The Colorado Public Utilities Commission (PUC) has given initial approval to Xcel Energy’s long-range generation resource plan, including proposals to replace a pair of coal-fired power plants with a natural gas facility and to add 1,050 MW of renewable generation.

When it issued its generation resource plan last year, Xcel said it was aligning its efforts to meet the goals of Colorado’s Climate Action Plan, which calls for major electric utilities to cut greenhouse gas (GHG) emissions 20% by 2020 and for smaller utilities to make similar efforts (see Daily GPI, Nov. 7, 2007). The state’s plan also would tap concentrated solar power, geothermal energy and hydropower. The overall goal of the plan is to reduce GHG emissions to levels 20% below those of 2005 by 2020 and to 80% below 2005 levels by 2050.

Xcel’s Colorado Resource Plan calls for the replacement of two aging coal-fired power plants — the Arapahoe Generating Station in Denver and the Cameo Generating Station near Grand Junction — with a more efficient natural gas facility. The Cameo plant could close as soon as 2010 and the Arapahoe plant in 2012. The two plants currently provide 229 MW. The plan also calls for a reduction of current electricity demand by 694 MW through enhanced energy efficiency programs and the addition of 1,050 MW of renewable generation by 2015. The renewable generation plans include 800 MW from wind farms and the eventual development of a 200 MW solar facility. Xcel expects to produce about 20% of its energy sales from renewable sources by 2016.

The resource plan would help reduce Xcel’s GHG emissions at least 10% by 2017, when compared with 2005 levels, the company said. Xcel has said it will file an expedited resource plan next year that will provide options and make recommendations to put the company on a path to reduce its GHG emissions by up to 20% by 2020.

The PUC’s verbal approval of the plan is expected to be issued in a written decision next month, the Denver Post reported Wednesday.

©Copyright 2008Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.