Summary
On March 31, 2021, Xcel Energy's subsidiary, Public Service Company of Colorado (PSCo), filed its 2021 Electric Resource Plan with the Colorado Public Utilities Commission (CPUC). This plan is a significant step towards PSCo's goal of achieving an 80% carbon emissions reduction by 2030. The proposed plan involves accelerating the retirement of several coal-fired power plants, including Comanche Generating Station Unit 3 (from 2070 to 2040) and both units at Hayden Generating Station (Units 1 and 2 significantly earlier than previously scheduled). Furthermore, PSCo intends to convert its Pawnee Generating Station from coal to natural gas by 2028, with associated conversion costs of approximately $50 million. To replace the retiring coal capacity and meet future energy demands, the plan includes substantial investments in renewable energy and storage, such as 2,300 megawatts (MW) of wind power, 1,600 MW of solar power, and 400 MW of energy storage. The plan also proposes the addition of 1,300 MW of flexible dispatchable resources and 1,200 MW of distributed generation solar. The recovery of associated costs is expected to be managed through regulatory mechanisms, including the creation of a regulatory asset for certain coal plant assets and the use of securitization for Comanche 3's remaining costs, with the potential to recover incremental costs via a Clean Energy Plan Rider.
Key Highlights
- 1PSCo files 2021 Electric Resource Plan aiming for an 80% carbon emissions reduction by 2030.
- 2Significant acceleration of coal plant retirements: Comanche Unit 3 from 2070 to 2040, Hayden Units 1 & 2 brought forward to 2028 and 2027 respectively.
- 3Pawnee Generating Station to be converted from coal to natural gas by 2028 at an estimated cost of $50 million.
- 4Plan includes substantial additions of renewable energy: 2,300 MW wind, 1,600 MW solar, and 400 MW energy storage.
- 5Proposes the addition of 1,300 MW flexible dispatchable resources and 1,200 MW distributed solar.
- 6Cost recovery mechanisms proposed include regulatory assets for certain plant assets and securitization for Comanche 3 decommissioning costs.
- 7CPUC decision expected by end of 2021 (Phase I), with resource addition solicitations in 2022 (Phase II).