October 5th, 2022: On September 21, the Colorado Public Utilities Commission (“PUC”) issued its final, written order in Phase I of Xcel’s electric resource plan. The decision is a key milestone in Colorado’s transition to a cleaner electric grid. Among other things, the PUC’s decision resolves the future of the five Xcel coal units that did not have near-term retirement dates.
Under the decision, Hayden 2 will retire in 2027; Hayden 1 and Craig 2 will retire in 2028; and Pawnee will convert from a baseload coal plant to a gas peaking plant. Most importantly, Pueblo Unit 3 will retire no later than January 1, 2031, with the PUC deciding the specific retirement date in the resource plan that Xcel will file in 2024. At 750 MW, Pueblo Unit 3 is the largest coal unit in Colorado, and was the last coal unit to be built in the state (Pueblo 3 came online in 2010). The decision also requires Xcel to model any potential new gas units as having a 25-year useful life, to be consistent with Xcel’s and the State’s decarbonization goals.
Xcel initially reached a settlement with some parties that would have delayed the retirement and conversion of coal units and paved the way for new gas. Sierra Club and allied organizations opposed Xcel’s original settlement, and negotiated a revised settlement that the PUC ultimately approved.
Sierra Club was represented by Environmental Law Program attorney Matthew Gerhart. Sierra Club intervened with NRDC, which was represented by outside counsel. We were assisted by several expert witnesses, including Dr. Maria Roumpani at Strategen, Derek Stenclik at Telos, Tyler Comings at the AEC Clinic, and Jim Grevatt at EFG.