Xcel plans new dual-fuel natural gas plant in Alamosa

Xcel Energy says it is planning to build a new “state-of-the-art” dual-fuel natural gas plant in Alamosa to replace two 50-year-old electricity-generating units as part of its Colorado Clean Energy Plan.

“The new units will generate electricity more efficiently and emit nearly 90% less nitrous oxides and 75% less carbon monoxide emissions than the aged 50-year-old units they’re replacing,” Xcel said in a statement to Alamosa Citizen. “The three proposed natural gas plants can also burn clean fuels, like hydrogen, as we look toward a zero-carbon future.”

Xcel said it plans to have the new plant operational by early 2027 following the retirement of its two aging natural gas and oil units around Alamosa. The Colorado Public Utilities Commission still has to approve the proposal.

In a September filing with the Colorado Public Utilities Commission, Xcel said it also has identified the need for $176 million in upgrades to the San Luis Valley Transmission Network. The Public Utilities Commission has pushed Xcel to work on solutions to the San Luis Valley’s limited and challenging transmission capacity.

Xcel in its PUC filings said it has adopted a different approach to mitigating the risk of the Valley losing power as it did two years ago when Xcel cut power in the Valley for a period of hours to address a loss of power generation on its system when a fire broke out in Boulder County. Xcel said it now proactively dispatches Alamosa power generation which helps reduce but not alleviate the load shedding risk during scheduled maintenance outages or force outages.

“However, until an additional transmission line connecting the San Luis Valley system to the broader Colorado transmission grid can be constructed and placed in-service, the unavailability of any one of these two mitigations would increase the risk of voltage collapse in the San Luis Valley,” Xcel said in a 120-day report filed with the CPUC. 

“This risk becomes particularly higher for system operating conditions after twilight when all solar generation within the San Luis Valley ceases production and most load is served by importing power over the two transmission lines. There has been renewed interest exploring and identifying new transmission solutions that would allow for increased exports from the San Luis Valley.”

The transmission upgrades Xcel has identified would improve local reliability and accommodate  the new generation resources, the utility company said. “As you may know, the Valley’s agriculture community is interested in how solar projects would provide a ‘second harvest’ economically, which isn’t possible with our current transmission infrastructure.” said Xcel media relations representative Tyler Bryant.

Xcel’s recent filing to the Colorado Public Utilities Commission generated concern around its language of the retirement of six natural gas plants across the state and replacing those with three new dual fuel natural gas plants, with one in Alamosa. The Colorado Sierra Club began notifying members in the San Luis Valley about Xcel’s proposal filing with the CPUC and the utility company’s plans for “three methane gas plants.”

Xcel responded to questions from Alamosa Citizen to say the new plant for Alamosa would be the dual-fuel natural gas plant that the utility giant says advances its Clean Energy Plan. “Our recently filed Colorado Clean Energy Plan (CEP) proposes nearly doubling our clean energy resources while keeping customer costs low. We also proposed retiring six natural gas plants across the state by 2026 and replacing them with three new, state-of-the-art dual fuel natural gas plants – one of which will replace the units in Alamosa,” Xcel said in its statement to The Citizen.

Separately, Xcel is also planning to replace its 60-year-old transmission line that stretches from Alamosa to Antonito. Xcel earlier indicated that the Antonito transmission line project would happen in 2023, but now said the project has been delayed although still in the works.