PUEBLO — Should Black Hills Energy remain Pueblo's electricity provider? The decision could be left to Pueblo voters in May.
An ordinance to hold a special election on the utility issue was passed on its first reading on Monday night at the Pueblo City Council meeting. City council will vote again on February 24th to decide to hold a special election in May.
Ongoing issues with utilities and proposed rate increases are causing Pueblo City Council members to consider asking voters in May if they want to end the city's partnership with Black Hills Energy, and, if possible, have the city create its own power company.
“A takeover plan today will cost more and be less likely to succeed,” Campbell Hawkins said.
Campbell Hawkins is a leader with Black Hills Energy. He explained to the city council the issues with creating a city utility saying it would be risky and costly.
“Large commercial customers want certainty. Unfortunately, these opportunities will be put at risk by the unknowns of a costly and risky government takeover of our electric system,” Hawkins said.
Ken Danti and other Pueblo residents said they want to move away from Black Hills Energy.
“Black Hills has been a burden on Pueblo,” Danti said.
But Danti said the city could not take on this multi-million dollar project alone.
“I don't think that municipal utilities ought to be run by the city, they have a tough time just doing what they're doing. I think it needs to be made at an enterprise, or maybe we can partner with other utilities, local utilities,” Danti said.
He suggested utilities could be made into a non-profit and/or enterprise.
“Since it would be a public organization, it would be owned by the people that use that utility. So if you have an issue, you have a voice,” Danti said.
Black Hills Energy is proposing a base electricity rate increase of 14%, prompting the city to look for options.
“14% increase. I mean, if my food went up 14% that would be pretty impactful. Our energy burden is pretty high already,” Danti said.
If the city separates from Black Hills Energy how would it work? The city has hired a consulting firm to look into how a split from Black Hills Energy would work and if it makes financial sense.
“The energy burden on low income people has been terrible,” Danti said.
He said regardless, something needs to change.
The feasibility study will be presented to council members towards the end of March, early April.
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