PUEBLO, Colo., June 29, 2020 – Black Hills Energy is proposing to lower customer energy costs by approximately $66 million over 15 years with a new, 200-megawatt (MW) solar project to be constructed in Pueblo County under the company’s Renewable Advantage plan. This project represents Black Hills Energy’s preferred bid in a competitive solicitation for resources held earlier this year.
In its 120-Day report submitted last week to the Colorado Public Utilities Commission, Black Hills Energy provides a detailed analysis of proposals received during its competitive solicitation. In total, Renewable Advantage attracted 54 bids from 25 bidders for projects ranging from wind, solar and solar plus battery storage technologies. The 120-Day report outlines the company’s preferred bid – the 200 MW solar project – along with several back-up options.
“We’re at the point now in our Renewable Advantage planning process where the ‘rubber meets the road,’ in terms of identifying cost savings for our customers, and putting these savings into motion as quickly as possible,”
“We’re at the point now in our Renewable Advantage planning process where the ‘rubber meets the road,’ in terms of identifying cost savings for our customers, and putting these savings into motion as quickly as possible,” said Vance Crocker, Black Hills Energy’s vice president in Southern Colorado.
“With the participation of a third-party evaluator, we completed extensive modeling and analysis of each of the bids to fully assess the value of each project,” continued Crocker. “The results speak for themselves and further confirm that Renewable Advantage will provide significant and far-reaching benefits for our customers and communities.”
Highlights of the company’s preferred Renewable Advantage project include the following projections:
- $66 million in customer cost savings over 15 years
- $178 million in direct and indirect economic benefits through state and local taxes, federal taxes
- 250 construction jobs
- 51 percent renewable energy mix
- 71 percent reduction in carbon emissions by 2024
“With Renewable Advantage, we’ll be able to meet our customers’ electricity needs with some of the lowest pricing we’ve ever seen for renewable energy resources,” said Crocker. “And, with more than 50 percent of our generation powered with lower cost renewable energy, our customers will see sustained energy cost savings for years to come.”
In addition to the Renewable Advantage preferred bid, the company is proposing for Commission approval two back-up bids, to ensure projects move forward in a timely manner before federal tax incentives expire.
Highlights of the company’s Renewable Advantage back-up bids are as follows and include the following projections:
Renewable Advantage back-up bid No. 1
- A portfolio of two solar projects representing a total acquisition of 170 MW – a 120 MW solar project to be located in Pueblo County and a 50 MW solar project to be located in the City of Pueblo
- $43 million in customer cost savings over 15 years
- $298 million in direct and indirect economic benefits through state and local taxes, federal taxes
- 350 construction jobs
- 47 percent renewable energy mix
- 70 percent reduction in carbon emissions by 2024
Renewable Advantage back-up bid No. 2
- A 150 MW solar project to be located south of the City of Pueblo in Pueblo County
- $38 million in customer cost savings over 20 years
- $152 million in direct and indirect economic benefits through state and local taxes, federal taxes
- 188 construction jobs
- 45 percent renewable energy mix
- 69 percent reduction in carbon emissions by 2024
Community reaction to Renewable Advantage has been positive, Crocker added.
“While I can’t speak to the specifications of the plan, making Pueblo the ‘Renewable Energy Capital of Colorado’ and, at the same time, reducing energy bills is a win-win for Pueblo County,” said Garrison Ortiz, Pueblo County commissioner.
“Black Hills Energy made this important proposal to the city in January, well before the franchise election,” said Larry Atencio, Pueblo City Councilman. “I was always confident they would continue to push this important project forward because of their commitment to Pueblo, and now this opportunity is on our doorstep.”
“Black Hills Energy could have waited on this project until their resource planning process is due,” said Dennis Flores, president, Pueblo City Council. “They understand, as I do, that the people and businesses who will benefit from lower-cost renewable energy shouldn’t have to wait. I applaud their quick work to make Pueblo a renewable energy leader.”
The 120-Day report is now pending review by the PUC with anticipated approval to come in the fall. Once approved, Black Hills Energy will enter into a power purchase agreement with the developer for all of the energy generated at the selected renewable facility. Construction would begin in 2021 with the project coming online in 2023.
For more information visit our Renewable Advantage page.