Colorado regulators on Wednesday approved Xcel Energy’s plan to build two 130-megawatt natural-gas combustion turbines at its Fort St. Vrain plant in Weld County.
The project, which will help the utility meet peak demand in summer 2009, was opposed by environmental advocates who wanted Xcel to consider alternatives such as increasing programs to reduce power demand.
Terry Bote, Public Utilities Commission spokesman, said the project’s cost is “presumed prudent up to $192 million.” The cost, which can be challenged, will be passed on to ratepayers.
As part of the approval, regulators imposed energy-efficiency measures on Xcel, Bote said.
Specifically, Xcel has until July 1 to solicit proposals to help it reduce peak demand. One program the company is running is Saver’s Switch, which gives consumers a $25 bill credit each year in exchange for allowing Xcel to turn off their air conditioner for 20-minute intervals during peak-usage hours.
Xcel has said it needs to begin construction on the natural-gas turbines by April to have them in service by June 2009.
The utility expects a shortage in generating capacity at that time because of a canceled purchased-power agreement with Squirrel Creek Energy.
“We believe these turbines are critical to assuring that we have sufficient power supply to meet our projected electricity load for the summer of 2009 and to have sufficient reserves to respond to unanticipated events,” said Xcel spokeswoman Ethnie Groves.
Fort St. Vrain has 737 megawatts of capacity. One megawatt of natural-gas generating capacity powers 1,000 homes.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
