Cañon City Council approves second proposal to study potential electricity providers – Canon City Daily Record

Cañon city council on Monday approved a second proposal from a utility company that wants to conduct a study into options for potential electricity providers.

The resolution approves a proposal by Guzman Energy to perform a feasibility analysis to determine the feasibility and feasibility of developing a municipal utility. Guzman Energy LLC is a wholesale electric utility that generates electricity and supplies electricity to other utilities.

The feasibility study will be free for the city and will be carried out by a third party selected by Guzman Energy.

According to a letter from Guzman Energy to city administrator Ryan Stevens, this analysis is important in determining the number of meters, the types of customers Cañon City would serve, the expected load profile and disaggregate the rates currently charged by Black Hills into their separate components. , including production, distribution and transport.

“The proforma and operating plan would estimate the costs of power supply, transmission service, distribution operations and maintenance, customer service, accounting, management and administration.” , indicates the letter. “The report would provide Cañon City with the opportunity to compare its options and guide you in making the best decision for your community.”

The Cañon City Energy franchise committee heard a proposal from Guzman Energy in November and recommended that city council approve the proposal.

The committee also heard a proposal from CORE Electric Cooperative in September, when members voted for council to consider a proposal to conduct due diligence for a period of 120 days at no cost to the city to provide a proposal. formal for the provision of electric utilities.

The board also approved a resolution that will allow CORE Electric Cooperative to perform this due diligence.

According to a letter sent to the city attorney on July 1 by CORE Electric Cooperative, formerly Intermountain Rural Electric Association, CORE “intends to provide the necessary funding to complete the buyout or the condemnation of the necessary facilities of Black Hills Energy, such as indicated in the current deductible. agreement.”

The renewal of the Black Hills Energy franchise was rejected by nearly 65% ​​of voters in the November 2020 election after it expired in 2017. In an interim report from the Energy Committee on Monday, committee member Kirk Suther said the group was considering investor-owned utilities, rural electricity cooperatives and municipal utilities.

In Colorado, there are two investor-owned utilities, 22 rural power co-ops and 29 municipal utilities.

Suther said Black Hills is expected to make a presentation to the committee at its January 10 meeting.

Also during the meeting:

  • Cañon Police Chief John Schick recognized Aleizja Owens, Chief Information Officer, and Derk Allen and Dave Rodenbeck, Facility Maintenance Technicians, for their contribution to Canon City’s public safety.
  • The council approved at second reading a rezoning ordinance to allow the communes of Cañon City to the abbey.
  • Council approved on second reading an order increasing the base rate used to calculate stormwater management fees by 3%, which will average about $ 0.50 / month for residential customers.
  • The council approved at second reading an ordinance modifying the water tariff tables by 9%. This is an increase of $ 3.44 per month for a residential bill that uses 10,000 gallons per month within city limits and $ 5.16 per month for those who are within city limits. outside the city limits.
  • The council approved at second reading an ordinance prohibiting sitting and lying in public rights-of-way.

Funding grants from community organizations for 2022 (totaling $ 40,900)

  • Boys and Girls Club of Fremont County: $ 5,000
  • Bridge Youth Center: $ 5,400
  • Cañon Literacy Center: $ 5,000
  • Fremont County Community Concert Association: $ 600
  • Colorado Heart CASA: $ 3,100
  • JJ’s Helping Paws: $ 6,000
  • Fremont County Pantry: $ 6,000
  • Seniors Services Solutions Plus: $ 5,000
  • Uncaged today: $ 4,800

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