PUC weighs large Black Hills Electric rate request; commissioners set mitigation, process and follow‑ups

The Public Utilities Commission on Feb. 19 continued deliberations and issued multiple decisions and procedural directives in Black Hills Colorado Electric’s combined phase 1/phase 2 rate case, docket 24AL‑0275E. Commissioners addressed revenue‑requirement items, cost allocation, mitigation strategies, rate design and implementation tasks; several matters require filings or technical conferences before the final order.

Key outcomes (summary):

- LM6000 recovery and tax overcollection: The commission agreed it is reasonable to roll the LM6000 40‑MW peaking plant into base rates, but directed Black Hills to offset the projected revenue requirement by amortizing $3.7 million in alleged tax overcollections over a set period when the asset is placed into base rates.

- Litigation and prior rate‑case expenses: Commissioners directed netting of prior alleged overrecoveries and current litigation expense requests and agreed to a single amortization approach. The commission adopted a consolidated amortization period of three years for netted items and ordered the company to implement a negative GRSA (generation‑related rider) after recovery to avoid continued collection beyond the amortization period.

- Depreciation and rate base technical adjustments: The…