Xcel Energy’s alternative plan to cut Front Range coal-fired power- plant emissions, submitted to the state Public Utilities Commission late Monday, appears to satisfy no one — not even Xcel.
The utility’s original plan, which would not have converted the Cherokee power plant’s coal-burning Unit 4 to natural gas until 2022, was rejected by the PUC.
Xcel’s new plan would install pollution controls at Unit 4 by 2017 instead of converting it to natural gas. Under the Clean Air-Clean Jobs Act, Xcel can get expedited cost recovery for a comprehensive plan to help reduce Front Range air pollution by cutting nitrogen-oxides pollution by 70 percent to 80 percent by 2017.
The new plan sticks with the other elements of the original plan, including shutting four coal-fired units and replacing them with newly built natural-gas units. It also would take another power plant and switch it from coal to natural gas.
In a filing with the commission, Karen Hyde, vice president for rates and regulation for Xcel’s Public Service Co. of Colorado, said the commission’s ruling forced it to choose among “lesser emission reduction plans that will have greater rate impacts than our preferred plan.”
The new plan would cost $1.1 billion.
Tom Plante, director of the Governor’s Energy Office, said the proposal to spend $150 million to $180 million on pollution controls for Cherokee 4 to meet the 2017 deadline is “not only a poor investment but a gamble with ratepayers’ money.”
The PUC plans to rule Thursday on whether to accept the new plan.
Environmental groups criticized the new plan because it will keep burning coal at the Cherokee 4 unit in Adams County.
“Cherokee is the single largest source of pollution in the Denver area,” said Pam Kiely, director of Environment Colorado. “It should be replaced.”
The Colorado Independent Energy Association, a group of 40 independent power producers, had challenged the original plan and criticized the alternative.
“The act called for switching to gas, not making expensive investments on old plants,” said Nick Muller, the association’s executive director.
Cherokee 4 has been in operation since 1968.
The Colorado Mining Association in a statement called the commission proceedings “flawed and rushed.”
Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com
