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Home My WebLink About16459Docusign Envelope ID: 9C7BB82E-F9CE-8F5A-8192-96883611 C08A RESOLUTION NO. 16459 A RESOLUTION OPPOSING THE PROPOSED ELECTRIC RATE INCREASE OF BLACK HILLS COLORADO ELECTRIC, LLC IN COLORADO PUBLIC UTILITIES COMMISSION PROCEEDING NO. 26AL-0232E, OPPOSING THE ADDITIONAL RATEPAYER COST IMPACTS OF ITS 2026 ELECTRIC RESOURCE PLAN AND CLEAN ENERGY PLAN IN PROCEEDING NO. 26A -0333E, AND DIRECTING THE CITY CLERK TO TRANSMIT CERTIFIED COPIES OF THIS RESOLUTION TO THE COLORADO PUBLIC UTILITIES COMMISSION WHEREAS, Black Hills Colorado Electric, LLC ("Black Hills") provides retail electric service to more than 102,000 customers in southern Colorado, including the City of Pueblo, its residents, and its businesses, as well as Canon City, Rocky Ford, and surrounding communities; and WHEREAS, on June 12, 2026, Black Hills filed an electric rate review with the Colorado Public Utilities Commission (the "Commission"), designated Proceeding No. 26AL-0232E, seeking $26,663,479 in additional base rate revenue each year; and WHEREAS, the rate review would increase residential base rates by 14.7 percent, raising the average monthly bill of a residential customer using 600 kilowatt-hours from $124.18 to $142.48, an increase of $18.30 per month, and Black Hills proposes a temporary two-year credit that reduces the advertised increase to 8.8 percent while returning money previously collected from its ratepayers, so that the full 14.7 percent increase remains once the credit expires; and WHEREAS, on September 11, 2026, Black Hills filed an application with the Commission, designated Proceeding No. 26A -0333E, seeking approval of its 2026 Electric Resource Plan and Clean Energy Plan and its 2027 through 2030 Renewable Energy Standard Compliance Plan, proposing the acquisition of approximately 424 megawatts of new generation and storage and an increase in the Renewable Energy Standard Adjustment surcharge from 1.5 percent to 2.0 percent; and WHEREAS, Black Hills' own bill -impact analysis in Proceeding No. 26A -0333E projects that the plan would increase the average residential monthly bill at 600 kilowatt-hours by approximately 7.9 percent between 2026 and 2030, from $119.90 to $129.38, with further increases after 2030, recovered primarily through the Electric Commodity Adjustment as new resources come into service; and WHEREAS, the proposed rate increase and the projected cost impacts of the resource plan, taken together, would substantially increase the cost of electric service borne by the City, its residents, and its businesses, including households on fixed and limited incomes; and WHEREAS, the City Council finds that the proposed rate increase is excessive and that the additional cost burden of the resource plan is contrary to the interests of the City and its ratepayers; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that Docusign Envelope ID: 9C7BB82E-F9CE-8F5A-8192-96883611 C08A SECTION 1. The City Council of Pueblo opposes the proposed electric rate increase of Black Hills Colorado Electric, LLC pending before the Colorado Public Utilities Commission in Proceeding No. 26AL-0232E. SECTION 2. The City Council of Pueblo opposes the additional ratepayer cost impacts of Black Hills Colorado Electric, LLC's 2026 Electric Resource Plan and Clean Energy Plan pending before the Commission in Proceeding No. 26A -0333E. SECTION 3. The City Clerk is directed to transmit certified copies of this Resolution to the Colorado Public Utilities Commission and to each Commissioner. SECTION 4. The officers and staff of the City are authorized to perform any and all acts consistent with this Resolution to effectuate its intent. SECTION 5. This Resolution shall become effective immediately upon final passage and approval. INTRODUCED: October 26, 2026 DocuSigned by: ATTESTED BY: $-1g-lio CITY CLERK BY: Selena Ruiz -Gomez MEMBER OF IQUCIL APPROVED: �(i(( PRESIDENT OF CITY COUNCIL Docusign Envelope ID: 9C7BB82E-F9CE-8F5A-8192-96883611 C08A City Clerk's Office Item # M4 Ciify of PUEBLO m;µ ...w Background Paper for Proposed Resolution COUNCIL MEETING DATE: October 26, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Clyde Bishop, City Clerk FROM: Harley Gifford, Deputy City Attorney SUBJECT: A RESOLUTION OPPOSING THE PROPOSED ELECTRIC RATE INCREASE OF BLACK HILLS COLORADO ELECTRIC, LLC IN COLORADO PUBLIC UTILITIES COMMISSION PROCEEDING NO. 26AL-0232E, OPPOSING THE ADDITIONAL RATEPAYER COST IMPACTS OF ITS 2026 ELECTRIC RESOURCE PLAN AND CLEAN ENERGY PLAN IN PROCEEDING NO. 26A -0333E, AND DIRECTING THE CITY CLERK TO TRANSMIT CERTIFIED COPIES OF THIS RESOLUTION TO THE COLORADO PUBLIC UTILITIES COMMISSION SUMMARY: Attached is a Resolution addressing two Black Hills Colorado Electric, LLC proceedings now pending before the Colorado Public Utilities Commission. The Resolution opposes the company's proposed electric rate increase in Proceeding No. 26AL-0232E, which seeks $26,663,479 in additional annual base rate revenue and a 14.7 percent residential increase before a temporary offset. The Resolution also opposes the additional ratepayer cost impacts of the company's 2026 Electric Resource Plan and Clean Energy Plan in Proceeding No. 26A -0333E, which the company's own analysis projects would raise the average residential bill by approximately 7.9 percent between 2026 and 2030. PREVIOUS COUNCIL ACTION: City Council has previously opposed rate increases requested by Black Hills, including by resolution adopted July 22, 2024, concerning the company's prior rate review. BACKGROUND: Black Hills Colorado Electric, LLC ("Black Hills") provides retail electric service to more than 102,000 customers in southern Colorado, including the City of Pueblo, its residents, and its businesses, as well as Canon City, Rocky Ford, and surrounding communities. Two Black Hills proceedings are now pending before the Colorado Public Utilities Commission (the "Commission"). Docusign Envelope ID: 9C7BB82E-F9CE-8F5A-8192-96883611 C08A In Proceeding No. 26AL-0232E, filed June 12, 2026, Black Hills seeks $26,663,479 in additional base rate revenue each year. For a residential customer using 600 kilowatt- hours per month, the application would raise the average monthly bill from $124.18 to $142.48, an increase of 14.7 percent. Black Hills proposes a temporary credit over two years that reduces the advertised increase to 8.8 percent, but that credit returns money the company previously collected from its ratepayers under its renewable energy and clean energy programs, and the full 14.7 percent base rate increase remains once the credit expires. In Proceeding No. 26A -0333E, filed September 11, 2026, Black Hills seeks approval of its 2026 Electric Resource Plan and Clean Energy Plan and its 2027 through 2030 Renewable Energy Standard Compliance Plan. The application proposes acquisition of approximately 424 megawatts of new generation and storage and an increase in the Renewable Energy Standard Adjustment surcharge from 1.5 percent to 2.0 percent. The company's own bill -impact analysis, filed as Hearing Exhibit 107, Attachment NHL - 1, projects that the plan would raise the average residential monthly bill at 600 kilowatt- hours by approximately 7.9 percent between 2026 and 2030, from $119.90 to $129.38, with further increases after 2030, recovered primarily through the Electric Commodity Adjustment as new resources come into service. Taken together, the proposed rate increase and the projected cost impacts of the resource plan would substantially increase the cost of electric service for the City's residents and businesses over the coming years. FINANCIAL IMPLICATIONS: If the Commission approves the rate increase, or the cost impacts of the resource plan reach customer rates, the City will pay higher electric rates for its own facilities and operations, and the City's residents and businesses will pay higher rates for electric service. The precise additional cost to the City has not been quantified. Adoption of the Resolution itself carries no cost to the City. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: City Council could decline to adopt the Resolution. RECOMMENDATION: This Resolution is presented at the request of City Council. ATTACHMENTS: None