Place the butter in heavy sauce pan over medium till melted and hot. Alternatively, you can melt the butter in the microwave, make sure to cover it and that the butter is hot. If the butter is not hot it will not emulsify.
Add the egg yolks, 1 tablespoon hot water, chipotle pepper, salt, sugar, and lemon juice to the blender. Blend for 10 seconds till it is well combined. Keep the blender running on medium high and slowly stream melted hot butter into the mixture. Blend for another 30 -45 seconds till emulsified.
If the hollandaise is too thick, slowly drizzle in another tablespoon of hot water and blend till combined.