City of Pueblo Releases Preliminary Findings of Electric Utility Feasibility Study

PUEBLO - At a City Council Work Session held Monday, April 7, the City of Pueblo presented the preliminary findings of an independent feasibility study. The study evaluated the potential for the City to acquire electric utility infrastructure from Black Hills Energy and form a new public or cooperative electric utility.

The study, conducted by the consulting firm GDS Associates, was launched in late 2024 in response to ongoing community concerns about high electric rates, limited local oversight and a strong desire for change from the local community. The analysis focused on a range of alternatives to determine whether it would be financially and operationally feasible for the City to acquire Black Hills' electric assets or to partner with other governments or stakeholders to establish a new utility.

According to the preliminary results shared during the Council Work Session last night, the acquisition of Black Hills' assets within City limits alone is not currently a feasible option. The study identified several barriers, including recent changes in power market conditions, high acquisition costs and a lack of scale sufficient to make a City-only utility system financially viable.

Although the study ruled out the acquisition of Black Hills' assets only within City limits, it did not dismiss the possibility of broader alternatives. Future options may include a regional acquisition of Black Hills' assets, the formation of a multi-jurisdictional cooperative or utility, or supporting a third-party acquisition of assets across Black Hills' service area.

The preliminary feasibility report from GDS Associates is expected to be released and posted to the City's Public Works Department website within the next week to 10 days. The public may access the full preliminary feasibility report on the website here: City of Pueblo's Franchise Agreement with Black Hills Energy and Ballot Initiative 2A.