Coal-fired power plants are the source of more than 40 percent of this country’s carbon emissions and a major contributor to global warming. Two dozen of these units operate in Colorado.
State government is working overtime to create the climate for alternative energy investments, yet the Public Utilities Commission is weighing whether to force Xcel Energy to add yet another traditional coal plant in order to boost power capacity in order to meet future demand.
The PUC may consider the matter in a meeting today. We urge the commission to hold off for now while Xcel explores other options and more alternative energy sources become available.
The issue came up as Xcel, Colorado’s largest energy provider, engaged in a long-range planning process that aims to ensure adequate power supplies. Estimates show the utility will need to produce 3,524 additional megawatts of electricity by 2013 but is projected to fall short by 431 megawatts, said Mark Stutz, Xcel spokesman. A megawatt serves about 1,000 customers.
The three-member PUC is to discuss whether to file a complaint against Xcel, alleging the utility hasn’t properly planned for future electricity needs. The PUC staff has given commissioners a draft complaint and possible remedies they could pursue. Among their options, commissioners could order Xcel to request a new coal-fired generating plant that would be built and owned by a power plant contractor. Xcel would buy the power via a long-term agreement.
Colorado law requires utilities to provide the cheapest power available, and PUC staffers argue that coal-fired energy fits the bill. Xcel argues the company will muster enough power from renewables and other sources to meet future needs. Furthermore, Xcel says coal is not the most economical option and says its estimates differ from the PUC’s.
It’s the PUC’s duty to regulate utilities and strive for fair energy prices. But that should not come at the expense of common sense. Congress is developing legislation on energy efficiency and renewable energy. Significant curbs on greenhouse gas emissions also are being considered, and it seems likely that traditional coal-fired plants now on the drawing boards will not be exempt.
The Colorado Public Utilities Commission would do well to refrain from rushing headlong toward a new coal-fired generating plant. There should be further study of Xcel’s needs and resources before the utility is committed to draw from another coal-fired plant.
