Public Service Company of Colorado ERP Phase II: Assessment of Clean Energy Alternatives to New Natural Gas Peaker Resources
About this Report
Prepared by Strategen Consulting Inc. for Advanced Energy United, Public Service Company of Colorado ERP Phase II: Assessment of Clean Energy Alternatives to New Natural Gas Peaker Resources assesses the proposed resource plan set forth by Public Service Company of Colorado (known by customers as Xcel Energy) in Phase II of their 2021 Electric Resource Plan (“ERP”), commonly referred to as the 120-Day Report.
In this plan, Xcel Energy takes commendable strides towards decarbonization, proposing an 80% reduction in carbon emissions from 2005 levels by 2030 and retiring all coal plants in the process. However, the proposed plan also includes over 600 MW of new natural gas combustion turbine (“CT”) peaker plants in operation by 2027, long-term investments that will restrict Xcel Energy’s ability to eventually achieve a fully decarbonized system.
Strategen analyzed a portfolio of battery storage, solar, and wind resources from the list of publicly available projects in the 2022 All-Source Request for Proposals (“RFP”), and selected projects sized to exceed the capacity of the proposed 400 MW gas peaker, the largest in Xcel Energy’s plan. The economic analysis found that not only was the modeled clean energy portfolio more economical than the proposed CT but would also provide greater capacity.
This report:
Provides an overview of Xcel's 120-Day Report and a summary of the clean energy benefits included in the IRA.
Details the case study, describing the utility’s proposed natural gas peaker plants, the development of the alternative clean energy portfolio, and the economic analysis performed.
Discusses additional factors that may further impact the planning decision.
Concludes with recommendations for Xcel and the Colorado Public Utilities Commission (“PUC”).
PLEASE FILL OUT THE FORM BELOW TO REVIEW THE REPORT: