Pueblo hires consultants for 3‑month municipalization feasibility study; council debates tight timeline for May ballot

GDS Associates told the Pueblo City Council on Feb. 10 that it will complete a feasibility study in roughly three months to evaluate whether the city can form a municipal electric utility and acquire distribution assets now owned by Black Hills Energy.

The study, presented by Garrett Poe, vice president at GDS Associates, and Amber Geschwind, will analyze technical and economic feasibility, potential purchase prices and separation costs, power‑supply options, and public education and outreach. Poe said the team expects to “be in late March or early April with a final report presentation.”

The study will focus on distribution assets that serve customers inside the city while assuming Black Hills would retain generation and some transmission services, GDS said. The consultants said they will examine potential power‑supply approaches, including renewable shares, and identify partners for operations and maintenance or power contracts.

Why this matters: the city plans to ask voters in May whether to proceed with municipalization. Ballot language must be submitted to the county by March 7, and April 11 is the last statutory date to withdraw a ballot question, city staff said. Councilors repeatedly warned that the window for public education and informed voting is compressed.

Councilors asked how the consultants will reach Spanish‑speaking and low‑income residents. Howard Choi of GDS said the engagement effort will be educational and will rely on a subconsultant that analyzes past election and demographic data to target likely voters and communication channels. “We’ve already collected data from your last election… and right now crafting a strategy about who the most likely voters are,” Choi said.

Several councilors said the schedule leaves limited time for outreach and for council to consider the report before the election. “I’m a little concerned about the timetable here,” Councilor Flores said. Councilor Maestri said using figures from the 2019 study without updated context could mislead voters and urged the consultants to include up‑to‑date cost and separation estimates.

On process and oversight, attorney Mark Davidson of Fairfield and Woods told council that the Colorado Public Utilities Commission (PUC) would not decide whether the city may municipalize but would play a role if the transfer proceeds by reviewing valuation and asset transfers. “The PUC… would look at the valuation of the assets,” Davidson said, and Black Hills would likely file an application with the PUC if assets were to be transferred.

The consultants said earlier work (2019) estimated the city‑only load at about 790,000 megawatt hours per year and roughly 55,000 customers; that study showed a high‑end purchase estimate of about $132,000,000 and an annual operating budget estimate around $120,000,000. GDS emphasized the 2019 numbers are a starting point and will be updated.

GDS said its schedule assumes the bulk of work in February and March. The council has scheduled a final reading on the ordinance to place the question on the ballot for Feb. 25. The consultants and councilors agreed the timing is tight for robust community education but said the city will proceed with outreach and refine the study’s findings.

Looking ahead: if the city places the question on the May ballot and voters approve, council retains authority to decide whether to exercise an off‑ramp from the current franchise agreement; if the city moves forward with a transfer, the PUC’s role would focus on valuation and the mechanics of asset transfer rather than rate regulation of a municipal utility.