Black Hills Energy faces scrutiny over proposed rate hikes amid affordability concerns

In a recent meeting of the Colorado Public Utilities Commission, discussions centered on the economic landscape of Black Hills Colorado Electric's service area, revealing stark contrasts in income levels and the potential impact of proposed rate increases on local residents.

The testimony highlighted that the median household income in the Black Hills territory is a staggering 37% lower than the state average. Specific figures were shared, indicating that areas like Pueblo and Canyon City have median incomes below $60,000, while Rocky Ford's average dips below $32,000. This economic backdrop sets the stage for the ongoing debate about the affordability of utility rates in the region.

As the commission examined the proposed rate increases, it was revealed that Black Hills is seeking a 13.8% hike for residential customers and a 9.5% increase for small commercial clients. This translates to an average monthly bill increase of over $15 for residential customers, bringing their average bill to just over $114, while small commercial customers could see their bills rise by more than $23, reaching nearly $250.

Public sentiment was palpable, with over 600 written comments primarily opposing the rate increase. Many residents expressed that current rates are already unaffordable, a sentiment echoed in public hearings attended by company representatives. The testimony underscored that affordability concerns extend beyond low-income households, affecting a broader swath of the community.

The meeting also delved into comparative analysis with other utilities, revealing that Black Hills customers currently pay significantly more than those served by Xcel Energy. For instance, the average residential bill for Black Hills was reported at over $131, compared to Xcel's $99.82 for the same usage. If the proposed increases are approved, this disparity could widen, with Black Hills customers potentially facing bills that are over $30 higher than their Xcel counterparts.

As the commission continues to deliberate, the implications of these discussions resonate deeply within the community, raising critical questions about the balance between necessary utility funding and the economic realities faced by residents. The outcome of this case will not only affect utility rates but also the financial well-being of many families in the Black Hills area.