Mayor Graham and President Aliff Responds to Last Minute Effort by Black Hills Energy to Reduce Rate

PUEBLO-Mayor of Pueblo Heather Graham and President of City Council Mark Aliff credit public pressure for the recent news of Black Hills Energy's lowered electric rate increase with the Public Utilities Commission (PUC).

The City of Pueblo, Pueblo County, Pueblo Economic Development Corporation (PEDCO) and other municipalities have combined efforts to voice concern and take legal action against Black Hills Energy during their request for a rate increase with the PUC. Black Hills Energy sent out a press release on Friday, reducing the request by $11,617,295 which is 32% in addition to new email notices.

"In June, when Black Hills Energy originally filed for the rate increase, they told customers it would be around 18% or "only" $20 added to their monthly bills, when in reality the rate requested was over 20%," said Mayor of Pueblo Heather Graham. "Black Hills has now reduced the total increase it is requesting and is trying to credit the decrease to listening to the public when in reality they are one trying to avoid further backlash from Pueblo customers and the PUC for making such an outrageous request in the first place."

The new filing from Black Hills Energy is not actually a reduction in request, they are "deferring" most of the $11.6 million and will likely file with the PUC again in a few years asking for another increase. The PUC also ordered Black Hills Energy to send out new notices to customers, because their original notice was wrong-it understated what they were really asking for.

"Anything less than a reduction in our rates from the current rates being paid, is unacceptable," said President of City Council Mark Aliff. "They claim these reductions mean that their residential rates are no longer the highest in the state, yet they still admit that they are slightly higher than the national average. Puebloans deserve better. If they refuse to reduce rates, then they should step aside and allow the PUC to supervise a sale of Black Hills to another utility that will charge us less," said Aliff.

Black Hills Energy has continuously stated this rate increase is the first request before the PUC since 2016, yet Southern Colorado municipalities including Pueblo, Cañon City, Florence, Rocky Ford and other municipalities pay nearly 40% more than the rest of the state in utility costs. If the rate increase before the PUC is approved, the new rates would go into effect on March 22, 2025.

Mayor Graham went on to explain, "Residents and commercial businesses, including small business owners already have unjustifiably high rates they pay each month, and this proposed rate increase looks to further harm our community," said Mayor Graham. "Black Hills shareholders have continued to see great returns and the company has gained billions of dollars in profit, all at the expense of hardworking Puebloans and Southern Colorado residents."

The PUC Commissioners held two public comment hearings for Pueblo customers to voice their opinion and comments on Tuesday, October 29 and Wednesday, October 30. The PUC has scheduled another public comment period on Tuesday, November 19 in Cañon City and a virtual testimonial comment town hall on Thursday, December 5.

The PUC is still accepting public testimony via online comments, email, mailed letters, by phone and at the two scheduled public comment hearings in Cañon City and at the virtual town hall in December. More information about how to submit public comments can be found on the City of Pueblo website https://www.pueblo.us/2972/47247/Black-Hills-Public-Comments.