The City Council of Pueblo, Colo., recently voted in favor of allocating funds to study the possible formation of a public power utility in the city.
Pueblo is currently served by investor-owned Black Hills Energy.
At its Sept. 23 meeting, the City Council voted to allocate $150,000 to fund the study by a vote of 5-2.
Carla Sikes, a city attorney, noted at the meeting that staff with the city’s Public Works Department is working on a scope of work for the consultant that would be hired to do the feasibility study “and so that will go out as an RFP and then that contract for the consultant will ultimately come back” to the council for approval.
One council member noted that this effort would involve an update of a prior municipal utility feasibility study for the city. In June 2024, Black Hills Energy filed a request with the Colorado Public Utilities Commission “seeking to update its electric rates to account for the rising cost of operating, maintaining and upgrading its Southern Colorado electric system which serves over 100,000 customers in Pueblo, Cañon City, Rocky Ford and surrounding communities.” As proposed, the rate review is requesting additional annual revenues of $36.7 million with a capital structure of 52.75% equity and 47.25% long-term debt and a return on equity of 10.5%, the company said.
In May 2020, Pueblo voters in a special election voted to retain an electric franchise agreement with Black Hills Energy. APPA offers a variety of resources on its website related to municipalization.
