Colorado regulators advance Black Hills rate case seeking $26.7 million increase
The Colorado PUC will examine Black Hills Colorado Electric’s proposed annual rate increase through testimony and an evidentiary hearing, with a decision targeted for March 2027.
The Colorado Public Utilities Commission has advanced Black Hills Colorado Electric’s request for about $26.7 million in additional annual base-rate revenue to an evidentiary process, with new rates targeted to take effect March 20, 2027.
The request will be examined through testimony and a hearing before all commissioners. The commission has not decided how much additional revenue Black Hills should receive or whether the company’s proposed offsets will be approved.
Black Hills estimates the full request would increase average residential customers’ monthly bills by about 14.7%, the PUC’s electric-rate-case information says. The company proposes using $29.4 million in deferred Renewable Energy Standard Adjustment funds and $8 million previously collected through its Clean Energy Plan Rider to reduce that effect. With those proposed refunds and credits, Black Hills estimates a net residential increase of about 8.8%.
Those are proposed effects, not approved rates. The PUC information does not provide a corresponding dollar-per-month estimate for residential customers, and the case’s impact on commercial, industrial and other customer classes remains unresolved.
Black Hills filed the case June 12 under Proceeding No. 26AL-0232E, seeking to recover costs associated with growth in its electric-system rate base, including costs tied to the Peak View Wind Facility that the company proposes moving from riders into base rates.
PUC Staff and the Colorado Office of the Utility Consumer Advocate protested the filing and requested a hearing. Staff identified 20 issues for examination, including potential costs or other effects of Black Hills Corp.’s planned merger with NorthWestern Energy, along with financial ring-fencing and post-merger reporting. The Utility Consumer Advocate questioned Black Hills’ proposed test year and revenue-requirement methodology and requested supplemental testimony early in the case.
The commission granted intervention to the City of Pueblo, Pueblo County, Energy Outreach Colorado and Cripple Creek Victor Gold Mining Co. Intervention allows those parties to participate in the proceeding; the Aug. 12 record does not document substantive arguments from them.
Pueblo County asked for an en banc hearing, with all commissioners participating, and a public-comment hearing in Pueblo. The commission approved the en banc request and directed Black Hills and the parties to develop a procedural schedule, according to the commission’s Aug. 12 meeting.
No date, time or location for a Pueblo public-comment hearing had been posted in the official records reviewed as of Aug. 13. The PUC says such hearings will be scheduled before the final decision and that customers may submit written comments throughout the proceeding. The commission directs the public to its official E-Filings System for the full docket record.
Under the schedule discussed at the meeting, the parties were expected to work toward a settlement filing by Dec. 18. An evidentiary hearing could begin in early January and conclude by Jan. 22. Black Hills was directed to file a proposed consensus schedule or a report on the parties’ discussions by Aug. 28.
The proceeding will determine whether the requested increase and the company’s proposed offsets become part of customers’ regulated electric rates.