PUEBLO, Colo., Nov. 25, 2019 – Black Hills Energy submitted a proposal today to the Colorado Public Utilities Commission (CPUC) outlining a plan that seeks to lower energy costs for customers by adding up to 200 megawatts (MW) of new, low-cost renewable energy resources to its Southern Colorado system.

As proposed, Black Hills Energy’s Renewable Advantage plan would open a competitive solicitation process in December, seeking proposals for new, large-scale renewable energy projects to include wind, solar and battery storage – up to 200 MW of energy. While the company has sufficient power resources to meet customers’ day-to-day electricity needs, Renewable Advantage is expected to deliver significant customer savings by supplementing existing power supplies with lower cost renewable energy.

Subject to CPUC approval, the addition of up to 200 MW of new renewable energy resources would result in approximately 60 percent of the utility’s Southern Colorado generation portfolio coming from carbon-free resources by 2023. With the recent addition of the 60 MW Busch Ranch II wind project, the company will achieve 30 percent renewables by 2020.

“Our customers have expressed a strong interest in lower energy costs and having their electricity supplied by clean, renewable energy resources,” said Vance Crocker, Black Hills Energy’s vice president in Southern Colorado. “Our Renewable Advantage plan establishes a clear path for getting this done.”

“With abundant wind and solar resources, we believe Pueblo and Southern Colorado have the potential to lead the nation in the adoption of clean energy technologies, while also saving customers money and growing the regional economy,” added Crocker.

“Expiring federal tax incentives are making renewable energy projects extremely attractive for developers from a cost perspective, so there’s never been a better opportunity for our customers to benefit from a plan like Renewable Advantage,” said Crocker. “With a proposal of this magnitude, we are taking steps to ensure the economies of scale that seek to significantly reduce power costs.”

In order to ensure the lowest cost for customers, Black Hills Energy expects the new renewable energy projects would be sited close to the company’s existing customer load center, which includes Pueblo. The opportunity will be open to all bidders, including Southern Colorado-based developers. 

According to the plan, bidders will have until Feb. 15, 2020, to submit their project proposals, which will then be reviewed by an independent evaluator overseen by the CPUC. Upon successful contracting for low-cost renewable energy, the company would expect that customers would start seeing savings on their bills as soon as 2022. However, if the final bids do not result in lower power prices for customers, Black Hills Energy stated no procurement would take place.

More information is available at www.blackhillsenergy.com/renewable-advantage.