HomeMy WebLinkAbout14454RESOLUTION NO. 14454
A RESOLUTION TO ENCOURAGE THE COLORADO PUBLIC
UTILITIES COMMISSION TO APPROVE BLACK HILLS ENERGY
CURRENT PROPOSED AMENDMENT TO ITS ELECTRIC
RESOURCE PLAN AND CONTRACTING FOR THE OUTPUT OF
THE RESOURCE IDENTIFIED AS ITS PREFERRED BID
WHEREAS, the City of Pueblo and its residents receive electric service from Black Hills
Electric Colorado, LLC (Black Hills); and
WHEREAS, voters rejected the municipalization of the distribution system on May 5, 2020;
and
WHEREAS, testimony and support filed by Black Hills estimates that the savings to be
achieved from the acquisition of the preferred bid is on the order of $66 million over the 15 year-
term of the purchase power agreement, lowering customer bills through a near term reduction
in Black Hills’ cost of generation that will be passed on to customers through its Electric Cost
Adjustment (ECA); and
WHEREAS, the acquisition for new renewable resources leads to a meaningful reduction
in electricity costs to be passed on to customers in the City of Pueblo, an increase in renewable
energy generation, and far reaching economic benefits; and
WHEREAS, the citizens of the City of Pueblo are desirous of finding cleaner energy
resources for the provision of their electric service; and
WHEREAS, the addition of the 200 Megawatt renewable energy project selected as the
winning bidder is forecasted to increase Black Hills’ renewable energy portfolio from 30% of its
generation capacity to 51% which is a sizable and desirable effect of the addition of the proposed
resource; and
WHEREAS, the economic benefits are estimated at $178 million dollars of direct and
indirect economic benefit, including $13.3 million in state and local taxes that can be used to
fund essential services, and 250 construction jobs; and
WHEREAS, The Pueblo City Council of the City of Pueblo, Colorado, deems it in the
public interest to adopt this Resolution and encourage approval of the preferred bid; NOW,
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The above recitals are incorporated by reference into this Resolution.
SECTION 2.
The City of Pueblo, Colorado finds and concludes that it is in the public interest to
encourage the Public Utilities Commission to approve the preferred bid addressed in the
recommendation of Black Hills Energy in its proposed amendment to its Electric Resource Plan.
SECTION 3.
The officers and staff of the City are directed and authorized to perform any and all acts
consistent with the intent of this Resolution to effectuate the policies and procedures described
herein.
SECTION 4.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: August 10, 2020
BY: Ed Brown
MEMBER OF CITY COUNCIL
APPROVED:
PRESIDENT OF CITY COUNCIL
ATTESTED BY:
CITY CLERK
City Clerk’s Office Item # M-8
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: August 10, 2020
TO: Members of City Council
VIA: Brenda Armijo, City Clerk
CC: Mayor Nicholas A. Gradisar
FROM: Dennis E. Flores, City Council President
SUBJECT: A RESOLUTION TO ENCOURAGE THE COLORADO PUBLIC UTILITIES
COMMISSION TO APPROVE BLACK HILLS ENERGY CURRENT PROPOSED
AMENDMENT TO ITS ELECTRIC RESOURCE PLAN AND CONTRACTING FOR
THE OUTPUT OF THE RESOURCE IDENTIFIED AS ITS PREFERRED BID
SUMMARY:
Attached is a proposed Resolution in support of Black Hills Energy’s (“Black Hills”) pending
application to the Colorado Public Utilities (“PUC”) for an amendment to its Electric Resources
Plan (“ERP”) to allow the addition of the 200 Megawatt (“MW”) renewable energy project
(“Preferred Bid.”)
PREVIOUS COUNCIL ACTION:
Not applicable to this Resolution.
BACKGROUND:
A solar developer not affiliated with Black Hills has proposed in Black Hills’ ongoing ERP
proceeding before the Colorado PUC to interconnect a 200-megawatt solar facility to the Reliability
Upgrade for Southern Colorado Project. Black Hills has projected that the 200 MW solar facility will
provide customer savings in the order of $66 million over the 15 year-term of a purchase power
agreement for the solar facility, lowering customer bills through a near term reduction in Black Hills’
cost of generation that will be passed on to customers through its Electric Cost Adjustment (“ECA”).
The acquisition of new renewable resources leads to a meaningful reduction in electricity costs to
be passed on to customers in the City of Pueblo, an increase in renewable energy generation,
and far reaching economic benefits. The Black Hills ratepayers of the City of Pueblo are desirous
of finding cleaner energy resources for the provision of their electric service.
The addition of the 200 MW renewable energy project is forecasted to increase Black Hills’
renewable energy portfolio from 30% of its generation capacity to 51% which is a sizable and
desirable effect of the addition of the proposed resource.
FINANCIAL IMPLICATIONS:
Approval of this Resolution will not have a direct impact on the City’s finances. However,
subsequent approval by the Colorado PUC of the amendment to Black Hills’ ERP to purchase
200 MW of solar power and the subsequent approval by the County Board of Black Hills’
application for a 1041 permit, could result in a decrease of utility costs paid by the City to Black
Hills for electricity.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
The City Council could remain neutral and not recommend approval by the Colorado PUC of an
amendment to Black Hills ERP to allow the addition of the 200 MW renewable energy project.
RECOMMENDATION:
Not applicable to this Resolution.
Attachments: Proposed Resolution