HomeMy WebLinkAbout15960RESOLUTION NO. 15960
A RESOLUTION ENCOURAGING A YES VOTE ON BALLOT
ITEM 2A OF THE MAY 6, 2025, SPECIAL ELECTION TO
FRANCHISE AGREEMENT WITH
BLACK HILLS COLORADO ELECTRIC, LLC DBA BLACK
HILLS ENERGY
WHEREAS, the City entered into a franchise agreement with Black Hills Energy
which expires in August 2030; and
WHEREAS, every five years the City may choose to terminate the franchise
agreement upon a vote of the eligible electors of the City of Pueblo; and
WHEREAS, City Council has referred a question to the eligible electors of the
City of Pueblo to considering termination of its franchise agreement due to Black Hills
Energy charging rate payers within the City a higher average residential rate than those
paid by any typical customer in the state of Colorado; and
WHEREAS, on June 14, 2024, Black Hills Energy filed a rate review petition with
the Public Utilities Commission seeking authorization to further increase its already high
electrical rates charged to rate payers in the City; and
request for a revenue requirement increase of about $17 million resulting in yet another
increase to the high rates paid by rate payers in the City; and
WHEREAS, a survey by Colorado Association of Municipal Utilities (CAMU)
kilowatt-hours in January 2024; and
WHEREAS, during January 2024, Xcel Energy ratepayers spent less than $100,
Colorado Springs ratepayers spent less than $99, and Fort Collins ratepayers spent
less than $84 for the same 700 kilowatt-hours of energy; and
WHEREAS, on December 23, 2024, the City retained GDS Associates, Inc. to
perform a comprehensive energy strategy study for the purpose of determining the
assets and forming an alternative utility provider; and
WHEREAS, the City, has the constitutional right to use the power of eminent
limits to . . . condemn and . . . operate . . . public utilities . . . and everything required
WHEREAS, City Council encourages a yes vote on Ballot Item 2A in the May 6,
generation, transmission, and distribution assets of Black Hills Colorado Electric, LLC
dba Black Hills Energy, if determined feasible; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that
SECTION 1.
The City Council for the City of Pueblo hereby supports a YES vote on Ballot Item
Black Hills Colorado Electric, LLC dba Black Hills Energy.
SECTION 2.
The City Council for the City of Pueblo encourages all eligible voters to vote YES
agreement with Black Hills Colorado Electric, LLC dba Black Hills Energy.
SECTION 3.
The officers and staff of the City will report the passage of this Resolution and
distribute the same through established, customary means, other than paid advertising,
by which information about other proceedings of City Council is regularly provided to the
public and perform any and all acts consistent with this Resolution to effectuate the
policies and procedures described herein.
SECTION 4.
This Resolution shall become effective immediately upon final passage and
approval.
INTRODUCED: April 14, 2025
BY: Brett Boston
MEMBER OF CITY COUNCIL
APPROVED: __________________________
PRESIDENT OF CITY COUNCIL
ATTESTED BY: ________________________
CITY CLERK
City Clerk's Office Item # Q1
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: April 14, 2025
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Harley Gifford, Deputy City Attorney
SUBJECT: A RESOLUTION ENCOURAGING A YES VOTE ON BALLOT ITEM 2A
OF THE MAY 6, 2025, SPECIAL ELECTION TO
FRANCHISE AGREEMENT WITH BLACK HILLS COLORADO
ELECTRIC, LLC DBA BLACK HILLS ENERGY
SUMMARY:
Attached is a Resolution in support of the special election ballot issue 2A to be held on
May 6, 2025.
PREVIOUS COUNCIL ACTION:
City Council has taken previous action to call for a special election to be held on May 6,
nchise agreement with Black Hills Colorado
BACKGROUND:
Every five years during the term of the franchise agreement, the City may choose to
terminate the agreement and establish its own utility, the formation of a co-op or pursue
an alternate utility company. City Council is considering termination of its franchise
agreement with Black Hills Energy in August 2025 due to Black Hills Energy charging rate
payers within the City a higher average residential rate than those paid by a typical
customer in the state of Colorado.
On June 14, 2024, Black Hills Energy filed a rate review petition with the Public Utilities
Commission seeking authorization to increase its electrical rates charged to rate payers
in the City. The Public Utilities Commission recently approved a revenue requirement
increase of about $17 million resulting in yet another increase to the monthly bill of rate
payers in the City.
On December 23, 2024, City Council approved the retention of GDS Associates, Inc. to
perform a comprehensive energy strategy study. The study was requested for the
purpose of providing information to the City as to the feasibility of acquiring Black Hills
utility.
The City of Pueblo, as a home rule city, has the constitutional right to use the power of
eminent domain to create and operate a municipal electric utility. The Colorado
limits to . . . condemn and . . . operate . . . public utilities . . . and everything required
onst. Art. XX Sec. 1 and 6. This Ordinance will allow the City to seek
assets, and municipalize, if Council deems such action feasible.
FINANCIAL IMPLICATIONS:
There are no financial implications for the City.
BOARD/COMMISSION RECOMMENDATION:
Not applicable.
STAKEHOLDER PROCESS:
Not applicable.
ALTERNATIVES:
City Council could choose not to adopt the proposed Resolution.
RECOMMENDATION:
This Resolution is at the request of City Council.
ATTACHMENTS:
None
