Black Hills Energy conducts pilot program to save Colorado customers money

Black Hills Energy is looking to conduct a pilot program in Colorado to identify opportunities for customers in that state to save money on energy costs.

The Residential Time-of-Day (RTOD) pilot program, done in conjunction with the Colorado Public Utilities Commission (PUC), would evaluate “peak” and “off-peak” energy pricing in order to find opportunities for participants to save on their energy bill. Typically, power is more expensive during “peak” periods, so lower usage during those times would save money. The evaluation would be conducted over a 12-month period involving 2,800 residential customers.

“At the request of the Colorado Public Utilities Commission and through collaboration with PUC Staff and other stakeholders, we’ve created this pilot program to test an innovative pricing structure that is intended to give our customers more control over their monthly energy use and their bills,” Michael Harrington, regulatory manager for Black Hills Energy, said. “We’re pleased with the proposed plan and appreciate the level of collaboration and insight sharing from industry peers, PUC staff and other stakeholders.”

Black Hills, based in Rapid City, South Dakota, consulted utility industry peers that have done similar programs for input on conducting the program. The company serves 1.2 million customers in eight states, including Colorado.

“Black Hills and Colorado PUC staff have worked closely over the past few months to ensure our proposed plan reflects industry-leading rate design, communication, and implementation,” Vance Crocker, Black Hills Energy’s vice president of operations for Southern Colorado, said. “Special efforts will be made to educate program participants about the concept that when electricity is used is just as important as the amount used.”

If approved by the PUC, the pilot program will begin in June 2019.