Committee calls for Xcel Energy to replace closing Colorado coal plant with advanced nuclear
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Committee calls for Xcel Energy to replace closing Colorado coal plant with advanced nuclear

A Colorado advisory committee created by Xcel Energy recommended the utility consider replacing the Comanche Station Unit 3 coal plant with cleaner options, namely advanced nuclear.

The Pueblo Innovative Energy Solutions Advisory Committee (PIESAC) was assembled to study and make recommendations regarding future plans at Comanche Generating Station, located in Pueblo, Colorado. The 11-member committee released its recommendations in a new report.

The recommendations are expected to inform how Xcel Energy replaces Comanche 3 as part of its next resource plan, expected to be filed in June 2024. That proposal will include a summary of bids submitted by developers to supply generation by the end of 2031.

After reviewing the clean energy technologies that could be available by 2031, the committee concluded that the scope should be expanded to 2034, citing the lack of resources available by 2031 that could also provide a satisfactory amount of jobs. Comanche 3 is set to close in 2031.

PIESAC recommended top replacement options of “advanced nuclear” such as small modular reactors (SMRs), or a new combined cycle gas plant with carbon capture. But the committee clearly favored the SMR option, citing more jobs and tax benefits.

The committee said a combined cycle plant with carbon capture would generate 20 to 25 jobs, along with tax payments of approximately $16.5 million a year. But an advanced nuclear plant could potentially provide 200 to 300 jobs and tax payments of $95.29 million annually.

“Of all of the technologies that we studied, only advanced nuclear generation will make Pueblo whole and also provide a path to prosperity,” the committee said in the report.

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The report `also noted the potential economic impact of closing the coal plant. Over $15 million of the $25 million in taxes paid by Xcel Energy to Pueblo annually comes from Comanche 3. The committee estimated that closing Comanche 3 in 2031 instead of the originally planned date of 2070 will result in $845 million in lost taxes for Pueblo.

Xcel’s Clean Energy Plan, approved by the Colorado Public Utilities Commission in 2022, aims to reduce carbon emissions by nearly 85% by 2030 compared to 2005 levels, and to provide Colorado customers with electricity from 80% renewable sources. To meet these goals, Xcel has planned the retirement of several coal plants, including Comanche Station Unit 3.

The report estimates that closing the Comanche 3 plant will result in a 36.8% reduction in Xcel’s emissions and a 20.5% reduction of statewide emissions from the electric sector as compared to 2005 levels.

An Xcel Energy spokesperson sent us a statement which reads in part: “We’ll continue studying advanced nuclear technology as it matures and determine if it can provide clean, reliable and affordable energy for customers in all eight of our states, but especially in Pueblo, Colorado.” 

Comanche Station sprawls roughly 695 acres and includes three coal generation units. 460 acres are currently being used and 220 are undeveloped, the report said, with 12 acres being used for a long-duration battery storage project.

Comanche 1 closed in 2022 and Comanche 2 is scheduled to close in 2025. The Comanche Station has existing assets that could be re-used for later generation, including a rail network, transmission capacity and injection, and a take or pay water contract with the Pueblo Board of Waterworks for 13,000 acre feet per year through 2060.

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