Xcel Energy is floating a blunt solution to Colorado's looming power crunch: fix its long-troubled Comanche Unit 3 coal plant in Pueblo and possibly keep several aging coal burners online longer than promised. Company officials told regulators this week that repairing Comanche 3 is the fastest way to plug near-term gaps on the grid, and they plan to bring formal options to the Colorado Public Utilities Commission in June, from one-year extensions to scenarios that keep coal generators running through 2030.
Regulators set a timeline
Late last year, the Colorado Public Utilities Commission approved a variance that lets Comanche Unit 2 stay online through the end of 2026 and ordered Xcel to report back on Unit 3 after its August outage. According to the Colorado PUC, the commission expects a formal filing by June 1 spelling out any additional variances or resource approvals Xcel thinks it needs to keep power both reliable and affordable.
Xcel's repair-first pitch and coal-life options
In a March filing, the utility argued that repairing Comanche 3 is the "most viable" way to meet customers' near-term needs. As detailed by The Colorado Sun, Xcel laid out three options that run from brief extensions to a plan that would keep all of its coal units operating through 2030. The company said keeping those plants running would sharply shrink a projected capacity shortfall in 2027 while its slate of solar and battery projects slowly comes online.
Consumer advocates and watchdogs push back
Consumer advocates and environmental groups are not exactly cheering. They argue that Xcel's repair-first framing could shove expensive fixes and higher fuel costs onto customers and play down how quickly renewables and storage could step in. Regulators and watchdogs have stressed that any spending tied to extended coal operations still has to clear the PUC, and critics warn Xcel's strategy could ignite costly legal fights and settlement talks, according to CPR News.
Pueblo's jobs, taxes and political heat
In Pueblo, where Comanche remains a major employer and a critical piece of the local tax base, the stakes are more personal. Reporting from Colorado Politics and a recent Hoodline roundup shows county officials and unions pressing hard for more time, compensation, or concrete replacement plans as the PUC digs into Xcel's proposals.
What happens next
Xcel's June application, followed by PUC proceedings this summer, will decide whether the utility can extend coal operations, move ahead with repairing Comanche 3, or lean more on market purchases while new power projects are built. Those hearings are expected to force regulators to balance grid reliability against Colorado's climate commitments and the risk of shifting high new costs onto ratepayers, according to reporting by The Colorado Sun and the Colorado PUC.
