2026 Colorado Clean Energy Plan
Ready to serve Colorado's energy future
Black Hills Energy filed its 2026 Clean Energy Plan, “Ready to Serve,” with the Colorado Public Utilities Commission (PUC) on Sept. 11, 2026. The plan builds on the company’s 2022 Clean Energy Plan and years of phased-in generation developments that cost-effectively support Colorado’s emissions reductions targets and the continued reliability of the electric system serving over 102,000 customers across Southern Colorado.
We conduct a comprehensive resource planning process every four years as required by the Colorado PUC. Through modeling and analysis, we forecast the electric resources necessary to serve customers over a 25-year planning horizon while achieving the following objectives:
- Maintaining reliable electric service
- Keeping energy cost-effective
- Meeting Colorado’s requirement to reduce greenhouse gas emissions by 80% by 2030, based on 2005 levels.
To meet these objectives, our 2026 Clean Energy Plan proposes to add approximately:
- 100 MW of wind energy
- 200 MW of battery energy storage systems
- 125 MW of firm, dispatchable natural gas-fired generation
The final mix of resources will be determined during a competitive solicitation process to be held in 2027. This is part of a comprehensive review and approval process directed by the Colorado PUC.
2026 Electric Resource Plan and Clean Energy Plan document
Frequently asked questions
How will Black Hills Energy achieve the state’s 80% emissions reduction requirement?
Through extensive analysis and modeling, we arrived at a preferred portfolio of generation resources to meet our customers’ energy needs. Our preferred plan proposes to add approximately 100 MW of wind energy, 200 MW of battery energy storage systems, and 125 MW of natural gas-fired generation. The final combination of resources will be determined during a competitive solicitation process directed by the Colorado PUC.
Why are you proposing to add new natural gas resources?
Because of the intermittent nature of renewable energy, Black Hills Energy must have a consistent source of generation available to be dispatched at all times. Natural gas-fired generation is the most efficient means of maintaining reliable service to our customers, 24x7.
Why is Black Hills Energy proposing 200 MW of battery energy storage systems?
Battery energy storage systems can help reduce overall system costs by storing lower-cost energy for use when demand is highest. Battery energy storage systems can also reduce the need to purchase expensive market energy during peak periods and help optimize how power plants are operated. Our modeling identified 200 MW of battery energy storage as a cost-effective resource to help achieve the company's goals.
Where will the new resources come from?
The acquisition of new generation resources will be determined during the second phase of this regulatory proceeding, after the Colorado PUC has reviewed and approved our Electric Resource Plan. We expect to issue a request for proposals (RFP) in 2027, open to all energy developers. Through a competitive solicitation process, independent evaluators will determine the most cost-effective resources to achieve our goals.
What happens if lower-cost options become available?
The proposed resource mix is not final. The company will conduct a competitive bidding process in 2027 and evaluate proposals from a variety of energy providers and technologies. This process is intended to identify the most cost-effective solutions available and is subject to review by the Colorado Public Utilities Commission.
Who reviews whether the plan is cost-effective?
The Colorado PUC reviews the company's analysis, assumptions and proposed resource decisions. The commission's process is designed to ensure resource decisions appropriately balance cost, reliability and environmental requirements.
When would the new resources be placed into service?
We are proposing to place new resources into service by 2032.
What progress has the company made since it filed its first Clean Energy Plan in 2022?
As part of the company’s 2022 Clean Energy Plan, we are moving forward with the construction of a new 50 MW battery storage facility at our Pueblo Airport Generating Station. The battery project was approved by the Colorado PUC in 2025 and is expected to begin supplying power to our customers in late 2027. We are also moving forward with a power purchase agreement for 200 MW of solar energy. The utility-scale solar project will be located in Pueblo County and is anticipated to be placed into service in 2029.