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Revised Xcel Settlement Benefits the Climate with 2031 Retirement of Comanche 3 and Reduced Reliance on Fossil Gas

Western Resource Advocates signed on to a revised settlement agreement filed today in Xcel Energy’s Electric Resource and Clean Energy Plan proceeding before the Colorado Public Utilities Commission. The new settlement includes accelerated dates for retiring the Comanche 3 coal unit, helps avoid building unnecessary and potentially stranded new fossil gas generation, and establishes commitments

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Western Resource Advocates signed on to a revised settlement agreement filed today in Xcel Energy’s Electric Resource and Clean Energy Plan proceeding before the Colorado Public Utilities Commission. The new settlement includes accelerated dates for retiring the Comanche 3 coal unit, helps avoid building unnecessary and potentially stranded new fossil gas generation, and establishes commitments to achieve interim carbon emission reductions in 2024 and 2027.

“If approved, this settlement secures the next stage of Colorado’s energy transition, ensuring commitments from Xcel to reduce its harmful fossil-fuel emissions that contribute to climate change,” said Gwen Farnsworth, Western Resource Advocates’ managing senior policy advisor in Colorado. “The earlier date for retiring Comanche 3, plus cutting the assumed lifetime for any new fossil gas generation and establishing interim targets for reducing carbon emissions, will all help Colorado reach its climate goals. Important provisions also extend community assistance to the Pueblo community for 10 years and will help in the transition to new economic opportunities as the coal-fired Comanche unit closes.”

These are all key improvements to the settlement WRA has advocated for during the commission proceeding on Xcel’s plan. WRA opposed a previous version of the settlement signed by other parties late last year. Specifically, the new settlement calls for Xcel to:

  • Retire Comanche 3 by January 1, 2031 — four years earlier than the original settlement, which will avoid an additional 3.5 million tons of carbon emissions compared to the original settlement filed in November and will cut toxic local air pollutants in Pueblo;
  • Commit to interim reductions in carbon dioxide emissions, with targets of a 50% reduction by 2024 and 65% by 2027, compared with the utility’s 2005 levels;
  • Cut the modeled lifetime for any new fossil gas generation to 25 years; and
  • Expand Xcel’s Just Transition Plan, by extending the community assistance benefits for Pueblo to 10 years.

The settlement overall will provide more than 17 million tons of carbon dioxide emissions reductions. Reducing these fossil-fuel emissions will help curb the harmful effects of climate change. The Comanche generating station is also responsible for over 80% of all toxic chemicals released into the surrounding community of Pueblo.

Several provisions in the revised settlement reduce the utility’s expected future reliance on fossil-fuel gas generation. According to the Intergovernmental Panel on Climate Change, reducing methane emissions from fossil-fuel gas is one of the biggest and fastest strategies for slowing climate change.

The Xcel settlement today follows the utility’s February 2021 announcement of its Clean Energy Plan committing to achieve an 85% reduction in carbon emissions and 80% renewable energy generation by 2030, as well as 100% clean energy by 2050. A 2019 Colorado law requires Xcel to reduce its emissions by 80% below 2005 levels by 2030. In 2019, the Colorado Legislature also passed House Bill 1261, requiring the state to reduce its economy-wide greenhouse gas emissions by 50% below 2005 levels by 2030 and 90% by 2050.

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