PUEBLO, Colo. (KOAA) — As a proposed rate increase looms from Black Hills Energy for electric bills in southern Colorado, Pueblo City Council is scheduled to have a final vote on a special election asking voters if they want to separate from the energy company.
The back-and-forth battle between the City of Pueblo and Black Hills Energy has been ongoing for years. In 2020, voters shot down the idea of the City separating from Black Hills with 75 percent of the voters saying no to the proposal.
Monday night, the Pueblo City Council is scheduled to vote on a Special Election scheduled for May 6. According to agenda documents, if approved the question would read as follows:
QUESTION NO. 2A - Cancelation of Black Hills Electric
Franchise
SHOULD THE CITY OF PUEBLO CANCEL ITS FRANCHISE AGREEMENT WITH BLACK
HILLS ELECTRIC AND ACQUIRE THE GENERATION, TRANSMISSION, AND
DISTRIBUTION ASSETS OF BLACK HILLS ELECTRIC, IF DETERMINED FEASIBLE?
Voters would have the option of voting for the measure or against the measure.
Black Hills Energy sent a statement to News5 about the potential of a special election.
"If this vote passes on Monday night, Pueblo City Council will be recklessly pressing ahead on a costly, risky government utility takeover without knowing how much it will cost or whether it will save money for utility customers," part of a statement from Black Hills Energy reads. "The timeline and costs associated with any potential acquisition are undefined and will be significant. The City has not shared how they’ll make up the $3.4 million of franchise fee revenue they’ll lose if the proposed vote passes in a May special election, let alone their plan for Pueblo citizens’ billion-dollar purchase of an electric utility. Nearly all government utility takeover attempts fail and with the City already facing a budget deficit, taxpayers simply can’t afford to go down this path."
Pueblo Mayor Heather Graham also provided a statement on the matter to News5.
“The City of Pueblo is giving the decision to the taxpayers," a statement on behalf of Mayor Graham to News5 reads. "The ballot language states 'if feasible' the city will look to off-ramp with Black Hills. The reason for the study is to get all of the information before we make any drastic decisions moving forward. I wouldn’t call that reckless, I would call that responsible unlike Black Hills asking our citizens to pay 40% higher rates than the rest of the state. The $3.4 million franchise fee is paid by the tax payers. Look at the back of your bill. You should be the one deciding if the bang is really worth your buck. Higher rates = more franchise fees.”
Pueblo City Council is scheduled to meet Monday night at City Hall to vote on the ordinance and special election at 1 City Hall Place at 7 p.m.
In November, Black Hills Energy put forth an updated proposal for a rate increase. Under the proposal, more than 100,000 customers in Pueblo, Canon City, Florence and other areas will have to pay on average about $15.11 more per month for electricity, or about $180 per year on average. Bill impacts would vary based on usage.
Last week, the Public Utilities Commission (PUC) concluded its deliberations on the Black Hills Electric Rate Case proposal.
"This is a significant and complex proceeding which required the Commission to make dozens of separate decisions across a range of issues," Megan Castle the Communications Director for the Public Utilities Commission wrote to News 5. "A PUC Administrative Law Judge will now take up the case for a Technical Conference on March 3, where multiple decision points will be confirmed to assist the Commission in establishing final rates. The PUC will issue a decision setting the new rates no later than March 22.”
According to the background presented during a city council meeting, Black Hills was granted an electric utility franchise in 2010 by voters. On Dec. 3, 2024, the Council approved a resolution retaining GDS Associates, Inc. to perform a comprehensive energy study.
The City of Pueblo has a franchise agreement with Black Hills Electric which expires in August of 2030. Every five years for the term of the agreement, the City ma choose to terminate the agreement and establish its own utility.
At last check, the cost of a special election is unknown but costs will be shared with Pueblo West Metropolitan District and perhaps other special districts.
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