DENVER—Doctors told state regulators Thursday that Xcel Energy’s plan to switch some of its coal-fired power plants to run on natural gas would mean cleaner air to breathe, but those with ties to the coal industry said it would cost jobs.
The Colorado Public Utilities Commission held a public comment hearing on Xcel’s plan to comply with a new state law aimed at reducing nitrogen oxide emissions. The commission has until Dec. 15 to approve, deny or modify the plan.
Hotel owner Kerry Moe and others from Craig said moving away from coal would ruin the foundation of their economy, which relies on the coal industry for tax revenue and jobs.
“It will leave us on sand,” she said.
Representatives of Burlington Northern Santa Fe Railway Co. and Union Pacific, whose trains ship coal to power plants, said railroad jobs could be lost, too.
Others worried that consumers would be hurt by volatile natural gas prices. Coal miner Rick Barnes recommended increasing emission controls on existing coal plants instead.
However, doctors and leaders working to keep the Front Range within federal ozone standards said the plan would go a long way toward improving air quality.
Xcel has estimated implementing its plan would cost $1.3 billion over 12 years. It hopes to start recovering costs from consumers starting Jan. 1.
Even without implementing its plan, Xcel estimates the average residential customer’s annual electric bill would rise 31 percent over the next 10 years to $934. The emissions-reduction plan would raise that bill about 1.5 percent more, to $948.
Speakers Thursday disagreed on how low-income households would be affected by Xcel’s plan. Some said they would be hurt by higher electricity prices, but former state Sen. Polly Baca said the health of low-income and minority households who live near power plants would be improved.
Rising electricity prices raise businesses’ production costs and can dampen household spending. Colorado State University economist Harvey Cutler, performing an analysis for the PUC, predicted Xcel’s plan could cost Colorado 882 jobs and about $2.75 million in state and local tax revenue over a 10-year period—drops of less than half a percent.
Cutler has noted that his analysis didn’t account for the economic benefits of cleaner air on people’s health and the environment.
Western Resource Advocates, a group that say it fights climate change, has estimated health benefits of $590 million from 2011-2046 under Xcel’s plan.
Xcel says its plan allows it to meet the new state law’s goals of reducing nitrogen oxide emissions from 2008 levels by 70 percent to 80 percent by 2017, while also reducing emissions of mercury, sulfur dioxide and carbon dioxide.
The utility has proposed closing a coal-fired plant in Boulder and converting another in Denver to run on natural gas. It also would switch another generation unit in Denver to natural gas and add more emission controls at two other coal-fired plants.
Overall, 903 megawatts of coal-fired generation would be retired.
More than 100 people signed up to speak at the PUC’s two-hour meeting, which ran late. Opponents and supporters of Xcel’s plan held dueling rallies before the meeting, with each drawing more than 150 people.
