Black Hills Energy seeks to increase Colorado rates for first time in eight years

PUEBLO, Colo. (KRDO) - For the first time in eight years, Black Hills Energy customers in Southern Colorado may see an increase in their electric rates.

The Black Hills Corporation announced in a June 14 press release that the company is proposing to increase its rates due to "the rising cost of operating, maintaining and upgrading its Southern Colorado electric system."

An official date to discuss the rate change with the city council has not yet been scheduled.

The company's 2030 Ready Colorado Clean Energy Plan is also expected to change customer rates. The plan originates from a 2019 Senate bill that requires electric companies to file a clean energy plan with the Colorado Public Utilities Commission.

Representatives say the expected increase from the clean energy plan amounts to approximately 1.5% of a customer's total annual bill, or around $1.50 a month for the average residential customer. The company will offset the charge with a reduction in their current monthly Renewable Energy Standard Adjustment rider from 2% to 1.5%.

The Black Hills Colorado Electric corporation serves over 100,000 customers in Pueblo, Cañon City, Rocky Ford and other surrounding Southern Colorado communities.

If approved, new rates are expected to begin in the first quarter of 2025.