Pueblo City Council explores alternatives to municipalization for energy services

During the Pueblo City Council Work Session on April 7, 2025, discussions centered around the feasibility of municipalization and alternative energy solutions for the city. The council received a report indicating that municipalization, or the city taking over its own utility services, is currently not a viable option. However, several alternative scenarios were proposed that could potentially benefit Pueblo residents.

One significant option discussed involves the city collaborating with other governmental entities to establish a public or cooperative utility that could serve a broader area beyond just Pueblo. This could enhance service delivery and efficiency. Another possibility is to engage existing utilities or cooperatives that might be interested in providing services to the community. The council emphasized the importance of exploring these alternatives to ensure that residents have access to reliable and affordable energy.

The upcoming ballot measure, referred to as 2A, does not specifically mention municipalization. Instead, it asks voters whether the city should acquire the transmission, generation, and distribution assets of Black Hills Energy, contingent on feasibility. This measure is intended to gauge public interest in exploring various energy options without committing to municipalization.

Council members expressed concerns about the timeline for gathering information and making decisions, particularly with the August deadline approaching for potential ballot measures. They acknowledged that any decision made now would impact the city’s energy landscape in the coming years, especially as the current franchise agreement with Black Hills Energy is set to expire in 2030.

Importantly, even if voters approve the measure and the city council deems it feasible to take the off-ramp from the franchise agreement, Black Hills Energy will still be obligated to provide services until a new operator is established. This ensures that residents will not experience an immediate disruption in service.

The council's discussions reflect a strategic approach to energy management, focusing on long-term planning and community needs. As the city navigates these complex decisions, public input will be crucial in shaping the future of energy services in Pueblo. The council plans to hold public meetings to keep residents informed and engaged in the decision-making process.