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DENVER—An environmental group that claims Xcel Energy has failed to properly monitor emissions from a coal-fired power plant has won its fight to pursue a lawsuit.

Federal Judge Zita Weinshienk Thursday denied Xcel Energy’s motion to dismiss the lawsuit. She rejected the utility’s argument that WildEarth Guardians couldn’t show that it is affected by the situation.

The lawsuit claims that the Xcel Energy Cherokee power plant in the Denver area has regularly exceeded federal limits on the density of its smoke and that the utility has failed to properly monitor the smokestack exhaust on several occasions.

Xcel Energy spokesman Mark Stutz said Friday that the company hadn’t seen the judge’s decision and declined to comment.

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