Acquisition Of The Colorado Electric and Gas Assets and Operations Of Aquila Corporation by Black Hills Corporation

Members of ERG represented the City of Pueblo, Colorado (City) in Docket No.07A – 108EG before the Colorado Public Utilities Commission (CPUC), concerning the proposal of the Aquila Corporation (Aquila) to sell their retail electric and gas assets and operations to the Black Hills Corporation (BH). Historically, the City has been a retail electric service area of Aquila. Working with the City’s Special Counsel, member’s of ERG provided independent review and analysis of the economic and financial aspects of the proposed transfer, future power supply issues and costs, future operations costs, staffing issues, potential reliability issues, the overall cost of the proposed transaction to retail ratepayers, recovery of an acquisition premium, ring fencing issues, and the forward going cost of the BH’s acquisition upon retail rates. Two members of ERG sponsored expert testimony on these issues in the CPUC proceeding. In addition, members of ERG played a leadership role in negotiating the transfer of Aquila’s franchise with the City to BH.

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