What to know about Pueblo's special election after city-owned utility deemed unfeasible

Yahoo

06-05-2025

The city of Pueblo purchasing Black Hills Energy's assets and operating a city-owned electric utility may not be feasible, but a special election is still slated for May 6.
Language on the special election's Ballot Initiative 2A asks voters if Pueblo should "cancel its franchise agreement" with Black Hills and acquire the investor-owned utility's "generation, transmission and distribution assets ... if determined feasible."
Despite two studies — one commissioned by the city and another commissioned by Black Hills — determining municipalization is not feasible, the city still intends to move forward with the special election at a cost of approximately $100,000.
Pueblo Director of Public Works Andrew Hayes told the Chieftain that municipalization is not the only way the city could acquire Black Hills' assets and a "yes" vote on 2A would signal to the city that voters are willing to continue exploring alternative ways to leave Black Hills to lower the price ratepayers pay for electricity.
"Citizens voting yes doesn't mean that on May 7, the city owns the utility," Hayes said. "There's a long transition process even from that point. There will continue to be more study, there will continue to be more looks into the information to determine what options are feasible, and ultimately to identify the best possible course of action."
Black Hills Energy is located at 105 S. Victoria Ave.
What options does the city have outside municipalization?
In his conversation with the Chieftain, Hayes outlined three alternatives to municipalization; one would involve operating a utility outside of city limits, another would involve the city joining other municipalities within Black Hills' Colorado service area to operate the electric utility, and a third would explore the possibility of another utility company acquiring Black Hills' Pueblo assets.
The city has not yet concluded which of the three options would be the most feasible. However, Hayes acknowledged that the city condemning and acquiring Black Hills' assets outside city limits has the potential to impact multiple stakeholders and presents a challenge "on a number of fronts."
"The city believes that, under statute, it has the ability to acquire assets outside of city limits for public purposes," he said. "Now, again, there's other limitations there, so we want to make sure we're talking through those options and picking strategic partners that will be in alignment with that vision."
Additional options, which Hayes referred to as "smaller steps," include lobbying at the Colorado Legislature to give local jurisdictions more control over utility-related issues. The city could also negotiate, extend, or enter into a new franchise agreement with Black Hills.
"There's all kinds of options on the table, but we just need to look at all those things and make sure we're prepared for making the best decision possible," Hayes said.
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Pueblo Chieftain reporter James Bartolo can be reached at [e-mail]. Support local news, subscribe to the Pueblo Chieftain at subscribe.chieftain.com.
This article originally appeared on The Pueblo Chieftain: What Pueblo is voting for in the May 7 special election