FACT SHEET: Comanche Power Plant Unit 2 Retirement Extension

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FACT SHEET

Comanche Power Plant Unit 2 Retirement Extension

PUC Proceeding No. 25V-0480E

 

To provide public comment for Proceeding No. 25V-0480E, click here.

 

Dec. 3, 2025 UPDATE:  The Commission approved the variance to extend the retirement date for Comanche 2 to the end of 2026. Additionally, the Commission found that the outage at Comanche 3 was the sole justification for the extension of Comanche 2; ordered substantial monthly reporting and operational limitations consistent with the proposal from Western Resource Advocates, the Conservation Coalition, and the Environmental Justice Coalition.  A written decision is expected soon.

On Nov. 10, 2025 Xcel Energy, together with the Utility Consumer Advocate (UCA), Colorado Energy Office (CEO), and Trial Staff of the Public Utilities Commission (PUC), filed a petition seeking Commission approval to keep Comanche Unit 2 available for up to one additional year after its currently planned retirement on December 31, 2025.

The Comanche coal power plant in Pueblo comprises 3 units. As part of a decade-long resource and clean energy planning process, each unit has a scheduled retirement date approved by the PUC. Unit 1 retired in 2022. Unit 2 is scheduled to retire on Dec. 31, 2025 and Comanche Unit 3 on Jan. 1, 2031.

On Aug. 12, 2025, Unit 3, which is the largest of the units at the plant, experienced an unexpected outage. The plant has remained offline since then. In October, Xcel notified the PUC and the UCA that Unit 3 was extensively damaged and that the Company expects it to remain offline until June 2026. The cause of the outage, the steps necessary to repair it, and the costs are unknown at this time.

The November 2025 petition is a direct response to the unexpected outage of the Comanche Unit 3. Further, while Xcel could address the lost output of Comanche Unit 3 through market purchases, 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 petition sought PUC approval to allow Xcel to operate Comanche Unit 2, if needed, particularly while Comanche Unit 3 is offline but no later than Dec. 31, 2026. Procedurally this means that the PUC would need to grant a variance from its 2018 decision that originally set the Dec. 31, 2025 Unit 2 retirement date.

This petition establishes two phases. First, the Commission will determine whether to accept the proposal to keep Comanche 2 operational after its planned Dec. 31, 2025 retirement date. Then, the petition allows time for the Commission to assess more permanent, long-term resource options.

On or before March 1, 2026, the Commission will receive a report that includes an update on the repair and return to service status of Comanche Unit 3. This report also will include an initial plan to address ongoing needs and operational requirements for Unit 2– with a particular focus on operations of the unit after Unit 3 returns to service.

Next, by June 1, 2026, Xcel will file an application for any additional variances or resource approvals, building on the March report. As part of that filing, Xcel will include its analyses of potential paths forward to ensure affordable and reliable electricity for Colorado ratepayers, taking into consideration all available options and current ongoing planning efforts.

 

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