Black Hills Energy proposes rate increase for infrastructure upgrade

PUEBLO, Colo. (KRDO) -- Black Hills Energy has filed a request with the Colorado Public Utilities Commission to increase its electric base rates, citing the ongoing replacement of aging infrastructure.

According to Black Hills, if the request is approved, residential customers could see an increase of $10.90 per month, or 8.8%, based on an average monthly usage of 600 kilowatt-hours (kWh). Commercial customers' rates would vary based on usage.

The increase would go into effect in March 2027, according to Black Hills.

“Nearly half of our Colorado electric distribution system equipment is over 50 years old,” said Campbell Hawkins, Black Hills Energy’s vice president of Colorado Utilities. “Each year, we are prudently investing in the safety and reliability of the electric system so our customers have the energy they can count on. This includes everyday investments needed to maintain, update, and replace aging electric system infrastructure. As a result of these investments, our customers are experiencing fewer interruptions and less disruption to homes and businesses.”

Officials say this new proposal also includes a plan for a pilot program that would provide a monthly discount to income-qualified customers participating in the Black Hills Energy Affordability Program

Black Hills says that since its last rate review in 2024, it has invested approximately $184 million in strengthening the electric grid.

Click here to learn more about Black Hills Energy’s electric rate review.

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