The Front Range has long been the epicenter of Colorado’s economic success story, driving the state’s growth in population, jobs, and investment. Like most states, however, Colorado has struggled to spread that prosperity evenly, raising a critical question: How can all regions share in economic growth?

Colorado remains a high-growth state, but employment momentum is waning as the cost of living rises and in-migration slows —including among immigrants, historically one of the state’s primary sources of population growth.

Job growth remains concentrated along the Front Range, meaning that when statewide employment softens, areas including Pueblo County, for example, are disproportionately affected. This makes economic development incentives that attract investment to lower-growth regions especially important.

Our firm, Data-Driven Economic Strategies, evaluated the potential impacts of a proposed economic development utility rate (EDR) that Black Hills Energy would offer to new manufacturing firms locating in Pueblo or Fremont counties. Electricity costs play a central role in manufacturers’ decisions on where to locate, and the proposed rates — priced below the national average — would give southern Colorado a comparative advantage relative to peer regions.

Our analysis modeled two scenarios. The conservative scenario assumed three new, smaller manufacturing facilities in Pueblo and Fremont counties. Even under these modest assumptions, approximately 984 jobs per year could be generated when accounting for direct employment, related business-to-business activity and employee’s consumer spending.

For context, the region typically generates closer to 500 jobs per year across all industries combined, meaning this scenario would nearly double annual job creation. Local tax revenues would increase by about $1.4 million per year, state revenues by $2 million and federal revenues by nearly $10 million. Regional GDP would increase by roughly $56 million annually.

The high-impact scenario, assuming four larger manufacturing facilities, produces nearly 12,000 new jobs per year, when accounting for direct and multiplier effects.

Overall, our analysis shows that lower utility rates can be a linchpin in attracting new projects, new job opportunities and new investment to the area of Colorado that need them most.

Tatiana Bailey is executive director of the nonprofit Data-Driven Economic Strategies. Other Gazette articles, TV segments, DDES monthly economic dashboards with technical explanations, and how to sponsor their work can be found at ddestrategies.org.