Plant Decommissioning

Xcel announces retirement plans for remaining Colorado coal plants

Hayden Station would retire by 2028 and Comanche Generating Station in Pueblo would retire by the end of 2030, with reduced operations beginning in 2025.  
Xcel announces retirement plans for remaining Colorado coal plants
(Credit: DOE)

Xcel Energy Colorado has proposed next steps to identify new power generation to replace its retiring coal units, which are set to retire by 2030.

The proposal is the first step in a two-phase regulatory process, which sets the stage for the company to seek new 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 former coal plant communities.

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 would retire by 2028 and Comanche Generating Station in Pueblo would retire by the end of 2030, with reduced operations beginning in 2025. 

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

The company worked with community stakeholders and local officials to evaluate possible energy generation resources which could maximize local investments and economic benefits, support employees and communities impacted by plant retirements, and supports the company’s clean energy goals. Xcel Energy said it has a “solid track record” of making these types of transitions with no layoffs. It touts 23 coal unit closures — the most recent at the end of 2023 — without forced workforce reductions.

“For nearly sixty 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,” said Robert Kenney, President of Xcel Energy-CO.

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

Earlier this year, we reported that 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 report.

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. 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.

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