persons
   who are retained by the Company or a Subsidiary solely as consultants.

  "EMPLOYER"  shall mean the  Company  and any  Subsidiary  that duly adopts the
   Plan.

  "INCENTIVE  AWARD" shall mean the  incentive  compensation  to be awarded to a
   Participant as determined under Section 5 below.

  "PARTICIPANTS"  shall mean those eligible  employees elected to participate in
   the Plan under Section 3 below.

  "PLAN" means this Short-Term Annual Incentive Plan.

  "PLAN YEAR" shall mean the Plan's  accounting  year of 12 months  beginning on
   January 1 and ending on the following December 31.

  "SUBSIDIARY" shall mean any business  organization in which Company,  directly
   or  indirectly,  owns a  majority  of  its  voting  power  or  voting  equity
   securities or equity interest and which the Board  designates as a Subsidiary
   for purposes of this Plan.

      3.    ELIGIBILITY AND PARTICIPANTS.

     Employees eligible to participate in this Plan shall be the officers of the
Company.  From the employees eligible to participate in this Plan, the Committee
shall  annually  choose  those  who  shall  actually  participate  for that year
("Participants"). In choosing the Participants, the Committee shall consider the
positions and responsibilities of the Participants, their accomplishments during
the year, the value of such accomplishments to the Company and its Subsidiaries,
and such other factors as the Committee deems pertinent.

      4.    ADMINISTRATION OF THE PLAN.

     (a) The Plan shall be administered by the Committee.

     (b) The Committee  shall have power to interpret  the Plan and,  subject to
its provisions,  to prescribe,  amend and rescind rules and regulations and make
all other determinations necessary or desirable for the Plan's administration.

     (c) The decision of the Committee on any question concerning or involved in
the  interpretation  or administration of the Plan shall be final and conclusive
and  nothing in this Plan shall be deemed to give any  Participant,  their legal
representatives  or  assigns  any  right  to  participate  in the Plan or to any
incentive  compensation except to such extent, if any, as the Committee may have
determined or approved pursuant to the provisions of this Plan.

      5.    TARGET INCENTIVE AWARD AND PERFORMANCE MEASURES.

     Participants  will be assigned a target  incentive  award  determined  as a
percent of a  Participant's  Base Salary.  In determining  the target  incentive
award for each  Participant,  the  Committee  shall  consider the  positions and
responsibilities of the Participants, their accomplishments during the year, the
value of such  accomplishments  to the  Company and its  Subsidiaries,  and such
other factors as the Committee deems pertinent.  Each Participant shall have the
opportunity  to earn various  percentages  of the target  incentive  award.  The
percentage of the target incentive award to be earned by each Participant  shall
be  determined  by  the  application  of  objective   performance   measurements
determined by the Committee,  such as earnings per share of Company  stock.  The
application of the  Participant's  target incentive award to actual  performance
results  creates  the actual  award for each  Participant  ("Incentive  Award").
Attached  hereto as Attachment 1 is the target  incentive  award and performance
measures to be used for the 1998 Plan Year. The Committee shall determine target
incentive  awards and  performance  measures for each Plan Year in similar form,
which shall be consecutively numbered and attached to the Plan.

      6.    PAYMENT OF INCENTIVE AWARD.

     (a) The Incentive Award shall be paid to the Participants in the form of 50
percent cash and 50 percent common stock of the Company.  Stock utilized for any
Incentive  Award may be (1) shares  reacquired  by the  Company  and held in its
treasury;  (2) shares  purchased  on the open  market;  or (3)  shares  acquired
through the optional cash payment feature of the Company's dividend reinvestment
plan, to be specified by the Directors  upon grant of the Incentive  Award.  The
value of stock to be included in any  Incentive  Award  shall be  determined  by
reference to the closing  price of such stock on the New York Stock  Exchange on
the last  trading day on which such shares  were traded  preceding  the date the
Incentive Awards are made.

     (b) There shall be deducted from all payments of Incentive Awards any taxes
required to be withheld by the federal or any state or local government and paid
over to such  government  for the  account of such  Participant.  In the case of
payments  made in shares of Company  stock,  the Company shall have the right to
retain and sell,  without notice,  sufficient  numbers of such shares to pay the
amount of any taxes. After payment of such taxes, the remaining balance shall be
paid over the Participant. In lieu thereof, the Company may permit a Participant
receiving  a payment in shares to pay or  reimburse  the  Company  for any taxes
required  to be paid over by it in respect of this  payment  upon such terms and
conditions as the Committee may prescribe.

      7.    POWERS OF BOARD OF DIRECTORS.

     The Board of Directors  may suspend or terminate  this Plan, in whole or in
part, at any time, or may, from time to time, amend the Plan in such respects as
the Board may deem advisable, provided that no such amendment shall withdraw the
administration and interpretation of the Plan from the Committee.

      8.    ASSIGNABILITY.

     No right to receive  payments under this Plan shall be subject to voluntary
or involuntary alienation, assignment or transfer.

      9.    NO EMPLOYMENT CONTRACT.

     Neither  the action  taken by the Company in  establishing  the Plan or any
action  taken by it or by the  Committee  under  the  provisions  hereof  or any
provision of the Plan shall be construed as giving to any  Participant the right
to be retained in the employment of the Company.

      10.   RIGHT TO INCENTIVE AWARD.

     Notwithstanding  anything  contained  herein, no Participant shall have any
right to receive any Incentive  Award until the Committee  determines the amount
of the Incentive  Award,  which  determination  is to be made in January of each
Plan Year based on the  application  of the target  incentives  and  performance
measures to the preceding  year and no  Participant  shall be considered to have
earned any portion of any Incentive Award until  determination by the Committee.
The  Committee  reserves  the  right in its sole  discretion  to not  grant  any
Incentive  Award  whether or not any  Participant  has met target  incentive and
performance  measures;  provided,  that in the event of a Change in  Control,  a
Participant's  Incentive  Award shall be determined as of the date of the Change
in Control and shall be paid 30 days after the day of the Change in Control.

      11.   GOVERNING LAW.

     This  agreement  shall be governed by and construed in accordance  with the
laws of the state of South Dakota.

      12.   NO TAX QUALIFIED OR ERISA PLAN

     This is not intended to be a tax qualified plan nor a plan for the purposes
of ERISA. Dated the date and year first above written.

                                BLACK HILLS CORPORATION


                                By___________________________________
                                Its