Xcel Energy, along with the Utility Consumer Advocate (UCA), Colorado Energy Office (CEO), and Trial Staff of the Public Utilities Commission (PUC), has submitted a petition to the Colorado Public Utilities Commission requesting approval to extend the operation of Comanche Power Plant Unit 2 for up to one year beyond its scheduled retirement date of December 31, 2025.
The Comanche coal power plant in Pueblo consists of three units. Unit 1 was retired in 2022, Unit 2 is set for retirement at the end of 2025, and Unit 3 is scheduled to retire on January 1, 2031. On August 12, 2025, an unexpected outage occurred at Unit 3, which is the largest unit at the facility. Since then, the plant has remained offline. In October, Xcel informed both the PUC and UCA that Unit 3 had suffered extensive damage and is expected to remain out of service until June 2026. The specific cause of the outage and repair costs are not yet known.
According to the petition filed in November, this request comes as a direct response to Unit 3’s outage. The petition states: “Increasing peak load growth across Xcel’s service territory, supply chain and geopolitical/macroeconomic impacts, and new forecasts of future demand have made the unexpected and long term outage of Colorado’s largest coal plant less tenable when we look at potential resource needs in the summer of 2026.” It also notes that while market purchases could compensate for lost output from Unit 3, these are often costly and volatile during periods of high demand.
The filing asks for permission to operate Comanche Unit 2 if necessary while Unit 3 remains offline but no later than December 31, 2026. This would require a variance from a previous PUC decision made in 2018 that set Unit 2’s retirement date.
Once received by the PUC, commissioners will begin a proceeding and establish a schedule for review. The process is expected to take about thirty days but may vary depending on commission deliberations.
The petition outlines two phases for consideration. First, the commission will decide whether to approve continued operation of Comanche Unit 2 past its planned retirement date. Second, it allows time for evaluation of more permanent resource solutions.
By March 1, 2026, commissioners will receive a report updating them on repairs and return-to-service status for Comanche Unit 3. This report will also provide an initial plan addressing ongoing needs related to operating Unit 2 after Unit 3 resumes service.
Additionally, by June 1, 2026, Xcel plans to submit an application for any further variances or resource approvals based on findings from the March report. This submission will include analyses aimed at ensuring affordable and reliable electricity supply for Colorado customers while considering all available options.
