Colorado Politics

PUC commissioner fights off recusal demand by Black Hills Energy

Tensions between the three members of the Public Utilities Commission (PUC) bubbled to the surface on Wednesday as the panel weighed allegations of bias.

The hearing revolved around Commissioner Frances Koncilja and her dealings with Black Hills Energy, a southern Colorado utility that largely serves the Pueblo area.

Black Hills asked that Koncilja be recused from any further rate considerations involving the utility because she has repeatedly criticized it, using “colorful” language in doing so, such as calling the utility a “turd in (the) pocket of Colorado ratepayers.”

The hearing over the motion for recusal pitted Koncilja, a Democrat, against newly-confirmed Commissioner Wendy Moser, a Republican. Moser is a former executive of Black Hills, which added to the context in addressing charges of impropriety.

Koncilja described herself as a surrogate for the people of Pueblo, who have lamented over high electricity rates; Moser suggested that Koncilja stepped over the line in her advocacy.

The vote was 2-1, with PUC Chairman Jeff Ackermann, a Democrat, joining Koncilja to defeat the effort to disqualify her.

Moser voted to disqualify Koncilja after Koncilja questioned Moser’s own ability to remain neutral, having been employed by Black Hills.

“Commissioner Koncilja … is the one who raised the idea of, it’s Commissioner Moser that you need to be concerned about, not her. This is not about me or my relationship with Black Hills,” Moser said. “One must ask why Commissioner Koncilja would shift the discussion away from the pending motion and make it about me.”

Black Hills’ motion to disqualify Koncilja was based on alleged bad behavior, using terms like “despised company” “drunken sailor” and “colonial power” to describe the utility.

“Given that our standards is … the appearance, I think Commissioner Koncilja probably crossed the line and created an appearance of impropriety,” Moser said.

But Koncilja said she is only standing up for the people of Pueblo.

Black Hills became a target because the utility has some of the highest electric rates in the state. Rates in Pueblo can be more than 30 percent higher than the rest of Colorado. Despite the high rates, Black Hills requested that the PUC approve an additional $8.5 million in annual revenue.

The request is meant to offset the purchase of a $61 million turbine that was added to a Pueblo power station.

The PUC, under Koncilja and former commissioners Joshua Epel and Glenn Vaad, in December issued a written decision lowering the request to less than $1 million per year.

Black Hills has asked for a reconsideration of the December decision. With new PUC commissioners, including Moser and Ackermann, Black Hills is hoping it can overturn the December decision, which calls into question Moser’s role on the PUC as a former employee.

Those same concerns spilled into PUC confirmation hearings in the legislature, during which some lawmakers questioned Moser’s position on the PUC, though she still received widespread backing.

Koncilja on Wednesday read letters from Pueblo ratepayers who described having to cutback on expenses in order to afford rising electric rates.

“The decisions we make here affect real people, and regardless of what Black Hills thinks about me or this commission, the rates down there continue to cause real heartburn, and I think the problem we’re going to have going forward is that there is a perception in that community that you have your fingerprints on a lot of the decisions that have created the pain,” Koncilja addressed Moser.

Koncilja said some ratepayers believe Moser’s ability to weigh in on rate decisions for Black Hills is tantamount to “letting the fox in the henhouse.”

“This is a bit awkward, you and I need to work together …” Koncilja continued. “But people don’t think you’re going to be fair and impartial.

“This is not about me, this is about how we do justice; how we get fair and reasonable rates that protect the utilities and protect ratepayers.”

For his part, Ackermann acknowledged that Koncilja raised some eyebrows.

“At the risk of offending Commissioner Koncilja, because my next comment is not meant to be gender based, but some of the specific statements made by Commissioner Koncilja … do convey strong sentiment and emotions,” Ackermann said.

“I can interpret these as actions of Commissioner Koncilja functioning as a surrogate for the sentiment or emotions expressed by Black Hills customers.”


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