Utility Faces Opposition to New Pueblo

Utility Faces Opposition to New Pueblo, Colo., Coal-Fired Plant

By Jeff Tucker, The Pueblo Chieftain, Colo. -- April 4

A spokesman for Xcel Energy said the company isn't worried about the opposition to its plans for a new 750-megawatt, coal-fired plant in Pueblo and will watch the early portions of a process play itself out.

The utility's spokesman Steve Roalstad didn't seem terribly upset over a deluge of e-mails that were sent to the Public Utilities Commission a month and a half ago when Xcel made the announcement that it was considering building a new plant somewhere in Colorado.

Justin Dawe, energy associate for Environment Colorado, a sister group to Colorado Public Interest Research Group, said the groups sent out an e-mail alert when the Xcel announcement was first made.

Public Utilities Commission spokesman Terry Bote, said most, if not all of the 1,100 e-mails the commission received after the announcement were form e-mails from CoPIRG, the state branch of a national environmental lobby started decades ago by Ralph Nader.

"We did get a bunch of e-mails, probably a month to six weeks ago," Bote said. "I think what generated them was the media coverage. . . . After the stories come out, CoPIRG sent out an e-mail to all of its members."

But Roalstad said these things are expected and just part of what will be a complex public process.

"First of all, we honestly and earnestly are encouraging people to become involved in the process," he said. "This is just part of getting involved in that process. Certainly we will be making our own recommendations as we will when we officially recommend a coal fired plant."

Dawe said the groups are encouraging a different idea for Xcel.

"Basically, we are urging Xcel to think of better solutions for Pueblo," said Dawe, who is also working with local representatives of the Sierra Growth and Pueblo's Citizens for Smart Growth. He said that would mean more jobs for Pueblo in the long run.

"We're urging Xcel to build a series of smaller, cleaner plants that use a dry cooling system," he said. "That would mean lower water usage and would draw out the employment process over the next 8 or 10 years rather than hiring everybody all at once."

Roalstad said Xcel looked into the technology, but ultimately installing such a system would be too expensive. He said that there are currently only two other plants in the country experimenting with the technology, which contributes to its high cost.

Xcel is compelled by the PUC to present the lowest cost option for its plant.

Roalstad said his company will take steps to reduce the emissions from the new plant by installing state-of-the-art technology.

"What we are actually hoping to do is add a requirement to the existing facility so that with the expansion, we would see no net increase of sulfur dioxide and nitrogen dioxide emissions," Roalstad said.

Dawe also said his group is concerned about the use of water at the plant.

Roalstad said the plant would normally use about 9,000 acre-feet of water a year, but the company wants to design a low water system that would use about half that much.

Dawe criticizes the construction of a plant that he claims would largely ship energy to Denver and other metropolitan areas.

Roalstad didn't deny that power generated at the new plant would be sold to other communities, but added that Pueblo's Comanche station already does that.

It is expected that the construction of the $1.3 billion power plant would create 1,000 construction jobs and at least another 40 permanent jobs for Xcel.

Roalstad also added that Xcel was contributing $13 million to the city of Pueblo to help its economic development.

But the Colorado Independent Energy Association also feels that it could provide the lowest cost option for Xcel by selling the company its power.

The association has expressed disappointment that Xcel has threatened to ask for a waiver of the requirement to open the construction of its plant to a public bidding process.

Dawe said that move suggests that Xcel is committed to building a coal-fire plant which, he believes, will ultimately lead to higher rates.

Roalstad said any company submitting a plan to build a plant generating more than 250 watts must file for a waiver, and that Xcel is simply following the process.

Finally, Dawe said his group believes that since the Comanche plant was issued a notice in 2002 from the Environmental Protection Agency for violating air permits, that Xcel "should focus on cleaning up its existing plant" rather than rolling the operations into a plan to build a new one.

"He is working under a false presumption," said Roalstad. "We did receive notice of a violation, but it has nothing to do with the generating plant."

Roalstad said the EPA issued Comanche a violation after the local plant did some "routine" emissions control work.

The EPA installed a new provision that required plants to "have all sorts of emission control devices" installed when a plant alters the capacity of its output.

So far, no action has been taken by the EPA on Comanche.

"At this point in time, it remains a notice of violation and they haven't taken any action," Roalstad said. "If (the EPA) does take action we will fight it because we don't believe there was any violation."

It is expected that Xcel Energy will file its proposal with the PUC by the end of this month.

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