Black Hills seeks $26.7 million in Colorado electric rate case

The Colorado Public Utilities Commission on July 8 opened Black Hills Colorado Electric’s new rate case, a filing that seeks about $26.7 million in additional annual base-rate revenue and would raise the average residential bill about 14.7% before refunds, or 8.8% net of proposed refunds.

The case, docketed as Proceeding No. 26AL-0137E, was filed June 12. At the commission’s public meeting, staff said Black Hills described the filing as a major reset of its revenue requirement.

Black Hills says its rate base has grown by $184 million since 2023 and is seeking a 7.72% weighted average cost of capital, built from a 10.5% return on equity and roughly a 51% equity ratio. The utility also wants to roll some rider-recovered costs into base rates, including costs tied to its Peak View Wind facility, replace the residential climbing-block design with a flat volumetric charge, and launch a $600,000 RISA-funded targeted refund pilot.

Staff protested the filing and called it “vastly different” from what the commission approved in the prior case, saying it expects to examine at least 20 issues. Those include possible merger-related cost effects from Black Hills Corporation’s combination with NorthWestern Energy and any financial ring-fencing or reporting questions tied to the new corporate structure. The Colorado Office of the Consumer Advocate also protested, citing concerns about the utility’s test-year and revenue-requirement approach.

The commission voted to suspend the proposed tariff for 120 days while reviewing the filing. It also opened a 30-day intervention window for cities, advocacy groups and other customers that want formal party status in the case.

The commission can later decide whether to keep the matter before commissioners or refer it to an administrative law judge.