Fuel the Future | Black Hills Energy

Natural gas is affordable and reliable

At Black Hills Energy, we know our customers value affordable, reliable natural gas and the right to choose the type of energy that best fits their lifestyle. In a recent customer survey, 90% of you said it’s extremely or somewhat important to be able to choose the type of energy you use.

But new policies are moving Colorado communities toward limiting and even banning natural gas — despite the fact that more than 2 million homes and businesses depend on it every day.

Could new policies take away your natural gas stove or heater?

Black Hills Energy is committed to keeping all energy choices on the table to support small businesses and residential customers. Unfortunately, multiple Colorado communities are contemplating actions that could take away natural gas as an energy source for cooking and home heating.

Community bans: Crested Butte and Basalt have already prohibited natural gas in new construction. Aspen, Carbondale, Eagle, Mountain Village, Ridgway and Telluride are currently evaluating polices that could remove customer's ability to choose the type of energy best for them.
Colorado Clean Heat Plan: Regulators have created a 100% natural gas reduction mandate that will ask families to subsidize the forced electrification of their neighbors through added fees on customer bills.

Joe Waneka, director of operations and facilities at the Aspen School District

Aspen High School

Aspen High School’s switch from natural gas to electric boilers came with an unexpected cost: a $59,000 monthly electric bill. See why the district decided to bring natural gas back into the mix.

Read the full story

Customers want choice

We asked customers what they thought of proposed policies that could impact your choice and access to affordable energy, and this is what you said:

90% of respondents value the ability to choose their energy source.
85% of respondents opposed current policy that requires a mandatory fee on customers to pay for a neighbor’s conversion to electric appliances.
72% of respondents opposed local policy requiring all new homes and business to use only electric appliances.

See what your town said

Gas tech holding a brochure and talking to a customer

Charis Bible College

Keeping a growing college campus warm takes dependable energy. See how natural gas supports nearly 300,000 square feet of facilities at Charis Bible College and helps the campus prepare for future growth.

Read the full story

Natural gas keeps your home affordable

As the cost of living rises, affordable energy options are more important than ever. Policies that force homes and businesses to switch to all-electric systems come with significant financial impacts:

Up to $20,000 per home for appliance replacements and electrical upgrades
Higher monthly bills, because natural gas is cheaper than electricity and delivers more energy per dollar than electricity
Increased strain on the electric grid, requiring costly new infrastructure
PUC-mandated fees, including a Clean Heat fee that will require Black Hills Energy gas customers to pay $4.4 million in 2026–2027 to electrify neighbors’ homes

These costs affect every customer, regardless of income, and put affordable, reliable energy at risk.

Frequently asked questions

Black Hills Energy provides natural gas service to homes and businesses in Colorado. As Colorado works to reduce greenhouse gas emissions, customers may have questions about natural gas, electrification, energy costs and what changing energy policies could mean for their homes or businesses.

Here are answers to common questions about natural gas and Colorado’s changing energy landscape.

Why does natural gas matter to Colorado customers?

Natural gas provides energy for home and business heating, cooking, hot water and other everyday needs in Colorado. More than 2 million Colorado homes and businesses rely on natural gas, and seven out of 10 Colorado homes use it as their main source of heat.

For many customers, natural gas provides an affordable and reliable energy option, especially during cold Colorado winters.

How affordable and reliable is natural gas in Colorado?

Natural gas can be an affordable option for heating and other energy needs. Estimates show that homes using natural gas save an average of $1,030 a year compared with all-electric homes.

Natural gas also helps provide reliable heat during periods of high winter energy use, when customers need it most.

See how natural gas and electric energy costs compare.

What is changing for natural gas customers in Colorado?

Colorado has set goals to reduce greenhouse gas emissions. Some state and local policies encourage the use of electric appliances or place limits on natural gas in certain new buildings. These changes could affect the energy options available to Colorado customers in the future.

In a 2025 Black Hills Energy survey of Colorado customers, 90% said having a choice in their energy source is important to them.

See the Colorado customer survey results.

What does switching from natural gas to electric mean?

Electrification means replacing equipment that uses natural gas with electric equipment, such as heating systems, water heaters or cooking appliances.

Costs vary depending on the home or business and the equipment being replaced. Just replacing a natural gas furnace alone in a single family home can cost around $20,000 depending on the type of heat pump installed. For example one recent study found that in 2024, a cold climate air source heat pump cost $23,571, while a regular air source heat pump was $19,475 and an air source heat pump with natural gas backup came in at $17,293, according to the 2025 decarbonization study done for the Illinois Commerce Commission.

A new natural gas furnace cost $4,019, while a high efficiency natural gas furnace was $4,524, according to the same study.

Energy Outreach Colorado converted an entire home in the Colorado Springs area from natural gas to electricity in 2023 and came up with a total price tag of $72,465. However, in addition to a heat pump, electric dryer, electric hot water heater, electric induction stove and electric panel upgrades, that project also included weatherization measures, new flooring and mold remediation.

Costs for businesses can vary significantly based on the building and equipment.

As more homes and businesses use electricity for heating and other needs, additional electric generation, transmission or other infrastructure may also be needed. The cost of those investments can affect electric rates.

Read the full Pathways study report.

What is the Clean Heat fee on a Black Hills Energy natural gas bill?

The Colorado Public Utilities Commission requires Black Hills Energy to fund approved programs designed to reduce greenhouse gas emissions from natural gas use. These include programs that help customers switch to electric equipment.

Under the approved requirements described here, Black Hills Energy natural gas customers will collectively pay $4.4 million in 2026 and 2027 through a Clean Heat fee on their bills.

How does natural gas fit into Colorado’s energy future?

Natural gas is one part of Colorado’s mix of energy resources. It can help provide energy when customer demand is high or when resources such as wind and solar are producing less electricity.

According to 2024 data from the U.S. Energy Information Administration, natural gas, wind and coal each provided a significant share of Colorado's electricity, with the rest coming from sources including solar and hydropower.

Black Hills Energy closed its coal-fired power plants in Colorado more than a decade ago.

What is Black Hills Energy doing to reduce natural gas emissions in Colorado?

Black Hills Energy has a goal of achieving a net-zero natural gas distribution system by 2035. Its Clean Heat Plan includes efforts to reduce greenhouse gas emissions while continuing to consider customer costs and reliable service.

Colorado customers can also take steps to use less energy, including choosing high-efficiency appliances and making energy-efficiency improvements to their homes or businesses.