Pueblo council members postpone resolution encouraging voters to vote ‘YES’ on Black Hills Energy ballot item

PUEBLO, Colo. (KRDO) - City council members postponed a vote on whether to endorse the Black Hills Energy (BHE) off-ramp option, coming up in August.

Pueblo voters themselves will be asked to weigh in through an upcoming special election.

According to the city's current agreement with BHE, terminating the agreement requires a public vote.

However, many have argued that the city doesn't have the capital needed to take control of electric services.

While the city of Pueblo awaits a feasibility study to learn more about the costs of such a move, BHE says it's done its own calculations and estimates the change-over at more than a billion dollars.

On Monday, BHE released the findings of a study that it commissioned on the possible change.

It's one that concludes that a government utility takeover in the city of Pueblo will cost residents $1.01 billion; which breaks down to about $270 more per household in the first year. 

The city provided KRDO13 with the following statement:

"It's interesting to see Black Hills Energy commission a study that they claim is paid for with "company funds and not at the expense of customers" when ratepayers actually are the individuals paying for the study along with the nasty and untrue advertising campaigns seen across social media and on TV. The City of Pueblo is currently in the midst of our our own feasibility study, which outlines all options for electric utilities moving forward—not just the idea of municipalization outlined by the study Black Hills Energy commissioned themselves. The City realizes that our decision affects more than just resident within City limits, which includes Pueblo County our neighbors in Pueblo West and potentially a much larger service areas like Canon City, Penrose, Florence, Cripple Creek and more.

Municipalization was the intention of the City in 2019, now the City of Pueblo is looking at multiple options like a co-op or an alternative utility company purchasing the assets from Black Hills. At the end of the day, we know that Black Hills Energy is interested in the pocketbooks of their investors, not in the pocketbooks of their ratepayers, or in this case our Pueblo residents."

Pueblo city officials say the results of their own feasibility study, which cost around $300,000, won't be available until April 7th.

As for Monday night's vote, the council voted 5-2 to postpone until April 14th.

City officials remain steadfast that if the feasible study comes back with another increase to ratepayers, it will not be done.