Summary
This Form 8-K filing from Xcel Energy Inc. (XEL) details a significant environmental compliance plan submitted by its subsidiary, Public Service Company of Colorado (PSCo), to the Colorado Public Utility Commission (CPUC) on August 13, 2010. The plan is in response to the newly enacted Clean Air-Clean Jobs Act and aims to substantially reduce nitrogen oxides (NOx) emissions, as well as sulfur dioxide (SO2) and mercury, to meet anticipated federal regulations. This initiative involves a multi-faceted approach, including retiring certain coal-fired generation units, repowering others with natural gas, and retrofitting remaining coal plants with advanced pollution control technology.
Key Highlights
- 1Public Service Company of Colorado (PSCo) filed its preferred plan under the Clean Air-Clean Jobs Act with the Colorado Public Utility Commission (CPUC) on August 13, 2010.
- 2The plan targets a 70-80% reduction in nitrogen oxides (NOx) emissions by 2017.
- 3Key actions include retiring 900 MW of coal generation (Valmont and Cherokee plants), repowering Cherokee with 883 MW of natural gas generation, and retrofitting 950 MW of coal generation at Pawnee and Hayden plants with emission controls.
- 4The plan is projected to reduce SO2 emissions by 84% and mercury emissions by 85% by 2023 compared to 2008 levels.
- 5It also supports Colorado's goal of a 20% reduction in carbon dioxide (CO2) emissions before 2020.
- 6The estimated cost of the plan over 12 years is approximately $1.3 billion for new electric plant construction and $110 million for natural gas pipeline construction.
- 7PSCo anticipates a rate impact of approximately a 1% annual increase in customer bills over the next ten years.