(PUEBLO, Colo.) — At a Pueblo City Council Work Session on Monday, April 7, a report was presented with the preliminary findings of an independent study on the city acquiring electric utility infrastructure from Black Hills Energy.

The City said the study was conducted by the consulting firm GDS Associates and launched in late 2024 in response to ongoing community concerns about high electric rates, limited local oversight, and a strong desire for change from the local community.

According to the City of Pueblo, the preliminary results revealed that the acquisition of Black Hills’ assets within City limits is not currently a feasible option. The study reported several barriers, including changes in power market conditions, high acquisition costs, and a lack of scale sufficient to make a City-only utility system financially viable.

Although the study ruled out acquiring Black Hills’ assets only within City limits, the City said it did not dismiss the possibility of other alternatives including a regional acquisition of Black Hills’ assets, the formation of a multi-jurisdictional cooperative or utility, or supporting a third-party acquisition of Black Hills’ assets across its service area.

Black Hills Energy said the study cost Pueblo taxpayers $300,000. A recent study by utility experts at the Brattle Group reported that buying the Pueblo distribution system alone would cost $1 billion, and more if taking over the entire system across Southern Colorado.

“Black Hills Energy remains committed to delivering safe, reliable energy in Southern Colorado for many years to come, while continuing to provide energy efficiency and energy assistance solutions for our customers,” wrote Black Hills Energy.

The full study is expected to be released within the next week to 10 days and will be available online, according to the City.