The Colorado Public Utilities Commission — rejecting citizen challenges — voted Thursday to allow Xcel Energy to recover the costs of its $1.3 billion Comanche 3 power plant from ratepayers.
A major portion of the $136 million rate hike Xcel is seeking is to cover the 750-megawatt coal-fired power plant in Pueblo.
The inclusion of Coman che 3 as a reasonable cost was challenged by Leslie Glustrom, a member of Clean Energy Action, and Dennis Kelly of ArapaHope Community Team.
Both argued the investment in Comanche was not prudent since Xcel will have more generating capacity than it needs.
“While the commission has attempted to avoid the overcapacity issue, it is simply too real and costly to ignore,” Kelly said in his testimony.
The commission, however, voted unanimously to include the plantin the rate case.
Plans to build it began in 2004.
The recession has played into the capacity issue, and PUC chairman Ron Binz said “The great economic pain, in 2004, could not have been forecast.”
Commissioner Matt Barker said overcapacity could eventually be used for “environmental benefits,” such as closing some of Xcel’s dirtier plants.
“We have always believed that building Comanche 3 was in the best interest of our customers,” said Karen Hyde, Xcel vice president for rates and regulatory affairs.
“We appreciate the commission’s recognition in this case,” Hyde said.
The commission is scheduled to meet today to continue deliberations onhow much of the plant’s cost will be included in the rates and the overall rate increase.
Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com
