Jul 9 - McClatchy-Tribune Regional News - Patrick Malone The Pueblo Chieftain, Colo.



Black Hills Energy and its customers are awaiting an administrative law judge's ruling on whether a proposed 10.35 percent rate hike will be approved.

Representatives of the utility last month told the judge, Paul Gomez, that another spike in rates is likely to be sought within 18 months, when the juice starts flowing from its planned Pueblo power plant, which will supply power to Black Hills customers when its contract to purchase energy from Xcel expires at the end of 2011.

The last base-rate hike for the utility's customers was in September 2004, before Black Hills acquired Aquila, the previous energy supplier to Pueblo.

The administrative law judge will decide whether to approve a settlement agreement between Black Hills and the Office of Consumer Counsel calling for the specified rate hike.

 If the settlement is approved, the parties involved have 20 days to object to its terms, which would bring the Public Utilities Commission into the discussion. Otherwise, the rates take effect on the 21st day after the judge accepts the pact.

The settlement called for the rates increase to take effect July 1, but they will not be imposed retroactive to the administrative law judge's ruling.

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