As demolition efforts on the downtown Martin Drake Power Plant continue to progress, it has understandably reignited concerns about future energy costs and system reliability prompting calls for us to fight state regulators to keep local coal-fired power plants in operation.
Although we’re a community-owned utility, we have no immunity from state mandates. There is also no scenario where coal-fired plants can remain in operation in Colorado past 2030, and this week’s news from Governor Jared Polis’ office clearly points to why.
On Monday, Governor Polis released an updated “Greenhouse Gas Pollution Reduction Roadmap 2.” The plan includes “a long list” of greenhouse gas reduction strategies, to include electric vehicle subsidies, increased regulations on oil and gas production and streamlined approvals for clean energy projects such as solar and wind farms.
Even before this update, Colorado was already one of the more assertive states in passing regulatory mandates intended to reduce carbon emissions and improve air quality.
It was these earlier emissions mandates passed in 2019 that served as major drivers for our decision to close the Martin Drake Power Plant in 2022 and our intent to close the Ray Nixon Power Plant by 2030. There was no way to keep these coal-fired plants in operation long-term and still meet the evolving air quality standards of the last five years, avoid costly fines and best manage rates.
The Governor’s report did point out several positives, such as how the state’s energy providers have successfully complied with or surpassed emissions reductions so far. This includes Colorado Springs Utilities as we’re well on our way to an 80% reduction in carbon emissions by 2030.
With one-party control in the Colorado legislature and influential environmental voices, this week’s update is an indication that the state will continue to place pressure on a variety of industries – including energy providers like us – to further reduce carbon emissions, discontinue the use of fossil fuels like coal and embrace more renewable energy.
As an example of the challenges that remain, the roadmap now calls for 100% clean electric generation by 2040. While well-intentioned, we believe this would place unprecedented financial burdens on customers, while jeopardizing service reliability for our community and military installations. For these reasons, it is not a direction we support, and we will do everything possible to change this expectation.
Despite the ambitious nature of the Governor’s plan, some environmental advocates believe it is not aggressive enough. A coalition that includes Conservation Colorado, Natural Resources Defense Council and the Colorado Sierra Club released a statement on Monday, that stated, in part:
“Now is not the time to be content with only making it most of the way to our climate targets. Colorado urgently needs a policy agenda calibrated to achieve or beat our climate targets in order to bring more energy opportunities to Coloradans while protecting them from climate harm.”
While we understand this week’s news will be received differently based on your individual perspective, it is a reality that we must adapt to as a Colorado energy provider. With the state’s one-party political landscape, opposition only goes so far.
That is why our Sustainable Energy Plan (SEP) – formally adopted in 2020 with help from many of you – emphasizes investments in a reliable and resilient electric grid; the ongoing use of natural gas-based generation to provide price and operational stability; new investments in a diverse mix of energy sources; and a careful transition to more renewable energy.
We understand why you may be concerned about the future of your energy services and the price you pay for those services. So, we are committed to navigating the challenges ahead with a commitment to cost management, system reliability and the development of tools and rate options to help you use energy resources wisely and manage your bill.