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DENVER—Colorado regulators are hearing more on Black Hills Energy’s plan to cut emissions by 2018.

A new state law gives the Colorado Public Utilities Commission until Dec. 15 to decide whether emissions-reduction proposals from Black Hills and Xcel Energy are acceptable.

Black Hills proposes retiring its two coal-fired units in Canon City and building a unit in Pueblo fired by natural gas. It says it would cost too much to run the units on wood pellets instead.

Thomas Ohlmacher of Black Hills said at a PUC hearing in Denver Thursday that the utility needs to determine terms if it were to buy power from others instead of building a new unit.

Another hearing is set Saturday in Denver. The PUC will take public comments Monday in Canon City.

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