Black Hills Energy faces scrutiny over fixed bill credit methodology for CSG programs

May 17, 2025 | Public Utilities Commission, Governor's Boards and Commissions, Organizations, Executive, Colorado


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Black Hills Energy faces scrutiny over fixed bill credit methodology for CSG programs
In a recent government meeting held in Colorado, discussions centered around the intricacies of the 24AL-0496E Black Hills Colorado Electric tariff, particularly focusing on the fixed bill credit system and its implications for Community Solar Garden (CSG) subscribers. The meeting, which took place on May 17, 2025, revealed significant insights into how bill credits are calculated and the impact of inflation on these credits.

As the meeting unfolded, participants examined a detailed document outlining the bill credit values from 2018 through 2025. A key point of discussion was the consistent 0% change observed in the values from 2018 to 2019, attributed to the formula established by joint parties involved in the tariff. This formula ties the bill credit values to the Consumer Price Index (CPI), which is used to adjust the fixed bill credit based on inflation rates.

The conversation highlighted fluctuations in CPI values, particularly from 2020 to 2025, with notable increases in recent years. For instance, the CPI value for 2023 was reported at 6.85%, raising questions about the predictability of future credits. Experts acknowledged that while historical averages suggest a 3% annual change, the recent volatility complicates forecasting beyond 2025.

Participants also scrutinized the methodology used to project future bill credits, with some arguing that the current approach may not adequately reflect the potential for variability in inflation rates. The discussion emphasized the importance of transparency in how these credits are determined, especially for CSG subscribers who may be affected by changes in policy or economic conditions.

As the meeting drew to a close, the implications of the discussions became clear: the future of bill credits for solar energy subscribers hinges on both the accuracy of CPI projections and the regulatory framework governing these credits. Stakeholders left with a renewed understanding of the complexities involved and the need for ongoing dialogue to ensure fair and predictable outcomes for all parties involved.

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    Scribe from Workplace AI
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