UCA urges Colorado commission to reconsider Black Hills rate increase decision

The Colorado Public Utilities Commission (PUC) faced significant discussions regarding a proposed rate increase by Black Hills Energy during a recent meeting on April 23, 2025. The meeting highlighted concerns from the Utility Consumer Advocate (UCA), which filed a request for the commission to reconsider its earlier decision allowing the rate hike.

The UCA emphasized that affordability should be a primary consideration in the commission's decisions, particularly given the economic challenges faced by residents in Black Hills' service area. They argued that many customers are already struggling with high energy costs, which are reportedly above the state average. The UCA pointed to the commission's own affordability initiatives and past statements from state legislators urging a reduction in energy costs as evidence that the rate increase should be denied.

Commissioners acknowledged the difficult circumstances surrounding the rate increase, recognizing the financial strain on residents. However, they expressed that their legal obligations to Black Hills Energy also play a crucial role in their decision-making process. The commissioners ultimately decided to deny the UCA's request for reconsideration, stating that while affordability is important, it must be weighed alongside the utility's operational needs and financial health.

In addition to the rate increase discussion, the meeting also touched on Black Hills' capital structure and cost of debt, with further deliberations expected in future sessions. The ongoing dialogue reflects the commission's efforts to balance the needs of utility companies with the financial realities faced by consumers, particularly in economically distressed areas.

As the PUC continues to navigate these complex issues, the outcomes of these discussions will have lasting implications for residents who rely on affordable energy services in Colorado. The commission's next steps will be closely watched by both consumer advocates and utility representatives as they seek to address the pressing concerns of affordability and service reliability.