Utility says it is still required to retire Nixon plant by end of 2029, but continues to appeal to state and federal governments for delay
Big Pivots asked if Colorado Springs Utilities wished to respond to the study commissioned by the Sierra Club. CSU provided this response:
As of today, we are still required by the State of Colorado to decommission the coal-fired portion of the Ray Nixon Power Plant by the end of 2029.
Planning our transition toward a more sustainable future must be done in a way that allows for future growth in our community, maintains affordable rates, and ensures industry-leading reliability.
Tax credits for replacement resources
Federal tax credits for wind and solar projects are key factors in Sierra Club’s cost analysis. While these credits can reduce project costs, Colorado Springs Utilities may only see a portion of the savings as the developers are the ones who receive the tax benefit and pass along only what savings they wish.
The inflated bids we received for new wind and solar projects in 2024 included federal tax credits. Our biggest challenge is that we lack the transmission network to access many of the most financially attractive projects.
Comparable direct-pay incentives for municipal utilities were included in the Inflation Reduction Act; however, they are subject to strict requirements that diminished their actual value when compared to the existing tax credits available to for-profit developers.
Acting as a developer on these types of projects is also not an option over the next four years because as a four-service utility with major capital projects across the enterprise, we would exceed our debt capacity.
Renewable and nuclear energy
We will continue to pursue renewable options and have made progress to date in achieving goals outlined in our Sustainable Energy Plan, 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). Looking to the future, we will add 10 natural gas generating units and 100 MW of battery storage at our new Horizon Utility Campus.
We still need reliable, cost-effective and environmentally friendly base load that is available 24/7 when the wind doesn’t blow and the sun isn’t shining. While we are exploring options such as nuclear energy, we are not yet committed to any course of action.
Next steps
While we hear many different perspectives on the best path forward, our priority is finding solutions that consider all factors.
Accordingly, the next steps we take in this transition are critical to ensure we protect affordability in our growing community. Perhaps the most important step in our efforts will happen in April 2026, when we enter the Southwest Power Pool Regional Transmission Organization (RTO). Joining an RTO will give us 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 in 2026 when we update our Sustainable Energy Plan, to help us chart an energy transition for our community that is smart, affordable, and reliable. This plan will take a bold look at assessing advanced technologies that could enable us to meet our emissions targets while protecting reliability and ensuring long-term rate stability.
However, these efforts will not result in solutions before 2030, and we need more time and flexibility from the State of Colorado to chart a more reliable and affordable path to achieve Colorado’s goals.
- Was this climate alarmism? - December 18, 2025
- Another step on the Ark River - December 18, 2025
- A conversation with Jonathan Overpeck - December 17, 2025
“We still need reliable, cost-effective and environmentally friendly base load that is available 24/7 when the wind doesn’t blow and the sun isn’t shining.”
NO, CSU, YOU DON’T!!!!
You need “backup,” “firming,” whatever you want to call it. “Baseload” in Colorado is counterproductive. You need storage with grid-forming inverters or synchronous condensers if being conservative. And a bit of gas backup, which you have. Work with the IPPs to beat the prices down and if needed to leg and PUC to get reasonable prices on transmission. Abundant sun and wind are out east not too far. With storage and backup and engines-off operation, that’s it.