Xcel Energy officials plan to meet today with Colorado utility regulators to discuss potential higher customer bills stemming from reduced coal shipments to Colorado.
Xcel is planning to shift from coal to natural gas to fuel some of its Colorado power generation – a costly prospect because making electricity with gas is more expensive than coal.
Passing higher costs on to consumers would require approval by the Colorado Public Utilities Commission.
Xcel said it can’t estimate the cost increase until it pays for the additional natural gas and determines when full coal shipments will resume.
The fuel shift comes as rail operators Union Pacific and Burlington Northern Santa Fe said they will reduce coal shipments from Wyoming’s Powder River Basin by as much as 20 percent because of recent track damage and repairs.
Colorado regulators typically approve changes in fuel-generation costs. The changes – increases or decreases – are passed on directly to customers with no additional profit or loss by the utilities.
“We’re certainly aware of the issue, and we’re taking a look at it,” said PUC spokesman Terry Bote.
Staff writer Steve Raabe can be reached at 303-820-1948 or sraabe@denverpost.com.
