Black Hills Energy's proposed economic development rate tariff

Black Hills Energy supports Southern Colorado jobs and tax revenue growth with proposed economic development rate tariff

PUEBLO, CO, Dec. 18, 2025 – A Black Hills Energy filing with the Colorado Public Utilities Commission (PUC) last month could help Southern Colorado attract more manufacturing jobs and city and county tax revenue in 2026 and beyond.

Black Hills Energy is seeking PUC approval of a new economic development rate tariff for large industrial businesses locating to Pueblo and the surrounding area. The tariff offers competitive electricity rates to help attract new businesses and strengthen the region’s economic growth.

Pueblo city and county officials, economic development leaders and Black Hills Energy representatives worked with members of the Southern Colorado state legislative delegation on a bill earlier this year, HB 25-1177, that improves existing economic development rates by increasing the size of loads that can be served and making it possible to offer discounted rates for a longer term – both attractive for manufacturers.

Black Hills Energy already offered discounted rates for large electricity users. New larger limits and longer-term offers make this an even better deal for manufacturers considering Pueblo and the surrounding area.

“I sponsored HB25-1177 to strengthen the economic development incentive that can be offered by utilities like Black Hills Energy because I am committed to driving economic prosperity in Pueblo and Southern Colorado,” said Rep. Tisha Mauro, D-Pueblo. “By filing a request at the PUC to approve a standard Economic Development Rate for eligible projects, Black Hills Energy is demonstrating its dedication to attracting new businesses, creating quality jobs and boosting the regional economy.”

“Fostering economic development in Pueblo to bring jobs and local tax revenue to our community is a high priority for us, along with providing reliable, affordable electric service for all of our customers,” said Campbell Hawkins, vice president of Colorado utilities for Black Hills Energy. “We were proud to help advance this legislation and appreciate the support from the City of Pueblo, Pueblo County and Southern Colorado elected officials, all of whom recognize the value of collaboration and the game-changing potential of this new rate.”

An independent economic analysis, commissioned by Black Hills Energy, conservatively estimates that manufacturing job growth attracted by the new rate plan could attract more than 750 new jobs and about $89 million in city, county, state and federal tax revenue over 10 years.

Black Hills Energy said PUC approval is not guaranteed but could come as early as April 2026. Rates will be designed to avoid any negative impact on other customers, and if new manufacturers come to the area, it may put downward pressure on rates because Black Hills Energy can spread the cost of providing service over more units of electricity sold.

“Black Hills Energy will continue working with local and state partners throughout the PUC review process to support economic development opportunities in Pueblo and Southern Colorado,” Hawkins added.

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About Black Hills Energy

Black Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.35 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at: blackhillscorp.com and www.blackhillsenergy.com.