Colorado regulators could force development of a new coal-fired power plant to ensure adequate electric supplies for customers of Xcel Energy.
The Public Utilities Commission will determine at a Wednesday meeting whether it will file a complaint against Xcel, alleging that the utility in its long-range forecasts hasn’t adequately planned for power generation needed by 2013.
Xcel maintains that its push for more renewable energy and other electricity sources will provide enough power.
The proposed complaint, if issued, also will claim that Xcel is failing to use the lowest-cost electricity sources, as required by state law.
If PUC commissioners proceed with the complaint, their options include imposing financial sanctions against Xcel, as well as requiring Xcel to request a new coal-fired generating station to be built by a power-plant contractor.
Xcel responded Monday that power from a new coal plant would be costlier for customers than renewable energy and natural-gas-fired plants.
Xcel spokesman Mark Stutz said a new coal plant would be $169 million to $236 million more expensive than the same amount of power from a combination of renewable energy – mostly from wind farms – and natural gas.
The utility added that it will disclose plans this year in a regulatory filing that will provide for adequate power supplies through 2013.
The issue comes amid growing concerns about the environmental impact of burning coal to produce power. Generation from fossil fuels, including coal and natural gas, accounts for an estimated 54 percent of the nation’s carbon-dioxide emissions – a suspected contributor to global warming.
“It is ironic that our state-government bureaucracy is proposing (more coal-fired power) at a time when the public and our government leaders are becoming increasingly aware of the threat of climate change and necessity to take action to thwart it,” said Gina Hardin, an attorney for Ratepayers United of Colorado, which opposes coal generation.
“The worst thing that can happen is that millions of tons of COb as well as (other pollutants) be emitted into the air unnecessarily,” Hardin said.
The staff of the PUC has drafted the complaint against Xcel, although it won’t be formally issued unless PUC commissioners vote to do so.
The complaint alleges that Xcel, because of its refusal to accept bids for a new coal- fired plant, will be short by 431 megawatts of the 896 megawatts it needs in new power supplies by 2013. One megawatt serves about 1,000 customers.
Xcel said the coal-fired plant bids were too high and that the costs of purchasing coal for fuel, as well as possible future taxation of carbon emissions, make the proposed plant too expensive.
The PUC commissioners could not be reached for comment Monday because they are forbidden by law to publicly discuss matters pending at the PUC except at official meetings.
However, newly appointed PUC chairman Ron Binz said in a recent interview that he is concerned about the environmental impacts of coal-fired generation.
Staff writer Steve Raabe can be reached at 303-954-1948 or sraabe@denverpost.com.
