Cañon City, Colo., is taking a closer look at its electric utility options including the possible formation of a public power utility.
In 2020, city voters rejected a new franchise agreement with investor-owned utility Black Hills Energy, but Cañon City continues to be served by the utility.
The Cañon City Energy Franchise Committee was formed by the City Council after voters turned down the renewal of the franchise agreement with BHE. The committee’s focus has been to examine different business models that could possibly save customers money on their electric bills.
The Energy Franchise Committee recently completed an interim report detailing electric service options for the city.
Included among the options in the report is a public power utility. Not having a current franchise agreement with BHE is the first step for Cañon City to municipalize an electric utility, the report said.
The report said that even though BHE is not a willing seller, the city has the option of Colorado’ s condemnation law through the eminent domain process to create a new municipal electric utility for Cañon City.
The report also noted that public power’s rates, on average, are lower. “Year after year, for more than 50 years, data from the U.S. Department of Energy show that investor-owned utilities and rural electric cooperatives charge more on average for electricity than public power utilities. In 2014, residential customers of investor-owned utilities paid average rates that were 14 percent higher than those paid by customers of public power utilities.”
The report goes on to detail the steps that would be required to form a public power utility in the city. Among other things, the report highlights the need for community education.
It pointed out that the American Public Power Association has stressed the importance of community education throughout the municipalization process. An educational community plan needs to be developed prior to a city election, the report said.
APPA offers a wide range of resources and information related to municipalization. Click here for additional details.
