Last month, Colorado Springs-area lawmakers announced the introduction of legislation aimed at helping utilities struggling to achieve Colorado’s Clean Energy Plan deadlines.
Senate Bill 26-022 is sponsored by Sen. Marc Snyder, Senate Minority Leader Cleave Simpson, House Minority Leader Jarvis Caldwell and Rep. Amy Paschal.
If passed, the bill would grant Colorado Springs Utilities the opportunity to file a new Clean Energy Plan by the end of 2026 and extend the deadline to find affordable and reliable replacement power supplies for the coal-fired unit at the Ray Nixon Power Plant.
Currently, Nixon is mandated by the state to retire at the end of 2029, but Springs Utilities cannot meet this deadline. A mandatory power plant retirement, without reliable, affordable sources of replacement power, will threaten electric reliability and rate stability.
“Utility costs are eating away at the budgets of hardworking families. We need to take action now to prevent further price hikes in our community,” says Rep. Amy Paschal, D-Colorado Springs. “With this bill, we’re striking a delicate balance between the affordability, reliability and renewability of our utilities in Colorado Springs. Our legislation would allow local utility providers like Springs Utilities to modify, but not abandon, their clean energy plans to meet growing demand and prevent significant rate hikes.”
Clean Energy Plan Deadlines
Colorado legislation passed in 2019 requires utilities to reduce greenhouse gas emissions 80% by 2030.
The new legislation proposes extending the deadline for utilities that are unable to meet this deadline so utilities can achieve the long-term goals of the state in a way that protects customers from reliability challenges and rate increases.
Currently, if Springs Utilities cannot achieve the 2030 target, the law mandates that the state force utilities to achieve these reductions, without consideration of the costs paid by electric customers or the impacts on reliability.
Resource Challenges
Springs Utilities filed its Clean Energy Plan in 2021 and has made significant early efforts to achieve the plan’s targets, including the retirement of the former Martin Drake Power Plant, completion of the 175-megawatt (MW) Pike Solar Array and the addition of the Jackson Fuller Energy Storage Project (100 MW).
“The combination of unfavorable market conditions for new renewable energy development, the lack of immediately viable transmission developments in Colorado and the ever-increasing load demands for additional new electricity have created a perfect storm against our ability to achieve Colorado’s goals before the state deadline,” says Springs Utilities CEO Travas Deal.
Important next steps
This April, Springs Utilities will enter the Southwest Power Pool Regional Transmission Organization (RTO). Joining an RTO will give Springs Utilities the ability to access renewable energy resources at substantially lower prices than if we were to acquire these resources ourselves. Another important step will occur later this year when the utility updates its Sustainable Energy Plan.
Finally, citizens and customers may voice their opinion on the proposed legislation in a variety of ways in the coming months, including contacting their legislators.
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