Electric rates will go up, but not as much as Black Hills wanted
Black Hills Energy customers will be paying more for electricity beginning on December 27.
The increase approved by state regulators is expected to add about $2.11 to the average residential monthly bill and about $7.10 per month for small commercial customers.
Black Hills originally requested a $7.1 million increase in its electric base rates. An administrative judge recommended the increase be reduced to $3.9 million. Ultimately, the public utilities commission agreed with the judge and ordered additional revenue reductions in some areas, resulting in a final approved increase of slightly less than $3.1 million.
Black Hills provides electric utility service to approximately 93,500 customers in 21 southeastern Colorado communities, including Pueblo, Canon City, Florence and Rocky Ford.
The Public Utilities commission says Black Hills electric customers can expect a second, smaller rate increase beginning on January 1, 2015.
The extra 40 cents per month on the average residential bill and $1.89 per month on the average small commercial bill will go toward construction work in progress for a third gas-fired generating unit at the Pueblo Airport Generating Station. The new unit will replace the Caon City coal plant, which was closed as part of the Clean Air Clean Jobs Act.
