Black Hills Energy Seeks Another Rate Hike in Colorado

Black Hills Energy is proposing another rate increase for its southern Colorado customers. The utility is seeking an 8.8% hike from the Colorado Public Utilities Commission (PUC), which would raise average residential bills by approximately $10.90 per month starting in March 2027. This follows a 6.7% increase approved in March 2025.

The company states that nearly half of its electric distribution system equipment is over 50 years old and requires significant investment for safety and reliability. These proposed investments include upgrading distribution lines, transmission infrastructure near Cañon City, the Erie Avenue substation, and maintenance at the Pueblo Airport Generating Station.

As part of the proposal, Black Hills Energy plans to issue a $38 million customer refund. This refund, derived from surplus funds collected for renewable energy projects, aims to reduce the overall bill impact. A portion of these funds would also support a pilot program to offer discounts to income-qualified customers.

This marks the second rate increase request within a short period, with the company aiming for more regular rate adjustments to make bill impacts more modest. Previously, Pueblo voters rejected municipalization efforts twice, expressing their stance on the utility's services and rates.