Colorado approves first new coal-fired power plant in state in 23 years
DENVER (The Associated Press) - Dec 18 - By STEVEN K. PAULSON Associated Press Writer
State regulators on Friday approved Colorado's first coal-fired power plant in 23 years. The $1.35 billion facility is designed to generate 750 megawatts of electricity a day -- enough for 750,000 customers.
The Public Utilities Commission approved the agreement 2-1. If an air quality permit is approved next year by state health officials, construction on the plant could begin in 2006.
"It's a win-win-win," said Xcel vice president Fred Stoffel, referring to environmentalists, the company and ratepayers.
The approval came despite questions over a deal between community groups and the utility that critics say could cost most consumers more in the long run.
Under the agreement, Xcel must spend up to $196 million to reduce the demand for power at peak times by 320 megawatts. The reductions would be achieved by offering lower rates to customers who try to save electricity by installing fluorescent bulbs, energy-saving appliances and other cost-saving methods.
Opponents said only about 4 percent of the company's 1.7 million customers can take advantage of the savings.
The Minneapolis-based utility says the plant is needed to meet the growing demand for electricity in Colorado because residents are using 15 percent more energy than they did a decade ago.
Utilities have touted cleaner-burning natural gas as an answer to pollution problems, but soaring gas prices have prompted many to turn again to coal.
Critics have said the plant will contribute to the greenhouse gases blamed for global warming.
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On the Net:
Xcel Energy: http://www.xcelenergy.com
Colorado Public Utilities Commission: http://www.dora.state.co.us/puc