On June 14, 2024, Black Hills Colorado Electric (Black Hills) filed Advice Letter No. 871 to begin electric rate case Proceeding No. 24AL-0275E. Black Hills proposes an annual revenue increase of some $37 million above its current base rate revenue of $180 million. The Company calculates its increase based on a current test year ending December 31, 2024, using a 13-month average rate base valuation. It proposes a Weighted Average Cost of Capital of 7.72%, based on 52.75% equity at a Return On Equity of 10.5% and a cost of long-term debt of 4.61%. The Company’s operating expenses are $168 million.
The Company requests approval to roll into base rates the Transmission Cost Adjustment, PCCA, and Clean Air Clean Jobs Act investments currently being recovered through surcharges. Several new deferred accounting tracking mechanisms are requested for property taxes, insurance expense, rate case expense, PUC administration fees and greenhouse gas fees, vegetation management, and the Customer Communication and Education Plan.
Black Hills’ class cost of service study indicates a significant load shift from the Commercial rate class to the Residential rate class, resulting in a 26% increase to Residential rates. In order to mitigate this, the Company proposes a uniform 20.46% increase across all rate classes, relieving the Residential class of some $5 million in cost responsibility.
Average Residential Customer Monthly Bill Impact
Current Average Customer Bill = $109.67
Proposed Average Monthly Bill = $129.81
% Change = 18%
Average Small Business Customer Monthly Bill Impact
Current Small General Service Average Monthly Bill = $251.20
Proposed Small General Service Average Monthly Bill = $276.26
% Change = 10%
Public Hearing Schedule:
The Colorado Public Utilities Commission will host four public comment hearings on the Black Hills Electric Rate Proposal (Proceeding 24AL-0275E) to take your public comments.
October 29 - 30, 2024: Pueblo Memorial Hall, 1 City Hall Place, Pueblo, 5 - 8 p.m. ASL and Spanish language interpretation services will be offered on October 29.
November 19, 2024: City Council Chambers, 128 Main Street, Canon City, 4 - 7 p.m. *
December 5, 2024: Virtual Public Comment Meeting, 4 - 7 p.m. Register here.
* ASL or Spanish interpretation services can be requested by contacting Holly Bise at 303-894-2024 or holly.bise@state.co.us by November 5.
More Opportunities for Comment:
Individuals can also submit written or verbal public comments. Public comments should reference Proceeding Number 24AL-0275E and can be provided by:
- Submitting written comments through the Commission’s Electronic Filing System (E-Filings)
- Submitting written comments using the Commission’s online form.
- Submitting through email at dora_puc_website@state.co.us.
- Mailing comments to the Commission’s offices at: Colorado Public Utilities Commission, 1560 Broadway, Suite 250, Denver, CO 80202.
- Calling (303) 869-3490 to leave oral comments (English and Spanish options).