In a recent government meeting, discussions centered on the implications of renewable energy projects for Black Hills Electric ratepayers, particularly regarding the costs associated with wind and solar energy bids. Concerns were raised about the financial burden that high wheeling charges for a proposed wind project could impose on customers, especially in light of anticipated changes in the renewable energy market that may offer more cost-effective options in the near future.

Commissioners expressed skepticism about the necessity of the wind bid, noting that existing portfolios already meet and exceed statutory greenhouse gas targets without incurring additional costs. The sentiment was that committing to expensive projects now could hinder future opportunities for more affordable renewable energy solutions.

The conversation shifted to solar energy, with a focus on a 200 megawatt solar project included in the preferred and local economic development portfolios. The Utility Consumer Advocate (UCA) proposed an alternative solar project that could potentially lower costs by eliminating unnecessary transmission expenses. However, Black Hills Electric opposed this suggestion, arguing that it would create inequities among bids that accounted for transmission upgrades.

Concerns were also raised about the high construction costs associated with Black Hills' preferred solar project compared to other bids, which could lead to significant increases in customer rates. Commissioners highlighted the need for further analysis of the bids to ensure that ratepayers are not subjected to unreasonable costs.

A proposal was made to delay any decisions on solar bids until additional information could be gathered, particularly regarding the cost-effectiveness of alternative projects. The meeting concluded with a call for Black Hills to provide a comprehensive analysis of the long-term rate impacts associated with various energy portfolios, emphasizing the importance of balancing emission reduction targets with reasonable costs for consumers.