Denver, CO—Today, Xcel Energy filed a new proposal for its electric resource plan that will have the 750 megawatt, coal-fired Comanche 3 unit close no later than January 1, 2031. The Sierra Club and Natural Resources Defense Council (NRDC) signed on to this new proposal as part of a settlement agreement, which the Public Utilities Commission (PUC) is expected to consider in May. According to this proposal, the precise date on which Comanche 3 will close will be set in 2024 as part of a Just Transition proceeding at the PUC.
Last November, Xcel reached a settlement agreement that was met with backlash from environmental groups for a number of reasons, including its intention to keep the very expensive and highly-polluting Comanche 3 coal unit, located in Pueblo, CO, open through 2034, despite major reliability issues. The coal unit has been out of service for most of 2022 with a generator failure, and Xcel still doesn't know when it will be back online.
Modeling shows this new proposal will cut 3.5 millions tons more carbon dioxide (CO2) pollution than last year’s settlement agreement, and it will save customers an additional $39 million.
The revised proposal also requires the PUC to review cost recovery for retiring coal units and utility ownership of new resources, and it changes the modeling lifespan of any proposed gas capacity from 40 years to 25 years to align with the state’s decarbonization goals. This proposal also accelerates Xcel’s plan to stop burning coal at the Pawnee Generating Station (536 MW) in Brush, CO, which will result in additional pollution reductions.
“Coloradans asked for a faster transition off coal and Xcel finally listened,” said Anna McDevitt, Senior Campaign Representative for the Sierra Club’s Beyond Coal Campaign. “This proposal gets us much closer to a coal-free Colorado by the end of this decade, and that’s a big deal for our state’s families and businesses who depend on clean, affordable, and reliable electricity.”
“The new settlement brings savings for electric customers, cleaner skies, as well as healthier people and climate to Colorado by accelerating the transition from coal and ensuring clean energy opportunities,” said Noah Long, Western Energy Director at NRDC (Natural Resources Defense Council. “It also protects the communities and workers most impacted by the plant closures. The commission should adopt this big win for the state.”
The PUC’s decision on this proposal will conclude Phase I of Xcel's energy planning process. During Phase II, which will start later this year, Xcel will review possible new energy resources to replace retiring coal plants and meet new energy needs.
In addition to NRDC and Sierra Club, the following groups signed on to the revised settlement agreement: Public Service Company of Colorado (“Public Service” or the “Company”), Trial Staff (“Staff”) of the Colorado Public Utilities Commission (“Commission”), the Colorado Independent Energy Association (“CIEA”), the Colorado Office of the Utility Consumer Advocate (“UCA”), the Colorado Solar and Storage Association and Solar Energy Industries Association (collectively, “COSSA/SEIA”), the Board of County Commissioners of Pueblo County (“Pueblo County”), Holy Cross Electric Association, Inc. (“Holy Cross”), the City of Pueblo and the Board of Water Works of Pueblo, Colorado (“PBWW”), Walmart Inc. (“Walmart”), the City and County of Denver (“Denver”), the Colorado Oil & Gas Association (“COGA”), the International Brotherhood of Electrical Workers, InterWest Energy Alliance, Local No. 111 (“IBEW”), Onward Energy, the Colorado Office of Just Transition (“OJT”), Conservation Coalition (Sierra Club and NRDC), and Western Resource Advocates (“WRA”).
###
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.
About NRDC
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Since 1970, our lawyers, scientists, and other environmental specialists have worked to protect the world's natural resources, public health, and the environment. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, and Beijing. Visit us at www.nrdc.org and follow us on Twitter @NRDC.