Pueblo’s electricity future placed in voters’ hands

PUEBLO, Colo. (KRDO) -- Pueblo's electricity future now sits in the voter's hands.

During Monday night's city council meeting, Pueblo's council members voted unanimously to approve a ballot question asking residents if they want to leave the city's electricity provider and form its own public electric utility.

On May 5th, Puebloans will be asked to see if they want to leave their current franchise agreement with Black Hills Energy and form its own public electric utility with the Pueblo Board of Water Works at the helm.

Monday night, dozens inside the council chambers wore green shirts in support of leaving Black Hills Energy. The group, calling themselves 'Bring Power Home 2020', argued that Black Hills Energy's electricity rates are greatly hurting residents and hindering Pueblo's economy.

Back in September 2017, Pueblo City Council first declared intent to leave Black Hills Energy and form its own public electric utility by August of 2020. Two months later city council formed the Electric Utility Commission (EUC) to advise the city and mayor on the matter.

In October 2019, a consultant to the city who was studying the feasibility of forming a public electric utility in Pueblo, claimed municipalization would provide city customers with a retail rate saving approximately 10% if the city purchased or condemned Black Hills Energy's assets. The consultant then claimed that the city customer could potentially save 12% if the city simply acquired the assets in the city and county.

During Monday's work session, the Pueblo Board of Water Works presented their own plans to city council on how they would operate an electric utility for the city of Pueblo.

"Our structure is already present and we have a board that's already focused on long term utility issues," said Seth Clayton with the Pueblo Board of Water Works. "We make every decision and every action in the best interest of this community."

Clayton told KRDO on Monday night, they are not certain if they could lower electric rates after immediately taking over. However, they guarantee a rate reduction over the long term.

Not everyone is on board with leaving Black Hills Energy. Four council members -- Lori Winner, Bob Schilling, Larry Atencio, and Dennis Flores -- voted in favor of the ballot question, but spoke out against leaving from the city's current energy provider.

Skeptical council members argue the cost of Black Hills Energy's assets are unclear at this time, and they fear the cost could be too high for the city to bear. They also cited fears that the city won't be able to reach its goal of being 100% renewable energy dependent by 2035 as a public electric utility.

However, the council members approved the ballot questions, believing the people should have a voice in this process.

Monday night Black Hills Energy issued a statement to KRDO in regards to council's decision:

'The ballot measure approved by Pueblo City Council is asking voters to approve a measure that will allow a takeover of the electric utility with no cost controls and no TABOR protections. This is a blank check for the Pueblo Board of Water Works to attempt to seize the electric system that provides clean, reliable energy to our customers today. This measure waives the right of citizens to vote on whether they want to spend hundreds of millions of dollars, or even have any oversight of future rate increases. On May 5th, Pueblo voters will be asked to sign on the dotted line without knowing the price tag. This is a  costly, risky ballot initiative – especially when voters consider the better, safer alternative of a cooperative agreement that provides $300 to $500 million in value, including customer savings that will result in lower energy bills.'