Bulk Electric Power Supply and Partnership Alternatives

1. The City of Pueblo is requesting information from energy suppliers, power marketers, utilities, and/or consortia in the exploration of alternatives to secure affordable, reliable, and sustainable electricity for the community in the years ahead. More specifically, the City is taking this step in order to actively:
   1. Evaluate alternative supply options
   2. Assess feasibility for new utility structures
   3. Explore partnership models
   4. Maintain or improve reliability
   5. Inform next steps
2. This RFI is open to responses from electric utilities, power marketers, independent power producers, generation and transmission cooperatives, municipal joint action agencies, energy brokers, or any other entities with the capability to deliver bulk power supply and related services at the scale required. Joint responses (consortia) are also allowed if companies wish to partner to present a comprehensive solution (for example, a generation developer together with a transmission provider). In such cases, please clearly identify all parties and their respective roles.
3. This RFI is for information-gathering purposes only. It does not constitute a solicitation for formal bids or an offer to contract. The City will utilize the information obtained to review the range of possibilities and make inform future decisions. Responding to this RFI will not give any firm an advantage or preferential position in subsequent procurement (if any). No award will result directly from this RFI. The City may or may not subsequently issue a formal Request for Proposals (RFP) or enter negotiations for power supply; any future actions will be at the City’s sole discretion. Respondents are responsible for all costs associated with their RFI response, and the City is under no obligation to enter into any agreement as a result of this request.

The City is currently served by Black Hills Energy (Black Hills Colorado Electric, or BHCE) as its electric utility provider. Pueblo residents and businesses have faced high electric rates under the current service, sparking community concerns about affordability, limited local control, and a strong desire for change. In late 2024, the City commissioned an independent Energy Strategy Feasibility Study to evaluate options for reducing costs and increasing local benefit. This study examined the potential for Pueblo to acquire the local electric infrastructure and form a municipal or cooperative utility. Preliminary findings, presented in April 2025, indicated that a City-only municipal utility (acquiring only the assets within Pueblo city limits) would not be economically feasible at this time due to factors such as high acquisition costs, recent power market price increases, and insufficient scale as a stand-alone system.

However, the study did not dismiss broader alternatives beyond a Pueblo-only approach. In fact, it highlighted potential pathways that may include:

1. A regional or joint acquisition of a larger portion of Black Hills’ service assets (beyond just Pueblo) to gain greater scale and efficiency.
2. Formation of a multi-jurisdictional cooperative or joint power authority with other communities or public power entities, to share resources and costs on a broader scale.
3. Partnering with or supporting a third-party provider or developer to supply power across Black Hills’ service area, potentially leveraging new generation resources or market opportunities.

In light of these findings, Pueblo’s leadership is actively exploring viable, cost-effective alternatives to the status quo utility model. The City’s goal is to ensure reliable electric service at lower costs for its citizens while advancing Colorado’s clean energy objectives. This Request for Information (RFI) is a non-binding inquiry issued as part of that exploration. The purpose of this RFI is to gather information and indicative proposals from qualified energy companies, power suppliers, and brokers who could deliver wholesale electricity to Pueblo under alternative arrangements. The City is especially interested in solutions that could form the basis of a public or cooperative utility model or other partnership, in line with Pueblo’s interest in regional collaboration and energy transition goals.