Citing a likely surge in natural-gas prices, the Colorado Office of Consumer Counsel said Tuesday that Xcel Energy should defer plans to close two coal-fired plants and replace the generation with natural-gas- fired power.
The recommendation comes as Xcel is working to cut carbon-dioxide emissions to meet Gov. Bill Ritter’s climate-action plan, which calls for a 20 percent reduction by 2020.
Xcel wants to close the coal-fired Arapahoe Generating Station in Denver and the Cameo Generating Station east of Grand Junction as part of its latest resource plan, which outlines how the utility will meet consumer electric needs through 2015.
Xcel would replace that generation with a 480-megawatt natural-gas generating facility, which would be built at the Arapahoe location.
“The fuel price forecasts used by Xcel did not reflect the likelihood that natural gas prices will rise dramatically over the planning period,” OCC director Jim Greenwood said in a statement.
Greenwood wants Xcel to defer plans to shut down the coal plants until its next resource plan, which is expected to be filed in two years.
The office is also urging Xcel to accelerate its acquisition of renewable resources and make a stronger push for energy efficiency as part of its latest resource plan.
“As part of our resource plan, we’re already the No. 1 wind provider in the nation, and we’re asking to add another 800 megawatts of wind,” Xcel spokesman Tom Henley said.
The utility also plans to add 250 megawatts of solar power and nearly double its energy-efficiency programs. Xcel is expected to cut its carbon-dioxide emissions 10 percent by 2017 under the plan.
The Colorado Public Utilities Commission will hold hearings to review the plan in June and July and expects to issue a ruling next year.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
