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Committed to ServingColorado
Presentation for the Interim Legislative Study Committee on Investor Owned Utility Rates Augus t 22 , 2019
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Today’s Discussion: Black Hills Energy Colorado Electric
B L A C K H I L L S E N E R G Y C O L O R A D O E L E C T R I C S E R V I C E T E R R I T O R Y
L E T ’ S TA L K A B O U T R AT E S
H i s t o r i c a l M i l e s t o n e s
A v e r a g e R e s . B i l l s
O U R C O M M I T M E N T T O A D D R E S S I N G R AT E S
- C u s t o m e r F o c u s e d S o l u t i o n s
- E c o n o m i c D e v e l o p m e n t
A P P E N D I X
E V A N D B AT T E R Y
P U C R E P O R T S
C A R B O N F O O T P R I N T R E D U C T I O N
R T O ’ S
C O M M U N I T Y G I V I N G
A M I
1 2 3
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Black Hills Energy Colorado Electric: Territory
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Black Hills Energy Colorado Electric: Snapshot
96,600C U S T O M E R S
24C O M M U N I T I E S
170T O TA L
E M P L O Y E E S
3,704M I L E S O F T R A N S M I S S S I O N A N D D I S T R I B U T I O N L I N E S
$13.6 millionI N 2 0 1 8 P R O P E R T Y TA X E S
$21.5 millionI N 2 0 1 8 PAY R O L L
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Black Hills Energy Colorado Electric: One of Colorado’s Cleanest Energy Grids
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Black Hills Energy Colorado Electric: Reliability in the Top Quarter of U.S. Utilities
Top quartile of utilities in the U.S.
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Black Hills Energy Colorado Electric: Rates in Southern Colorado
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Black Hills Energy Colorado Electric History (2007-2012)Timeline since acquisition from Aquila
2007•Black Hills offer to Acquire Colorado Electric From Aquila,
•Aquila defers Colorado Electric Rate Case
2008•PUC approves Black Hills acquisition of Aquila’s Colorado assets
•PSCo notifies Black Hills it will not renew the long standing PPA
2009
2010•Base rate increase of 12.63% (1st in 6 years) to recover the operating costs
•PUC approves construction of Pueblo Airport Generation Stating (PAGS) to replace contract energy
2011•PUC approves construction of Busch Ranch Wind Facility
2012•Base rate increase of 4.91% to pay for construction of PAGS (replacing contract energy)
•Busch Ranch Wind Farm begins operation
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Black Hills Energy Colorado Electric History (2013-2019)Timeline since acquisition from Aquila
2013• Black Hills
proposed to early retired 2 coal units and replace with natural gas
2014
2015• Base Rate
increase of 2%. Recovery of BR 1 wind and decommission cost for the coal plant
2016• Peakview Wind
Facility located in Southern Colorado began operations
2017• Base Rate
increase of less than 1%. Recover cost associated with the CACJA
2018
2019• Busch Ranch II
wind facility located in Southern Colorado
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Black Hills Energy Colorado Electric Monthly Residential Customer Bill (2012 – 2019)Source: Colorado Association of Municipal Utilities, January, 2019
$123.04
$110.76 $110.22
$114.75
$122.84
$115.59
$122.70
$116.34
$90.00
$100.00
$110.00
$120.00
$130.00
$140.00
$150.00
2012 2013 2014 2015 2016 2017 2018 July 2018
CU
STO
ME
R B
ILL
MO
NTH
LY 7
00 K
WH
S
700 kWh w/Pueblo Franchise Fee
2019
$122.52
Residential customer rates have decreased since 2012
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Average Monthly Residential Bill for Southern Colorado
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Black Hills Energy Colorado Electric: Commitment to Addressing Rates
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Solutions to Addressing Customer Bills
To keep customer costs down, Black Hills Energy Colorado Electric is committed to:
Customer-focused Solutions
Economic Development Solutions
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Customer Focused Solutions: Available Programs (2018)
Black Hills Energy Assistance Program (BHEAP)- $1 million
Lowering Reconnections and Deposit Fees
Charitable Contributions-$400,000
Energy Efficiency Programs- $6 million budget including $1.4 million for low-income
Energy Outreach Colorado Donations-$140,000 Black Hills Cares + Customer* BHE is the only electric utility to provide shareholder funds to Energy Outreach Colorado for low income energy assistance
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Customer Focused Solutions: Disconnects for Non-Payment: Policy Changes
• Policy changes: • Reconnection fees lowered from $50.00 to $15.00• Deposits were lowered from 90 days average usage to 30 days average usage with one
quarter due up front and the remainder spread out over the following three months• Approx. 80% of customers reconnect within 48 hours• Reduction in average monthly disconnects for non-payment year-over-year
• Implemented a hot weather rule (no disconnects if temperature exceeds 95 degrees for a 48hrs)• Implemented a medical exemption rate
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Customer Focused Solutions: Energy Efficiency Programs
3 year Energy Efficiency program:• Annual budget of approx. $6M, with $1.4M for low-income customer• Partnership with City of Pueblo, Pueblo County and Energy Outreach Colorado• Residential and commercial rebates• Low Income Programs- administered by EOC• November 3, 2018: Weatherization event• October 5, 2019: Weatherization event
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Customer Focused Solutions: Advanced Metering Infrastructure (AMI) Customer Portal Real Time Energy Usage Data Available to Customers in Daily or 15 minute intervals
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Customer Focused Solutions: Economic Development
• Extending the Arkansas Riverwalk• (Pueblo 5 & 6 power plant)
• Partnering with Vestas• (Busch Ranch I & II)
• Leadership on Job Growth
• Partnerships with local Economic Development Organizations
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Thank you
Va n c e C r o c k e r , V i c e P r e s i d e n t , C o l o r a d o E l e c t r i c , B l a c k H i l l s E n e r g y
M i c h a e l H a r r i n g t o n , M a n a g e r , R e g u l a t o r y a n d F i n a n c e , B l a c k H i l l s E n e r g y
H e i d i M o r g a n , M o r g a n Wa g n e r S t r a t e g i e s , L L C
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Appendix
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Electric Vehicle and Battery deployment
Electric Vehicle deployment:179 of registered EV’s in BH territory10 charging stations
SB 19-077 Plan
Battery deployment:2016 ERP RFP BH received 9 solar with storage bids. The bid prices were not competitive and thus not selected.Discussions with customers to implement the first solar plus battery in BH territory.
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PUC Reports and Filings44 Reports to PUC:
• Low Income Report
• Major Event Outage Report
• Distribution Planning Report
• Transmission Planning Report
• Generation Planning Report
• Electric Resource Planning
• Customer Data Privacy
• Renewable Energy Standard Compliance
• Component Source Disclosure
• Quality of Service Plan
• Demand Side Management Evaluation Report
• TCJA Quarterly Report
• Quarterly NARUC Residential Collections Report
12 Reports to EOC:
• Monthly EOC report
11 Tariff Filings:
• Energy Cost Adjustment *4
• Transmission Cost Adjustment
• Purchased Capacity Cost Adjustment
• Demand Side Management Cost Adjustment *2
• Community Solar Garden Credit
• Customer Deposit Rate Change
• Avoided Cost Rate
Irregular Filings:
• DSM Changes
• Economic Development
• Electric Vehicles
• Pueblo 5&6 Transfer
• Gas Mitigation Plan
• NOPR
• TCJA True-Up
• Residential Time of Day Pilot
• Staff Audits
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RTO’s: Western Market Initiatives• Top 3 Considerations for Black Hills Energy
• Customer Savings is top of mind• Connectivity • Operational Efficiency
• Black Hills Colorado Electric (BHCOE)• Currently participates in Joint Dispatch Agreement (JDA) with Xcel’s Colorado utility,
PSCo, and Platte River Power Authority –• Colorado Springs Utilities joined in summer of 2019
• BHCOE customers have realized approximately $2.5M in dispatch savings since JDA start
• Any imbalance option for BHCOE must provide comparable net savings to be viable• Opportunities
• CAISO/Western EIM• SPP WEIS• JDA Expansion
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Black Hills Energy Colorado Electric Impact in 2018
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Time of Use/Advanced Metering Infrastructure (AMI)
AMI: A system of smart meters, communications networks, and data management systems.
• Black Hills was awarded a federal grant to install AMI meters.
• Black Hills has the installed the communications network necessary to read the AMI meters remotely.
• Black Hills has a meter data management system that maintains the 15 minute interval consumption data by customer.
Benefits of AMI meter: billing accuracy, cost savings, outage detection, customer smart meter devices, time of use rates.