Xcel Energy, along with Colorado Gov. Jared Polis’ administration, wants to keep Unit 2 of the coal-fired Comanche Generating Station running a year longer than planned, mainly because of malfunctions at Unit 3.
A petition filed Nov. 10 with the Colorado Public Utilities Commission asks to keep Unit 2 available through 2026, a year past its scheduled retirement date of Dec. 31. The petition was filed by the Colorado Energy Office, the state Office of the Utility Consumer Advocate, PUC trial staff and Xcel Energy subsidiary Public Service Company of Colorado.
The request follows the unexpected outage of Unit 3 that began Aug. 12. Xcel said the unit was extensively damaged and is expected to remain offline until at least June.
“The cause of the outage, the steps necessary to repair it and the costs are unknown at this time,” according to a fact sheet on the Colorado PUC website.
With a nameplate capacity of 750 MW and accredited capacity of 415 MW, Unit 3 is the largest of Comanche’s three units. It is to retire by Jan. 1, 2031. Unit 2 has a nameplate capacity of 335 MW and an accredited capacity of 296 MW, the petition said. The 335-MW Unit 1 retired in 2022.
The coal-fueled steam units are in Pueblo, about 110 miles south of Denver.
Extended Outage
Xcel’s petition to postpone the retirement of Unit 2 “is a direct response to the unexpected outage of the Comanche Unit 3,” the PUC fact sheet said.
But other factors are contributing to the request, the petition said. The peak demand forecast in PSCo territory has increased to about 7,150 MW for summer 2026. A forecast made in 2024 predicted the summer 2026 peak would be about 6,950 MW.
Supply chain and tariff issues are hindering generation and storage projects, the petition added. An updated analysis of accredited capacity showed that PSCo needs more generation and capacity to meet demand.
“The continued operation of Comanche Unit 2 in 2026 is the most cost-effective approach to providing needed electricity for the system,” the petition said.
While market purchases would be one option for replacing the lost output of Unit 3, “such purchases are often expensive and volatile, especially during high-use times, such as winter cold spells, which can lead to gas price spikes,” the PUC fact sheet said.
If the PUC approves a yearlong extension to Unit 2 operations, PSCo would report to the commission by March 1 on the status of Unit 3. The report would discuss short-term resource options and “appropriate operational parameters” for Unit 2, especially after Unit 3 returns to service.
A more detailed report would be filed by June 1, including updated load and resource projections and loss-of-load calculations. The six-month planning period would give PSCo time to propose longer-term resource options, potentially including “consideration of updated retirement dates for Comanche Unit 2 and Comanche Unit 3,” the petition said.
Cost Concerns
Unit 3 has been plagued with problems since operations began in 2010. From mid-2010 through 2020, the unit averaged 91.5 outage days a year, according to a March 2021 report from the PUC. A 2020 outage lasted much of that year and extended into 2021.
“Plagued by failures and outages, Comanche 3 has been an albatross around the neck of Xcel ratepayers for more than a decade,” Erin Overturf, clean energy director at Western Resource Advocates, said in response to PSCo’s petition. “This request to delay the long-planned retirement of Comanche 2 will lead to increased costs for utility customers at a time when people are already economically struggling.”
The Sierra Club said in a statement that any decision to keep a coal plant running for reliability reasons “must be strictly monitored and narrowly tailored to avoid more unnecessary costs and pollution.”
“The administration and Xcel’s proposal would guarantee only one thing: Comanche 2 will run for another year, which means more air pollution in Pueblo and higher electricity bills for everyone,” said Margaret Kran-Annexstein, director of the Sierra Club’s Colorado chapter.
The PUC approved early retirement dates for Comanche Units 1 and 2 in 2018. Xcel announced in 2022 its plans to exit from coal-fired power plants by the end of 2030 as part of its clean energy transition.
The Trump administration has had other ideas about coal plants set to retire. In late May, the Department of Energy issued an emergency order to reverse the impending retirement of the J.H. Campbell coal plant in Michigan. The order directed the plant to remain ready to operate because of a shortage of electricity and capacity to generate electricity.
DOE in August ordered Campbell to remain available through Nov. 19. In an Oct. 30 filing, plant owner Consumers Energy said Campbell had racked up $80 million in net costs since late May staying online. (See J.H. Campbell Tab Rises to $80M on DOE’s Stay Open Orders.)

