GUEST COLUMN: It’s time to take a stand against Black Hills

Published in the Pueblo Chieftain on 9/15/2024

Daneya Esgar

Guest columnist

It’s time to take a stand. Black Hills Energy, the corporation, is once again attempting to hike our already high electric rates by a staggering 18%. This increase, if approved by the Public Utilities Commission (PUC), would be a financial burden that Pueblo’s hardworking families simply cannot afford.

For the past eight years, we’ve managed without a rate increase, not out of corporate kindness, but due to the relentless pressure from local leaders, like myself. In 2016, as a state representative, alongside Sen. Leroy Garcia, we pushed the legislature and the governor to compel Black Hills to make rates more affordable. The PUC heard us, and Black Hills was directed to show goodwill towards Pueblo’s residents. Yet, their commitment to affordability was short-lived and superficial.

Despite claims of bearing costs for the past eight years, Black Hills has continued to spend heavily, now seeking to recoup their investments — with interest — from our community. Now they are coming back asking for repayment with interest from the ratepayers. Pueblo’s residents already endure some of the highest electric rates in Colorado and even the nation. It is unconscionable for Black Hills to impose further increases on a community that struggles to make ends meet.

This isn’t a new fight. When Black Hills acquired Aquila in 2010, they claimed to have bought a lemon. However, they also saw an opportunity to exploit Colorado’s policy guaranteeing returns on capital investments for investor-owned utilities. Since 2016, Black Hills has invested nearly $371 million in capital projects, with plans to invest another $98 million this year. These investments guarantee them a return on equity of 10.5%, funded by ratepayers.

Let me be clear, this isn’t about our local Black Hills employees, the folks that work hard every day to keep our lights on. This is about Black Hills Energy’s investors. They are not suffering; the company has increased its dividends annually for 54 years. Now, they seek an additional $36.7 million in annual revenues, off the backs of ratepayers. This is a burden our blue-collar community cannot sustain.

If that wasn’t enough, Black Hills has also filed an Electric Resource Plan, which could further escalate rates in the near future. It is imperative that the PUC hears from Pueblo. The three commissioners, appointed by the governor, must understand the severe impact these rate hikes will have on our community.

Pueblo already grapples with high poverty levels, with nearly 20% of our residents living below the poverty line. Adding to their financial strain with increased electric rates is not just unfair; it’s detrimental to our community's well-being. Our families should not have to choose between keeping the lights on and putting food on the table.

As a county commissioner, I stand with my fellow officials and the people of Pueblo in staunch opposition to this unjust rate increase. We must fight for fair and reasonable utility rates that do not disproportionately impact Pueblo. Black Hills Energy must be held accountable to their promises of affordability and improved service, not just their shareholders' profits.

Together, we can make our voices heard and advocate for a future where Pueblo’s families are not burdened by exorbitant utility costs. It is crucial that the PUC prioritizes the needs of consumers over corporate interests and works towards a sustainable, long-term solution for our community.

To our local Black Hills employees, thank you for doing all you can to keep our lights on every day. To the Pueblo ratepayers, thank you for your continued support and commitment to fighting for what is right for Pueblo. Let’s ensure our voices lead to meaningful change and protect our community from unfair financial practices.

Daneya Esgar currently serves on the Board of Pueblo County Commissioners. She previously represented Pueblo in the Colorado House of Representatives for eight years. During her time at the Capitol, she served as Chair of the Joint Budget Committee and as House Majority Leader