PUEBLO, Colo.—Black Hills Energy has agreed to work with union labor to build a gas-fired power plant outside of Pueblo after a consortium of contractors agreed to build the facility for its estimated $450 million cost.
Black Hills Energy officials raised concerns that employing union labor would add $30 million to the costs.
Pueblo has agreed to annex the power plant that is planned north of the city. Utility officials last month balked at the annexation agreement after the City Council added a labor clause requiring the utility to hire local workers and pay union-scale wages.
The consortium is made up of H.W. Houston Construction, K.R. Swerdfeger Construction, Inc., Pueblo Electrics, MSSM Co., Vision Mechanical and Industrial Constructors/Managers, Inc.
