Consultants say municipal takeover of Black Hills assets inside Pueblo city limits is not economically feasible now

At a City Council meeting on April 7, 2025, consultants from GDS Associates presented a preliminary feasibility assessment finding that acquiring Black Hills Energy’s electric distribution assets located solely within the City of Pueblo would not be economically feasible under the study’s base-case assumptions.

The finding matters because Pueblo voters will decide in May whether to authorize city officials to pursue an early termination (an “off‑ramp”) of the franchise agreement with Black Hills. City staff and consultants told council that the study does not rule out other options — including a larger regional acquisition, different valuation methods, or competitive power‑supply procurements — and that those alternatives could change the economics.

GDS principal Matthew Butler said the study’s screening metric compared forecasted retail rates under a municipal utility with Black Hills’ approved rate forecast. Butler said the analysis focused on three principal drivers: Black Hills’ retail rate forecast, the method used to value the assets acquired, and the…