Xcel Energy Takes Step To Replace Remaining Coal Plants With New Energy Generation

Company Will Continue ­Cutting Carbon Emissions, Support ­Employee ­Transitions, And Local Communities With Investment And Economic Development

Xcel Energy-Colorado proposed next steps to identify new power generation to replace its retiring coal units and meet customers’ energy needs for the coming years — while supporting the company’s workforce and communities it serves.

“Today’s proposal represents an important step in meeting our shared clean energy objectives. We are committed to helping our employees and the communities where these plants are located as we continue to responsibly move away from coal,” said Robert Kenney, President of Xcel Energy-CO. “Early coal plant closures impact our employees and affect local economies’ jobs and tax base, and as every community is unique, each transition requires special attention and consideration.”

Xcel Energy-CO’s Clean Energy Plan — approved by the Colorado Public Utilities Commission — includes the retirement of Xcel Energy’s last remaining coal generation plants in Hayden and Pueblo. Hayden Station will retire by 2028, and Comanche Generating Station in Pueblo will retire by the end of 2030 with reduced operations beginning in 2025.

Today’s proposal is the first step in a two-phase regulatory process, which sets the stage for the company to seek new power generation project bids, likely beginning by the end of 2025.

The proposal, called a Just Transition Solicitation, proposes additional value for locating future new power generation in Hayden and Pueblo as part of their commitment to the communities that host coal plants today.

The new generation will support the company’s 2050 carbon-free goal by targeting continued emissions reduction while continuing to ensure reliability for customers. As of 2023, Xcel Energy has cut carbon emissions by 53% from 2005 levels in Colorado and plans to achieve nearly 85% reductions by 2030 with unprecedented levels of new solar, battery storage and wind as part of their Clean Energy Plan.

The company worked closely with community stakeholders and local officials to evaluate possible energy generation re­sources which may maximize local invest­ments and economic benefits, support em­ployees and communities impacted by plant retirements and supports the company’s clean energy goals. Xcel Energy has a solid track record of making these types of changes with no layoffs. They’ve closed 23 coal units — the most recent at the end of 2023 — without forced workforce reductions.

“For nearly 60 years, the dedicated employees at Hayden Station and Comanche Generation Station have provided reliable and safe service for our Colorado customers and communities. We are committed to transitioning our employees into new roles as needed, something we’ve done successfully at other Xcel Energy plants,” added Kenney.

The Colorado Public Utilities Commis­sion will ultimately decide whether to approve the proposed Just Transition Solicitation portfolio, likely in the fall of 2026, based on the energy project bids the company receives as part of the bid solicitation.