Voters in Pueblo can weigh in now on whether the city should explore options to replace Black Hills Energy as its electricity provider in a mail-only special election. Ballots need to be returned by May 6.
The ballot measure and a recent feasibility study are in response to “ongoing community concerns about high electric rates, limited local oversight and a strong desire for change from the local community,” according to a written statement by a city spokesperson.
The city council recently voted 4 to 2 to approve a resolution asking people to support the ballot measure that would allow the city to cancel the franchise agreement that makes Black Hills Energy the electric utility for city residents and businesses. Cancellation would be predicated on finding a feasible solution to replacing the utility, which is an investor-owned company.
There is also an effort to oppose the measure. Television ads featuring a current and a former council member are airing. Flyers are showing up on people’s doorsteps, delivered in person by campaigners. Social media accounts, yard signs and more are appearing in the Pueblo community. All this marketing is asking people to vote no on the ballot measure.
Opponents say the change is not feasible based on Black Hills Energy-funded studies, because it would cost billions of dollars to condemn and acquire the existing electric infrastructure and assets. That’s according to a recent story in the Pueblo Chieftain.
A preliminary study paid for by the city also found that acquiring Black Hills Energy infrastructure and assets isn’t feasible because of high costs and the “lack of scale sufficient to make a City-only utility system financially viable,” according to a statement from the city.” The study also said the plan lacked feasibility due to changing conditions in the power market.
However, according to the city’s website, voting yes on the ballot measure simply allows the city to continue exploring other options for an electric utility.
“Future options may include a regional acquisition of Black Hills’ assets, the formation of a multi-jurisdictional cooperative or utility, or supporting a third-party acquisition of assets across Black Hills’ service area,” according to the city.
“A yes vote does not mean the Black Hills Energy would immediately stop operations in Pueblo,” according to a video statement by Andrew Hayes, who leads Pueblo’s Public Works department. “Black Hills Energy will continue to provide electric utilities to City of Pueblo customers until an alternative electric utility is identified or established.”
Hayes also said the need for a special election now is related to deadlines in the current agreement. Currently, the city council can end Black Hills Energy’s franchise in August. Otherwise, the city would have to wait until 2030 for its next opportunity.
If voters approve the current ballot measure, the city will continue to explore other options for electric service providers, according to Hayes. Once that work is done and brought to public meetings, he said, citizens will have a chance to “voice their opinion on any proposed plan.”
“City council cannot terminate the franchise agreement unless it is feasible,” he said. “Which means it is financially possible and affordable to the citizens.”
Black Hills Energy is based in South Dakota and serves more than 1.3 million natural gas and electric utility customers in eight states. Most of the company's Colorado customers are in Pueblo, but it also provides service to customers in surrounding counties.
A rate increase for BHE customers in Colorado was approved earlier this year.
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